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UiPath Could Be A Multi-Bagger In The Long Term

Published 10/21/2021, 10:20 PM
Updated 07/09/2023, 06:31 AM

The world has gone through a digital transformation, improving life, work quality, efficiency, and productivity in the last decades. But, employees still have to perform repetitive tasks that are time-consuming and costly for companies. UiPath's (NYSE:PATH) mission is to address this problem by automating business tasks and operations.

The innovation relies on three technologies, robotics, artificial intelligence, and low-code development. The interface is user-friendly, allowing companies to identify tasks that can be automated and implement the process efficiently.

The technology uses bots that replace human intervention. Those intelligent bots can read the human language, think, learn, and make complex decisions. Last year, the company captured 8% points of market share, adding more customers than all nine competitors combined.

Recently, Forrester Research named UiPath the Robotic Process Automation industry leader with a more substantial offering and growth potential than any of its competitors.

Key Highlights

  • Management puts its total addressable market at $60 billion. With a stronger value proposition than its rivals and revenue of $607 million, UiPath has only captured 1% of the vast market share available.
  • Dollar-based customer retention rate averaged an incredible 144% past years, indicating that customers tend to stick, and UiPath has successfully created new revenue streams from the existing user base.
  • Free cash flow to Equity is expected to grow 215% per year for the next decade.
  • The company has almost no history as it just went through its IPO. However, last two quarters, UiPath beat analysts' EPS forecasts by an average of 101%.
  • Legendary investment manager Cathie Wood just bought the company.
  • The company has joined forces with cybersecurity specialist CrowdStrike Holdings (NASDAQ:CRWD) and cloud industry leader Snowflake (NYSE:SNOW) to make their workflow 100% automated.

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