UiPath Post Earnings Analysis
Chart done on daily timeframe. UiPath had a pleasant surprise for investors this earnings season as the company reported a 46% quarterly earnings surprise. The technology company’s earnings per share came in at $.22 per share, far above the $.15 estimates. This is the fourth quarter in a row where the company beats EPS, which could explain why the stock has nearly doubled in the last 12 months. Despite the improving earnings and bullish activity, the stock is nowhere near its IPO highs of 90.00 from 2021, but that’s the case for many stocks that IPO’d during that period. Companies that went public in 2020 and 2021 had extremely inflated numbers and so they were in desperate need of a correction, which is exactly what happened to Path. Investors needed to see more evidence of this company being worthy of a buy before fully committing to it. Now that we’ve gotten a few years of the company’s performance, we can finally get an idea of how well they’re performing.
Revenue growth has been notable, from 336M in 2019 to 1.31B in 2023. Net income has also moved in the right direction, but it is still operated at a negative for the full year of 2023. Q1 of 2024 in specific came in at a positive net income, which could foreshadow a good year for PATH. The company’s performance is impressive, so there may be an opportunity for more upside in the coming quarter, but investors had a knee-jerk reaction to them missing guidance expectations. We’ve highlighted some levels on the chart to use as guidance.