UiPath, Inc.

Greetings and welcome to the UiPath first quarter 2026 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 you to your host, Elise Forlani, Vice President of Investor Relations. Thank you, Elise. You may begin.

Good afternoon, and thank you for joining us today to review UiPath's first quarter fiscal 2026 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 our prepared comments and answer questions. Our earnings 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 regarding our financial guidance for the second 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 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, 2025, and in other filings and reports that we may file from time to time with the SEC. Forward-looking statements made on this call reflect our views as of today, and 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. In addition, please note that all comparisons are year-over-year and less otherwise indicated. Now I would like to hand the call over to Daniel.

Thank you, Alice. Good afternoon, everyone. Thanks for joining us. Before we dive into the result, I want to take a moment to reflect on the momentum we are seeing across the business, especially around the launch of our agentic automation platform. This has been one of the most important and successful product introductions in our history. The progress we've made is a testament to the relentless innovation of our teams, the deep trust of our customers, and the strength of our partner ecosystem. Together, we've turned the promise of agentic automation into a powerful reality, and we are just getting started. The momentum following our launch has been exciting and was matched by strong first quarter financial performance. We executed with discipline and focus in what continues to be a variable macroeconomical environment, exceeding expectations on the top and bottom line. We delivered first quarter revenue of $357 million and ended the quarter with ARR of $1.693 billion, an increase of 12% year over year. Our ongoing emphasis on operational efficiency drove strong bottom line results, significantly improving our gap operating losses. to $16 million compared to a loss of $49 million in the prior year. On a non-GAAP basis, we achieved operating income of $70 million, representing a 20% margin, an improvement of 450 basis points year over year. What's driving this result is clear. Our end-to-end automation platform, now enhanced with agentic automation and agentic orchestration capabilities, is resonating deeply with customers. Over the last several months, I have spent considerable time deeply engaged in product sessions and customer conversations, all centered around agentic automation. The energy and potential I'm seeing are palpable, and I've never been more confident about the path we're on. Customer energy has been reinforced by several high-impact events this quarter, each amplifying our platform's potential and setting the stage for our next phase of growth. Our annual Agentic AI Summit and an unforgettable DevCon 2025 laid the foundation for the most significant product launch in UiPath's 20-year history. Over 15,000 participants registered for the launch, and our agentic automation products and witnesses firsthand how UiPath transforms work by unifying AI agents, robots, and people into a single intelligent system. As we bring our agentic platform to market, it's clear we are positioned to lead. Our right to win is grounded in five powerful advantages. First, Our extensive installed base of robots and AI capabilities already operating autonomously across more than 10,000 customers gives us unparalleled insight into real enterprise processes and workflows where agents are a natural extension. Second, we uniquely bridge deterministic automation or rpa and probabilistic automation or agenting allowing customers to extend automation into more complex adaptive workflows third our vendor agnostic architecture enables seamless integration with any agent framework whether pro code or low code providing unmatched flexibility fourth We've built a secure, compliant, and enterprise-grade platform that meets the highest standards of governance critical for enterprise-grade automation. And fifth, our unified end-to-end platform architecture delivers a fully integrated experience from discovery to deployment, all governed centrally, enabling customers to scale automation with confidence and control. Customers and partners across industries see our differentiation, and are quickly embracing the transformative potential of our newly launched platform. Since launching Agent Builder in preview this January, we've seen accelerating adoption with customers creating thousands of autonomous agents and generating over 250,000 agent runs to date. Momentum is also building for Maestro, our agentic orchestration solution, which entered preview in March and has already powered more than 11,000 process instances, highlighting strong early demand for coordinated enterprise-grade agentic automation. To support this momentum, we've introduced a monetization strategy designed to drive adoption featuring a new consumption-based pricing SKU. Let me share a few examples that reinforce the strength and differentiation of our platform. Organizations are under increasing pressure to accelerate digital transformation, and as they embrace AI, the word I hear most from customers is trust. They want confidence in the agents they deploy, And that's where our platform stands out. We offer the control, governance, and predictability they need to automate complex end-to-end processes with confidence. A powerful example of this is a Fortune 15 global health company where we are driving agentic automation at scale. In our first agentic deal, since launching our products into general availability, They sign a multi-year, multi-million dollar expansion to adopt UiPath Maestro, an agent builder to design, deploy, and manage AI agents across complex, cross-functional workflows. These capabilities enable them to integrate agents into real business processes with the governance, scalability, and human-in-the-loop controls required for enterprise adoption. We're also seeing a fundamental shift in how customers think about automation. It's no longer about isolated tasks, but the move toward the more intelligent and connected approach. This is where UiPath Maestro truly differentiates us. Our vendor agnostic architectures enable seamless orchestration between robots, agents, and people. and unlocks complex cross-functional workflows that traditional automation couldn't address. A great example is the leading global apparel retailer using UiPath Maestro to orchestrate their end-to-end user query process with the master support agent. With Maestro, they've automated the entire workflow from intelligent task routing and ticket generation to resolution and closure, resulting in a streamlined, highly efficient support operation. By seamlessly connecting robots, AI agents, and systems both inside and outside UiPath, Maestro enables smooth coordination across multiple complex automated processes. Leaders across industries see agentic automation as the key to expanding AI's role from supporting operations to actively guiding them. and they increasingly recognize the need for both deterministic and probabilistic automation. Our platform approach uniquely addresses this demand and is helping us win new customers, including a competitive displacement this quarter with the global healthcare technology company. After selecting UiPath, to consolidate on a single platform with deep expertise in both agentic automation and RPA, They are planning to migrate all of their existing automations to our platform and are designing a solution to automate their complex inbound sales order process by integrating agents, autopilot, and RPA with an expected reduction in processing time of 25%. The leadership of UiPath's platform is also validated by industry analysts and we're proud to see continued recognition in intelligent document processing. For the third year in a row, UiPath was named a leader in the Everest Group's IDP Product Peak Matrix Assessment 2025, another strong validation of our innovation, performance, and industry impact. But we are not standing still. This quarter, we introduced our next-generation IDP solution, intelligent extraction processing, or IXP. IXP transforms how enterprises handle complex unstructured content far beyond the limits of traditional IDP, enabling faster processing, a smoother user experience, and less friction in even the most challenging workflows. Hub International is a great example of the value IXP delivers, with multiple use cases Already in development and production, they are leveraging IXP to efficiently extract both structured and unstructured data from documents. Our IXP solution also enables seamless data extraction across various carrier files, supporting their financial reconciliation processes and establishing a scalable solution that can be extended to similar use cases across other business units. The breadth of the UiPath platform continues to drive adoption across high impact use cases, one of the most exciting being agentic testing. Customers are responding enthusiastically to its ability to combine AI-powered automation with customizable agents, enabling faster, smarter testing across a wide range of enterprise applications. A great example is a competitive win with Continental Resources, who expanded in the quarter by adopting our agentic testing solutions. They chose UiPath for our platform-sending approach and industry-leading capabilities and plan to leverage our testing technology to automate key processes in well operations and support their upcoming SAP migrations. As we continue expanding the role of AI across the platform, Autopilot remains the core driver of productivity and continues to gain strong traction across our customer base with monthly engaged users up over 60% sequentially and an 86% increase in actions taken. A great example is the global financial and mobility services provider. After standardizing on the UiPath platform, they deployed Autopilot in their banking services department, where hundreds of employees have realized significant time savings by leveraging it for claims management processes. Building on this success, they are preparing to scale Autopilot to over 5,000 employees across all financial services departments. As we continue to build our With the unique horizontal capabilities of the UI Pathogenic Automation Platform, we are also focused on delivering industry-specific AI solutions that accelerate adoption, solving complex problems, and driving measurable outcomes. In line with that strategy, our integration of Peak, which was announced last quarter, is progressing well. and gaining momentum among our customer base. We are encouraged by early customer feedback, particularly as they leverage PIX inventory pricing capabilities, which are proving even more valuable in today's macroeconomic environment, especially as companies navigate tariffs. This quarter, we announced a strategic AI partnership with Google Cloud, aimed at transforming healthcare operations through an AI-powered UiPath medical record summarization agent. Leveraging Google's cloud's Vertex AI and Gemini models, this solution is designed to dramatically improve efficiency and streamline critical medical workflows, with the potential to reduce prior authorization times by up to 50%. A game changer for both healthcare providers and the patients they serve. And this is just the beginning. We are committed to continuing to develop targeted vertical solutions. Central to this strategy is deep, focused collaboration with strategic partners where we are able to co-create solutions that accelerate customer value and drive measurable outcomes at scale. A great example is our continued partnership with Deloitte, including our recently completed Customer Zero initiative, which led UiPath's internal migration to SAP S4 HANA. Working with Deloitte and leveraging our own automation capabilities, we reimagined the entire process and pioneered an automation-first, agentic ERP approach that now serves as a model for the market. As a result, more than 200 automations were delivered across core processes like Quote-to-Cash and Treasury, with nearly 60% of test cases automated, significantly reducing the load on business users and accelerating delivery timelines. With our internal implementation live, we are now focused on the next phase, embedding agentic AI capabilities into the ERP environment. Powered by UiPath Maestro, this next-generation architecture will enable smart AI agents to handle decision making, identify exceptions, and orchestrate tasks across SAP and non-SAP applications. And we are already replicating this with joint customers. including a recent win with the Fortune 20 oil and gas company. In one of the largest SAP implementations to date, they will be leveraging UiPath and Deloitte's automation playbook to significantly reduce implementation time and expect to automate 70% of all manual tests. As we scale our agentic solutions across our customer base, Technical partnerships remain a key priority, playing a critical role in enabling seamless integrations and driving automation at scale. This quarter, we took another big step forward by expanding our collaboration with Microsoft through a new bi-directional integration with Microsoft Co-Pilot Studio. This integration enables developers to embed UiPath automations and AI agents directly into Copilot Studio and brings Copilot agents into UiPath Studio, unlocking powerful new use cases and making cross-platform collaboration a reality. Great example is a global diversified technology and industrial company that is currently implementing UiPath agents to work in conjunction with Microsoft Copilot to support their customer invoicing workflow enabling an end-to-end touchless approach to this process. We also teamed up with longchain to give developers even more flexibility and power. Now, UiPath developers can bring long graph build agents right into their workflows and long graph developers can deploy their agents on our secure enterprise-grade platform, giving them the confidence to scale with compliance and reliability built-in. Our end-to-end automation platform sets us apart and continues to earn third-party recognition. We're humbled to be named a leader in the first-ever IDC MarketScape worldwide business automation platform 2025 vendor assessment, which we believe is a testament to the strength of our technology, our customer-first mindset, and our proven ability to deliver meaningful ROI at scale. Lastly, I'd like to provide a quick update on our US public sector vertical. We're encouraged by the progress we are seeing in our public sector business as we support federal customers through the transition. A highlight this quarter was our annual public sector on tour event, which brought together senior leaders from the Navy, Air Force, DLA, and DHS to share their vision for the future of agentic automation and underscore our growing role in helping Federal agencies modernize and scale automation across their organizations. A great example is the deal this quarter with the United States Air Force to accelerate digital transformation through its Agentic Airmen initiative. Building on their successful RPA foundation, the initiative integrates UiPath intelligent digital agents, advanced decision-making capabilities, and AI-driven insights, and is designed to reduce operational inefficiencies, enhance mission readiness, and standardize automation at scale across 70,000 plus airmen and guardians. Looking forward, we'll continue building on our conversations with administration officials, united by a shared goal of transforming the government. At the same time, we recognize that this transition is still evolving and we remain prudent in our guidance for the remainder of the year. Before I hand it over to Ashim, I'd like to invite you to join a virtual fireside chat and product demonstration at 11 a.m. Eastern Time on June 18th, where I'll be joined by our Chief Product Officer, Graham Sheldon, to showcase the powerful capabilities of our latest agentic AI products. Please reach out to our investor relations team for more information. With that, I turn the call over to Ashim.