Analysts Raise UiPath Price Targets Post-Earnings

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Watch Analysts Raise UiPath Price Targets Post-Earnings - Bloomberg on Dailymotion

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00:00An application software company, robotics, automation software, remind everybody and

00:04introduce people who don't know exactly where you play in the industry. Who are your customers

00:09and where do you fit? Yeah, thanks so much for having me. For those who don't know UiPath,

00:15UiPath is an AI-powered platform that helps businesses and enterprises transform their

00:22enterprise processes and organizations to yield productivity and ROI. We do so by emulating what

00:29humans do through both deterministic rules-based automation and agentic automation, using agents

00:36and AI to automate a lot of those tasks. We own more than half of the Fortune 500 companies in the

00:44world. We have 10,800 customers that span industries from financial services to healthcare to the U.S.

00:52federal government, and we operate in overall over 100 countries. The reason for that breadth is

00:58because we are very relevant to what every enterprise of almost any scale does in terms

01:04of taking away mundane work to yield for a more productive workforce. So wait, so do me a favor,

01:10just because I'm stupid and it's Friday. So tell me, give me, I'm okay, I'm really okay with it.

01:15Give me just in 30 seconds a quick example of a company that you work with and what you do for them.

01:20Yeah, so Carol, Voya Financial, just as an example, is a large-scale bank in the United States. We're working

01:30with them to automate their everything from HR operations, such as employee onboarding, to financial

01:36processes. If you step back and look at almost any enterprise that's there, think about something as mundane

01:44as procure to pay, where you're receiving invoices, entering them into systems, then moving that data

01:50that you're entering into systems, doing reconciliations, that work can be done by software

01:56and does not need to be done for the hours that people are putting into it. You take something like

02:03that as a simple example, but then you can go and you look at a Fortune 10 healthcare company

02:07that we work with. All of their claims processing gets touched by our software, entering data,

02:15analyzing and understanding data, and with Agentic, providing reasoning to allow for decisions to be

02:21made. Those are two examples. Just wondering, Ashim, in your finance organization, are you using it

02:29there too? Huge. You know, when you look at UiPath, UiPath is scaled from almost zero revenue in

02:372017 to over $1.8 billion of ARR to where we are today. Within our finance department, but across

02:47our enterprises, we employ our own software. So we have not had to add people net-net to our company

02:54in many years. We've been able to achieve that scale both geographically as well as from a revenue

03:00perspective using automation. And that's not unique to us. That is something that a lot of our customers

03:06benefit from. Okay. So we all sat up, Ashim, a little bit straighter because there is so much

03:11of a narrative and conversation going around AI and what it's going to do to the labor market.

03:16It sounds like you haven't had to hire people. Reality check, are a lot of companies going to be

03:22able to not hire people or even let people go because of what AI or Agentic AI is going to be able

03:27to do for them? Yeah. Let me make a small nuance here. We've hired people just in the places that

03:34provide higher return in terms of revenue or higher pieces of innovation. So in our minds,

03:42companies should be hiring and people will continuing to work, but it's going to be working

03:47in higher skilled areas and areas that have a higher return to the enterprise, whether that is

03:56working interactively with customers or whether that is on pace for designing the next feat of

04:02innovation to bring to the market over the next couple of years. So this isn't about hiring less.

04:08It's about hiring where you want to. And all of that translates to ROI.

04:14Ashim, just wondering, we've seen a lot of concerns in recent weeks, specifically in November,

04:21among investors around AI and whether what we're currently seeing is leading us into

04:25a bubble at some point. If you look at your bookings for next year, like what does that look

04:31like? And what's the feedback that you're getting from clients if they're thinking about their spending

04:36plans for next year? Yeah, look, I think what our customers feel is they feel a variable macroeconomic

04:42environment, I think like all of us do. And, you know, a lot of times what we all discuss in our

04:48various forums, whether that's formal or informal, what I can tell you is what's encouraging is

04:53customers want to spend. The key area is they're not going to spend unless they see ROI. So as we're

05:00looking at our demand funnel, we launched our agentic platform, bringing agents and AI infused

05:06automations to enterprises earlier this year. You know, if you go back to maybe 2016, 2017, 2018,

05:13there were innovation funds that you could go and say, hey, let me go and spend $2 million and just

05:18experiment. I think experimental funds are moving down, but the funds that, but there's a lot of

05:25funds available that for projects and areas that yield ROI. So once we launched our platform, the

05:32demand for proof of concepts and pilots really were super encouraged by. Even in the first five to six

05:39months, more than 700 of our 10,800 customers, they are, these companies are going and building

05:45agents on our platform and figuring out where are the highest ROI areas. So there's a lot of activity

05:51and I think funding will follow activity so long as that there is ROI that is there. And that's what

05:57gives us a lot of confidence and optimism as we look into the years ahead for UiPath.

06:01Ashin, very briefly, very interested in the work that you do for governments in the U.S. and around the

06:05world. How do you characterize that work? Like what do you do for them? And also how big of a

06:10business is that for UiPath? Yeah. So the public sector is double, it's greater than 10% of our

06:17revenue base just globally. You know, that was as of two years ago. We haven't disclosed figures since

06:22them, but it's, you know, I would imagine it's in a similar vein here. I can represent that.

06:27When you look at the U.S. government, it's everything from, you know, from areas of agencies that are in

06:34high paper network. They use our software to actually scan, read, and extract data so they

06:40can process things fast. There are partners that we work with with the government that are taking

06:46papers that are sitting in caves and in parking lots, trailers and trailers of them and digitizing

06:53them as a part of their digital transformation. Getting audit compliance across the government,

06:58which involves retrieving documents and processing different areas for auditors and business

07:04teams, that is a key area that we can look at. But we're across every agency that is there.

07:09What I'd say is we've gotten super close to the government over these last years. We've

07:14continued to have a great relationship with them. And just like enterprises, what's encouraging is

07:19they're looking for high ROI, high impact, transformative areas to deploy our software.

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