UiPath, Inc.

Greetings and welcome to the UiPath fourth quarter and full year fiscal 2023 financial results 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 would now like to turn the conference over to your host, Kelsey Turcotte, Senior Vice President of Investor Relations for UiPath. Kelsey, you may begin.

Good afternoon and thank you for joining us today to review UiPath's fourth quarter and full year 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 materials are posted on the UiPath Investor Relations website, ir.uipath.com. These materials include gaps 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 first quarter and full year 2024. 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 annual report on Form 10-K for the year ended January 31st, 2022 and other reports filed with the SEC, including our annual report on Form 10-K for the period ended January 31st, 2023 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. Now I'd like to hand the call over to Rob.

Thank you, Kelsey, and good afternoon, everyone. Thank you for joining us. We ended the year with a very strong fourth quarter, reflecting the progress we have made on our strategic initiatives and the strength of our AI-powered business automation platforms. I'd like to thank the UiPath team and our partners for their hard work and focus throughout the year, as well as our customers for placing their trust in us. Ensuring customer success every day is the foundation of our future. ARR ended the year at $1.2 billion, driven by net new ARR of $94 million. Excluding the FX headwind of $38 million, Total ARR grew 34% year over year. Fourth quarter revenue was $309 million. Total revenue for the fiscal year was $1.1 billion. Excluding the full year FX headwind of $71 million, fiscal year revenue grew 27% year over year. On the bottom line, a record fourth quarter non-GAAP operating margin of 22% drove full year 2023 non-GAAP operating margin to 6%. We believe the strong finish to the year accelerates our path to profitability and serves as a baseline for our fiscal year 2024 non-GAAP operating margin outlook of 9.5% and approximately 350 basis points expansion year over year. Executing a restructuring, driving efficiencies, and streamlining our organization has increased our focus, enhanced business agility, and leaves us well-positioned to continue to expand our market share and leadership in automation. Driving growth at scale while increasing non-gap operating margins and non-gap adjusted free cash flow is central to how we manage the business. Our automation platform changes how organizations operate, innovate, and grow, enabling our customers to quickly see a meaningful return on investment. For example, in the fourth quarter, a North American warehouse retail chain expanded their UiPath deployment, adding task mining and software robots to scale their automation program across more than 330 outlets. Wins like this are a great example of how value selling with the right sales motion expands our footprint in existing customers. This is where our new go-to-market structure that creates coverage density and our new sales tools like the Northstar model come into play. Northstar is designed to help the team better articulate the tangible results our automation platform delivers, particularly to the C-suite. driving organizational focus around automation and firmly establishing UiPath as a strategic part of a customer's digital transformation journey. Northstar also helps the team expand deals. During the fourth quarter, we closed a record number of deals over one million, increasing our code of customers with one million or more in ARR to 229. customers with 100,000 or more in ARR increased to 1,785. The fourth quarter was a good backdrop for our February sales kickoff, where we trained the team on the full platform and a variety of new tools to build intimacy with customers, sell outcomes, drive new logos, increase expansion, and build scale through partners. Looking ahead to 2024, the team is ready to go. Our enterprise and corporate segmentation models have been rolled out, and accounts are assigned throughout the organization. We also continue to leverage insights gleaned from our customers with a vertical sales motion. For example, in financial services, following a successful deployment at TD Securities, TD is now expanding automation across several lines of the business at the bank to deliver improved client experiences, productivity, and efficiencies. And in healthcare, Quest diagnostic selected document understanding over other document processing competitors because of our high level of accuracy with both structured and unstructured data to help them analyze and process millions of documents. To support our vertical strategy, we have introduced solution accelerators, which serve as templates to guide customers through deployments for common use cases. We have 10 solution accelerators available in our marketplace, with initial offerings focused on finance, healthcare, and IT, and we plan to add additional verticals. Build Right, a medical billing and operations company, is implementing two solution accelerators to automate the processing of healthcare-related data into administrative systems, expecting to save over 40,000 hours annually. Partners also benefit from the changes in investments we are making in our go-to-market resources. This includes global system integrators, as well as more regionalized partners, which not only expand our reach and scale, but are instrumental in helping customers build and execute a robust automation program. For example, E&Y is helping the state of North Carolina incorporate document understanding and expand the automation program from COVID-driven use cases to back office automations across the enterprise. And as we previewed at Invest Today, we are in the process of transitioning our smaller customers to our ecosystem of distribution partners. providing new sources of revenue for our partners and deeper enablement for these customers, while allowing ourselves teams to focus on higher value opportunities. Many of our partners also have very successful automation programs of their own, such as Capgemini and Ingram Micro, which expanded in the quarter as they continued to grow their internal automation programs and deliver our market-leading capabilities to their client base. And finally, you will notice we rolled out a new positioning for our brand earlier this week, which included the introduction of our new brand tagline, the foundation of innovation. This communicates not only the power of automation to transform businesses today, but also the potential to fundamentally change how quickly customers can move from idea to execution. I am inspired by how much we've accomplished in our fiscal year 2023. launching our largest platform release to date, completing the groundwork for our next phase of growth, and delivering exceptional outcomes for our customers and partners. While there's always more work to do, I believe we are well positioned to drive UiPath to the next level as we enter fiscal year 2024. With that, I'll turn the call over to Daniel. Daniel?