UiPath, Inc.

Hello, and welcome to the UiPath second quarter 2022 earnings conference call and webcast. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. We ask that you please ask one question, then return to the queue. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Kelsey Turcotte, Investor Relations. Please go ahead.

Good afternoon and thank you for joining us today to review UiPath's second quarter fiscal 2022 financial results, which we announced in our earnings press release issued after the close of the market today. On the call with me are Daniel Dines, UiPath's co-founder and chief executive officer, and Ashim Gupta, chief financial officer. We will open with prepared remarks followed by a Q&A session. Our earnings press release and financial supplemental are posted on the UiPath investor relations website, ir.uipath.com. These materials include reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with U.S. GAAP. Unless otherwise specified, we will refer to non-GAAP metrics on today's call. The non-GAAP financial measures provided should not be considered as a substitute for or superior to The measures of financial performance prepared in accordance with U.S. GAAP. They are included as additional clarifying items to aid investors in further understanding the company's second quarter fiscal year 2022 performance, in addition to the impact these items and events have on the financial results. In addition, please note that we define ARR as annualized renewal run rate. This afternoon's call includes forward-looking statements about future events, including statements related to our market and future growth opportunities, our planned investments, our vision and the benefits of our product platform, customer behaviors, our customers' potential automation spend, the ability of our platform to deliver a return on investment to our customers, and our financial guidance and the assumptions underlying such guidance. 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. For discussion of the material risks and uncertainties that could affect our actual results, please refer to our earnings release and other reports filed with the SEC. Forward-looking statements made on this call reflect our views as of today. We undertake no obligation to update them. Before I turn the call over to Daniel, I would like to highlight that this webcast is being accompanied by slides. We will post the slides and the copy of our prepared comments to our investor relations website. Finally, we'd like to invite you to attend Forward4, our annual user conference. We will be holding this event in person in Las Vegas on October 4th through 6th. To register, please go to the homepage of our investor relations website for further information. Now I would like to hand the call over to Daniel.

Thank you, Kelsey, and thank you to everyone for joining us this afternoon. The momentum in our business continued in our second fiscal quarter as ARR increased 60% year-over-year to $726.5 million, driven by record-name new ARR of $73.9 million. We believe we have a long-term opportunity to drive durable growth and build a company that will transform how organizations compete, employees experience work, and companies interact with their customers. The opportunity to unlock human potential is vast and we are in the very early stages of the market ahead of us. This is why we plan to continue to invest across the business We are hiring the best engineers to deliver market-leading capabilities across our platform, increasing our sales teams to reach more customers faster, investing in partner enablement to help our customers scale, and growing our vibrant community ecosystem that has crossed 1.5 million members. These are just a few of the investments that we expect will further widen the competitive mode and sustain our leadership position. Just a few short years ago, we introduced our first set of capabilities built on our unique combination of UI automation, API management, and AI-based computer vision that addressed the needs of the core RPA market. Back then, our customer count numbered in the hundreds. Since then, we have evolved those capabilities into an end-to-end platform that covers the full lifecycle of automation, drives fast time-to-value, and ROI for customers. As of the end of the second quarter, our customer base was more than 9,100 and the number of our customers who are leveraging our platform to accelerate automation is growing quickly. We have 1,247 customers that accounted for at least 100,000 in ARR, up 59% from 785 in the second quarter of last year. This includes 118 customers at 1 million plus in ARR. up 100% from 59. These numbers demonstrate not only the significant demand for automation, but demand for automation at scale. A great example is Handelsbanken, one of the largest banks in the Nordics, which chose to work with UiPath as the strategic part of their digitalization journey. Our entire platform offering and Vision was a key factor in their selection and they now have plans to utilize attended robots, AI, process mining and task mining with the goal of automating at least 75 processes within the next year. Task mining which was introduced this past spring is generating a lot of interest from both new prospects and existing customers. It is a great example of our commitment to innovation and how we can help take the friction out of adoption. With test mining, customers can now discover and recommend new automations with the help of AI. And, when combined with Process Mining, like Handels Banken has done, an automation hub in the discovery pillar of our platform, we expect this will accelerate our customers' automation journey and drive adoption across our platform. Another example of scaling customers is Chipotle, which continues to lead digital transformation in retail and deliver on their vision for intelligent restaurants. Chipotle has been a UiPath automation cloud customer since 2019, and in the second quarter, they added Automation Hub and additional unattended robots to help manage and support their growing pipeline of automation opportunities. They are also investigating UiPath task mining for automation opportunities in their restaurants. Not only for Chipotle, but for most of our customers, flexibility of deployment is an important consideration when they are choosing an automation partner. This is where Automation Cloud plays a key role in our end-to-end strategy. It allows customers to manage software robots where they are needed, on-premise or in the cloud, through a single web portal delivered as a service. And we continue to make Automation Cloud even easier to use, recently creating a tool to simplify the process of moving on-premises orchestrator to Automation Cloud. This has helped customers such as Dentsu, whose strategic vision is to elevate its employees' potential by integrated automation and AI in both internal processes and client-facing services. Automation Cloud has grown at an amazing pace from GA in December of 2019 to approximately 2,850 customers in 2021. In fact, more than 45% of our new customers purchased Automation Cloud in the quarter many of them deploying in a hybrid environment. Because of our ability to support customers across deployment models, we can put customer requirements first every time. Even with all of this recent innovation, including the spring release of 21.4, which has more customers using it within three months than any release in our history, We are constantly pushing to see what we can achieve next. One of those challenges is addressing unstructured data which, if we can accomplish it, substantially broadens what customers can accomplish with automation and increases our total addressable market. Right now, We leverage AI and ML across our platform, offering more than 25 pre-built machine learning models to help customers automate more quickly. Customers of all sizes see the value in AI and ML and frequently ask us to deliver new functionality in the platform. In the second quarter, this led to the introduction of a new ML model to public preview that identifies key elements from text, then classifies them to enhance automation in use cases like email processing. It also led to delivery of a highly requested new feature in document understanding. Document Understanding now sends validation tasks to end users via UiPath Action Center and also enables the auto-training of ML models for continuous learning and accuracy improvements over time. This is where we see the potential for semantic automation. We believe the market will evolve from what is now rules and instructions based frequently requiring human intervention to software that follows the process and learns how to emulate humans, achieving semantic automation as we envision it is not going to be easy and it is going to take time, but we have always been at the forefront of automation and we are excited by the challenge. Our constant innovation results in broad recognition of our market leadership by practitioners, thought leaders, and industry analysts. It also attracts partners to either join our go-to-market ecosystem or expand the depth of their relationship with us. Investing in partners to promote their success is fundamental to our strategy. Our UiPath Services Network, or USN, was designed to provide our partners with training, certification, and marketing programs. USN recognizes an elite network of service and delivery partners that work with our customers to offer skills on par with our professional services team. This quarter, both EY and Cognizant successfully completed the rigorous requirements of USM certification. Before I turn the call over to Ashim, I want to quickly highlight Automation for Good, one of the many initiatives that demonstrate how we put our values into action. We believe in the transformative power of automation to bring out the best in people and the potential of people to bring out the best in our world. By way of example, automation has the power to help neurodiverse individuals find and retain meaningful employment. The unemployment rate for autistic individuals is staggering, with over 80% of individuals unable to find work. To help address this challenge, UiPath is supporting Autonomy Works, a company that employs people with autism to deliver business services. You may have seen them on 60 Minutes, by creating software robots designed to make workloads manageable. This allows those with autism the opportunity to flourish in highly skilled roles and work with cutting edge automation software. We are proud of this partnership, which is just one example of the impact of our efforts around the world. Finally, We invite you to join our User Conference 4x4 next month in Las Vegas, where you will get to see all of our latest innovations firsthand. We are very excited about the upcoming introduction of 21.10, our newest platform release, which will include multi-cloud, multi-platform capabilities that we believe will further expand our addressable market and leadership position. With that, I'll turn the call over to Ashim to discuss our Q2 performance and guidance in more detail.