UiPath, Inc.

Greetings and welcome to the UiPath fourth 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 that this conference is being recorded. I will now turn the conference over to our host, Kelsey Turcotte of Investor Relations. Thank you. You may begin.

Good afternoon, and thank you for joining us to review UiPath's fourth quarter and full year 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. 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. This afternoon's call includes forward-looking statements about future events. including statements regarding our financial guidance for the first fiscal quarter of 2023 and fiscal year 2023, our expectations regarding the acceleration of digital transformation, the impact and duration of headwinds, and expectations regarding our dollar-based net retention rate and fiscal year 2023 ARR. 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 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 a copy of our prepared comments to our investor relations website immediately following the conclusion of this call. Now I'd like to hand the call over to Daniel.

Thank you, Kelsey, and good afternoon, everyone. We have a lot to discuss, so I'm going to break my comments down into sections. I'll start with a quick review of our business, followed by some highlights from the fourth quarter, including new products and partnerships. I'll finish with guidance and give you some details about our new chief business officer. Before any of that, I want to acknowledge the events unfolding in Ukraine. Our thoughts and prayers are with the entire country, and we are deeply saddened by the crisis that has been created. For me, this is very personal. I grew up in Romania when it was still under communist control, so I understand the freedoms the Ukrainians are fighting to protect. Amidst all of this, I'm extremely proud of the UiPath team. Among the many things we are doing, we have donated more than $1.5 million in support, and our colleagues across the region have opened their homes to refugees. We have also made our automation platform available to organizations like International Red Cross which is using automation to manage millions of dollars of donations, and we will continue to look for ways to help. Turning to the business, we deliver a very strong fiscal year 2022, marked by important milestones like our IPO, market-leading product introductions, industry analyst acknowledgement of our leadership position, and meaningful growth We have executed well, laying the foundation and attracted leaders who have experience to help us scale. We expect that by the end of fiscal 2023, we will have exceeded the $1 billion mark in ARR and revenue. Fourth quarter net new ARR grew 72% year over year, reaching a record $107 million. This drove total ARR to $925 million, an increase of 59% year-over-year. Our continued growth at scale reflects broad-based adoption of our end-to-end automation platform and our focused execution. Automation is critical to digital transformation and to unlock new levels of innovation, agility, and productivity. Our Lend and Expand model continues to drive best-in-class dollar-based net retention of 145% as of the end of the fourth quarter. we had approximately 10,100 customers, including New Logos, Deliveroo, Auburn University, ABM Industry, and Bechtel AG. We now have 1,493 customers that accounted for at least $100,000 in ARR on an annual basis, up 49% from the prior year. This includes 158 customers over $1 million in annual ARR, up 78%. From a product perspective, these results are driven both by customers deploying more software robots and by accelerating adoption of our broad suite of capabilities. Our end-to-end automation platform is the key differentiator for us as we help customers accelerate their automation lifecycle. This includes paychecks. Paychecks has saved more than 425,000 manual hours with more than 35 million bought transactions. They now have over 40 workflows in production. and are expanding adoption and operationalizing intelligent automation capabilities for test mining and process mining, which help them identify opportunities to save another 40,000 hours annually. We continue to expand platform deployment options with automation cloud robots, which allows our customers to deploy unattended robots instantly without IT resources or infrastructure. We already offer a SaaS option for almost every UiPath product, and Automation Cloud Robots brings us even closer to a fully SaaS platform hosted in our cloud. As of the end of the fourth quarter, cloud, which includes both hybrid and SaaS deployments, has grown to more than $140 million in ARR in just over two years. We ended the quarter with more than 3,800 cloud customers with approximately 55% of our new logos selecting cloud in the quarter. This includes companies like Snowflake and Recipe Unlimited. Our focus on innovation continues to strengthen our leadership in the automation market, and we are excited about our upcoming platform release in May. UiPath 2022.4 delivers the next-gen automation cloud, which continues our progress towards frictionless development and faster time to value, expands automation access for all, and raises the bar on security and compliance. We also continue to expand our go-to-market ecosystem. We ended the quarter with approximately 5,100 partners, building a best-in-breed go-to-market ecosystem requires us to sell with global GSIs and automation experts, as well as enable a broad range of organizations with distribution capabilities like Ingram Micro. These collaborations include CELTO, like with Deloitte, which has decided to expand their UI path usage for their internal automation journey. Sell with and sell through during the quarter we closed several new and expanded partnerships, including Finestra and ISID. Finestra, a UK-based global financial software company, plans to bring the power of UiPath automation to financial institutions worldwide. The first phase of this partnership will leverage Finestra's secure cloud platform to allow partners and automation creators to build and sell offerings to the financial market. Additionally, Finestra expects to include UiPath capabilities in their own offerings, which they will monetize directly with their customers. While ISID Group, a leading Japanese system integrator, is using automation to respond to Japan's tightening employment environment. Many leading Japanese companies are responding to this issue through digital technologies, and ISID is developing a unique digital human resources development service based on the UiPath platform to offer to the wider market. As we continue to scale, we are building a go-to-market team that is driving long-term durable growth, And I want to welcome Chris Weber, who is joining us to lead that offer as chief business officer, responsible for our global go-to-market strategy and execution. Chris brings over 25 years of experience to this role, having most recently helped transform sales and marketing across Microsoft as corporate vice president of their corporate and SMB commercial teams. He also led Nokia's reentry into the North American market. He has scaled multiple businesses to billions of dollars and brings an entrepreneurial approach, a genuine customer-first orientation, and the passion for the role that automation plays in digital transformation. I would also like to thank Thomas Hansen for his partnership and contributions to UiPath over the last two years and for his assistance during this transition. Now, I want to give you my thoughts on the guidance we provided this afternoon. I just returned from two weeks in Europe where I spent time with our employees in Romania and customers across the region. We have a meaningful business in Europe. that has been growing well over the last several years. This includes both employees and customers in Ukraine and in Russia, where we have paused business. I can tell you firsthand, this war is having a profound impact on the sense of physical and economic security across the continent and in the UK. We are also starting to hear customers in the US express reservations about both political uncertainty and rising interest rates. As we start the fiscal year, we believe it is prudent to guide assuming the uncertainty we are seeing in the first quarter will continue. It also takes into account our decision to transition our go-to-market leader which can create short-term disruption. Our financial model is powerful, and we believe there is considerable opportunity to continue to drive durable growth and improve profitability as we scale the business. In summary, we had a strong close to our first year as a public company. I've said it before, and I truly believe it. We are building a multi-generational company, that will change how employees experience work and unlock human potential. Looking ahead to fiscal 2023, digital transformation is accelerating and UiPath is at the forefront of that evolution. With that, Ashim will take over to talk in more detail about our fourth quarter results and our fiscal 2023 guidance.