Q4 2024 UiPath Inc Earnings Call

Greetings and welcome to the U I path fourth quarter fiscal year 'twenty 'twenty four earnings conference call.

Operator: Greetings and welcome to the UiPath 4th Quarter Fiscal Year 2024 Earnings Conference. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.

At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded.

Operator: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kelsey Turcotte, Senior Vice President of Investment Relief. Thank you, Kelsey.

It is now my pleasure to introduce your host Kelsey Turcotte Senior Vice President of Investor Relations. Thank you Kelsey you may begin.

Kelsey Doherty Turcotte: You may begin. Great, thank you. Good afternoon, and thank you for joining us today to review UiPath's fourth quarter and full year fiscal 2024 financial results, which we announced in our earnings press release issued after the close of the market today. On the call with me are Rob Enslin, Chief Executive Officer, and Ashim Gupta, Chief Financial Officer. They will deliver our prepared comments and answer questions. Also on the call is Daniel Dines, Uipath co-founder and chief innovation officer. So we'll be available.

Great. Thank you.

Good afternoon, and thank you for joining us today to review you are past fourth quarter and full year fiscal 2024 financial results, which we announced in our earnings press release issued after the close of the market today on the call with me are Rob Enslin, Chief Executive Officer, and ashamed Gupta, Chief Financial Officer, They will deliver our prepared comments and <unk>.

Answer a question also on the call is Daniel Ddos Lighthouse co founder and Chief Innovation Officer, who will be available for questions. Rob I'll start. The discussion then turn the call over to Ashish, who will review our results and provide guidance.

Kelsey Doherty Turcotte: Raab will start the discussion, then turn the call over to Ashim, who will review our results and provide guidance. Then we will open the call. Our news, press release, and financial supplemental materials are posted on the UiPath Investor Relations website, ir.uipath.gov. We will be discussing non-GAAP metrics on today's call. This afternoon's call includes four forward-looking statements about our ability to drive growth and operations and to grow our platform, as well as our financial guidance for the first fiscal quarter and full fiscal year 2025. However, actual results may differ materially from those expressed in the forward-looking statements due to many factors, and therefore investors should not place undue reliance on them for a discussion of the material risks and uncertainties that could affect our actual results.

Open the call for questions.

Our earnings press release and financial supplemental materials are posted on the you Ipass Investor Relations website, IR Dot you Ipass Dot com.

Materials include GAAP to non-GAAP reconciliation, we will be discussing non-GAAP metrics on today's call. This afternoon's call includes forward looking statements are about our ability to drive growth and operational efficiency and to grow our platform as well as our financial guidance for the first fiscal quarter and full fiscal year 2025.

Actual results may differ materially from those expressed in the forward looking statements due to many factors and therefore investors should not place undue reliance on these statements.

We're a discussion of material risks and uncertainties that could affect our actual results. Please refer to our annual report on Form 10-K for the year ended January 31st 2023, and our subsequent reports filed with the SEC, including our annual report on Form 10-K for the year ended January 31st.

Kelsey Doherty Turcotte: Please refer to our annual report on Form 10-K for the year ended January 31, 2020, and our subsequent report filed with the FBI. Including our annual report on Fund Form 10-K for the year ended January 31, to be filed with the FBI. Forward-looking statements made on this call reflect our views as of today. We undertake no...

'twenty 'twenty four to be filed with the SEC.

Looking statements made on this call reflect our views as of today, we undertake no obligation to update them I would like to highlight that this webcast is being accompanied by slides, we will post the slides and a copy of our prepared comments to our Investor Relations website immediately following the conclusion of this call. In addition, please note that all <unk>.

Kelsey Doherty Turcotte: I would like to highlight that this webcast; we will post the slides and a copy of our prepared comments to our Investor Relations website immediately following the conclusion of this call. In addition, please note that all comparisons are year-over-year unless otherwise requested. Finally, we invite you to join our annual AI Summit. Live streamed on our website at 11 a.m. Eastern Time on March; you can register at uipath.com. Now, I'd like to hand the call over to Rob. Thank you, Kelsey. Good afternoon, everyone.

Parison our year over year, unless otherwise indicated finally, we invite you to join our annual AI summit, which will be live streamed on our website at 11 a M. Eastern time on March 19th you can register at you Ipass Dot Com now I would like to hand, the call over to Rob.

Thank you Kelsey and good afternoon, everyone. Thanks for joining us I want to start by extending a massive thank you to our teams dedication and innovative spirit are the driving forces behind our success.

Robert Enslin: Thanks for joining us. I want to start by extending a massive thank you to our team. Your hard work, dedication, and innovative spirit are the driving forces behind our success, and I can't wait to see what we accomplish together in 2025. We reported a strong close to the first school year, exceeding our guidance across both top and bottom line metrics, driven by demand for the depth and breadth of our platform and the team's focus on customer success, which is at the core of everything we do. Our momentum also reinforces my confidence in the strategic role we play for our customers and the investments we are making in our future. We delivered fourth-quarter net new ARR of $86 million, ending the year with a total ARR of $1.46 billion, an increase of 22% year over year, and record quarterly revenue of $405 million, up 31% year over year. On the bottom line, fourth-quarter non-GAAP operating margin was a record 27%.

I can't wait to see what can we accomplish together in 2025.

We reported a strong close to the first scalia exceeding our guidance across both top and bottom line metrics driven by demand for the depth and breadth of our platform and the teams focus on customer success.

Which is at the core of everything we do.

Tim also reinforces my confidence in the strategic role we play for our customers and the investments we are making in our <unk>.

Chip.

We delivered fourth quarter net new IRR of $86 million ending the year with a total of.

014, $6 billion, an increase of 22% year over year and record quarterly revenue of $405 million up 31% year over year.

On the bottom line fourth quarter non-GAAP operating margin was a record 27%.

This drove fiscal year non-GAAP operating margin to 18% an increase of over 1100 basis points year over year.

Robert Enslin: This drove fiscal year non-GAAP operating margin to 18%, an increase of over 1100 basis points year over year. This was also our first quarter of Gap Profitability as a public company. I am very pleased with the team's ongoing cost management and discipline around capital deployment, which focuses our energy on the right initiatives and sets us up for future success. C-level executives are no longer solely prioritizing digital transformation. They're also prioritizing AI transformation. In a recent Uipath and Bain joint study on the state of AI-powered automation, 70% of executives asserted that AI-driven automation is either very important or critical in fulfilling their organization's strategic objectives. Our business automation platform is the foundation to deliver value across every organization. We make AI actionable.

This was also our first quarter of GAAP profitability as a public company.

I am very pleased with the team's ongoing cost management and discipline around capital deployment.

Which focuses energy on the right initiatives and sets us up for future success.

C level executives are no longer solely prioritizing digital transformation. They also prioritizing AI transformation and our recent new Ipass in bone and joint study the state of AI powered automation.

When people say end of executives asserted that AI, driven automation is either very important or critical and fulfilling their organization's strategic objective.

Our business automation platform is the foundation to deliver the value across every organization.

We make.

Actionable.

Unlocking the promise of this next evolution in technology and I believe that the combination of AI and automation is the strategic change enabler for our customers.

Robert Enslin: Unlocking the promise of this next evolution in technology, I believe that the combination of AI and automation is the strategic change enabler for our customers. For example, a leading US-based financial services firm and one of our top 25 customers started their automation journey with RPA in 2018 and have since adopted our full platform, which includes process mining, document understanding, and testing.

For example, a leading U S based financial services firm and one of our top 25 customers started their automation journey with RPI in 2018 and have since adopted our full platform.

Includes process mining document understanding and test suite.

Actually automation program has expanded across business lines.

Robert Enslin: As the automation program has expanded across business lines, they have over 15,000 robots in production, with automation across several thousand processes. And as part of a seven-figure fourth quarter deal, they plan to deploy communications mining in their corporate investment bank, commercial bank, and HR department. Our platform drives ROI for both large organizations and smaller ones, like innovative toll solutions, a compliance and toll management solution for trucking fleets, which leverages automation to drive efficient growth. In the fourth quarter...

Over 15000 robots can production with automation across several thousand processes.

And as part of a seven figure fourth quarter deal. They plan to the play communications mining in the corporate investment Bank commercial bank and HR departments.

Our platform drives ROI for both large organizations and smaller ones like innovative call solutions, a compliance and told management solution for trucking fleets, which is leveraged automation to drive efficient growth.

In the fourth quarter.

Robert Enslin: They invested in additional AI-powered automation, including document understanding, to automate complex toll documents for their customers. Test Suite for QA and Application Testing, and Automation Hub to grow and prioritize their automation pipeline. The value of our business automation platform has never been more evident to regional partners, global SIs, and go-to-market partners like SAP, who understand the power of AI combined with automation and the value it provides to our joint customers. Our SAP partnership is progressing well, and we are pleased with the momentum and pipeline generation across geography. During the quarter, we continued to see combined success in closing deals, including one of Switzerland's largest retail and wholesale companies, who have given Uipath a new logo. Disappointed with the performance of a competitor's RPA and application performance monitoring solutions, they are migrating both of these to Uipath.

They invested in additional AI powered automation, including document understanding to automate complex told documents for their customers, especially useful QA and application testing and automation hub to grow and prioritize the automation pipeline.

The value of our business automation platform has never been more evident to regional partners globally size go to market go to market partners like I say P, who understand the power of AI combined with automation and the value it provides to our joint customers.

I see partnership is progressing well and we are pleased with the momentum and pipeline generation across geographies during.

During the quarter, we continued to see combined success in closing deals, including one of Switzerland's largest retail and wholesale companies a new logo to your iPad.

Disappointed with the performance of a competitor's RPI and application performance monitoring solutions.

They are migrating both of these to you iPad.

Robert Enslin: They are also in the process of rolling out document understanding to automate invoice processing, with the goal of expanding company-wide. Another great example combines the power of Uipath, SAP, and EY. Working with EY, Marks and Spencer selected Uipath based on our ability to both automate and test across all applications.

They also in the process of rolling out document understanding to automate invoice processing, but the goal of expanding companywide.

Another Great example combines the power of your iPad S E T and E Y working with N Y marks and Spencer selected your iPad based on our ability to both automate and tests across all applications.

Robert Enslin: They also plan to utilize Uipath to assist in their migration to SAP S400 RISE and SAP S4HANA Enterprise and to automate finance processes with the goal of reducing complexity and vendor spend. Partners also help customers build a holistic approach to automation. Together with Deloitte and C-Level Sponsorship, Indosat, a leading Indonesian communications provider and a Uipath customer since 2021, is looking to drive further operational efficiencies, increase revenue growth, and improve their customer and employee experience. Using our North Star program, the team crafted a three-year roadmap encompassing hundreds of automations across all business lines within the organization. Beyond Indosat's internal use, we are forming a strategic go-to-market collaboration, expanding our presence in Indonesia to empower local businesses to revolutionize operations and equip workers to focus on higher-value tasks.

They also plan to utilize your iPad to assist in their migration to S. E. P. S 400 right.

That's right and to automate finance processes with a goal of reducing complexity and vendor spend.

Partners also help customers vulgar holistic approach to automation.

Together with Deloitte and C level sponsorship intersect, a leading Indonesian communications provider and a new iPad customer since 2021 expand it to the full platform this quarter they.

They are looking to drive further operational efficiencies increased increase revenue growth and improve their custom any play experience using our north star program. The team crafted a three year roadmap.

Hundreds of automation across all business lines within the organization.

Yeah on into such internal use we are forming a strategic go to market collaboration expanding our presence in Indonesia to empower local businesses to revolutionize operations equipped with is to focus on higher value tasks.

And in partnership with a GSI, we supported TD bank throughout North Star program to create a list of top automation opportunities across various lines of business focusing on improving customer experience empowering colleagues optimizing controls driving productivity and cost efficiencies.

Robert Enslin: And in partnership with GSI, we supported TD Bank through our Northstar program to create a list of top automation opportunities across various lines of business, focusing on improving the customer experience, empowering colleagues, optimizing controls, driving productivity, and cost efficiency. As a result, they have expanded the Uipath deployment this quarter, as they look to accelerate this and scale the automation program across the bank. We also recently announced the first of its kind co-innovation market collaboration between Uipath and Deloitte.

As a result, they have expanded the your iPad deployment in this quarter as they look to accelerate this and scale the automation program across the bank.

We also recently announced the first of its kind co innovation market collaboration between your Ipass and Deloitte.

Robert Enslin: Deloitte's smart finance for growth companies leverages automations built by Uipath and customized by Deloitte into value-driven packages tailored for the needs of early-stage, innovative companies that require speed and agility. And finally, we continue to deepen our partnership with Microsoft to build best-in-class automation experiences and integrations that bring AI-powered automation to customers using Microsoft Azure.

Deloitte Smart finance for growth companies Leverages automation, both by you iPad and customized by Deloitte into value driven packages tailored for the needs of early stage innovative companies, which requires speed and agility.

And finally, we continued to deepen our partnership with Microsoft to both best in class automation experiences that integration.

This brings AI powered automation to customers using Microsoft Azure.

Robert Enslin: We see opportunities to expand this collaboration to accelerate our joint customers' move to the cloud with AI-infused industry solutions and enterprise modernization with Microsoft. This quarter, we have some notable joint wins, including an expansion deal on Microsoft's Marketplace. This includes a British multinational company, which is in the process of migrating to the cloud while growing its automation program. We plan to continue making strategic investments in our partner ecosystem in 2025, focused on cultivating quality partners with expertise in automation, which can fully enable our customers to realize the benefits of our platform. This updated approach includes a dedicated partner deal desk, as well as new enablement plans and certifications to better align Uipath with our most trusted partners as we work side by side. The momentum we bring into 2025 was evident at a February DEF CON event held in India.

We see opportunities to expand this collaboration to accelerate our joint customers moved to the cloud with AI infused industry solutions and enterprise modernization with Microsoft there.

This quarter, we have some notable joint wins, including an expansion deal on Microsoft marketplace. This includes a British multinational company, which is in the process of migrating to the cloud while growing the automation program.

We plan to continue making strategic investments in our partner ecosystem in 2025 focused on cultivating quality partners with expertise in automation, which can fully enabled our customers to realize the benefits of our platform. This updated approach includes a dedicated partner deal desk as well as new enablement.

And certifications to better align your iPad without most trusted partners as we work side by side.

The momentum we bring into 2025 was evident at our February Defcon event held in India hosted by Daniel and the team more than 1000 professionals, including developers partners and customers specialists.

Robert Enslin: Hosted by Daniel and the team, more than 1,000 professionals, including developers, partners, and customer specialists, learned about new features that bring AI-powered productivity to the developer community. They also participated in over 24 breakout sessions featuring growth products like Intelligence Document Processing or IDP. Anchor.

About new features there.

That bring AI powered productivity to the developer community.

Also participating over 24 breakout sessions, featuring gross products like intelligence and processing for IDP.

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Yeah.

18 months ago, we drove the evolution.

Robert Enslin: 18 months ago, we drove the evolution of the automation market from RPA to a full AI-powered business automation platform. Our growth products have played a key role in our platform's evolution, setting us apart from the competition and serving as the link that connects AI and automation into actionable results. Our platform also enables us to close larger, more strategic deals. Almost every organization has to process an onslaught of forms, invoices, and documents, which is why document understanding resonates so well with customers, particularly in the finance, insurance, healthcare, and public sectors.

All of the automation market from RPI to a full AI powered business automation platform at gross products. They played a key role in our platform evolution setting us apart the competition and serving as a link that connects AI and automation into actionable results.

Our platform also enables us to close larger more strategic deals.

Almost every organization has to process, an onslaught of forms invoices and document which is why understanding resonate so well with customers, particularly in finance insurance healthcare and public sector in the fourth quarter 65 about top 100 deals included intelligent document processing.

Robert Enslin: In the fourth quarter, 65 of our top 100 deals included intelligent document processing, a testament to customer engagement and the power of our platform. Our unique approach combines specialized AI and more than 70 pre-trained models and verticalized package solutions to help customers streamline processes, identify continuous process improvements, and rapidly scale the document understanding project.

A testament to customer engagement and the power of our platform.

Our unique approach combines specialized AI and more than 70 pre trained models and virtualized packaged solutions to help customers streamline processes identify continuous process improvements and rapidly scale the document understanding project.

Okay sauce, a customer since 2019.

Robert Enslin: A care source, a customer since 2019, that platform has played a vital role in their digital transformation journey. Leveraging co-automation and document understanding, they've been able to efficiently process over 2.5 million transactions in 2023. Given their success to date, they expanded the Document Understanding Initiative across finance and claims processing departments and plan to move into medical records processing. The combination of IDP and automation not only drives efficiency and quality but allows Uipath customers to change how they interact with their external stakeholders. At our AI Summit next week, we are planning to unveil a new Uipath large language model, which combines open source LLMs, our specialized AI, proprietary knowledge of business documents, and communication data. This robust LLM, combined with our industry-leading IDP solution, provides customers access to what we believe is the most powerful document and communications AI model on the market, and we plan to continue to invest to widen our leadership in the IDP space. TestSuite, which initially emerged as a tool for automation testing, is quickly becoming a disruptor in the application testing market, with TestSuite customers growing more than 75% year-over-year in the fourth quarter.

Last time I played a vital role in their digital transformation journey.

Leveraging coordination and document understanding they've been able to efficiently process over $2 5 million transactions in 2023.

Given the success to date they expanded their document understanding initiatives across finance and claims processing departments and plan plan to move into medical records processing.

Yeah.

The combination of IDP in automation, not only drives efficiency and quality, but allows you ipass customers to change how they interact with the external stakeholders.

Yeah.

And I I Summit next week, we are planning to unveil a new UI past large language model, which combines open source all our labs are specialized AI proprietary.

Documents and communication data.

This robust combined with our industry, leading IDP solution provides customers access to what we believe is the most powerful documents in communications I AI model on the market.

And we plan to continue to invest to widen our leadership in the IDP space.

This week, which initially emerged as a tool for automation testing is quickly becoming a disrupt in the application testing market.

Test with customers growing more than 75% year over year in the fourth quarter.

A recent your iPad and IDC joint study found that customers.

Robert Enslin: A recent Uipath and IDC joint study found that customers using our capabilities have experienced on average more than 4 million annualized benefits, a 529% three-year ROI, and only six months payback on investment. A great example of the significant ROI test we deliver to our customers is the Fortune 100 Global Digital Communications Corporation. In just six months, they were able to automate 80% of their 3,000 end-to-end test cases in their global logistics department, improving test coverage from 30% to 93%. This resulted in significantly fewer operational incidents and enabled them to keep their complex IT landscape running smoothly. We expect returns like these to be further accelerated with the introduction of our latest innovation, Autopilot, a newer set of AI-powered experiences that leverage generative AI, specialized AI, and automation across the platform.

Using our capabilities have experienced on average more than 4 million annualized benefits.

The 529% three year ROI and have only six months payback on investment.

A great example of the significant ROI taste with deliveries to our customers is a fortune 100 Global Digital Communications Corporation in just six months they were able to automate 80% of their 3000 end to end test cases in the global logistics Department, improving test coverage from 30% to 90 Threep.

St.

This resulted in significantly fewer operational incidents and enable them to keep their complex IV landscape running smoothly.

We expect returns like these to be further accelerated with the introduction of our latest innovation autopilot.

You have a set of AI powered experiences that leverage generative AI, especially specialized AI and automation across the platform autopilot makes it easier for people of all skills to build automation.

Robert Enslin: Autopilot makes it easier for people of all skills to build automation, accelerate time to development, and discover process improvement. Both Autopilot for Studio, where we have the largest number of preview participants in company history and Autopilot for Test are in public preview, while Autopilot for Process Mining and Autopilot for Communications Mining are in private preview.

Accelerate time to development and discover process improvements.

Both autopilot fish for studio, where we have the largest number of preview participate participant in company history, and autopilot for tests and public preview.

While autopilot for process mining and autopilot for communications mining.

In private preview.

Robert Enslin: Lastly, on the technology front, our business automation platform is now available in the Google Cloud Marketplace, making it easier for joint customers to deploy and scale automation initiatives on Google Cloud Infrastructure. To help customers and prospects get the most out of our capabilities, we plan to continue our investments in targeted sales areas, weighting our resources towards large enterprise customers where we see the biggest opportunity for expansion. This includes investments in growth specialists, sales engineers to support our customers, and further industry verticalization in areas like financial services, insurance, healthcare, and public sector. This approach has been instrumental in driving momentum in North America, including large strategic deals.

Lastly on the technology front, our business automation platform is now available on the Google cloud marketplace, making it easier for customers to deploy at scale to automation initiatives and Google cloud infrastructure.

To help customers and prospects get the most out of our capabilities. We plan to continue our investments in targeted sales areas wasting our resources towards large enterprise customers, where we see the biggest opportunity for expansion.

This includes investments in growth specialist sales engineers to support our customers and further industry verticals that you showed in areas like financial services insurance healthcare and public sector.

This approach has been instrumental in driving momentum in North America, including large strategic deals.

Robert Enslin: And we are investing in other regions where we see early traction. Our team did an excellent job positioning our platform for a strategic customer in the UK, which resulted in a competitive displacement of Blue Prism. Customers will be migrating more than 250 processes to Uipath.

And we are investing in other regions, where we see where we are seeing early traction our team did an excellent job positioning a platform for a strategic customer in the U K, which resulted in a competitive displacement of blue prism.

The customer will be migrating they've they're more than.

250 processes to your iPad. They also creating an intelligent automation team to strategically manage the U I pass deployment, while working to identify use cases for communication mining and document understanding.

Robert Enslin: They're also creating an intelligent automation team to strategically manage the Uipath deployment while working to identify use cases for communication, mining, and document understanding. This kind of industry focus is also driving growth in our public sector business. This quarter, the Scottish Government doubled the adoption of Uipath on renewal as they continue to automate core areas of finance and HR. They're also expanding their reach to additional departments and agencies, including Social Security Scotland, here in the Ward. Scottish Public Pension Agency and Agriculture and Rural Economy.

So it is kind of industry focus is also driving growth in our public sector business. This quarter, the Scottish government double the adoption of your Ipass on renewal as it continued to automate core areas of finance and HR. They're also expanding their reach to additional departments and agencies that include social security, Scotland skewed.

Students towards Scott.

Scottish public pension agency and agriculture and rural economy. In addition, they are scaling I products, particularly document understanding of protests discovery.

Robert Enslin: In addition, they are scaling our AI products, particularly document understanding and process discovery, and in our U.S. federal government vertical, Uipath partner FedResult was awarded an enterprise software initiative agreement for Uipath products and services by the U.S. Department of Defense for up to $95 million. The Five-Year Base Period Agreement will streamline the acquisition process and reduce the cost of delivery of Uipath products and services to the DoD, Department of Defense, Intelligence Community, and the U.S. Coast Guard. This will enable these federal organizations to significantly accelerate the adoption of Uipath and put AI to work in a safe and secure manner. Before I hand over the call to a sheet,

And in our U S. Federal government vertical you Ipass partner Fed results was awarded an enterprise software initiative agreement for your iPad product and services by the U S Department of defense for up to $95 million.

Five year base period agreement.

We will streamline the acquisition process and reduce the cost of delivery of your iPad product and services to the D O D.

Partner Defense intelligence community and the U S Coast Guard.

This will enable these federal organizations to significantly accelerate the adoption of your iPad and put AI to work in a safe and secure manner.

Before I hand over the call to Ashish.

Robert Enslin: I'd like to personally welcome Jun Yang to our board of directors. Jun is a proven strategic and transformational executive who brings extensive experience in AI and cloud, as well as decades of experience in fostering emerging technology. I am confident we will benefit from their technical expertise and industry insights and look forward to many years of collaboration. In summary, we delivered a strong post-year performance demonstrating the continued momentum of our AI-powered business automation platform. We're transforming industries and revolutionizing the way businesses operate. And as we look to 2025, I believe our strategic investment in innovation and our go-to-market ecosystem position us well for continued momentum. And with that, I'll hand over to Ashim. Thank you, Rob. And good afternoon, everyone.

Like to personally welcome junior anchor to our board of directors.

He is a proven strategic and transformational executive who brings extensive experience in AI and cloud as well as decades of experience in fostering emerging technologies.

I am confident we will benefit from a technical expertise and interesting insights and look forward to many years of collaboration.

In summary, we delivered a strong most of the year demonstrating the continued momentum of our AI powered business automation platform.

We are transforming industries in revolutionizing the way businesses operate.

And as we look to 2025, I believe our strategic investments in innovation and our go to market ecosystem position us well for continued momentum and with that I'll hand over to Ashish.

Thank you, Rob and good afternoon, everyone unless otherwise indicated I will be discussing results on a non-GAAP basis and all growth rates are year over year. Please note that year over year foreign exchange rates had an immaterial impact on fourth quarter and full year 2024 results.

Ashim Gupta: Unless otherwise indicated, I will be discussing results on a non-GAAP basis, and all growth rates are year-over-year. Please note that year-over-year foreign exchange rates had an immaterial impact on Q4 and full year 2024 results. Turning to the quarter, we had a strong close to the year, which is a testament to the team's execution in what continued to be a variable environment and our laser focus on operational excellence and profitable growth. ARR totaled $1.464 billion, an increase of 22%, driven by net new ARR of $86 million. Our cloud-first approach is driving adoption across our customer base, and we ended the year with over $650 million in cloud ARR, up 70% year-over-year. A great example is a global media and entertainment company. After successfully completing their cloud migration, they expanded this quarter, selecting Uipath as their preferred automation vendor due to the breadth of our platform capabilities. Specifically, testing and specialized AI products like Document, a major Japanese telecommunications operator expanded to the full platform during the fourth quarter.

Turning to the quarter, we had a strong close to the year, which is a testament to the team's execution and will continue to be a variable environment and our laser focus on operational excellence and profitable growth initiatives.

<unk> totaled $1.464 billion, an increase of 22% driven by net new <unk> of $86 million. Our cloud first approach is driving automation is driving adoption across our customer base and we ended the year with over $650 million in cloud there are up 70% year over year.

A great example is a global media and Entertainment company.

After successfully completing their cloud migration they expanded this quarter selecting UI path as their preferred automation vendor due to the breadth of our platform capabilities, specifically testing and specialized AI products like document understanding.

A major Japanese telecommunications, operator expanded to the full platform during the fourth quarter. They plan to migrate to cloud to the cloud and drive their automation program across multiple divisions by leveraging document understanding communications mining and process mining with the goal of an additional 1 million hours saved.

Ashim Gupta: They plan to migrate to the cloud and drive their automation program across multiple divisions by leveraging document understanding, communications mining, and processing, with the goal of an additional one million hours. We ended the quarter with 10,830 customers, including new logos like Five Guys, Workday, Coca-Cola Beverages Florida, Allegis, Global Solutions, and Tesco, a testament to our strategy of acquiring enterprise customers with the propensity to invest. The vast majority of customer attrition continues to be among smaller customers, which in aggregate represent an immaterial portion of the overall business.

We ended the quarter with 10830 customers, including new logos like five guys Workday, Coca Cola beverages, Florida allegiance Global solutions, and Tesco, a testament to our strategy of acquiring enterprise customers with their propensity to invest.

The vast majority of customer attrition continues to be in smaller customers, which in aggregate represent an immaterial portion of the overall business.

Ashim Gupta: Customers with $100,000 or more in ARR increased to 2,054, while customers with $1,000,000 or more in ARR grew 26% to 250%. Our largest customers are also continuing to expand on our platform. And during fiscal year 2024, customers with $5 million or more in ARR grew 15%. Moving on, dollar-based gross retention of 98% continues to be best-in-class, and our dollar-based net retention rate as of the fourth quarter was 198%.

Customers with $100000 or more in <unk> increased to 2054, well customers with $1 million or more in <unk> grew 26% to 288.

Our largest customers are also continuing to expand on our platform and during fiscal year 2024 customers with $5 million or more in <unk> grew 50%.

Moving on double dollar base gross retention of 98% continues to be best in class and our dollar based net retention rate as of the fourth quarter was 119%.

Expansions are driven by the quick time to ROI and the broad applicability of our automation.

Ashim Gupta: Expansions are driven by the quick time to ROI and the broad applicability of our automation. For Fujitsu, automation has revolutionized their business operations globally across accounting, HR, and IT. With C-level sponsorships, they are incorporating the Uipath platform into their company-wide digital transformation, including automating mission critical systems, such as Salesforce and ServiceNow. Fourth quarter revenue grew to $405 million, an increase of 31% year over year.

At Fujitsu automation has revolutionized their business operations globally across their accounting HR and it departments with C level sponsorships theyre, incorporating the U iPad platform into their company wide digital transformation project, including Automating mission critical systems, such as Salesforce service now in S. E P.

Fourth quarter revenue grew to $405 million, an increase of 31% year over year, we had good linearity in the quarter as we benefited from a strong calendar year close and demand from our enterprise customers. Please remember that under ASC 606 revenue growth rates vary quarter to quarter, depending on timing of.

Ashim Gupta: We had good linearity in the quarter, as we benefited from a strong calendar year close and demand from our enterprise customers. Please remember that under ASC 606, revenue growth rates vary quarter to quarter depending on the timing of license delivery. Looking at revenue on a trailing 12-month basis, our revenue and ARR growth continues to be alarming. Total revenue for the fiscal year 2024 was $1.3 billion, an increase of 24% year-over-year.

License deliveries and renewals.

Looking at revenue on a trailing 12 month basis, our revenue and <unk> growth continues to be aligned total revenue for the fiscal year 2024 was $1 $3 billion, an increase of 24% year over year.

Ashim Gupta: As of the end of the fourth quarter, our customers with ARR of $100,000 accounted for approximately 86% of total revenue. Additionally, customers with ARR of one million dollars or more accounted for 52 percent. Strategic investments made by customers in our platform also drove growth in remaining performance, which increased to $1.16 billion, up $30 billion. Current RPO increased to $707 million, up 26%. Turning to expenses, the fourth quarter overall gross margin was 89 percent, driven by cost control inefficiencies.

As of the end of fourth quarter, our customers with air are the $100000 accounted for approximately 86% of total revenue, while customers with air or $1 million or more accounted for 52% of our revenue.

Strategic investments made by customers on our platform also drove growth in remaining performance obligations, which increased to $116 billion up 30%.

Current RPI increased to $707 million up 26%.

Turning to expenses fourth quarter overall gross margin was 89% driven by cost control inefficiencies software gross margin was 92%.

Ashim Gupta: Software gross margin was 92%. Fourth quarter operating expenses were $250 million, highlighting the leverage in our business and our commitment to expense management and operations. We ended the year with 4,035 total votes.

Fourth quarter operating expenses were $250 million highlighting the leverage in our business and our commitment to expense management and operating discipline. We ended we ended the year with 4035 total employees.

In the fourth quarter, we achieved our first quarter of GAAP profitability as a public company delivering operating income of $15 million. This included $89 million of stock based compensation expense.

Ashim Gupta: In the fourth quarter, we achieved our first quarter of gap profitability as a public company, delivering operating income of $15 million. This included $89 million of stock-based comp... Full Year Gap Operating Loss was $165 million. Including $372 million of stock, non-GAAP operating income was $111 million, resulting in a fourth quarter non-GAAP operating margin of 27%. Reflecting both our operational rigor and the fourth quarter, full year non-GAAP operating income was $233 million.

Full year, GAAP operating loss was $165 million, including $372 million of stock based compensation.

non-GAAP operating income was $111 million, resulting in a fourth quarter non-GAAP operating margin of 27%, reflecting both our operational rigor and fourth quarter seasonality.

Full year non-GAAP operating income was $233 million full year non-GAAP operating margin increased over 1100 basis points year over year to 18% a testament to the team's disciplined execution and well ahead of the plan we laid out at the beginning of the year.

Ashim Gupta: Full Year Non-Gap Operating Margin Increased Over 1,100 Basis Points Year-over-Year to 80% Testimony to the team's discipline and well ahead of the plan we laid out. I'm really pleased with our adjusted non-gap pre-cash flow generation for the fourth quarter. Fourth quarter non-gap adjusted free cash flow was $146 million, and for the full fiscal year, Non-Gap Adjuste As of January 31st, we had $1.9 billion in cash, cash equivalents, and marketable securities, and no, Under our $500 million buyback program, we repurchased 2.6 million shares of our Class A common stock at an average price of $19.21 from November 1st, 2023 through January 31st, 2020. Since January 31st, under a 10B51 plan, we repurchased an additional 938,000 shares at March 12, 2012.

I'm really pleased with our adjusted non-GAAP free cash flow generation for the fourth quarter and full year fourth quarter non-GAAP adjusted free cash flow was $146 million and for the full fiscal year <unk>.

non-GAAP adjusted free cash flow was $309 million.

As of January 31, we had $1 $9 billion in cash cash equivalents in marketable securities and no debt.

Under our $500 million buyback program, we repurchased two 6 million shares of our class a common stock at an average price of $19 21.

From November one 2023 through January 31, 2024.

Since January 31 under a <unk> one plan, we repurchased an additional 938000 shares at an average price of $23 46.

Through March 12, 2024 now.

Ashim Gupta: Now, turning to guidance, I'm going to start with some. We are initiating full-year guidance for ARR, revenue, and Non-Gap Operating Income above current expenses. Starting on the top line, as the business has grown past $1 billion, it has matured into a consistent seasonal pattern, with the second half of the year being stronger than the first. This is a reflection of our renewal portfolio, which is weighted to our fourth quarter, consistent with other companies in the software industry, and our growing U.S. federal business. As a result, we expect first half revenue to be approximately $675 million. First half net new ARR to be approximately $105 million, and Second Half Net New ARR and Revenue to reflect similar seasonality as Fiscal Year. On the bottom line, as I mentioned earlier, we significantly outperformed our non-GAAP operating margin expectations, which we laid out at the beginning of this fiscal year. And I'm really proud of the team for this.

Now turning to guidance I'm going to start with some color.

We are initiating full year guidance for air our revenue and non-GAAP operating income above current expectations starting on the top line as the business has grown past $1 billion. It has matured into a consistent seasonal pattern with the second half of the year being stronger than the first this is a reflection of our renewal portfolio, which is <unk>.

Weighted to our fourth quarter consistent with other companies in the software industry and our growing U S federal vertical.

As a result, we expect first half revenue to be approximately $675 million first half net new air ought to be approximately $105 million and second half net new era and revenue to reflect similar seasonality as fiscal year 2024.

On the bottom line as I mentioned earlier, we significantly outperformed our non-GAAP operating margin expectations, which we laid out at the beginning of this fiscal year and I'm really proud of the team for this achievement, we have a strong business model with high gross margins and increasing economies of scale, which when combined with our disciplined operating cadence we expect.

Ashim Gupta: We have a strong business model with high gross margins and increasing economies of scale, which when combined with our disciplined operating cadence, we expect to deliver considerable shareholder value. Our platform is highly differentiated, and customers are making meaningful commitments to Uipath. We don't just allow customers to use AI; we enable them to take action.

To deliver considerable shareholder value overtime.

Our platform is highly differentiated and customers are making meaningful commitments do you want that we don't just allow customers to use AI, we enable them to take action. We believe there is a tremendous opportunity in front of us and we plan to continue to make strategic investments in technology like I D P and generative AI as well.

Ashim Gupta: We believe there is a tremendous opportunity in front of us, and we plan to continue to make strategic investments in technology like IDP and generative AI as well as our go-to-market resources to help capture this large and growing market. With this as the background, we plan to deliver growth and profitability in fiscal year 2021. With our goal of driving at least 100 basis points of non-gap operating margin expansion year-over-year. Turning to the specifics of our guide, which assumes the macroeconomic environment continues to be varied, For the first fiscal quarter 2025, we expect revenue in the range of $330 million to $335 million, ARR in the range of $1.508 billion to $1.513 billion, and Non-Gap Operating Income of Approximately $55 million. Additionally, we expect the first quarter basic share count to be approximately 570 million.

As our go to market resources to help capture this large and growing market.

With this as the background, we plan to deliver growth and profitability in fiscal year 2025, with our goal of driving at least 100 basis points of non-GAAP operating margin expansion year over year.

Turning to the specifics of our guide, which assumes the macroeconomic environment continues to be variable.

For the first fiscal quarter 2025, we expect revenue in the range of $330 million to $335 million.

There are in the range of $1 $5 billion to $1 $5 $3 billion non-GAAP operating income of approximately $55 million and we expect first quarter basic share count to be approximately 570 million shares.

For the fiscal year 2025, we expect revenue in the range of 155 $5 billion to $1 $560 billion are are in the range of $1 $75 billion to $1 730 billion non.

Ashim Gupta: For the fiscal year 2025, we expect revenue in the range of $1.555 billion to $1.560 billion, ARR in the range of $1.725 billion to $1.730 billion, and Non-GAAP Operating Income of approximately $295 million.

non-GAAP operating income of approximately $295 million.

Ashim Gupta: Before I close, I want to leave you with a few modeling. We expect full-year non-gap gross margins to be approximately 85% as we scale our cloud and on. Non-GAAP operating income to reflect similar seasonality to our top line, Fiscal Year 2025 Non-Gap Adjusted Free Cash Flow of approximately $350 million, also to follow normal seasonality, and we're assuming FX to be net neutral year over. Lastly, we are committed to managing stock-based compensation, and for the fiscal year 2025, we expect dilution to be approximately 3% EUR. Thank you for joining us today, and we look forward to speaking with many of you during the call. With that, I will now turn the call over to the As a reminder, Daniel is in the room with us to answer questions. Operator, please pull for questions. Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in question. You may press star 2 if you would like to remove your question from the line.

Before I close I want to leave you with a few modeling points.

We expect full year non-GAAP gross margins to be approximately 85% as we scale, our cloud platforms and offerings.

non-GAAP operating income to reflect similar seasonality to our top line metrics.

Fiscal year 2025, non-GAAP adjusted free cash flow of approximately $350 million also to follow normal seasonal patterns and we're assuming FX to be net neutral year over year.

Lastly, we are committed to managing stock based compensation and for the fiscal year 2025, we expect dilution to be approximately 3% year over year.

Thank you for joining us today, and we look forward to speaking with many of you during the quarter.

With that I will now turn the call over to the operator as a reminder, Daniel is in the room with us to answer questions as well operator, please poll for questions.

Thank you.

We'll now be conducting a question and answer session.

He would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key so that we may address questions from as many participants as possible. We ask that you limit yourself to one question and one follow-up. If you have additional questions, you may re-queue, and, time permitting, those questions will be answered. One moment, please, while we pull for questions. Thank you. Our first question comes from the line of Kurt Martin with Evercore ISI. Please proceed with your question. Yeah, thanks very much.

So that we may address questions from as many participants as possible. We ask that you limit yourself to one question and one follow up.

If you have additional questions you may re queue and time permitting those questions will be answered one moment. Please while we poll for questions.

Thank you. Our first question comes from the line of Kurt My turn with Evercore ISI. Please proceed with your question.

Yeah, Thanks, very much and congrats on the quarter, you or Rob I was wondering you based on the study you referenced earlier when your customers are thinking about automation and sort of their AI strategy do they need to wait on automation to get their AI strategy mapped out or vice versa. I'm, just kind of curious how there's a lot of that.

Kirk Materne: And congrats on the quarter. Rob, I was wondering, based on the study you referenced earlier, when your customers are thinking about, you know, automation and sort of their AI strategy, do they need to wait on automation to get their AI strategy mapped out, or vice versa? I'm just kind of curious about how there is a lot of experimentation going on with Gen AI right now, and I was just kind of wondering what that means in terms of people making bigger bets with you all. Obviously, this quarter looks good, but I was just wondering if you had some more color there, because I think that the cadence is what, you know, I think some folks get tripped up on a little bit.

Jeremy Mentation going on a journey right now and I was just kind of wondering what that means in terms of people, making bigger bets with you. All obviously this quarter. It looks good but just wondering if you got some more color there because I think that the cadence is what you know I think some folks got tripped up on a little bit. Thanks.

Thanks Kurt.

Yeah, we feel hey, my discussions I've just come back from Europe in my discussions in Europe, what you see now as the head of AI hubs in the Chief AI officer, calling us into conversations to expand automation using gene AI and they really like how we've infused Jane AI into our solution and they get immediate benefit from.

Robert Enslin: Thanks. Thanks, Kirk. Yeah, we feel, in my discussions. I've just come back from Europe. In my discussions in Europe, what you see now is the head of AI hubs and the chief AI officer calling us into conversations to expand automation using Gen AI. And they really like how we've infused Gen AI into our solution, and they get immediate benefits from the Gen AI work that we're doing today. So we see more and more automation expanding to the broader set of C-level executives in companies today. And that was what we had, you know, positioned the platform early on.

The G&A I work that we're doing today so.

So we see more and more automation expanding to the broader set of C level executives in.

And companies today and that was what we had positioned the platform early on and I think we're getting a tail.

Tailwind west with AI and automation in that space in terms of the discussions that we're having today and we're very we're very real and practical in what customers are looking for we're not looking to deliver use cases to them, we actually showing that our product infused with AI and significant more value and as it.

Robert Enslin: And I think we're getting tailwinds with AI and automation in that space in terms of the discussions that we're having today. And we're very real and practical in what customers are looking for. We're not looking to deliver use cases to them.

Much faster.

If I could just ask a quick follow up her she she and I know you manage the business to air our but actually a pretty big jump in licenses. This quarter could you just address just what what sort of drove that and then obviously I raise it doesn't have much to do with the go forward arrogance, but just curious about what drove that this quarter. Thanks, Yeah. I mean, it was a mix of various things I mean fourth quarter is too.

Ashim Gupta: We're actually showing that our product infused with AI adds significantly more value and adds it much faster. If I could just ask a quick follow-up question for Ashim. Ashim, I know you managed the business to ARR, but obviously, there was a pretty big jump in licenses this quarter. Can you just address that? Just what sort of drove that? And then, obviously, I realize it doesn't have much to do with the go-forward ARR guides, but I was just curious about what drove that this quarter. Thanks. Yeah, I mean, it was a mix of various things.

Lee.

Heavier quarter for us.

In General and then we did have a significant number of license deliveries some of that was from prior from prior prior deals, but the volume of current quarter deals. Obviously, it was very good as well.

Thank you all.

Yeah.

Okay.

Thank you.

Question comes from the line of Geek real bears with William Blair. Please proceed with your question.

Hi, Thanks for taking my questions and congrats on the strong results are clear the combination of AI and automation is helping raise the profile of the broader platform, but I'm curious when you look across the base are there any specific use cases that that infusion of AI and automation is really resonating with whether it be front office or back office or any.

Ashim Gupta: I mean, the fourth quarter is typically a heavier quarter for us in general, and then we did have a significant number of license deliveries. Some of that was from prior deals, but the volume of current quarter deals obviously was very good. Thank you all. Unknown Speaker.

Operator: Thank you. Thank you. Our next question comes from the line of Jake Roberge with William Blair.

Jacob Roberge: Please proceed with your question. Hi, thanks for taking the questions and congrats on a strong result. Clear, the combination of AI and automation is helping raise the profile of the broader platform. But I'm curious, when you look across the base, are there any specific use cases that that infusion of AI and automation is really responding to, whether it be front office or back office, or any vertical use cases that's helping you maybe break down new doors for the platform? Yeah, I would say so.

Vertical use cases, thats, helping you maybe breakdown new doors for the platform.

Yeah, I would say.

We clearly feel that in the age of health care insurance space, we are pretty advanced with our intelligent document processing and what we're doing in that space. We also see as I mentioned earlier test suite, taking on broader applicability more than just automation testing and becoming more relevant in that space.

And then we mentioned a little earlier as well in the that are older pilot preview customers.

Robert Enslin: We clearly feel that in the healthcare insurance space, we are pretty advanced with our intelligent document processing and what we're doing in that space. We also see, as I mentioned earlier, test suite taking on broader applicability, more than just automation testing, and becoming more relevant in that space. And then we mentioned a little earlier as well that our autopilot preview customers. You know, it's the largest in the history of Uipath that we have preview customers having a look at it, and in some cases, up to 1000 companies are looking at autopilot. So in all of those aspects, it's adding more value to the platform. And I would actually add to that discussion because the platform has a discovery piece to it, where process mining and task mining, and communication mining are able to uncover automation. Together with that process tied to Gen AI and our specialized AI capabilities, I think many, many companies are now starting to see the benefit of actually driving it faster. Okay, that was helpful.

It's the largest in the history of your iPad, we have preview customers, having a look at it and in some cases up to a 1000 companies are looking at autopilot. So in all of those aspects, it's adding more value to our to the platform.

And I would actually add to that discussion is because the platform has a discovery P. Stewart with proceeds mining. It's S funding communication money is able to uncover automation together with that process tied to the gen II and our specialized capabilities.

Many many companies are now starting to see the benefit of actually driving at foster.

Okay helpful. And then it was great to hear that that comment on that thousand early adopters of autopilot just curious what the early feedback that you've gotten from those early adopters have been and then anything that you've seen in terms of the speed at which those customers are now able to develop new automation after adopting.

Robert Enslin: And then it was great to hear that comment on 1000 early adopters of autopilot. Just curious what the early feedback that you've gotten from those early adopters has been. And then anything that you've seen in terms of the speed at which those customers are now able to develop new automations after adopting autopilot? Yeah, I can take this one.

Not a pilot.

Yeah I can take this one.

We haven't seen quite the.

Good retention weak of the week of the people that are using the old appointment.

And for instance in the autopilot for developers we are seeing.

Daniel Solomon Dines: We are seeing quite a good retention rate week after week of the people that are using the autopilot. And for instance, in the autopilot for developers. We are seeing an acceptance rate in excess of 65% of the automations that we are proposing, which is quite good. It's really early to come up with an estimate on how much they save in development time, but we feel there is a material saving in our industry. The implementation and maintenance of automation is the largest part of the total cost of ownership.

Septum Street in.

In excess of 65% of the automation that we are proposing to them, which is quite good.

So it's really early to come we've.

A number of estimates on how.

How much they saved in the development time, but we feel there is a material savings and in our industry.

The implementation and maintenance of automation is the largest part of total cost of ownership. So we estimate.

Daniel Solomon Dines: So we estimate really broad adoption that will increase also the adoption of automation. Very helpful. Congratulations again on the great results. Thank you very much.

Really broad adoption that will increase also the adoption of all blocks.

Very helpful. Congrats again on the great results.

You very much.

Thank you. Our next question comes from the line of Mark Murphy with J P. Morgan. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Mark Murphy with J.P. Morgan. Please proceed with your question. Thank you, and I'll add my congratulations.

Thank you and I'll add my congrats so Rob do you have this very strong partnership with the C. P U.

Mark Ronald Murphy: So Rob, you have this very strong partnership with SAP, and clearly, you have some momentum with the test suite. Can you comment on the tailwind that you're seeing for those ERP cloud migrations? And I'm wondering if you sense that tailwind can grow into the SAP end of support deadline, but there's a pretty big one, I believe, coming up in 2027. Mark, thank you. Look, we feel really positive about where we are with the SAP partnership. I feel like the new logos; the Swiss large retailer is one.

Clearly you have some momentum with the test suite can.

Could you comment on are the tailwind that you're seeing for those ERP cloud migrations and I'm wondering if you sense.

Since that tailwind can grow into the S E T and a support deadline, but there's a pretty big one I believe coming up in 2027.

Thank you look we feel really positive about where we are with the S. E. T partnership I feel like the new logos.

Louis large retailer. It's one what are we doing with marketing expenses are is another one in both cases tastes sweetest predominant or is it is the dominant factor together with the rest of the platform. So we feel really really positive about that but I would also not under estimate the announcement with Google cloud and in the marketplace.

Robert Enslin: What we're doing with Mark and Spencer is another one in both cases. The test suite is predominant or is a dominant factor together with the rest of the platform. So we feel really, really positive about that platform. But I would also not underestimate the announcement with Google Cloud and the marketplace. I mean, many companies are now starting to see that when they combine the automation play together with SAP and the S400 rise momentum, which has, as you said, an end date, they also want to benefit from the investments in the marketplace. And we feel like that those investments with the marketplace will also benefit us in the future. Okay.

Right I mean, many many companies are now starting to see that when they combine their automation play together with ACP and the four.

Or hunter arise momentum, which has as you said an end date.

They also want to they also want to benefit from the investments in the marketplace and we feel like that those investments with marketplace will also benefit us in the future.

Robert Enslin: Thank you, Rob. And as a quick follow-up for Ashim, I'm looking at the net new ARR. It grew year over year in Q3. It almost got there in Q4, but it still looks good.

Okay. Thank you, Rob and as a quick follow up for Jim.

I'm looking at the net new E. R. R. E grew year over year in Q3, it almost got there in Q4, but it still looks good at your guiding that this fiscal year I'd say I think you're guiding the net new similar.

Ashim Gupta: You're guiding that this fiscal year; I think you're guiding the net new revenue similar to what it was in FY24. I'm wondering what ingredients you think might have to align to see that grow, sort of get back to pretty meaningful growth. For instance, if we do end up with a soft landing scenario this year, then do you think that that might be in the cards with some good execution?

To what it was in FY 'twenty four I'm wondering what ingredients you think might have to align it to see that grow sort of get back to pretty meaningful growth.

For instance.

If we do end up with a soft landing scenario this year than they do you think that that might be in the cards with with some good execution.

Ashim Gupta: You know, Mark, the way I look at it is we continue to make great progress. If you look at last year and this first half, if you look at the net new ARR, it was down. The second half was basically close to neutral.

Mark the way I look at it as we continue to make great progress as a company I look at last year and this first half if you look at the net new air or it was down in the second half was basically close to neutral as you mentioned when you look at our guidance right now at the midpoint, we're growing net new IRR overall and in the first quarter I think we continue to execute.

Ashim Gupta: As you mentioned, when you look at our guidance right now, at the midpoint, we are growing net new ARR overall and in the first quarter. I think we continue to execute. You know, our strategy is really clear, the value proposition, and our product roadmap is also very clear. And I think if we continue to execute, you know, we have a lot of optimism. That being said, our guide is our guide, and, you know, we are very clear in terms of The Assumptions That Are There, and our focus is just on executing this quarter and continuing to execute. Thank you. Thank you.

I you know our strategy is really clear the value proposition and our product roadmap is also very clear and I think if we continue to execute you know we we have a lot of optimism that being said our guide as our guide and we are we were very clear in terms of the the assumptions that are there and our focus is just on executing this quarter and.

Continuing to execute on our strategy.

Thank you.

Okay.

Thank you. Our next question comes from the line of Matt Hedberg with RBC. Please proceed with your question.

Matthew George Hedberg: Our next question comes from the line of Matt Hedberg with RBC. Please proceed with your question. Great guys, thanks for taking my questions. What really stood out to me too, Ashim, I think you noted your cloud ARR was 650 million.

Great guys. Thanks for taking my questions.

What really stood out to me to assume I think you noted your cloud IRR was $650 million I believe you said it grew 70% to play if I wrote that down right.

Ashim Gupta: I believe you said it for 70% if I wrote that down right. I'm sort of curious, you know; how should we think about that mix in fiscal 25? You know, because it feels like that could be a significant portion of a reacceleration as well. Yeah, you know, our flex offering is really popular with customers. And we continue to see customer momentum moving to the So, you know, we feel very good about that momentum. I would say the mix and the growth rates will continue on the trends, historically, and the overall trend of the company as we've disclosed the numbers every quarter. So, I think we feel very good about it. That's great to hear. And the other thing, you know, obviously, the progress on the margins was great, and 100 bps is really good to hear this year. I think seeing GAP profitable in 4Q was also really nice. You know, thoughts on GAP profitability in fiscal 25? I mean, do you think it could get there?

I'm sort of curious how should we think about that mix in fiscal 'twenty five.

Because it feels like.

That could be a significant portion of a reacceleration as well.

Yeah, you know like our flex offering is really popular with customers and we continue to see customer momentum moving to the cloud and so.

We feel very good about that momentum I would say the mix and the growth rates would consider you know will continue on the trends that we've seen historically.

And the overall trend of the company as we've disclosed the numbers every quarter.

So I think we feel very good about it.

That's great to hear and the other thing obviously.

The progress on the margins in straight 100, Bips as he was really good to hear this year I think you're seeing GAAP profitable in <unk> was also was also really nice.

You know thoughts on on GAAP profitability in fiscal 'twenty Fives, I mean do you think do you think you can keep it there I don't know if its every quarter, but just sort of thoughts on GAAP profitability on a go forward basis.

Well look you know, we obviously don't guide to GAAP profitability. So I wont comment there what I would say is you know two things we have really good cost.

Ashim Gupta: I don't know if it's every quarter, but just sort of thoughts on GAP profitability on a go forward basis. Look, you know, we obviously don't guide to gap profitability. So I won't comment there.

Cost discipline and capital allocation and for US whether that is cash that is going out the door or whether that is equity we look at them as equal components of capital now and that's what we're focused on really pleased with the progress in terms of just overall GAAP profitable even for the year cutting.

Ashim Gupta: What I would say is, you know, two things. We have really good cost discipline and capital allocation. And for us, whether that is cash, what is going out the door, or whether that is equity, we look at them as equal components of capital now. And that's what we're focused on, really pleased with the progress in terms of just overall gap profitability, even for the year, cutting, you know, the overall gap operating loss significantly. And like you said, achieving gap profitability in the fourth quarter, we will have seasonal patterns, right, that will be a part of that, you know, in different quarters, and I just like the overall trend line, we can give more information as well. We'll update more information at the appropriate time. Got it.

Cutting the overall GAAP operating loss significantly and like you said, achieving GAAP profitability in the fourth quarter, we will have seasonal patterns right and that will be a part of that in different quarters and I just like the overall trend line and we can give more information as we need as well update more information at the appropriate times in terms of long term margins.

Got it thanks, Jim.

Yeah.

Thank you.

Our next question comes from the line of Keith Weiss with Morgan Stanley. Please proceed with your question.

This is Sandeep Singh for Keith Weiss and thank you for taking the question Rob I had a question actually on the partners you mentioned, I think Deloitte and Ernst and young guys highlighting some deals for you guys. This quarter broadly where do we stand in terms of partner contribution. If there has been a big focus for the company, but in terms of partner source revenue are partner influenced.

Revenue.

How does that look this year in terms of the mix and where do you plan on taking that to going into fiscal year 'twenty five.

Operator: Thanks, Ashim. Thank you. Our next question comes from the line of Keith Weiss with Morgan Stanley. Please proceed with your question. This is Sanjit Singh on behalf of Keith Weiss, and thank you for taking the question. Rob, I actually had a question about the partners.

Yeah, I mean, we don't disclose obviously those numbers, but we feel really strong about where we are with accenture in N y Pwc and Deloitte.

You know many of those programs that we're talking about there's a super exciting program taken Deloitte and focusing on fast growing companies using their smart finance solution, combining it with with automation and then repackage and getting into a vehicle solution. We feel those are really going to drive activity. We also feel that.

Sanjit Kumar Singh: You mentioned Deloitte and Ernst & Young as, you know, highlighting some deals for you guys this quarter. Broadly, where do we stand in terms of partner contribution? I know there's been a big focus for the company, but in terms of partner source revenue or partner influenced revenue, how does that look this year in terms of a mix? And where do you plan on taking that going into fiscal year 25?

Our partners are extremely important.

And we driving you know more.

More and more partner connections over 70% of Oh that deals are touched by partners.

And you know, we'll continue to see us focused on driving partners.

Robert Enslin: Yeah, I mean, we obviously don't disclose those numbers, but we feel really strong about where we are with Accenture and E&Y, PwC, and Deloitte. You know, many of those programs we're talking about, like there's a super exciting program taking Deloitte and focusing on fast growing companies using this smart finance solution, combining it with automation, and then repackaging it into a vertical We feel those are really going to drive activity. We also feel that our partners are extremely important, and we're driving more and more partner connections. Over 70% of our deals are touched by partners, and we'll continue to see us focused on driving partners in the future as well, both the channel and the geosite.

In the future as well, both the channel and the GSI.

Understood and then a follow up question, maybe maybe for Daniel.

Or or shame actually because it's it's about cloud and that sort of $650 million, which is by my math north of 40% of total they are which sort of means that you guys are going to cross the chasm eventually relatively soon to become a <unk>.

A majority cloud company as you think through some of the things that are coming online with some of the gen AI initiatives and <unk>.

The co pilot issues that you have it.

If those start to gain traction and does that does that come through the cloud cloud.

Cloud line and essentially that's where we're going on one way to sort of track your G&A I traction by by.

Daniel Solomon Dines: And then a follow up question, maybe for Daniel, or Ashim actually, because it's about cloud and that sort of 650 million, which is, you know, by math north of 40% of total AR, which sort of means that you guys are going to cross the chasm eventually, relatively soon, to become a majority cloud company. As you think through some of the things that are coming online with, you know, some of the gen AI initiatives, and, you know, the, the co pilot issues that you have, if those start to gain traction, and does that, does that come through the cloud, you know, cloud line, and essentially, that's where we're going to one way to sort of track your gen AI traction by, by, you know, the mix of cloud, you know, steadily increasing, or just how do we think about the cloud mix evolving from here as you drive that the platform story?

The mix of cloud steadily increasing or just how do we think about the cloud mix evolving from here as you drive.

Drive that the platforms right.

I would say you know all of our new offerings, we have a cloud first mentality in terms of that and many of the offerings. You know start with the cloud and so of course that means that the cloud mix as we continue to scale. We feel optimistic will continue on the same trend that is there I do want to remind everybody. We have a hybrid cloud environment. So you know from a.

SaaS headwind standpoint, you know I would look at that is not impacted by that by that mix shifting.

As we move up that area. So from that perspective, we feel very confident about the direction of cloud overall.

I appreciate the thoughts thank you.

Yes.

Thank you.

Our next question comes from the line of Bryan Bergin with TD Cowen. Please proceed with your question.

Hey, guys. Good afternoon. Thank you. So I appreciate the document understand and get that point and the tests traction are we tracking you mentioned I'm curious if you could comment more on the mix of deal wins, you may have signed in for Q with clients attaching the full platform or maybe the mix of the pipeline, where you see clients pursuing that holistic approach of any.

Daniel Solomon Dines: Yeah, I would say, all of our new offerings, we have a cloud first mentality in terms of that, and many of the offerings, you know, start with the cloud. So, of course, that means that the cloud mix, as we continue to scale, we feel optimistic will continue on the, I do want to remind everybody, we have a hybrid kind of cloud environment. So, you know, from a SaaS headwind standpoint, I, you know, I would look at that as not impacted by that mix shifting as we move up that area.

The commentary you could share there.

Yes, Brian I think I mentioned 65 out of.

100 of our top deals had had some sort of the platform attached to those deals. So that kind of showcases I think if you look at our deals above a million I think that will tell you a story there we also had.

Ashim Gupta: So from that perspective, we feel very confident about the direction of Appreciate those answers, Ashim. Thank you. Thank you. Our next question comes from the line of Brian Bergin with T.D. Cowan.

More then we more than doubled our deals about $5 million, which will tell the story around the platform as well and I think those are proof points around the where we all with the platform also the.

Operator: Please proceed with your question. Unknown Speaker Hey guys, good afternoon. Thank you. I so appreciate the document understanding of that point and the test traction, and test suite traction you mentioned. I'm curious if you could comment more on the mix of deal wins you may have signed for Q with clients attaching the full platform, or maybe the mix of the pipeline where you see clients pursuing that holistic approach and any further commentary you could share there. Yeah, Brian, I think I mentioned 65 out of one hundred of our top deals had some sort of a platform attached to those deals, so that kind of showcases it. I think if you look at our deals above a million, I think that will tell you a story there.

Then the messaging around the GSI is the partners, that's where the platform becomes even more important in my in my discussions, though you know I was in Saudi Arabia, where I met with numerous of the financial institutions and insurance companies and many of the.

Kingdom of Saudi government officials, I mean, they actually recognize the platform and the and the relevance of the platform in actual fact.

I'm one of the largest banks in Saudi I, just was about to sign with a competitive or a P E and after they saw the platform changes their mind completely almost on the spot and we're seeing more and more you know that's kind of our interaction with customers.

In my discussions with customers I'm extremely positive and how we are enabling them to do digital transformation foster, we enabling them to get value quicker and the most important thing they're getting speed into what they want to do in their businesses to change their business without having to touch many of the systems. They can get the value and you know.

Operator: We also had More than We more than doubled our deals, about 5 million, which will tell a story around the platform as well. And I think those are proof points around where we are with the platform also. The messaging around the GSIs, the partners, that's where the platform becomes even more important. In my discussions, though, I was in Saudi Arabia, where I met with numerous financial institutions and insurance companies and many of the Kingdom of Saudi government officials.

Many of the comments I made was around north on how we did how we did that.

How are we doing that.

Okay very clear and then just on the demand front. So understand that you know I. Appreciate the variable comment there can you talk maybe more about as you're going through <unk> and as you're planning for the year or what you may be seeing by region or verticals. Those have been maybe more aggressively leaning in versus those that are more cautious.

Bryan C. Bergin: They actually recognize the platform and the relevance of the platform. In fact, one of the largest banks in Saudi Arabia, I was about to sign with a competitor for RPA, and after they saw the platform, they changed their mind completely, almost on the spot, and we're seeing more and more that kind of interaction with customers. In my discussions with customers, I'm extremely positive about how we are enabling them to do digital transformation faster. We're enabling them to get value quicker. And the most important thing, they're getting speed into what they want to do in their businesses to change their business without having to touch many of their systems. Many of the comments I made were about Northstar and how we did that, and how we're doing that. Okay, very clear. And it's on the demand front. So understand that, you know, I appreciate the variable comment there.

Yeah.

Look we feel we.

When you when you when you look at the region, we feel really good about our continued strength in North America and continuing to drive we're leaving you know focused on.

Oh, I don't think public sector's, a region, but I would say.

And if you look at public sector vertically, while we're doing in the U K the Scottish government. The U S. Federal environment are Super Super positive results and I would say you can extrapolate that.

Globally, we have both.

We have a solution that is really applicable in markets that are concerned about sovereignty.

Robert Enslin: Can you talk maybe more about, as you're going through 1Q and as you're planning for the year, what you may be seeing by region or vertical, those that may be, you know, more aggressively leaning in versus those that are more cautious? Yeah, look, we feel we, when you when you look at the region, we feel really good about our continued strength in North America and continuing to drive where we've been, you know, focused on. I don't think the public sector is a region, but I would say, if you look at the public sector vertically, what we're doing in the UK, the Scottish government, the US federal environment, you know, super, super positive results.

You take the French for instance, we were able to play in a cloud based model to their liking their deployment model choice. So that's usually a beneficial we liked what we saw in Japan, we continue to see significant progress in Europe. Our leadership there is really a <unk>.

Strengthened and they are delivering consistently every quarter and you know when you deliver consistently you can start really attacking growth in and drive growth and so we see an opportunity for eye AI environment combined with a platform to markedly change the.

Robert Enslin: And I would say, globally, we have both. We have a solution that is really applicable in markets that are concerned about sovereignty. You take the French, for instance, where we are able to deploy in a cloud-based model to their liking, their deployment model choice, so that's hugely beneficial. We like what we saw in Japan.

The trajectory in the future.

Thank you.

Thank you.

So we that we may get as many questions as possible from participants we would like to limit the questions to just one.

Our next question comes from the line of Keith Bachman with BMO capital markets.

Many thanks.

Terrific results I will in the spirit of a keep my question to one.

Rob I wanted to come back on what you just talked about with Brian You mentioned 65 of the top 100 deals.

Robert Enslin: We continue to see significant progress in Europe. Our leadership there is really strengthened, and they are delivering consistently every quarter. When you deliver consistently, you can start really attacking growth and driving growth. We see an opportunity for the AI environment combined with the platform to markedly change the trajectory. Thank you. Singh.

Some element of platform I Wonder if you could expand the answer a bit but just talk a little bit about what the penetration is versus your installed base because I would think theres a lot of room.

For opportunities there and any difference that you could highlight.

Operator: So that we may get as many questions as possible from participants, we would like to limit them to, Our next question comes from the line of Keith Bachman with BMO Capital Marketing. Many thanks and terrific results. I will, in the spirit of keeping my question to one.

On <unk> or gross retention or size of deals for those customers that are adopting some element not necessarily the whole element, but some element of the platform versus those that are not many thanks.

I appreciate that I appreciate the question so yeah.

Keith Frances Bachman: Rob, I wanted to come back on what you're just talking about with Brian. You mentioned 65 of the top 100 deals had some element of platform. I wonder if you could expand on that answer a bit, but just talk a little bit about what the penetration is versus your installed base, because I would think there's a lot of room for opportunities there.

When you look at we sit our focus was to you.

She told me at a high propensity customers that would invest in automation.

And it's in a significant way and we feel that that's coming through with a million dollar customers and deals above 5 million, it's definitely coming through when you look at customers in terms of the platform and solution sets.

Robert Enslin: And any difference that you could highlight, say, on DBNR or gross retention or size of deals for those customers that are adopting some element, not necessarily the full element, but some element of the platform versus those that are not? Many thanks. Yeah, I appreciate the question. So yeah, we, you know, when you look at, we said our focus was to target the high propensity customers that would invest in automation in a significant way. And we feel that that's coming through with our million dollar customers and deals above 5 million. It's definitely coming through.

I would say yes.

IDP and test is is a driver for the platform are once they once they've seen what they can do with IDP.

Intelligent document processing that one of the install to uncover more and more opportunities and I would use an example of windows that where the CEO of windows that looked at what we can do with an all star and where the opportunities were in process mining and communication mining and getting that whole organization behind understanding how to drive efficiencies and more importantly.

Robert Enslin: When you look at customers, in terms of the platform and solution sets, I would say, you know, IDP and testing are a driver for the platform. But once they've seen what they can do with IDP, or Intelligent Document Processing, they want to then start to uncover more and more opportunities. And I would use an example of Indosat, where the CEO of Indosat looked at what we could do with a North Star with opportunities in process mining and communication mining and got that whole organization behind understanding how to drive efficiencies and, more importantly, look for new revenue streams. That's what excites the customers.

Look for new revenue streams, and that's what excites the customer. So I would you know we in the early stages of driving the platform through the customer base.

I feel like many many more customers will will take on the.

Take on the platform in a suit in a significant way.

And there's a lot of opportunity in the future.

Okay. Thank you Rob.

Thank you.

Our next question comes from the line of Brad Sills with Bank of America. Please proceed with your question.

Thank you this is not I appreciate that.

Great.

The customer base.

Relative to I guess.

How are you thinking about the go to market motion.

25.

Yes.

Robert Enslin: So I would, you know, we're in the early stages of driving the platform through the customer base. I feel like many, many more customers will take on the platform in a significant way. And there's a lot of opportunity in the, Okay, thank you, Rob Singh.

Yeah, Brett so.

Pretty much the same execution productivity.

Continuing to drive the platform driving more industry verticals nation, as we see more and more solutions are successful.

Operator: Our next question comes from the line of Brad Sills with Bank of America. Please proceed with your questions. Hey, thank you. This is Adam Bergeron from Bank of America.

And then bringing them globally into into different markets, we are investing in.

In product specialists and in these areas with.

Adam Bergeron: So you guys have all done a great job selling back into the customer base, and that's been a relative focus. How are you thinking about the go-to-market mission for FY25? Thank you. Yeah, Brad.

Companies are interested in and understanding also youll see some more product specialists in our growth products and the platform.

But we feel really really good about all the go to market changes we have made in the execution of those changes and so you know in 2025, it's all about execution.

Robert Enslin: So, you know, pretty much the same execution, productivity, continuing to drive the platform, driving more industry verticalization as we see more and more solutions are successful, and then bringing them globally into different markets. We are investing., Karamo Pillai, Sybase, Local Affairs Section, Toutain service, GIDHUB, www.youtube.com.au, Thank you.

Thank you Matthew.

Our next question comes from the line of Fred Meyer with Macquarie.

Macquarie. Please proceed with your question.

Okay. Thank you.

I'm at risk of being repetitive here, because I don't want to go back to it.

A question I asked last quarter, because there's a lot happening with autonomous agents, we really lost called out late last night.

Operator: Our next question comes from the line of Fred Hadmeyer with Mac McQuarrie. Please proceed with your question. Okay, thank you. Now I'm at risk of being repetitive here because I don't want to go back to it.

I shouldn't have startup launched their new AI software engineer and they're supposed to do some demos about it and you can see that with new AI, Michigan generative AI initiatives are giving computers access to like work environment machine vision and a number of things here. So I'd like to ask how are you thinking about the cooperative or even competitive environment.

Frederick Christian Havemeyer: Beginning of question I asked last quarter because there's a lot happening with autonomous agents since we really last caught up. Like last night, Cognition, a startup, launched their new AI software engineer and was posting some demos about it. And with these, you can see that some of these new AI initiatives, generative AI initiatives, are giving computers access to work environments, machine vision, and a number of things here. So I'd like to ask, how are you thinking about the cooperative or even competitive environment for UiPath platform with the rise of this kind of autonomous self-reasoning technology? Yeah, let me take this one.

You Ipass platform with the rise of this kind of autonomous self.

Okay.

Yeah, Let me take this one.

We are thinking quite a lot.

How we can build our own.

It would be cool like digital assistant.

So we are we are we put together.

The team that we have in Europe.

First the ICU.

And we are working to build our own like foundational model that combines the.

Knowledge of a subject matter expert like an accounting firm or like an auditor.

Daniel Solomon Dines: We are thinking quite a lot about how we can build our own. We, we, we put together the best team that we have in Uipath, the best AI team. And we are working to build our own foundational model that combines the knowledge of a subject matter expert, like an accountant or like an audience, with the knowledge of how to use the system applications that facilitate this type of task. Where's the company?

With the knowledge of how to use the system obligations that facilitates this type of tasks.

Whereas the company out of them.

Great position to build.

This type of assistance, we have tremendous access to computer screens application. They are our computer vision of service is one of the most used we have we scale actually lived through like 5 million calls.

Daniel Solomon Dines: I'm in a great position. We have tremendous access to screens, application data,

Daniel Solomon Dines: Our computer vision service is one of the most used. We have scaled to like 5 million calls a month, and it's growing consistently month over month, and, In the end, all these autonomous agents... You require a great platform to operate on. You will have a platform to ensure the security, the governance, and the audit that are required to perform autonomous work.

A month and it's growing up consistently month over month.

And.

India All these autonomous agents.

Require a great platform to operate when you'll have a blocks one to ensure the security the governance.

They are required to performing autonomous work and this is where I think the two we really shine combining our great offering.

Daniel Solomon Dines: And this is where I think that we really shine. Combining our great offerings, our existing data, and building the AI that runs on top. Thank you, Daniel.

Our existing data and building the eye, the Toronto and the top of the platform.

Thank you Danielle.

Thank you. Our next question comes from the line of Terry Tillman with QE Securities. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Terry Tillman with Truist Securities. Please proceed with your question. Yeah, thanks for taking my question. And congratulations for me as well on the gap profitability. Robert, the question for you in terms of just the SAP relationship, it seems like low hanging fruit around the test suite. But I'm curious, is the relationship evolving?

Yes, Thanks for taking my question and congrats from me as well on the job profitability Rob. It's a question for you in terms of just the SAP relationship. It seems like low hanging fruit around test suite, but I'm curious as the relationship evolving and are you seeing opportunities or signed business, whereby they're taking your platform and actually extending the core as they.

Terrell Frederick Tillman: And are you seeing opportunities or new business whereby they're taking your platform and actually extending the core as they upgrade to S4 HANA? So it's not just test automation; it's actually helping build new, almost business logic, if you will, with your platform. I just would love to learn more about how this could expand. Yeah, I mean, I think the good way to look at it is that SAP is focused on a clean core.

Upgrade desk for harnessed. So it's not just test automation, it's actually helping build new almost business logic. If you will with your platform just would love to learn more about how this could expand them become extensible. Thank you.

Yeah, I mean, I think I think the good way to look at it is S&P's focus on clean call.

Robert Enslin: We help clean the core in a significant way where you can build automations on top and combine them together with SAP processes, and automation customers can get a clean core, and they can get what they need from their business models. When you combine that with Deloitte, taking the advanced methodology, the SAP advanced methodology, and they're combining UiPath automation on top so they can take both to the customer together, tells you that the combination of both is actually how customers will get the benefit. The customers that we see on the migration that are also driven from test are not only looking at test; they're looking at full automation. And that's why they actually are combining UiPath when we showcase how we demo the combination of running an SAP invoice creation process and automation on top of that, extracting information from documents and automatically creating those invoice orders.

We help clean coal in a significant way, where you can build automation on top and combined together with ACP processes and automation customers can get a clean coal and they can get what they need from their business model. When you combined with delayed taking they advanced methodology, the ACP advancement, the geology and they combining.

Your ipads automation on top so they can take both to the customer to get it tells you that the combination of both is actually how we customers will get the benefit the customers that we see on the migration that are also driving driven from tests, there's not any tests theyre looking at full automation and that's why they actually all combining your iPad when we showcase.

How we demo the co.

Combination of riding on a S. A P invoice creation process and automation on top of that extracting information from documents and automatically automatically creating those those invoice orders customers are like Wow and so that's the process, we're going through and you know we are you know.

Robert Enslin: Customers are like, wow. And so that's the process we're going through. And when you start looking at new logos, Marks & Spencer and the customer in Switzerland, these are significant organizations, and they're significant new logos for us to continue to win. Thank you. Our next question comes from the line of Alex Zukin with Wolf Reef. Please proceed with your question.

And when you when you start looking at new logos marks <unk> Spencer and with the customer in Switzerland.

Our significant organizations and they significant new logos for us to continue to win.

Thank you. Our next question comes from the line of Alex Zukin with Wolfe Research. Please proceed with your question.

Hey, guys. This is Ethan Roth on for Alex.

Operator: So I just want to ask you, you called out, you know, a lot of success in, you know, more complex industries like financial services, healthcare, life science, public sector. I'm just curious, how much of the more strategic discussions with larger customers are kind of the pull around people looking to explore more with AI versus the push from some of just the better go-to-market execution you've spoken about? And then, you know, as we think about guidance, I just want to double-click on Mark's question, just, I'm just curious, like, based on all what you're seeing, both demand and just an execution standpoint, like, what's giving you confidence in that guy for the net new ARR guide for Fiscal 25, just the puts and takes, whether it's around large customer momentum, more success in certain verticals, just anything you can Yeah, so let me start off and say, look, there's no doubt there's better execution, right? There's no doubt that's what we said; we wanted to achieve better execution. And we also wanted to make certain that the platform was relevant for C-level executives.

I just want to ask you called out.

Lot of success.

More complex industries like financial services Health care life Science public sector I'm, just curious how much of the more strategic discussions with larger customers as kind of the the pool around people looking to explore more with AI versus the push from some of the better go to market execution, you've spoken about it and then.

We think about guidance I just want to double click on March question, just I'm, just curious based on what you're seeing with demand and just an execution standpoint.

What's giving competence in that guide for the idea of net new way our throughout fiscal 'twenty five the puts and takes whether it's around large customer momentum more success in certain verticals just anything you can share there yeah.

Yeah, So let me start off and say look.

Theres no doubt theres better execution right. There's no doubt that's what we said we wanted to achieve better execution and we also wanted to make certain that the platform was relevant for C level executives and there's no doubt that the whole AI movement. That's happened in the past 12 months all of those pieces. Together has helped you ipass moved 40 in a dramatically.

Robert Enslin: And there's no doubt that the whole AI movement that's happened in the past 12 months, all of those pieces together, have helped Uipath move forward in a dramatically better way, and we'll continue to do that. The reason why our AI story resonates not only with the automation folks but also with the AI folks is because we're able to showcase how you take a solution like TEST and use generative AI to improve the performance of manual testing multiple times, including when you take, as I said, just in the kingdom of Saudi Arabia, when they look at the invoice, and they're looking at English and Arabic, and we're able to take both of those in their Customers are absolutely blown away.

Better way.

And we will continue and continue to do that the reason why I story resonates not only with the automation folks and AI folks just because we were able to showcase how you take a solution like kick and used generative AI and improve the performance of manual testing multiple times.

Including when you take and as I said I was just in the Kingdom of Saudi Arabia, when they look at the invoice and they are looking at.

English and Arabia, and we're able to take both of those in the language and able to actually use automation AI based automation to decipher it and I'll cover it even when it's only 75% visible we're able to actually almost get it 100% customers absolutely blown then they look at the <unk>.

Robert Enslin: Then they look at the opportunity. What else is out there? What else can you do for us? We've got all of these opportunities, and what we see is pretty exciting for us. Then it's a question of how long it will take. How long will it take to deliver it?

Opportunity or what else is out there what else can you do for us.

Got all of these opportunities and what we see is it's pretty exciting for US and then it's a question of how long will it take how long will it take to deliver that and that's where we get out of the creativity of automation together with AI delivers what I've always said customers need speed and agility to deliver results that they need to date.

Robert Enslin: That's where the creativity of automation together with AI delivers what I've always said, customers need speed and agility to deliver results that they need today. And I would just say from the guidance perspective, you know, a lot of our confidence comes to what's actually based on what Rob is saying and what we're seeing in the market. We always guide to what's in front of us. So we look at our pipeline, we look at the kind of business, how the business is progressing. And, you know, we had a really great year last year, and we feel like we have continued momentum going into this year.

And I would just say from the guidance perspective, you know a lot of a lot of our confidence comes to us.

Actually based on what Rob, saying and what we're seeing in the market. We always guide to what's in front of US. So we look at our pipeline, we look at kind of the business. How the business is progressing and we had a really great year last year and we feel like we have continued momentum going into this year and so we feel good about our guide.

Thank you.

This will be our final question.

Thank you. Our next question comes from the line of Ari here, John you with.

Ashim Gupta: And so we feel good about it. Thank you. This will be our final question. Thank you. Our next question comes from the line of Ari Terjanian with.

Cleveland Research Company. Please proceed with your question.

Hi, guys. Thanks for taking the question and congrats on a strong into the year.

Operator: Cleveland Research, Please proceed with Hi guys, thanks for taking the question and congrats on a strong end of the year. I want to keep on the AI topic; we'd love to hear any updates around how you're seeing customers leverage the UiPath platform to build their own custom-gen AI applications. And, you know, similarly, to the extent that AI is, you know, helping bend the curve, make, you know, business automation easier to adopt, I'm curious if this can finally really speed up the deployment and lower the need for extensive services to adopt your guys' platform. Thank you. Yeah, I can give you an interesting example that we are seeing in healthcare providers; we help them with building a rock-based, Such, which is like a retrieval augment.

Wanted to keep on the topic love to hear any updates around how you're seeing customers.

Leverage the UAS.

You Ipass platform to build their own custom Gen AI applications.

And similarly to the extent that AI is.

Big Bend the curve.

<unk> business automation easier to adopt curious if you can finally, you really speed up the deployment in Florida the need of extensive services to adopt your guy's platform. Thank you.

Yes, I can give you an interesting example that we are seeing in the healthcare provider, we have them with the building.

A rug based.

Search, which.

It was like retrieval augment and generative.

Daniel Solomon Dines: Generative AI. And they. Imagine a patient that has to fill out a formula, and then it goes to...

<unk>.

Very.

Imagine a patient that has to flow with the formula.

Then it goes to.

Converts into a claim when he has to Mitch.

Daniel Solomon Dines: Converting to a claim, and it has to match the, This is just one type of example that we are seeing. And there are many others in this regard. And I think it proves, again, the point that generative AI combined with specialized AI is really helping us to go more towards automating end-to-end processes, and that's all. It's really, in the end, it results in a much better value proposition for our company. Okay. I think with that, that's the last question.

A certain type of procedure.

So this is the this was one of the type of example that we are seeing and there are many others in this regard.

And I think it proves again the point that the generative combined with specialized.

<unk> is really helping us to go more towards automating end to end processes.

And.

Uh huh.

Hmm.

And in the end it results in a much better value prop for our customers.

Okay.

I think that's what that's the last question. Thank you everybody for joining US we really appreciate you taking the time and thank you again.

Unknown Executive: Thank you everybody for joining us. We really appreciate you taking the time. And thank you again. This concludes today's telecom. You may disconnect your lines at this time. Thank you for your participation. Thanks for watching! Despite What You Don't Understand About the United States, The? Written Copyright PMI Center for Creative Services, Inc. All rights reserved.

Yeah.

This concludes today's teleconference.

May disconnect your lines at this time, thank you for your participation.

Okay.

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