UiPath, Inc.

Greetings and welcome to the UiPath fourth quarter 2025 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Elise Furlani, Vice President of Investor Relations. Thank you, Elise. You may begin.

Good afternoon, and thank you for joining us today to review UiPath's fourth quarter and full year fiscal 2025 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, Founder and Chief Executive Officer, and Ashim Gupta, Chief Operating and Financial Officer, to deliver prepared comments and answer questions. Our earnings press release and financial supplemental materials are posted on the UiPath Investor Relations website. These materials include GAAP to non-GAAP reconciliations, which we will be discussing non-GAAP metrics on today's call. This afternoon's call includes forward-looking statements regarding our financial guidance for the first quarter and full fiscal year 2026 and our ability to drive and accelerate future growth and operational efficiency and grow our platform, product offerings, and market opportunity. 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 these 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, 2024, and our subsequent reports filed with the SEC, including our annual report on Form 10-K for the year ended January 31st, 2025, 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 remarks to our investor relations website immediately following the conclusion of the call. In addition, Please note that all comparisons are year-over-year and less otherwise indicated. Now, I would like to turn the call over to Daniel.

Thank you, Alice. Good afternoon, everyone. Thanks for joining us. 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. We delivered revenue of $424 million. excluding a 2 million FX headwind, revenue would have totaled $426 million. We ended the year with ARR of $1,666,000,000, an increase of 14% year over year. These results included an impact from the ongoing geopolitical climate. While we remain confident in our public sector business, the transition in the government that began in January impacted the timing of deal closures, and as a result, we came in slightly below our expectations for ARR in the fourth quarter. We continue to work closely with our federal customers, and their feedback is consistent. Our agentic platform drives tangible efficiencies and is a part of their go-forward roadmap. At the same time, we acknowledge that in the short term, the government is working through administration priorities, which we will work to support, and we have factored this into our linearity and our overall guidance for the year. There has also been a significant increase in volatility in the overall macroeconomic environment, particularly in the last two weeks. In recent discussions with customers, the external environment has created uncertainty around their budgets. Foreign exchange rates have also significantly fluctuated over the last week. Given these trends, We are taking a measured approach for fiscal 2026, adding additional prudence to our overall guidance given the volatile environment. We are confident that we are appropriately factoring in the macro trends as we see them today. Looking beyond these near-term headwinds, we have done a lot of work to strengthen the companies. we have built a strong foundation. While we are seeing uncertainty in the market, we are focused on positioning the company for long-term success and believe we are in a strong position to weather the current environment. As we look ahead for fiscal 2026, we remain focused on three key strategic priorities, accelerating innovation across our agentic roadmap, increasing adoption across our customer base and continuing to drive operational rigor and efficiencies across the organization i continue to spend the majority of my time traveling and engaging with customers partners and our team our product and engineering teams are innovating faster than ever delivering cutting-edge solutions to our customers and our innovation roadmap is driving deeper and more meaningful relationships with customers and strategic partners. We have also made strong progress executing against the priorities we laid out last year and are on track to complete our go-to-market changes and restructuring. Our sales leaders continue to drive alignment across their teams while enhancing our focus on customer centricity. The team is energized, and we are fully aligned on our strategy to drive success for our customers in fiscal 2026 and beyond. Over the last six months, we completed in-depth reviews of our top customers to understand their respective health and created programmatic executive sponsored plans to accelerate adoption and co-innovation and maximize ROI. These initiatives are already generating strong customer engagement and momentum. While there is always more work to do, our innovation engine is running at full speed, our agentic automation products continue to gain traction in the market, and we have substantial opportunities to execute on. Fiscal 2025 was UiPath's most innovative year, delivering groundbreaking products and capabilities like autopilot, agent builder, agentic orchestration, healing agent, intelligent extraction processing, agentic testing, the AI trust layer, context grounding, and expanded GenAI connectors. And we're just getting started. Agentic automation is transforming the way businesses operate. and we continue to redefine what's possible with what we believe is the most advanced and comprehensive agentic automation platform in the industry. Customers already view us as the platform for delivering results, not just promises. After testing competitive agentic vendors, a leading provider of scientific instruments and supplies, has chosen our platform because of our unique ability to use agents that work across applications. They are now in the process of building and deploying agentic use cases with UiPath Agent Builder for customer relations, customer due diligence, and equipment warranty data. Another great example is one of the largest global semiconductor companies who signed a seven-figure deal in the quarter purchasing our genetic products to elevate their employee experience and drive competitive differentiation. AgentBuilder, which launched into private preview in December, is our most successful preview in company history. Hundreds of customers are testing use cases that span resolving vendor disputes, processing claims, streamlining sales operations, fraud detection and compliance, customer complaints, coordination of benefits, optimizing revenue cycle management, and improving logistics operations. Enthusiasm among both partners and customers has been very strong, and we are seeing incredible engagement across the board, with approximately 3,000 agents creating mission-critical processes. For example, Allegis Global Solutions is piloting adding agents in their workflows for invoice reconciliation. By implementing UiPath agents, AGS gains the flexibility to resolve previously unseen variations of documents, delivering nearly a 30% improvement in their accuracy rate and driving increased scalability of their automation program through a 50% reduction in development time. Building high-quality agents is valuable, but what truly delivers transformative outcomes is orchestrating agents, robots, and people together to optimize end-to-end enterprise business processes. That's where our new Agentic Orchestration product comes into play. Launched into public preview this week, Agentic Orchestration provides real differentiation for our platform for its unique ability to orchestrate teams of specialized agents that are focused on executing their goal-based tasks, while working in tandem with robots to execute deterministic tasks and collaborating with people as needed. I can't emphasize enough the power of robots and agents working together to control the level of autonomy that an agent provides, ensuring that when money is changing hands, patient records are being updated or claims are being paid, our platform delivers accurate and dependable business outcomes. And we are not only doing this within the UiPath ecosystem, but agentic orchestration will be able to orchestrate agents across an enterprise's entire application ecosystem, including APIs, models, and now agents. Moreover, We plan to add support to host, manage, and orchestrate agents built with leading open source agentic frameworks. We believe that orchestrating these agents together makes our platform unique as the most integrating and comprehensive way for our customers to tackle complex end-to-end processes while avoiding vendor lock-in. Customers are already leveraging agentic orchestration to drive efficiencies An example is a multinational food and beverage corporation. They plan to leverage the solution to streamline and optimize their supply chain planning process, orchestrating robots, agents, and people across applications to reduce manual interventions and drive a more streamlined approach. Launching to general availability today, agentic testing is a good example of specialized agentic solution that is disrupting the legacy application testing market by augmenting testers with AI agents for greater productivity. Our out-of-the-box agent, Autopilot for Testers, speeds up the entire testing lifecycle by enabling agentic test design, test automation, and test management, while Agent Builder empowers our customers build their own custom agents tailored to their specific testing needs. We continue to see healthy adoption of our application testing products, including an expansion deal with the global animal health company in the quarter. In a competitive win, they expanded their test program to support automated application testing for their ERP migration. They plan to have 90% of their application testing automating with an overall cost saving of approximately $5 million. We are also focused on building verticalized solutions. And we are happy to announce the acquisition of Peak AI, a vertical specialized agent for price and inventory use cases across a wide range of industries. including manufacturing, retail, and consumer packaged goods. This acquisition is a natural extension of our path to agentic automation, strengthening our vertical specialized agents, and we will work to integrate PX agents into our orchestration framework. Turning to autopilot for everyone. of use and enhanced user experience continues to drive adoption, including a sequential increase of over 300% in unique customers in the quarter, including a financial technology and services company who recently implemented Autopilot to streamline their merchant category validation process. Autopilot now troubleshoots these workflows by identifying errors and optimizing performance, enabling the company to operationalize AI safety and effectively. The innovation of our product roadmap has also re-energized our partner ecosystem, and we continue to drive new avenues of growth through strategic partnerships. We are excited to strengthen our partnership with Deloitte by jointly launching an agentic ERP solution to integrate UiPath agentic automation with industry-leading ERP platforms. This solution will empower organizations to autonomously orchestrate end-to-end business process workflows, leveraging generative outputs, executing tasks without constant human intervention, and continuously improving through feedback loops. Ultimately, this collaboration is not just about cost savings. It's about operating at unprecedented levels of efficiency and intelligence that will unlock dynamic decisions making and competitive advantage. With our advancements in agentic automation, our relationship with Microsoft continues to deepen and to quote Jason Grafe, CVP, ISD and digital natives team at Microsoft. We share a common vision for agentic automation and we are excited to partner with UiPath to bring the best of Azure, Microsoft 365 and Copilot to customers with UiPath agents. This collaboration highlights our commitment to innovation, driving value for our customers and setting new standards in the industry that leverage the combined agenting capabilities of Microsoft and UiPath. Our strong vision and continuous investments in product innovation and capability expansion continues to earn us industry analyst recognition. During the quarter, we were positioned the highest in the leader category in the inaugural Everest Group Intelligent Automation Platforms Peak Metrics Assessment 2024. A testament to our relentless focus on innovation and the power of our holistic automation platform delivers for our customers. Finally, we invite you to join our annual Agentic AI Summit where we will showcase how agentic automation is transforming businesses. The event will be live streamed on our website on March 25th. Please reach out to our investor relations teams for additional details. With that, I'll turn the call over to Ashim.