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The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 7 cents, indicating a 41.7% decline from the year-ago reported quarter. The consensus estimate for revenues stands at $347.6 million, implying 6.7% year-over-year growth. There has been no change in analyst estimates or revisions lately.
Image Source: Zacks Investment Research
The company has an impressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in the trailing four quarters with an earnings surprise of 42.4%, on average.
Image Source: Zacks Investment Research
Small Chance of Q3 Earnings Beat for PATH
Our proven model doesn’t conclusively predict an earnings beat for PATH this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
The Zacks Consensus Estimate for subscription services revenues is pegged at $200.1 million, indicating 19.5% year-over-year growth. The consensus mark for license revenues is pegged at $137.3 million, implying a 7.3% year-over-year decline. The consensus estimate for professional services and other revenues is pegged at $10 million, implying a 2.7% year-over-year decline.
PATH Stock Has Had an Impressive Run Lately
The stock has gained 15% in the past month compared with the 20% growth of the industry and a 4.5% rise of the Zacks S&P 500 composite. PATH’s performance outperforms Varonis Systems (VRNS - Free Report) and Trend Micro Incorporated (TMICY - Free Report) , which are its close competitors. VRNS has declined slightly while TMICY has rallied 6.3% in the past month.
PATH Stock One-Month Price Performance
Image Source: Zacks Investment Research
Investment Considerations for PATH
UiPath's dynamic platform capabilities remain a key driver of customer growth, including among Australian clients leveraging the company's Test Suite to facilitate their migration to SAP S/4HANA. UiPath's success is rooted in its commitment to serving customers, emphasizing the growing importance of maintaining a customer-centric approach.
In the second quarter of fiscal 2025, PATH reported 10,810 customers, declining from the year-ago quarter’s 10,890. Despite the marginal fall, customers with $100,000 or more in annual recurring revenues (ARR) surged from 1,930 in the second quarter of fiscal 2024 to 2,163 in the second quarter of fiscal 2025. Also, customers with $1 million or more in ARR increased 15.3% from the year-ago quarter’s actual.
PATH’s performance in terms of dollar-based gross retention and net retention rate in the second quarter of fiscal 2025 was astounding. Dollar-based gross retention was 97%, and 115% was its net retention rate in the second quarter of fiscal 2025. The company witnessed such expansion due to the quick time to value and wide applicability of its automation platform.
Your Strategy With PATH Stock Before Earnings
PATH has shown resilience with steady revenue growth, particularly in its subscription services, which are projected to grow 19.5% year over year in the to-be-reported quarter. Despite this, the company's earnings forecast reflects a 41.7% decline compared to the prior year and a lesser chance of a beat. Given these factors and the stock's recent upward momentum, the possibility of a near-term correction appears likely. Therefore, adopting a cautious wait-and-see approach ahead of the third-quarter results seems advisable.
PATH has shown steady revenue growth, particularly in its subscription services, which are projected to grow year over year in the to-be-reported quarter. Despite this, the company's earnings forecast reflects a 41.7% decline compared to the prior year and a lesser chance of a beat.
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Should You Buy, Sell, or Hold UiPath Stock Before Q3 Earnings?
UiPath Inc. (PATH - Free Report) will report its third-quarter fiscal 2025 results on Thursday, after the bell.
The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 7 cents, indicating a 41.7% decline from the year-ago reported quarter. The consensus estimate for revenues stands at $347.6 million, implying 6.7% year-over-year growth. There has been no change in analyst estimates or revisions lately.
The company has an impressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in the trailing four quarters with an earnings surprise of 42.4%, on average.
Small Chance of Q3 Earnings Beat for PATH
Our proven model doesn’t conclusively predict an earnings beat for PATH this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
PATH has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subscription Should be PATH’s Key Driver in Q3
The Zacks Consensus Estimate for subscription services revenues is pegged at $200.1 million, indicating 19.5% year-over-year growth. The consensus mark for license revenues is pegged at $137.3 million, implying a 7.3% year-over-year decline. The consensus estimate for professional services and other revenues is pegged at $10 million, implying a 2.7% year-over-year decline.
PATH Stock Has Had an Impressive Run Lately
The stock has gained 15% in the past month compared with the 20% growth of the industry and a 4.5% rise of the Zacks S&P 500 composite. PATH’s performance outperforms Varonis Systems (VRNS - Free Report) and Trend Micro Incorporated (TMICY - Free Report) , which are its close competitors. VRNS has declined slightly while TMICY has rallied 6.3% in the past month.
PATH Stock One-Month Price Performance
Investment Considerations for PATH
UiPath's dynamic platform capabilities remain a key driver of customer growth, including among Australian clients leveraging the company's Test Suite to facilitate their migration to SAP S/4HANA. UiPath's success is rooted in its commitment to serving customers, emphasizing the growing importance of maintaining a customer-centric approach.
In the second quarter of fiscal 2025, PATH reported 10,810 customers, declining from the year-ago quarter’s 10,890. Despite the marginal fall, customers with $100,000 or more in annual recurring revenues (ARR) surged from 1,930 in the second quarter of fiscal 2024 to 2,163 in the second quarter of fiscal 2025. Also, customers with $1 million or more in ARR increased 15.3% from the year-ago quarter’s actual.
PATH’s performance in terms of dollar-based gross retention and net retention rate in the second quarter of fiscal 2025 was astounding. Dollar-based gross retention was 97%, and 115% was its net retention rate in the second quarter of fiscal 2025. The company witnessed such expansion due to the quick time to value and wide applicability of its automation platform.
Your Strategy With PATH Stock Before Earnings
PATH has shown resilience with steady revenue growth, particularly in its subscription services, which are projected to grow 19.5% year over year in the to-be-reported quarter. Despite this, the company's earnings forecast reflects a 41.7% decline compared to the prior year and a lesser chance of a beat. Given these factors and the stock's recent upward momentum, the possibility of a near-term correction appears likely. Therefore, adopting a cautious wait-and-see approach ahead of the third-quarter results seems advisable.
PATH has shown steady revenue growth, particularly in its subscription services, which are projected to grow year over year in the to-be-reported quarter. Despite this, the company's earnings forecast reflects a 41.7% decline compared to the prior year and a lesser chance of a beat.