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 second 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 at the bottom of your webinar application. If you have joined via the phone line, please dial star five to raise your hand. In the interest of time, please limit yourself to one question and one follow-up today. Please note that participants will be limited to that. At this time, I would like to turn the call over to Allise Furlani, Vice President of Investor Relations.

Good afternoon, and thank you for joining us today to review UiPath's second quarter of 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, Ashim Gupta, Chief Operating Officer, and Hitesh Ramani, Chief 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 GAAP and non-GAAP reconciliations. We will be discussing non-GAAP measures on today's call. This afternoon's call includes forward-looking statements regarding our financial guidance for the third quarter and full fiscal year 2027 and our ability to drive and accelerate future growth and operational efficiency and Grower Platform, Product Offerings, and Market Opportunities. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, and therefore, investors should not place a new reliance on these statements. For discussion of 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, 2026, and our subsequent report filed with the FEC. Forward-looking statements made on this call reflect your 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 remarks for our investor relations website immediately following the conclusion of this call. In addition, please note, all comparisons are year-over-year and less otherwise indicated. Now, let's turn the call over to Dan.

Thank you, Allise, and thank you for joining us. We delivered another strong quarter with continued execution. ARR grew plus percent. Non-GAAP operating margin expanded to 22%. And we delivered our fourth consecutive quarter of GAAP profitability. Over the past two years, we've been transforming UiPath for the next phase of our growth. We revolve our platform around business orchestration, agenting, and software testing. significantly improved our go-to-market execution and operating discipline, and re-accelerated the phase of innovation within the company. We are a stronger company today, and increasingly, customers are looking to UiPath not just to automate individual tasks, but to orchestrate complex, long-running, and exception-heavy business processes, and be a critical partner in their AI transformation. We've talked a lot about how AI is changing software. The bigger question now is how enterprises turn AI into real business value. Customers aren't choosing between AI and deterministic automation. They're choosing the best way to achieve an outcome. AI is exceptional at reasoning, but it's Andreea Baciu alongside AI. Our approach is simple. Use AI where intelligence creates value and deterministic automation where exactness matters. That gives customers the benefits of AI without paying for AI reasoning at every step and ultimately better economics and better ROI at scale. And that's where UIPath is differentiated. We deliver business outcomes by orchestrating end-to-end processes across agents, robots, APIs, systems, and people, using the right technology for each step to deliver the best combination of intelligence, reliability, and cost. We are also model agnostic, giving customers the freedom to use the AI models and technologies that are best for the work, rather than locking them into a single ecosystem. As AI expands what enterprises can automate, we believe that combination of choice, orchestration, and governance becomes even more valuable. So the opportunity now is to scale what we built, expanding adoption across our customer base, Extending our reach into the business and continuing to translate our innovation into durable growth. And as we scale, strong execution and connectivity across the companies become even more important. That's why Ashim will now focus exclusively on his role as Chief Operating Officer. Ashim has been one of my closest partners and one of the leaders most responsible for and many more. With Ashim focusing fully on the operations of the company. We are making a planned leadership transition in finance with Hitesh Ramani, succeeding him as Chief Financial Officer. This is a logical next step and reflects the strength and depth of the leadership team we've built. Hitesh joined us in 2021 as Chief Accounting Officer and has served as Deputy CFO for the past working closely alongside Ashim across the finance organization. He has been a critical partner through every major milestone, including our IPO, and has helped build the financial rigor and discipline we have today. Given Hitesh's existing responsibilities and deep knowledge of the business, we expect a very smooth transition and significant continuity across the finance organization. And with Ashim remaining as COO, he and Hitesh will continue to work closely together in their respective roles. Together. These changes give us greater focus across operations and finance, with two proven leaders in critical roles at this stage. I am excited to continue working closely with Ashim and Hitesh, and I am confident in the leadership team we have in place. and our ability to execute against the opportunity ahead. Now, turning to our quarterly results. We deliver a strong second quarter, once again beating guidance across the top and bottom line. ARR reached 1.938 billion, up 12% year-over-year, driven by 37 million of net new ARR and revenue of 410 million, up 13% year-over-year. We grew second quarter non-GAAP operating income pool 89 million, a 22% margin, and up over 400 basis points year-over-year, driven by improved operational efficiency and disciplined execution across the business. Behind these results, We're seeing the strategy I just described play out with customers. 18 of our top 20 deals this quarter included AI, demonstrating how increasingly central AI has become to our largest customer engagement. Customers are expanding from individual automation use cases into broader end-to-end processes, adopting more of the UiPath platform. and in a number of cases, consolidating automation and AI workloads onto UiPath. And we are seeing this result in larger expansions where AI is attached to the deal. A global insurance provider is a strong example. In a second-figure expansion, they are modernizing beneficiary claims, expanding their use of IXP through agents and robots. With UiPath Forward deployed engineers supporting implementation, Maestro connects document intake, beneficiary analysis, orchestration, exception, and human-in-the-loop work in one-graph or end-to-end process. And because UiPath was already embedded in their ecosystem, they could move quickly on this use case and build on the same foundation as they modernized In the public sector, the Department of War expanded its partnership with UiPath to support its clean audit initiative across the military service. Building on its deterministic foundation, the Department is adding autopilot, our IDP solutions, and test automation to automate critical audit and reconciliation work We're also seeing governance and reliability become real competitive differentiators. A leading financial institution chose UiPath over other orchestration providers as its single platform for end-to-end processing. Maestro was the only solution able to orchestrate across their homegrown applications while meeting the governance and compliance requirements at scale. It's already in production on a critical revenue channel process, combining deterministic automation with human-in-the-loop safeguards. And these aren't isolated examples. Across both new logos and expansions, we're seeing customers standardize on UiPath and consolidate point solutions onto our platform, a leading U.S. regional bank. consolidating its entire automation program onto UiPath, using test clouds for conversion testing and agenting processes across product compliance to help manage risk through a significant module. And one of Canada's largest financial services companies, working with Ashley Partners to migrate its entire automation footprint to UiPath, and plans to use coding agents to power that migration with the goal of lowering maintenance costs and accelerating time-to-value. And on the extension side, Fortune 200 financial services firm is moving all their automation needs onto UiPath in a multi-million dollar CIO-driven initiative, while expanding their use of TestCloud to test the investment management software they deploy to customers. The common thread across these means is consolidation. As customers think about automation and AI together, we are increasingly seeing them look for one platform that can build, orchestrate, test, and cover the entire process. I am excited about the results we are seeing from coding agents, pilots, and implementation. Our initial results from our forward deployed engineers are that Coding agents reduce effort by nearly 60%. As we build on this, it has transformational impacts on our customers' time to value and overall PCO. We are seeing the same potential with customers like a leading U.S. energy company. They are using Cursor with UiPath across the entire automation lifecycle. From architecture and development to testing, code review, and production deployment. The coding agent directly creates UIPath workflows, while our platform keeps the development process governed and standardized. So this isn't just about AI writing code faster, it's about making the entire automation lifecycle fast. And that's an important part of why we believe AI expands the automation market. It doesn't just create new use cases, it lowers the cost and effort required to build them. Moreover, to speed up the implementation even further, we announced a new developer-friendly workflow automation tool in public review. It lets developers use calling agents they already work with, like Lord Coward, Codex, Cursor, and GitHub Copilot to both orchestrate business processes and automate manual tasks via API and agent, combining the speed of AI-native development with the governance enterprises need. Our horizontal platform remains the first thing, giving customers one platform to automate and orchestrate processes across functions, systems, and technologies, and increasingly, we're offering that horizontal strength with vertical and outcome-oriented solutions that bring us directly to line-of-businesses buyers around specific business outcomes while creating a natural entry point for broader platform adoption. This quarter, we saw strong traction with customers including a Fortune Robo 500 manufacturer, Where we are modernizing the accounts payable operations with our office of the CFO of Invoice Solutions, automating roughly 700,000 invoices annually. What won them over is exactly what our approach is built to deliver. 96% document processing accuracy in the proof of concept, automated supplier communications, rich operational dashboards, An unexpected 50% reduction in both invoice handling time and support. And in healthcare, a leading US health system chose our Denials Resolution solution to automate medical claim denials with their revenue cycle management process. The solution will help automate appeal creation and submission across inpatient and outpatient operations allowing them to pursue millions of dollars in claims that previously fell below the threshold for manual review and potentially recover meaningful additional revenue. WorkFusion extends that approach further into financial services. The integration is progressing in line with plan and we are encouraged by the customer response and the pipeline that is building. Its purpose is to build AI agents for financial crimes and compliance, give customers a more complete, outcome-oriented offering out of the box. Testing is another area where we continue to expand our reach, particularly through our partner ecosystem. We recently expanded our partnership with Cognizant, which will embed UiPath Test Cloud into its Testing as a Service and many services offerings helping customers move from manual script-based testing towards agentic testing. Cognizant will also help scale test cloud onboarding and adoption through its global delivery model. Before I close, I'm also pleased to welcome Yazdi Bagli to our Board of Directors. Yazdi brings deep technology, operations, and enterprise transformation experience from Kaiser Permanente, Walmart, and Procter & Gamble, and I'm excited for the perspective he'll bring with UiPath. And finally, we're looking forward to seeing many of you in Las Vegas next month. We'll kick off with our investor day on September 22, who will share more on our long-term strategy and product roadmap, followed by Fusion, our annual user conference from September 23 to 25. We have a lot to share, and I hope to see many of you there. Please reach out to our investor relations team for more information on our investor day. With that, I'll turn the call over to Ashim.