UiPath, Inc.

Greetings and welcome to the UiPath second 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. Please note, this conference is being recorded. I will now turn the conference over to your host, Elise Verlani. Vice President of Investor Relations. Thank you. You may begin.

Good afternoon, and thank you for joining us today to review UiPath's second 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, Finder 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. 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 third 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 31, 2025, and our subsequent reports 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. In addition, please note that all comparisons are year-over-year unless otherwise indicated. Now I would like to hand the call over to Daniel.

Thank you, Alice. Good afternoon, everyone. Thanks for joining us. I want to begin by thanking our partners and customers for their continued trust. I also want to thank the entire UiPath team for the progress on improving execution, consistency, and discipline. And the progress is evident in our platforms, innovation, customer outcomes, and financial results. Together, we are shaping the future of enterprise transformation. In every conversation with customers and partners, the message is clear. Automation and AI are stronger together. Our deterministic foundation, enterprise-grade RPA and API automation capabilities deliver the trust, scale, and reliability mission-critical processes demand. On top of that, our leading AI capabilities, intelligent document processing, or IDP, and our agentic AI offerings that can reason, plan, and act bring adaptability, intelligence, and speed. In addition, what brings it all together is orchestration. With UiPath Maestro, we unify agents, robots, and people across systems with governance and transparency, so outcomes are measurable and repeatable. This combination is delivering tangible ROI fueling increasing commercial momentum and positioning UiPath to lead in this new era of automation. It has also translated into strong second quarter results where we exceeded the high end of our guidance across all key financial metrics. Second quarter ARR grew 11% to $1.723 billion, driven by $31 million in net new ARR. Second quarter revenue was $362 million, an increase of 14% from the prior year period. Importantly, our AI and agentic solutions are helping us win deals and increase deal sizes faster than traditional automation engagement, and now represent a growing share of commercial activity. We continue to deliver growth while driving operational efficiencies across the organization. Non-GAAP operating income increased to $62 million, representing a 17% margin and an improvement of more than 1,500 basis points year over year, reflecting the operating leverage and discipline we are achieving in the business, while capturing the benefits of a gentrified UI path from within. This momentum reflects the work we've completed to elevate execution. Over the past year, we rebuilt our go-to-market for scale, stabilizing our structure, adding sales capacity and specialists, and instituting value-based plays with tighter pipeline inspection. We are seeing the impact. Higher quality pipeline, more predictable forecasting, better customer adoption and implementation, and larger multi-solution opportunities, especially where agentic and IDP land on top of our RPA and API foundation. You can see this execution showing up in the field. We continue to acquire high quality new logos. For new customers, deterministic automation remains a high ROI, low barrier entry point. That's why over 95% of new logos this quarter included our core automation capabilities. For our large install base, Our new AI and agentic capabilities are translating into real momentum. Since launching our agentic platform, customers executed almost 1 million agent runs. Maestro orchestrated over 170,000 process instances. And over 450 customers are actively developing agents. Now, Let me share a few examples of how customers are using these capabilities in practice. One example is Voya Financial. After automating more than 100 processes, they expanded this quarter to adopt our Agente capabilities. With Agent Builder, they are targeting over 40 high-impact use cases in accidental claims. and Maestro is orchestrating the workflows. Another great example is an international mobility service provider, which shows how quickly customers can scale agentic automation across their business. This quarter, they purchased our agentic products with the vision to deploy AI agents in more than 2,000 branches. They will begin with complaints management, using Maestro as the orchestration layer and autopilot to summarize and draft responses. From there, they plan to extend into other departments to deliver cost savings, higher customer satisfaction, and greater efficiency. Our agentic products are not only deepening engagement within our install base, They are also helping us with major new customers. A standout example is a seven-figure deal with the Fortune 15 global technology company. In a competitive win, they chose UiPath to power their SAP transformation and reinvent employee operations across functions like supply chain and manufacturing. They chose UiPath for our broad platform, including application testing, process intelligence, and agentic automation, and our proven ROI in complex enterprise environments. What I consistently hear in conversations with our customers is the need for transparency and control. That's why we build Maestro to unify AI, automation, and human decision making So outputs can be trusted with RPA playing a critical role alongside agentic automation. A great example is a leading US healthcare provider that is piloting our agentic products to streamline their accounts payable process. Agents monitor the mailbox, extract metadata, retrieve status updates, and draft replies while robots process attachments, send mails, and create tickets. At the same time, UiPath Maestro orchestrates the workflow involving humans only for exceptions and final reviews, reducing manual effort by 60% and cutting processing time by up to 75%. Another strong example is the Fortune 500, American manufacturer of consumer and professional products. We expanded to our agentic products with a successful proof of concept in procurement operations. What was once a manual purchase order review is now handled by agents before a robot updates SAP. With VIPath Maestro orchestrating it all, they cut latency and manual work while ensuring full policy compliance. And we believed. It's results like these that contributed to UiPath being recognized for the seventh consecutive year as the leader in the 2025 Gartner Magic Quantrat for Robotic Process Automation for both ability to execute and completeness of vision. As customers continue to scale their genetic automation programs, We are focused on helping them accelerate adoption. This quarter, we introduced two initiatives to support that journey. A team of forward-deployed engineers to co-develop solutions and guide complex strategic implementations. And UiPath Playground, a frictionless, no sign-up environment where customers and prospects can test pre-built verticalize agentic solutions, and see the differentiated value of our platform. Customers choose UiPath for our unified end-to-end platform that brings together API, UI, and AI-powered automation. This quarter, we are extending that advantage with API workflows, our new foray into simplifying deployment and using APIs in our platform giving customers greater control over how automation securely interacts with their business systems and data. This capability is essential to scaling agents securely and giving them a deterministic foundation to interact with enterprise systems. Our focus is to continue building an open agentic ecosystem. While low-code has made agent building accessible, growing complexity is driving demand for pro-code flexibility. That's why we launched UiPath Coded Agents. Now developers can fully customize and deploy secure and auditable agents built around their data and systems. A great example is Cato Networks, a cybersecurity company specializing in secure access service edge, who has deployed UiPath coded agents in production for IT ticket classification and analysis, and is now piloting a master IT support agent expected to resolve up to 30% of tickets. Following our initial integrations with Longchain and Nangraph, we have continued to expand support for other open source frameworks in the market, including Lama Index. This makes it even easier for developers to build in LAMA and deploy directly into UiPath, leveraging our orchestration, security, and monitoring for mission critical processes. As enterprise automation evolves into agentic automation, the effectiveness of AI agents and automations depends on the quality of the data they can access. To address this, we recently introduced UiPath Data Fabric, a unified data layer that powers agents, apps, and workflows across the enterprise. By giving agents and automations access to trusted, context-rich data, Data Fabric eliminates delays and ensures seamless integration across systems. Complementing this, our IXP capabilities help customers unlock unstructured information and turn complex documents into actionable data. This quarter, we launch IXP into general availability, and customers like Koronis' Juba solutions are already seeing an impact, automating data extraction from over 20 million pages. and reducing errors by 35%. Building on this success, Coronis plans to adopt Agent Builder and Maestro to scale denial processing across payers. UiPath's human-in-the-loop experience and flexibility to integrate custom LLMs are key drivers to support their enterprise-wide agentic automation vision. The excitement around our agentic capabilities extends beyond customers with partners embracing them to create joint solutions that deliver greater value and faster transformation. A great proof point is one of our top GSIs. After leveraging our agentic products to automate order to cash collections, They highlighted UiPath Maestro as one of the most robust agentic orchestrators on the market. They are now committed to building over 20 agentic solutions across core finance process and claims and contract management and are already deploying them with joint customers like a global fintech company, where initial POCs in corporate finance are focused on contract validation, and revenue recognition. Cognizant is another strong example of how our partners are embracing our agentic products to co-create next-generation solutions. They are leveraging a variety of our solutions, such Maestro, AgentBuilder, RPA, and IDP, to build an intelligent claims processing suite. With this solution, we will jointly work with customers to reduce human involvement, streamline the intake process, and de-silo processing across the entire claims value chain. We also deepen our collaboration with Deloitte as they launch Agentic Global Business Services, a pioneering solution combining Deloitte's advancements in agentic AI with the UiPath platform to move enterprises from task automation to intelligent orchestration. Alongside our GSI partnerships, we continue to strengthen alliances with leading technology platforms. We are proud to expand our longstanding relationship with Microsoft, who has reinforced UiPath as their preferred enterprise agentic automation platform for their customers. This strengthened alliance brings the power of Microsoft's industry-leading cloud and AI to customers through cutting-edge agentic products on the UiPath platform, like the UiPath Autopilot plugin for Copilot and Teams, and the bidirectional connector for Copilot Studio, which is growing in adoption and usage. Lastly, in the US public sector, with budgets now largely finalized, buying patterns are returning to a more normalized state, and agencies are turning to automation and AI for mission-critical initiatives. The United States Navy is a great example, with over 200 automations already deployed. The Navy expanded their IDP initiative to streamline quarterly account reviews as part of its effort to achieve a clean audit opinion by 2028. As we look ahead, we have deep relationships across agencies, a strong team on the ground, and we are well positioned. Before I turn it over to Ashim, I'd like to invite you to UiPath Fusion, our flagship user conference taking place September 29 to October 2 in Las Vegas. Fusion brings together customers, partners, and innovators from around the world. And we're excited to showcase how agentic automation is transforming enterprises and share more about our product vision and customer success. The future isn't about choosing between agents and automation. It's about combining them. Together, they are stronger, and we are delivering best-in-class innovation in both categories to lead this next era of enterprise transformation for our customers and partners. Please reach out to our investor relations team for more information. With that, I'll turn the call over to Ashim.