UiPath, Inc.

Greetings. Welcome to the UiPath 3rd Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A 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. Please note this conference is being recorded. I will now turn the conference over to your host, Kelsey Turcotte, SVP of Investor Relations. Thank you. You may begin.

Good afternoon, and thank you for joining us today to review UiPath's third 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 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. We will be discussing 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 third quarter fiscal year 2022 performance in addition to the impact these items and events have on the financial results. This afternoon's call includes forward-looking statements about future events, including statements regarding our financial guidance for the fourth fiscal quarter and fiscal year-end 2022, our expectations regarding seasonality, our strategic plans or objectives, the estimated addressable market opportunity for our platform, and our position in the market, future growth opportunities, the success of our platform and new platform releases, the success of our investments and partnerships, the success of our collaborations with third parties, the ability of our platform to deliver our customers a return on investment, and our customers' behaviors and potential automation spend. 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 a discussion of the material risks and uncertainties that could affect our actual results, please refer to the 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 a copy of our prepared marks to our investor relations website immediately following the conclusion of this call. Now I would like to hand the call over to Daniel.

Thank you, Kelsey, and good afternoon, everyone. We continue to have very good momentum in our third quarter as ARR, increased 58% year-over-year to $818 million, driven by net new ARR of $92 million. Our continued growth at scale is fueled by our market-leading end-to-end automation platform. Automation fundamentally changes how employees' experience works and businesses interact with customers and partners. I continue to hear from customers that UiPath automation platform is one of the most important technologies in their digital transformation roadmap, driving operational efficiencies, generating revenue, and creating significant competitive advantages. As Forrester put it in their Predictions 2022 automation report, Automation is emerging out of the back office to become a potent neighbor of new business and operating models. Companies with advanced automation programs will obliterate, not merely beat, the competition. Automation also presents a truly strategic solution for the kind of challenges presented by secular trends like the global labor shortage and supply chain constraints. For example, Hanabank, one of the top three banks in South Korea, had the twin goal of reducing menial tasks done by employees in preparing for future labor shortages. They started by automating tasks which yielded not only cost reduction but more efficient HR management than move to cross-bank mega processes and have recently entered their fourth phase of deployment. All in, Hanabank has applied automation to 80 processes and estimates savings of around 1.5 million hours per year. Now, turning to the quarter, I am pleased with our results, which reflect our constant focus on customer success. At the end of the third quarter, we had more than 9,630 customers, including new logos like Check, Inc., Dr. Edgar, Colgate University, Loblaw Companies, and Aspen Medical. On the expansion side, we now have 1,363 customers that accounted for at least 100,000 in ARR, up 52% from 899 in the prior year. This includes 135 customers at $1 million plus. in ARR, up 82% from 74% in the prior year. The Saudi Ministry of Tourism is a great expansion story which highlights how relevant automation is across verticals. They began their smart automation in 2020 to expedite integration and reporting on their enterprise systems platforms. In less than one year, using both attended and unattended robots, they reduced the time needed to collect, process, and analyze data by 95%, from 30 minutes per record to 40 seconds. While NRG, an energy provider in the U.S. and Canada, drives home our competitive positioning, NRG has deployed over 100 automations and achieved millions in annual savings, having expanded across finance, HR, IT, customer operations, and their contact center. They recently acquired Direct Energy and are in the process of migrating Direct Energy's automation program from a competitor to UiPath. increasing their automation count by 50% in a matter of months. Customer stories like these are inspiring, and it was great to gather approximately 2,000 automation practitioners at Forward4, our first in-person user conference in two years. Forward strengthened relationships and resulted in new business as well as pipeline expansion. It was clear from the interaction on our show floor and attendance in breakout sessions led by practitioners including Amazon, Chevron, Spotify, and Palo Alto networks that customers are enthusiastic about the power of automation and our newest platform release. 2021.10 again expands our UI, API, and AI capabilities and extends our competitive mode with the addition of more than 100 features and enhancements across every stage of the automation lifecycle. Updates to our new platform capabilities like 21.10 are first released in the cloud. that gives our cloud customers the benefit of a continuous two-week release cadence and us a continuous feedback cycle which results in high-quality semi-annual releases to our entire customer base. We have great excitement around our cloud offerings, particularly with the release of 21.10. Over half of our new customers chose cloud as part of their first purchase in the third quarter, and we now have more than 3,250 cloud customers. Toll Group, a leader in logistics, transport, and supply chain in Australia, is a great customer success story. They are leveraging our Automation Cloud for both attended and unattended robots, as well as Document Understanding, AI Center, and Test Suite. To date, their rapidly growing automation program has freed up 170,000 hours, and they are on track for savings of $1.6 million annually. To continue to offer our customers adoption optionality, we launch Automation Suite with 21.10. Automation Suite enables our customers to leverage the power of the full UiPath platform with the benefit of a cloud-native architecture. However they choose on-prem public cloud, were third-party hosted with a single install on Linux. 21.10 also included the introduction of Linux-based software robots, a capability that is required to be a truly cloud-native company. This allows our customers to achieve scalability autoscalability in a cost-effective manner. Our focus on innovation continues to strengthen our lead in the automation market and has also won us recognition by some of the foremost industry analysts in our space. First, we are very pleased to have been named a leader in the inaugural IDC MarketScape worldwide robotic process automation software, 2021 to 2022 vendor assessment, which positions UiPath as the leader for overall technical capabilities and the strong capitalization structure for extending our end-to-end automation platform. and we were named a robotic process automation leader and star performer in the technology vendor landscape for the fifth consecutive year, according to Everest Group's Robotic Process Automation Products Peak Matrix Assessment 2021. We emerged as the only star performer who is also a leader in this year's assessment, which analyzes the changing dynamics of the RPA landscape and assesses 23 service providers across several key dimensions. Acknowledgments like these are important for our customers and our UiPath ecosystem which continues to grow meaningfully. In fact, last month, we announced an offering that enables our partners, community contributors, and independent automation vendors to distribute and monetize their RPA content to our more than 100,000 existing marketplace users. We are also making meaningful strategic investments in go-to-market partnerships where we work together to drive customer success. The number of our partners is increasing and now have more than 4,900 and our relationships are deepening. This increased focus is driving growth, particularly with global systems integrators where we are working to become one of the top practices in these influential and global organizations. We recently expanded our strategic collaboration with Accenture to help drive the adoption of enterprise-wide automation among clients, accelerate their technology transformation efforts, and create new growth opportunities. As an Uber executive said recently. At Uber, it is about how we can apply technology and innovation to serve our customers. Partnering with UiPath and Accenture enable us to tap into the power of both UiPath's intelligent automation platform and Accenture's business. and digital transformation expertise. This powerful combination has helped Uber achieve unparalleled results in its digital transformation journey to enhance internal operations productivity, quality, performance, and user experience. In addition, we announced that our end-to-end automation platform is being incorporated into PwC perform their proprietary operational improvement methodology and management system. By embedding our platform, PwC can harness the power and scope of UiPath automation products to expedite time to value for customers engaged in rapidly advancing digital transformation initiatives. Customers like Mercy, a St. Louis-based healthcare system, also benefit from the expertise of our vertical partner specialists like Armitech, a healthcare data analytics and automation consulting firm, and UiPath Diamond Partners. Mersey started their automation journey in finance and continues to scale on our platform, adding test mining and test suite this quarter while steadily deploying more automations. To date, they have hundreds of automations deployed across 84 use cases with an estimated total benefit of tens of millions of dollars and additional time for nurses and doctors to provide better outcomes for their patients. This is our vision to automate mundane tasks to allow employees to make a meaningful difference. All of this is about driving customer success, which includes technical integrations, that make it easier to deploy automation. And this quarter, we made several strategic announcements with major technology providers. We partnered with CrowdStrike to provide customers a new level of security and visibility by extending endpoint security to RPA through their CrowdStrike Falcon platform. This is a first of its kind in the industry. We integrated UiPath Insights with Snowflake to provide customers with faster data processing and analytic capabilities to scale their automation programs. We expanded our strategic relationship with Alterix to include new integrations making it easier to invoke UiPath bots in an AlterX workflow. Finally, we partnered with Qlik to enable Qlik Cloud Analytics users to leverage UiPath automations to drive action and prioritize tasks in downstream applications. Connectors like these make automations that combine API integrations for high volume transactions with our comprehensive UI computer vision easy to build deliver govern and manage a comprehensive automation program requires a combination of emulation particularly for the long tail of manual processes and API integration for high volume transactions, both of which are foundational to our platform. In summary, we had a strong Q3 and we continue to drive growth at scale. The market is very healthy and we see considerable demand for our automation platform. I feel very good about what we have been able to accomplish across the business since our IPO, and we remain focused on innovation and our customers, which we believe is key to our ongoing success. With that, Ashim will take over to talk in more detail about our third quarter results and our fourth quarter guidance.