UiPath Inc. (NYSE:PATH) Q4 2023 Earnings Call Transcript

So I would say, our European team is coming along very nicely. We are cautiously optimistic about the opportunity in that space. In the Asia-Pacific market, we have made some adjustments according to what we said at Investor Day. Lee is on Board now, probably, Lee Hawksley is on Board about three months. We have got some new leadership in India, a new leadership in Southeast Asia. And I would say, we are at the very beginning of that, but cautiously optimistic that we can take the work that we have done in Europe and in North America, and execute pretty well in Asia-Pacific as well.

Matthew Hedberg: Got it. Thank you. That’s super helpful. And then, Ashim, for you, you guys have a diversified base of users. But can you give us a rough sense for exposure to both sort of the tech and financial services vertical?

Ashim Gupta: Yeah. I mean on the banking financial vertical is a strong vertical for us. We have talked about — we have given some of those figures, historically, we don’t disclose them on a quarterly basis, but they are one of our largest segments, financials and health care. Just to qualify a little bit, when we look at the exposure, like, it’s kind of we have evaluated it. A lot of our major customers are in the large institutions, like, JPMorgan, like, some of the major banks that are out there. And so, with that, we feel really good about our position of where we are there right now.

Rob Enslin: I would just add to the financial services. I mean, when you look at the opportunity to have drive efficiencies in financial services I think we had a tremendous amount of value in that. We see our solution sets like Document Understanding having huge benefits in healthcare and in insurance because of the straight through document processing that we can achieve and the results. With our Northstar value proposal is having a difference in financial services, insurance and healthcare.

Operator: Thank you. Our next question comes from Bryan Bergin with TD Cowen. Please state your question.

Bryan Bergin: Hi, guys. Good afternoon. Thank you. I wanted to follow-up on margin first. So can you just bridge what you did in 4Q here, the strong 20% plus value planned out for fiscal 2024 and specifically, if you can maybe talk about the areas of cost efficiency that you benefited most from here in 4Q? And then any of those benefits that don’t recur initially in 2024 or areas that you are leaning back in to invest?

Ashim Gupta: Yeah. I think the — I will always emphasize. I think our operating margin starts with delivering in the topline. which we have all of our teams focused and we have this market in front of us that allows us to deliver numbers like the revenue number we did. Bryan, in terms of the specific cost areas, I — frankly, we had cost productivity across the Board and I really want to just emphasize. I think from product and engineering to G&A to sales and marketing, every team has contributed in the right way. Most of what we have seen, like everything that we have realized, we look at that as something that is recurring. There are some — always some timing elements that go into a quarter such as sales commissions accruals, those types of things that have some accounting associated with it in terms of seasonality.

But all of the efficiencies that we have seen in terms of rationalizing organizations, streamlining organizations, finding productivity and discretionary costs. Those are things we see as sustainable as we go forward and that’s why we feel really good and confident about the 350 basis points that we are expanding the year even off of a higher beat in the fourth quarter from where we ended.

Bryan Bergin: Okay. And then on the product, Daniel, can you talk about client appetite that you have seen around discovery products and I heard a reference customer there, I think, around Communications Mining. So I am curious how you would compare the uptake of that product versus what you saw in the past around Task Mining and Process Mining when you brought those to market?