Shares of enterprise automation software company UiPath (PATH) have declined 10.2% in price over the past month ahead of its lock-up expiration date. While accelerating demand for robotic process automation has boosted PATH’s revenues, given concerns surrounding increasing competition from dominant players in the automation services industry, can its shares recover in the near term? Read more to find out.Global software company UiPath Inc. (PATH), which is headquartered in New York City, offers an end-to-end automation platform for robotic process automation (RPA) solutions, primarily in the United States, Romania, and Japan. The software vendor’s stock rose 23% in price on its market debut on April 21, 2021. And robust ARR growth and expansion with existing customers helped the company maintain strong momentum in its last reported quarter.
PATH’s ARR rose 60% year-over-year to $726.5 million, while its net new ARR grew 30% from its year-ago value to $73.9 million in the second quarter of its fiscal year 2022.
However, PATH’s shares have retreated 10.2% in price over the past month and 23.5% over the past three months, ahead of its lock-up expiration date. Although the software company’s groundbreaking Academic Alliance program should help it capitalize on the growing demand for automation, increasing competition from dominant players in the industry could challenge its market share growth. Furthermore, the company’s significant cash burn and stretched valuation could cause its shares to retreat further.