UiPath, Inc.

Good day, everyone. My name is Megan, and I will be your conference operator today. At this time, I would like to welcome you to the UiPath first quarter 2027 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, and if you have joined via the webinar, please use the raise hand icon, which can be found on the bottom of your webinar application. If you have dialed in by phone, please press star five to raise your hand. Please note that all participants will be limited to one question and one follow-up. At this time, I would like to turn the call over to Elise Verlani, Vice President of Investor Relations.

Good afternoon, and thank you for joining us today to review UiPath's first quarter fiscal 2027 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 press release and financial supplemental materials are posted on the UiPath investor relations website. These materials include gap to non-gap reconciliations. We will be discussing non-gap metrics on today's call. This afternoon's call includes forward-looking statements regarding our financial guidance for the second quarter and full year fiscal 2027 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 four of these 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, 2026, 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 remarks 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. We deliver a strong start to fiscal 2027. Once again, exceeding our guidance across all key financial metrics. Before I dive into the results, I want to take a moment to reflect on our progress over the last year. In May of last year, we launched our agenting and business process orchestration products into general availability. One year in, adoption has moved from early experimentation to production deployment. We are seeing this play out across three areas in particular. Install-based expansion, process orchestration adoption, and vertical AI workflows. A great example is one of the largest healthcare distribution companies in the US. One end-to-end workflow combining UiPath agents and deterministic automations is expected to drive multimillion-dollar annual savings, which led to a seven-figure expansion in the quarter. One of the world's largest construction companies adopted our purchase-to-pay vertical solution and told us they chose UiPath, not as a software vendor, but as a strategic co-development partner for their enterprise AI transformation. And the Fortune 500 energy company placed UiPath at the center of a $70 million cost reduction initiative made possible by our ability to bring deterministic, agentic, and process orchestration together as a single platform. Turning to the quarter, first quarter ARR reached $1.901 billion, up 12% year over year, driven by $49 million of net new ARR and revenue of $418 million, up 17% year over year. We grew first quarter non-GAAP operating income to $92 million, a 22% margin driven by improved operational efficiency and discipline execution across the business. And we delivered first quarter gap profitability for the first time in company history. This quarter's performance is built on the strength of our enterprise automation install base. Thousands of customers with deep platform adoption proven ROI and a track record of expanding with us over time. And it reflects continued momentum with our AI products. In the quarter, 16 out of top 20 deals included AI and expansion deals that included AI were six times larger than those that did not. The drivers behind these results, At the same core differentiators we outlined last quarter, our platform that brings together deterministic and agentic automation with enterprise-grade process orchestration, our install-based flywheel, our governance foundation, and our ability to combine a horizontal automation platform with deep vertical solutions. I saw that momentum firsthand across our global events, including in India at our annual Fusion event and DEF CON Developer Conference. Across customers, developers, and partners, the message was consistent. Enterprises increasingly need a platform that can govern and orchestrate humans, agents, workflows, automations, and systems An area where UiPath has a structural advantage. At DEF CON, we launch UiPath for coding agents, enabling developers to connect their coding agent of choice to create, test, deploy, and manage automations across the full lifecycle on the UiPath platform with enterprise-grade governance and reliability built in. This matters because nearly every customer conversation surfaces the same constraint, an automation backlog that outpaces their capacity to build and maintain. Implementation is often the hardest part, particularly in complex enterprise environments where upstream system changes can drive maintenance costs over time. By combining coding agents, With the governance, orchestration, and self-healing capabilities built into our platform, we can dramatically reduce that operational burden and compress deployment timeless from quarters to weeks. We expect this to accelerate time to value for our customers, drive deeper adoption, and strengthen long-term retention across our customer base. Our internal teams and customers are also seeing great results with coding agents, including one of the world's largest consumer electronics companies, which reduced a four-week project build to three hours, and one of the world's largest chip manufacturers reduced a two-month project build to a few days. What stood out most this quarter is how clearly customer priorities have evolved with the focus consistently centered on process orchestration. As one customer put it during DEF CON, models are easy, orchestration is not. That directly reflects what we hear across our customer base. Customers are no longer asking us simply to deploy more agents or generate more code. They are asking us to transform how entire business functions operate through end-to-end workflows that span departments, connect systems, and deliver measurable operational outcome. And delivering that kind of transformation requires more than individual AI agents. It requires a platform that can orchestrate agents, automations, APIs, systems, and people together within secure government enterprise workflows. A great example is one of the world's largest telecommunications companies. With nearly 2,000 processes already automated and over $30 million in annual cost savings, they are now expanding their deterministic base further and moving into agentic workflows. building a pipeline of more than 200 additional deterministic automations and over 20 agentic use cases. That same process orchestration capability also drove a competitive displacement with the Fortune Global 500 electronics manufacturer. where we were the only platform that could take them from task-based automation to enterprise-wide business process orchestration. Building on a strong deterministic foundation, they are now expanding across manufacturing and supply chain workflows using Maestro to coordinate automations, agents, systems, and human decisioning globally. Maestro already excels at structured workflows like invoice approvals and deployment pipelines, where the process itself is clearly defined. But increasingly, enterprise work is nonlinear and it's dynamic, exception-driven, and centered around decisions that move across teams and systems. This is why at DEVCON, we launched Maestro Case into public preview, extending Maestro beyond traditional process orchestration into the orchestration of unstructured enterprise work. The breadth is what makes UiPath the most complete process orchestration and automation platform in the market, and it's already driving broader customer adoption, including Sonic Automotive, an early adopter of our Argentic products, they initially deployed UiPath to automate vehicle stocking and sales lead follow-up. They are now standardizing their Argentic automation strategy on the UiPath platform under a broader C-suite initiative and expanding into workflows such as month-end close and employee onboarding. The key driver of the expansion was MaestroCase's ability to orchestrate complex multi-stage workflows across agents, automations, and people. Beyond process orchestration, documents remain one of the biggest sources of friction in enterprise work, and customers are increasingly turning to UiPath IXP to automate document-intensive workflows at enterprise scale. In May, we were named the leader in the Forrester Wave document mining and analytics platforms Q2 2026. We are seeing that momentum translate directly into largest enterprise deployments and competitive wins. A great example is the leading medical technology company that is standardizing on UI top IXP to automate high volume unstructured documents like invoices and purchase orders. The customer is already realizing approximately $5 million in annual savings and expects that to grow to $10 million as they scale. Demand for industry-specific government workflows continues to grow as enterprises increasingly adopt purpose-built AI solutions tailored to their businesses. What differentiates UiPath is our ability to combine those deep domain-specific solutions with the same process orchestration, automations and governance platform. This quarter, we expanded our portfolio across financial services, retail and manufacturing and the office of the CFO. We are already seeing momentum in healthcare in a seven-figure new logo win. a leading Latin American healthcare provider selected our vertical solutions to support revenue cycle management, medical records summarization, and claim denial management, and expect $12 million in cumulative benefits. Customers are also realizing meaningful operational benefits from these vertical solutions. A leading healthcare technology company reduced clinical summary review times by 90% using our medical record summarization solution. We are seeing similar momentum in financial services. A regional bank is now automating 61% of sanctions hit reviews with our transaction screening alert review solution, processing roughly 14,000 alerts per month. AI is accelerating software creation, but is also accelerating the need to validate it. As code volume grows, so does the testing burden. Independent research firms have consistently recognized UiPath as a leader in this space, and we believe that validation reflects a real and growing structural advantage. TestCloud is at the center of that. helping customers move testing from a downstream bottleneck to a continuous intelligent function embedded across the delivery lifecycle. One example this quarter is a leading US utility provider that adopted UiPath Test Cloud for agentic testing to streamline a customer platform support launch. The solution is expected to significantly reduce manual testing where generating nearly $3 million in savings. During the work, we continue to deepen our partnerships across both go-to-market and technical integrations. This included our expanded collaborations with Deloitte, embedding UiPath Test Cloud into their Ascend delivery platform, bringing agentic testing capabilities to Deloitte's global client base. We are seeing similar momentum with Accenture, a life sciences customer we highlighted last quarter worked with Accenture to deploy a global agentic sales entry solution and has now scaled this across 70 countries. Building on that success, they signed a seven-finger expansion and are now partnering with us to design an office of the CIO intake solution built on our process orchestration platform. On the technical side, we continue to broaden our reach across key enterprise ecosystems. With Microsoft, we integrated UiPath with their security test suite to help automate threat detection and response. With Salesforce, we launched a new agent exchange offering that extend Maestro process orchestration across Salesforce and back office systems. With Google Cloud, we brought our IXP solution to their marketplace. And with Databricks, we connected their data intelligence platform directly with UiPath process orchestration to help enterprises move from data insights to automated action within governed workflows. In summary, this quarter reflected discipline execution across the business, continued AI adoption, and growing momentum across our platform. No other vendor can bring together deterministic automation, agentic AI, document intelligence, and business process orchestration on a single platform. And that completeness is what customers are standardizing on. We believe we are uniquely positioned for this next phase of enterprise AI adoption and our strong start to fiscal 2027 reinforces both the durability of our business and the scale of the opportunity ahead. Before I turn it over to Ashim, I want to take a moment to acknowledge the loss of our dear friend and board member, Soma Segar. Soma was a long-time investor in UI Cloud and rejoined our board just eight months ago. His impact on UiPath was immediate and profound. He was a mentor, trusted advisor, and someone I deeply admire both professionally and personally. I will miss him greatly, and I know our entire board and leadership team share that feeling. Our hearts are with his family. With that, I'll turn the call over to Ashim.