Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

UiPath Stock Is Nearing Rock Bottom Down Here

By MarketBeat.com (Jea Yu )Stock MarketsApr 15, 2022 06:42AM ET
www.investing.com/analysis/uipath-stock-is-nearing-rock-bottom-down-here-200622275
UiPath Stock Is Nearing Rock Bottom Down Here
By MarketBeat.com (Jea Yu )   |  Apr 15, 2022 06:42AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Robotic process automation (RPA) platform provider UiPath (NYSE:PATH) stock has been getting crushed to new lows ever since hitting highs of $90 nearly a year ago.

UiPath is a leader in RPA, which enables companies to better automate their repetitive processes. It’s both software robotics and an artificial intelligence (AI) play.

The Company helps enterprises become more efficient, like Paychex (NASDAQ:PAYX) saving over 425,000 manual hours with over 35 million bought transactions with over 40 workflows enabling them to save 40,000 hours annually.

Unfortunately, or fortunately, for bargain hunters, AI companies are no longer the darling of Wall Street as evidenced by the carnage in companies like C3 Ai (NYSE:AI) which plunged from a high of $183.90 on Dec. 20, 2020, to a low of $16.59 on Mar. 15, 2022.

The Company lowered its fiscal 2023 top-line guidance as it feels the effects of the Russian invasion of Ukraine impacts on Europe and the UK, but shares are nearing a bottom.

Digital transformation is driving growth.

Prudent investors willing to be patient enough to wait out fiscal 1H 2023 headwinds for a recovery in the second half can watch for opportunistic pullbacks in shares of UiPath.

Fiscal Q4 2022 Earnings Release

On Mar. 22, 2022, UiPath released its fiscal fourth-quarter earnings report for the quarter ending in January 2022. The Company saw earnings-per-share (EPS) of $0.05, excluding non-recurring items, versus consensus analyst estimates of $0.03, beating by $0.02. Revenues rose 39.3% year-over-year (YoY) to $289.7 million beating analyst estimates for $283.25 million with ARR rising 59% to $925.3 million.

Lowered Guidance

UiPath issued downside guidance for fiscal Q1 2023 revenues between $223 million to $225 million versus $246.80 million estimates. The Company expected ARR in the range of $960 million to $965 million as of Apr. 30, 2022.

UiPath issued downside guidance for fiscal full-year 2023 revenues to come in between $1.075 billion to $1.085 billion versus $1.18 billion with ARR expected in the range of $1.2 billion to $1.21 billion as of Jan. 31, 2023.

Conference Call Takeaways

UiPath CEO Daniel Dines pointed out that the Company will exceed the $1 billion ARR mark by the end of fiscal 2023 as fiscal Q4 2022 saw net new ARR grow 72% YoY. He commented,

“Our continued growth at scale reflects broad-based adoption of our end-to-end automation platform and our focused execution. Automation is critical to digital transformation and to unlock new levels of innovation, agility, and productivity.”

Its land and expands model has a dollar-based net retention rate of 145% making it the best in class. The Company’s client-based grew to 10,100 with 1,493 clients having an ARR of over $100,000, up 49% YoY.

It includes over 158 million dollar clients, up 78% YoY. The deployment of more software robots and the adoption of its products is driving the growth. Its end-to-end automation platform has helped clients speed up their automation life cycle.

The Company ended the quarter with over 3,800 cloud clients with over 55% of new logos choosing cloud. UiPath ended the quarter with 5,100 partners.

CEO Dines stated,

“Building a best-in-breed go-to-market ecosystem requires us to sell with global GSIs and automation experts, as well as enable a broad range of organizations with distribution capabilities like Ingram Micro. These collaborations include sell through like with Deloitte, which has decided to expand their UiPath usage for their internal automation journey, sell-with, and sell-through during the quarter, we closed several new and expanded partnerships, including Finastra and ISID.”

He concluded that after a two-week stay in Europe, the war is obviously having “profound” effects on both physical and economic security. They have paused business in Russia. The uncertainty and rising interest rates will impact the macro environment which is leading them to cut guidance.

PATH Price Trajectories

Using the rifle charts on the weekly and daily time frames enables a more precise near-term view of the price action playing field for PATH stock. The weekly rifle chart collapsed again after rejecting near the $31.47 Fibonacci (fib) level to trigger a low band mini inverse pup back down.

The weekly market structure low (MSL) buy triggers on a breakout through $27.94. The weekly rifle chart has a downtrend with a steadily falling 5-period moving average (MA) resistance at $25.40 and a falling 15-period MA at $32.40 with weekly lower Bollinger® Bands (BBs) at $15.26.

The weekly stochastic formed another mini inverse pup to the 10-band. The daily rifle chart downtrend has a falling 5-period MA at $21.42 with a 15-period MA falling at $26.02. The daily lower BBs sit at $16.18. The daily stochastic formed a mini inverse pup lean under the 10-band.

Prudent investors can watch for opportunistic pullback levels at the $17.69 fib, $15.56, $14.62 fib, $12.50, $10.49, $9.49, and the $7.60 price level. Upside trajectories range from the $25.65 fib level up to the $39.00 fib level.

UiPath Stock Chart
UiPath Stock Chart

Original Post

UiPath Stock Is Nearing Rock Bottom Down Here
 

Related Articles

UiPath Stock Is Nearing Rock Bottom Down Here

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Amie Inconnue
Amie Inconnue Apr 18, 2022 12:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank you for a comprehensive technical analysis!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email