UiPath, Inc.

Greetings and welcome to the UiPath third quarter fiscal 2024 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce Kelsey Turcotte, Senior Vice President of Investor Relations for UiPath. Thank you. You may begin.

Good afternoon, and thank you for joining us today to review UiPath's third quarter fiscal 2024 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, Hashim will review our results and provide guidance, and then we'll 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 GAAP to non-GAAP reconciliations. We will be discussing non-GAAP metrics on today's call. This afternoon's call includes forward-looking statements about our ability to drive growth and operational efficiency and grow our platform, as well as our financial guidance for the fourth quarter fiscal 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, 2023, and our subsequent reports filed with the SEC including our quarterly report on Form 10-Q for the period ended October 31, 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 also 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. In addition, please note that all comparisons are year-over-year and less otherwise indicated. Now I'd like to hand the call over to Rob.

Thank you, Kelsey. Good afternoon, everyone. Thanks for joining us. Our third quarter results underscore the compelling value our intent automation platform delivers for our customers and the strength of our business model. For the quarter, ARR grew 24% to $1.378 billion. Driven by a third quarter net new ARR of $70 million, our revenue was $326 million, up 24%. We continue to deliver growth while driving operational efficiencies across the organization. Non-GAAP operating margin increased more than 600 basis points year over year to 13%. We also delivered non-GAAP adjusted free cash flow of $44 million. As many of you know, At the beginning of this fiscal year, we pivoted our go-to-market resources towards organizations that have a meaningful runway to invest in enterprise automation over the long term. This investment has significantly increased our presence in the C-suite and helped raise our profile with partners of all sizes. You could feel our momentum at Ford 6, our annual user conference, where we hosted more than 3,000 guests, including automation practitioners, industry visionaries, key custom decision makers. We also launched our inaugural UiPath A10 AI Awards program, recognizing UiPath customers who embody what it means to be a leader in AI at work. I left the event super energized about the tangible value our platform is delivering for our customers and our leadership position in the market. FX adjusted dollar-based net retention for the quarter was 123%, and we closed a record number of third quarter deals over $1 million in ARR. Customers with $1 million or more in ARR grew 31% to 264, while customers with $100,000 or more in ARR increased to 1,974. Industry verticalization continues to be a strategic priority for the company with playbooks, marketing events, and enablement to support our teams. We now have 70 solution accelerators available in our marketplace with IT service management software, user provisioning, and two-way match invoice processing for Coupa and SAP among some of the most popular downloads. While we saw broad-based trends in Next New ARR across industries this quarter, there were a couple of standouts. The federal team delivered a record quarter as agencies are increasingly standardizing on our AI-powered business automation platform with a robust set of end-to-end capabilities to enrich employee experience, create mission readiness, and achieve breakthrough outcomes. Customer highlights included Veteran Affairs, Coast Guard, the IRS, the Department of Homeland Security. We're also working with the United States Department of Agriculture to support their Future of Work initiative, delivering a new era of citizen and employee experiences. Using our full platform, USDA is driving mission-impactful enterprise automations across the HR, finance, and IT departments. The program also features a digital assistant on every USDA employee desktop. driving personal productivity for approximately 100,000 employees. Momentum continues in financial services and healthcare, where automation delivers considerable value. This includes one of our top 25 customers, a large nonprofit health system in the United States. Taking a deeper look at their automation journey, they are a great example of how customers expand with us over time. Working closely with our account executives and global systems integrators, their journey started in 2018 with Core RPA, and over the last several years they've expanded to attended automation, document understanding, test suite, and process mining. To date, they have achieved a return on investment of over $250 million, and this quarter, In one of our largest deals in company history, they expanded to the full platform as they worked to create a centralized enterprise automation service department with a mandate from their EVP sponsor to deliver automation across the entire enterprise. They're also in the process of developing use cases for communications mining and UiPath apps. Customers standardized on our AI-powered automation platform to deliver transformational outcomes that streamline processes, eliminate errors, and operate with enterprise quality execution needed to succeed in today's environment. A great example is Johnson Controls. After starting the automation journey in 2021 with Core RPA, they adopted the full UiPath platform as they worked to consolidate the automation program to one end-to-end solution. They also plan to leverage our AI capabilities like document understanding, test read, and task mining to drive automation across their entire business. And another example is the Department of Work and Pensions, the United Kingdom's largest public service department. They have been using core RPA since 2018 to help their most vulnerable citizens improve their quality of life. by automating millions of service and support claims each year. Since their first deployment, they have scaled to over 1,000 robots in production and saved 3.1 million hours to date. During the quarter, they expanded to the full platform as they look to harness AI and integrate document understanding, process mining, and communications mining into their automation program to improve citizen services, drive operational efficiencies, and increased cost saving and capacity creation. We're also landing new logos, which are adopting multiple platform products in their first purchase, like Tenable and Kik customer products. In their first phase of deployment, Kik intends to leverage unattended robots and document understanding to drive efficiency across their finance department, with the long-term goal of scaling automation across the entire enterprise. Our value-based go-to-market tool, Northstar, also continues to drive deeper customer conversations as we strategically position the differentiated and actionable benefits of AI-powered automation. A great example is Sobeys, a customer since 2020, where we created a Northstar roadmap to help them maximize the return on investment of their automation program. And as a result, Sobeys expanded the automation footprint in the quarter to streamline processes in finance, merchandising, and supply chain, and to improve the hiring process in stores. They're also investigating how they may be able to use our platform in their SAP transformation journey. Turning to our SAP partnership, while in the early stages, we are excited about the collaboration between our teams. I recently joined Scott Russell, SAP Executive Board Member, Customer Success, to co-host SAP's their sales leadership meeting, and continue to see success in signing new logos from this partnership. Key one for me, the Honest Group, Tim Tam in Australia, an Australian legend, the Australian producer of biscuits and snack food. The Honest Group selected the UiPath platform to optimize business processes and reduce operating costs. Their initial focus will be on automating end-to-end sales order and invoice processing. We also announced an expanded partnership with Deloitte, one of SAP's largest and most strategic partners. Deloitte will embed the AI-powered business automation platform into the Ascend service delivery platform, powering the next generation of SAP transformations. These strategic relationships are powerful for our customers, but they also drive increased engagement with GSIs and our partner ecosystem that has never been more invested in than they are right now. At Forward6, we hosted an impactful session for more than 750 partners outlining a streamlined strategy that is designed to accelerate growth and revenue for our partners while creating solutions that deliver exceptional value to our customers. Our partners and GSIs are an important element of our go-to-market motion that help us expand our reach to customers in a scalable, efficient, and cost-effective way. For example, Working with Deloitte, an Australian government agency has built a robust automation program across their finance and HR business lines, where they utilize document understanding to streamline invoice processing, reduce errors, and enhance data accuracy. To further accelerate their automation program, they adopted task mining in the core to analyze processes and accelerate scoping activities. Broadening our technology ecosystem also makes it easier for customers to deploy automation. We recently announced several new strategic partnerships. These include Amazon Bedrock, which enables automation developers and citizen developers to seamlessly integrate generative AI directly into their UiPath Studio and Studio Web automations. and the availability of the AI-powered business automation platform on the Google Cloud Marketplace early 2024. In summary, third quarter results are another proof point of our commitment to delivering strong top-line growth and expanding profitability and non-gap adjusted free cash flow. I want to thank our employees and partners for their support. None of this would be possible without your relentless focus on unlocking value for our customers day in and day out. And with that, I'll turn the call over to Daniel.