UiPath, Inc.

Greetings and welcome to the UiPath third quarter fiscal 2023 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow a 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 today to review UiPath's third quarter fiscal 2023 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 co-chief executive officer, Rob Enslin, co-chief executive officer, and Ashim Gupta, chief financial officer. Rob will start the discussion and then turn the call over to Daniel. After that, Ashim will review our results and provide guidance. Then we will open the call for questions. Our earnings press release and financial supplemental material are posted on the UiPath investor relations website, ir.uipath.com. These materials include gap to non-gap reconciliations. We will be discussing non-gap metrics on today's call. This afternoon's call includes forward-looking statements about our ability to drive growth and operational efficiency and our financial guidance for the fiscal fourth quarter 2023. 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 our discussion of the 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 31, 2022, and our other reports filed with the SEC, including our quarterly report on Form 10-Q for the period ended October 31st, 2022, to be filed with the SEC. Forward-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. As a reminder, we price in local currencies and have experienced a significant foreign exchange headwind as we have progressed through the fiscal year. Now I would like to hand the call over to Rob.

Thank you, Kelsey, and good afternoon, everyone. Thank you for joining us. We are pleased with third quarter results, which delivered both top line growth and margin expansion. ARR was $1.110 billion, driven by a net new ARR of $67 million. Excluding the FX headwind of $22 million, total ARR grew 38% year-over-year. Revenue was $263 million. Excluding the FX headwind of $22 million, revenue grew 29% year-over-year. Non-GAAP operating income was $18 million, a third quarter record, reflecting our focus on disciplined capital allocation and cost management. During the quarter, we added new logos like Petco, Nautilus, and Wisconsin Energy, and saw particular strength in our healthcare and telecommunications verticals. A great new logo in the quarter was Arika, one of the world's leading mining and infrastructure solution providers. In a competitive win over two standalone vendors, one in enterprise automation and one in test automation, and working with Accenture as an advisor Arika selected UiPath because of our ability to deliver both enterprise and test automation in one platform. With C-suite sponsorship, Arika is planning to migrate and scale the existing enterprise automation program with UiPath and utilize test suite to enable successful upgrades of their SAP S4 HANA. Third quarter is also the federal year-end And under new leadership, we are very pleased to report that we delivered a strong quarter in that vertical, including expansions with the US Air Force and the US Department of Homeland Security. Customers appreciate both the quantifiable and intangible business outcomes that our automation platform can deliver, including business risk reduction, improved customer and employee experience, profitable growth, and the ability to more effectively allocate resources. These are outcomes that resonate across lines of business and up to the C-suite. For example, one of North America's largest third-party logistics firms, Total Quality Logistics, is using document understanding, software robots, and task mining across the organization. In just two years, automation has delivered both strong ROI and help them grow, including driving revenue in a new line of business without adding headcount. Going forward, Total Quality Logistics also plans to implement process mining to identify macro processes that can benefit from automation. It has been a busy few months for the team, and we're executing well across all the key strategic initiatives that we laid out at iInvest today. These include extending our market leadership with our largest platform release, 2210, which Daniel will talk about in more detail. Driving platform adoption with our market-leading capabilities in every stage of the automation lifecycle. Making significant progress up-leveling our go-to-market model, which I will talk about in more detail next. Announcing some great technical and go-to-market partnerships. And lastly, to build out our world-class team with the addition of Lee Hawksley, who will lead our APAC go-to-market team. Now, I would like to take a few minutes to update you on the progress we've made on our go-to-market initiatives. All of this work is designed to enable our teams to sell higher into organizations, to find business outcomes that resonate with C-level executives, and accelerate customer time to value. To make sure we are on the right track, we tested many of these new approaches in our North American market, and we're very pleased to see they played an important role in several notable third quarter wins. Next tip is the formal rollout across the GEOs, much of which we started at the beginning of the fourth quarter when we launched new packaging and pricing designed to simplify our go-to-market motion. This approach brings together the solutions necessary to more quickly realize the advantages of broader platform adoption in one line item SKU. We also expect this pricing model to reduce friction in the purchasing process. We formally introduced Northstar, our new value-based selling tool. This prescriptive and predictive model helps our sales reps position the value of automation to customers through an engagement framework that defines economic value. the execution roadmap, and best practices. It is a great tool to clearly position the differentiated long-term benefits of automation delivered through our platform of capabilities. We're also leveraging our extensive industry insights to align sales teams around verticals like financial services, healthcare, and TMTs. where we've had good success to date and identified considerable white space to continue to grow in both new and existing customers. The focus helped us close a third quarter expansion deal in the financial services vertical with Bank of New York Mellon Pershing, a UiPath customer since 2020. Through their implementation of UiPath, the automation program scaled quickly, improving both efficiency and risk mitigation across the firm. as well as the client experience by leveraging UiPath software robots to process transactions more consistently. As a result of these positive outcomes, Bank of New York Mellon is now rapidly expanding to the full platform across the organization. And to give customers in these verticals even more tools for success, we are piloting our first solution accelerator to provide them a starting point for their automation journey. We are excited about solution accelerators and believe they will provide our customers with the technical know-how to help them complete the implementations significantly faster. With customer success always in mind, we continue to deepen our relationships with global GSIs and automation experts. At Ford 5, we announced our expanded partnership with EY, also one of the largest UiPath customers. that puts the partnership on par and at scale with their largest ecosystem partners. The strengthening of this global alliance is a testament to the trust we've developed and their belief in the massive growth potential that UiPath Automation Platform presents for global organizations. We also continue to expand our technical ecosystem. During the quarter, we announced several strategic partnerships with major technology providers, including Microsoft, which named UiPath as their preferred enterprise automation partner, while we announced Microsoft Azure as a preferred cloud platform for UiPath. We plan to continue to collaborate and innovate together to bring automation solutions powered by Microsoft Azure to market. And OutSystems, to combine the power of the UiPath business automation platform with OutSystems high performance low code. Together, We expect to enable customers to securely and intelligently automate core processes and applications. One of the best proof points of our execution is the growth of our larger customer cohorts. And this quarter, we are very pleased that our cohort of customers over $100,000 in ARR increased to 1,711, including customers over 1 million of 201. For these customers, automation isn't just a tool they can use to reduce or eliminate tedious work. It is part of their strategy, growth plans, and operating model. I feel good about where we are in our journey to take this company beyond $1 billion. We have the market-leading automation technology and platform, the right leaders putting the right go-to-market structure in place, and we are making the disciplined decisions that allow us to drive growth, increase productivity, and expand operating margins. We are already seeing the positive impact of our work as we're heading to the fourth quarter. And the team is focused on a strong close. I'll turn the call over to Daniel to talk about 2210 platform release and our newest innovation. Daniel.