Investment Thesis

Thanks to ChatGPT, AI technology is more popular than ever, but the number of clear investment opportunities is still small. Founded in Romania in 2005, UiPath (NYSE:PATH) develops AI software able to automate boring activities like extracting data, filling documents, or updating databases. But despite its products increasing the efficiency and profitability of other companies, UiPath’s business model is still not able to generate positive returns to investors other than growth in revenues.

Even assuming UiPath will achieve the efficiency and profitability levels of the best software companies, its stock appears to be extremely overvalued at today’s prices if compared to an estimated intrinsic value of $8.76 per share. Nonetheless, the growth opportunities represented by the market UiPath is leading in don’t permit us to completely discard the company.

In today’s analysis, we will assess why UiPath should be kept on our watchlist patiently waiting for buying the company at a great discount.

Business Model

UiPath operates in the robotic process automation (RPA) industry developing robotic software powered by AI technology that is able to emulate human behaviors, eliminating the need for employees to execute boring and repetitive tasks saving time and increasing overall efficiency. UiPath’s robotic software can be easily implemented by companies in their already existing ecosystem and results are immediately visible.

UiPath generates most of its revenues from the sale of licenses for the proprietary software, usually lasting one year, and from maintenance and support services that are offered under a subscription program to customers once they purchase the license to use the software. For a lesser part revenues are generated by non-recurring professional services like training services to get used to the products.

UiPath products are sold worldwide, accounting for more than 10 thousand customers. Their primary go-to-market strategy is relying on established consulting companies, like Accenture (ACN), Deloitte, and EY, which enter a partnership program under which they can promote UiPath’s solutions to their consumers as a tool to Excellerate their operations. The word-of-mouth effect of this strategy permits UiPath’s solutions to be known and adopted by the best companies in the world.

Operating Performance

Looking at UiPath’s operating performance, its revenues grew at a compound annual growth rate (CAGR) of 62.9% from 2020 to 2022 fiscal years, reaching $892 million. UiPath achieved excellent gross margins in the range of 80%, but due to the high operating expenses like R&D, needed to support future growth, its business model is still not able to generate positive operating returns with losses of $500 million in the last fiscal year. In regards to the nine months ended for the fiscal year 2023, revenues grew 24.4% y-o-y, and the gross margin remained at 82%.

UiPath presents a healthy financial position, with only $61 million in debt outstanding in the most exact quarter, represented by lease liabilities, and $1.38 billion in net cash available. However, UiPath went public not even two years ago, and the management keeps issuing shares to raise capital to fund operations at the expense of investors that see their investment diluted.

Market Risks & Opportunities

UiPath’s strength resides in its technology. UiPath has to invest heavily in R&D to keep improving its robotic software and AI technologies adding new features and functionalities to further increase the benefits for its customers and maintain its leading position in the RPA industry.

The current leaders of the RPA industry are UiPath, Automation Anywhere, and Blue Prism and while the latter two offer a more advanced experience, UiPath opted to offer an easy-to-use experience at lower prices. The advantage of UiPath over its two main competitors is the easiness with which employees can start to implement its solution without any particular programming knowledge favoring its mass adoption. On the other hand, when customers need more advanced functionalities, they will rely on UiPath’s competitors. Hence, UiPath is losing a big chunk of revenues from those potential customers that, requiring advanced functionalities, would probably accept paying inflated prices just to get the best products available.

Despite the triad of companies competing for the leading position, the RPA market is still young and has room for growth for every player in my view, since it is expected to expand at a CAGR of 22% by 2033. The exact explosion in the popularity of AI solutions like ChatGPT should make explicit that there’s already high demand and interest in products able to automate cumbersome and time-consuming activities. Enterprise applications would be the first ones to be adopted, with companies looking for the best solution to increase efficiency and gain market shares over their competitors, and UiPath is currently sitting in a privileged spot to benefit from this future trend.

DCF Model

I use the discounted cash flow analysis method to value companies. The aim of a DCF analysis is to determine the present value of expected cash flows generated by the company in the future. The first step is to project the growth rate at which revenues will grow in the future. Secondly, we will need to assume the degree of efficiency and profitability at which the company will turn revenues into cash flows.

Efficiency is represented by the operating margin, and profitability by the return on invested capital (ROIC). Having the revenue projections and future operating margins, we obtain the EBIT and, after subtracting taxes, we get the net operating profit after taxes. The ROIC is used to determine the reinvestments needed to support future growth, determining how much profit the company generates from every dollar reinvested into the company. Future cash flows are calculated by subtracting the reinvestments from the net operating profit after taxes. The higher the growth rate, the higher the reinvestments needed to support it, hence the lower future cash flows will be.

The last step of a DCF analysis is to apply the discount rate to future cash flows, usually calculated using the weighted average cost of capital (WACC).

Projections

Now, trying to project UiPath’s performance, the story we are telling here sees UiPath galloping at the growing trend of enterprise adoption of AI solutions that will boost its revenues growth, permitting the company to reach efficiency and profitability on the same level of the best software companies before entering the maturity phase.

For the fiscal year 2023 we can expect revenues to grow 20%, badly affected by the economic downturn that cut business spending worldwide in 2022, while in the coming years, we can expect growth rates to recover momentum, with growth rates in the rage of 30%-40% as the adoption of AI technologies spread among companies, to then decline slowly as the company reaches maturity. With these assumptions we can expect UiPath’s revenues to quintuple in ten years, growing at a CAGR of 18.6% reaching $5 billion by 2032.

Given the strong assumptions about growth, UiPath will have to invest heavily to support it therefore we cannot expect UiPath to turn profitable in the coming years. Assuming the investments made will start to pay off in 3 years, as the adoption of AI solutions starts to consolidate, and assuming UiPath will still be the market leader, we can expect the efficiency and profitability to reach the level of the best software companies operating at the present. Among the software companies with a market capitalization above 10 billion, the average gross margin, operating margin and ROIC, are respectively 78%, 18% and 12%. Given that UiPath already has a gross margin higher than the current market average we can assume the company to have both an operating margin and ROIC slightly better than its peers by 2032, around 20% and 16% respectively.

With these assumptions, UiPath is unlikely to deliver positive FCFF in the short term but by the time the company reaches maturity by 2032, we can expect FCFF to be in the range of $600 million.

Valuation

Applying a discount rate of 8.94%, calculated using the WACC, the present value of these cash flows is equal to an equity value of $4.8 billion or $8.76 per share.

Conclusion

Given my analysis and assumptions, UiPath stock seems to be extremely overvalued at today’s price. But even though at these prices UiPath does not represent a good investment opportunity, the growth potential that the RPA industry has in the coming years makes UiPath a noteworthy addition to the watchlist of every patient investor. If UiPath’s stock price declines below its estimated intrinsic value, or if there is any positive development that will make the company’s intrinsic value increase, UiPath would represent a good investment opportunity.

Robotic process automation (RPA) leader UiPath inc. (NASDAQ: PATH) stock has been rising with other artificial intelligence (AI) providers thanks to ChapGPT. The media coverage over the hype surrounding the AI platform ChatGPT has brought AI to the forefront again.

Unlike the frustrating chatbots you find online attempting to handle customer service requests by providing lame links, ChatGPT is a monstrous leap forward that brings the promise of genuinely applicable AI into focus. The fact that it gained over one million users within five days of launch speaks volumes, especially compared to other services taking months to years to achieve those kinds of user numbers.

ChatGPT is a valuable and fantastic resource for researching, programming, discovering, and creating content. You can ask it to write a 2,000-word blog on any subject, and it gets done in minutes.

Blue Collar AI  

UiPath provides robotic process automation (RPA) using artificial intelligence and machine learning algorithms to help companies automate repetitive tasks like data entry and document processing.

It also provides complex services like business process automation (BPA) functions, including accounting, finance, payroll, and human resources. In addition, UiPath provides more practical AI applications, a blue-collar version of AI that automates repetitive tasks. As a result, shares are much cheaper than the $90 highs they traded in May 2021.

UiPath provides more complex functions like computer vision, predictive analytics, natural language processing, and automated testing solutions. In addition, the Company introduced its value-based selling tool Northstar which uses prescription and predictive models to help its sales reps illustrate the value of automation to its clients and prospects.

The platform helps companies save time and money, which is especially relevant during weak economic cycles.

Compared to C3.ai

As the leader in RPA, UiPath generates over 4X the revenues of C3.ai at more than 2X top-line growth. While AI platforms like C3.ai Inc. (NYSE: AI) are growing in their reach and awareness with the business community, UiPath has already imbedded itself with some of the most well-known organizations like NASA to General Electric (NYSE: GE) and Alphabet Inc. (NASDAQ: GOOGL) owned Google, Autodesk Inc. (NASDAQ: ADSK).

Its client Paychex Inc. (NASDAQ: PAYX), saved 425,000 manual hours using UiPath services. In addition, it saw strength in healthcare and telecommunications. The Company also closed Petco Health and Wellness Company Inc. (NASDAQ: WOOF), Nautilus Inc. (NYSE: NLS), and Wisconsin Energy in its latest quarter.

Double-Digit Growth and Non-GAAP Profits

On Dec.1, 2022, UiPath released its third quarter fiscal 2023 earnings report for the quarter ending in October 2022. The Company saw earnings-per-share (EPS) of $0.05, excluding non-recurring items, versus consensus analyst estimates for a loss of (-$0.01), beating by $0.06.

Revenues rose 19% year-over-year (YoY) to $262.74 million, beating analyst estimates for $255.94 million with an annual run rate (ARR) growing 36% YoY of $1.11 billion. Most of UiPath's revenues come from Europe, where FX headwinds have significantly impacted the business but were down to $22 million in the quarter.

Co-Founders and Co-CEOs' Comments

UiPath Co-Founder and Co-CEO Rob Enslin commented,  "Our new go-to-market initiatives are driving results and resonating with customers. We closed several notable third-quarter deals using this value-selling approach and are widely engaged with new and existing customers as we head into the last quarter of the fiscal year 2023."

Co-founder and Co-CEO Daniel Dines added, "Our latest release, 2022.10, further expands our competitive advantage with market-leading capabilities at every stage in the automation lifecycle, from discovery to automate to operate. This cohesive approach makes it easier and faster for organizations to scale their automation programs and drive meaningful business outcomes efficiently."

Lowering the Bar

UiPath issued downside guidance for Q4 fiscal 2023 revenues between $277 million to $279 million versus $279.35 million estimates. However, the Company expected ARR in the range of $1.174 billion to $1.176 billion, slightly higher. The fall of the U.S. dollar index will also be a boon to UiPath.

Weekly Descending Triangle Breakout

PATH shares have been in a weekly descending triangle pattern since August 2022 as the lower trendline holds support at the $10.47 swing low. However, shares have been able to break out through the falling triangle trendline on the weekly market structure low (MSL), trigger breakout through $12.88.

The weekly stochastic has been climbing since November, forming a mini pup to trigger the breakout. The weekly 20-period exponential moving average (MA) resistance is being tested at $13.92, with the weekly 50-period MA above $18.23. The pullback support levels sit at $13.42, $12.88 weekly MSL trigger, $12.21, $11.48, and $10.47 swing low.

UiPath (PATH) closed at $16.65 in the latest trading session, marking a -1.54% move from the prior day. This change lagged the S&P 500's daily loss of 0.61%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq lost 0.67%.

Heading into today, shares of the enterprise automation software developer had gained 44.53% over the past month, outpacing the Business Services sector's gain of 10.54% and the S&P 500's gain of 8.32% in that time.

Wall Street will be looking for positivity from UiPath as it approaches its next earnings report date. In that report, analysts expect UiPath to post earnings of $0.07 per share. This would mark year-over-year growth of 40%. Our most exact consensus estimate is calling for quarterly revenue of $278.14 million, down 3.99% from the year-ago period.

Any exact changes to analyst estimates for UiPath should also be noted by investors. exact revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. UiPath is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note UiPath's current valuation metrics, including its Forward P/E ratio of 153.73. Its industry sports an average Forward P/E of 23.23, so we one might conclude that UiPath is trading at a premium comparatively.

Meanwhile, PATH's PEG ratio is currently 5.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 2.29 as of yesterday's close.

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The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 105, putting it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Zacks Investment Research

UiPath (PATH -3.24%) is an enterprise technology company specializing in automation software to make businesses more efficient. This was once a Wall Street darling stock. But in 2022, valuations came down and enterprise software stocks were especially hard hit.

Down more than 80% from its all-time high, UiPath stock has largely been left for dead. However, while there are some lingering concerns, this business is performing quite well and may actually be worth buying for investors who are comfortable with buying shares in a still profitless company.

Green flag: The long-term growth narrative is strengthening

For long-term investors, it's challenging to predict how things will be in three, five, or 10 years. And it's especially challenging to predict for software companies like UiPath, where things are prone to fast-paced innovation.

I can't be positive about UiPath's long-term growth potential. But two developments with the business are making the investment thesis stronger and stronger.

First, UiPath is adding customers even during a tough time. On Jan. 31, UiPath concluded its fiscal 2022 with 10,100 customers. As of the third quarter of its fiscal 2023, the company had 10,650 customers. With the possibility of a recession in 2023, businesses are generally tightening their belts and showing a reluctance to spend on new products. But by adding new customers during this time, UiPath is showing resilience.

Moreover, UiPath signs contracts with its customers, which gives it recurring revenue -- another visibility benefit for long-term investors. In Q3, the company generated revenue of $263 million, up a respectable 19% year over year. But annualized recurring revenue was up a much better 36% to over $1.1 billion, which suggests the future is brighter than the present.

Second, contracts are getting longer. UiPath provides investors with information regarding its remaining performance obligations (RPO) -- revenue under contract yet to be recognized. At the end of fiscal 2022, its RPO was at $683 million and 62% was expected to be recognized within one year.

At the end of Q3, UiPath's RPO was at $759 million (up 7% quarter over quarter) and only 58% was expected within one year. In other words, tens of millions of dollars of contracted revenue has shifted to further out than one year, giving shareholders a measure of confidence that the long-term narrative is strengthening.

Red flag: Show me the money!

Despite strong top-line growth, UiPath has cash-flow problems. Through the first three quarters of its fiscal 2023, the company's operating activities have burned through $104 million. For perspective, it's only generated $750 million in revenue during this time.

Moreover, stock-based compensation (shares given to employees, which registers as a non-cash charge) is extremely high for UiPath at $271 million in fiscal 2023 so far. It doesn't contribute to the company's cash burn, but it is a drag on shareholder value all the same.

Is UiPath overcoming its red flag?

Smart investors understand that profitability is a nuanced subject. Cash-burning companies don't make good investments unless they can eventually become cash generative. And companies frequently forgo profits now if it means growing the business to capture higher profits later. The trick is distinguishing the good businesses from the pretenders.

In UiPath's case, it's hard to know what its future cash-flow situation will look like. That said, there are some notable exact improvements. First, through the first three quarters of its fiscal 2023, UiPath's revenue was up 24% from the comparable period of fiscal 2022. However, total operating expenses were down less than 1% during this time. This suggests management is controlling costs better recently.

Moreover, stock-based compensation is high. However, through the first three quarters of fiscal 2023, it was down 38% year over year. That's also trending in the right direction.

PATH Stock Based Compensation (TTM) data by YCharts

Finally, UiPath has a lot of runway. The company has $1.7 billion in cash, cash equivalents, and marketable securities as of Q3 -- substantial for a company with a market capitalization of $7.6 billion. 

In summary, UiPath's cash flow is getting better. And its financial cushion gives the company years of runway even burning cash at its current rate. With plenty of time, UiPath management can continue intentionally chipping away at a market opportunity that it believes is worth over $60 billion. And it can expand its products to capture an additional $30 billion in new markets.

Ongoing growth in a tough economic climate, improving cash flow, and strong balance sheet may make UiPath a stock worth buying.

Advancements in education technology, or EdTech, come from changes of approach in the wake of shortcomings. Innovative educational technology can adapt existing tools or create new ones to help people navigate learning obstacles.

King of the Curve (KOTC) is a disruptive EdTech startup with its sights set on helping to ease the looming doctor shortage. KOTC combines game and social strategies to assist science students in scoring better on medical school entrance exams and related challenges. The company is also developing productivity-style apps to help health care workers in the field manage the challenges of dispensing medical treatments better.

Heath Rutledge-Jukes founded the company while eyeing a career in psychology before focusing on becoming a surgeon. He is now a medical student at Washington University School of Medicine.

Before entering medical school, though, he took an unanticipated detour to put his science skills to use as a software developer. Rutledge-Jukes transitioned from designing instructional strategies for people with dyslexia to creating a series of examination preparation apps for medical school applicants.

KOTC does not mimic other self-study products and is not based on typical learning app thinking.

“People have their own individual learning paths. That is what education should be based on. It is not just a cookie-cutter template for everyone,” Rutledge-Jukes told TechNewsWorld.

App Adapts To User Performance

That philosophy is evident in his educational pathway. As a psychology major, Rutledge-Jukes researched different learning methods. His research primarily used video games to learn legitimate skills such as eye-hand coordination, strategizing, critical thinking, and much more.

After graduating college, he designed tools for children with dyslexia to learn. That endeavor involved creating tactile instruments for young students to comprehend and retain information better.

Unlike other learning tools, KOTC does not become routine or less useful to users due to over-familiarity. Instead, the app adapts to a user’s performance so they can improve, not just memorize pre-set answers.

The King of the Curve app uses game-based elements to help students study for medical school entrance exams. Its features include Adaptive Question Bank, Review Mode, Endless Mode, Timed Mode, and Multiplayer Mode. (Images Courtesy of King of the Curve)

Educational apps can linger without updates for extended periods. Or they rely on rote learning tactics, which limit progress to the confines of teaching to the test. “That makes users more desperate to try something else,” Rutledge-Jukes noted.

Building a Better Mousetrap

Rutledge-Jukes started KOTC in 2020 with a focus on preparing students for the medical school entrance test known as the Medical College Admission Test or MCAT. Test prep for getting into medical schools was a logical starting point for his company’s first educational app. The developer was already well-versed in its content.

“That is how we started. That was a seed for putting this app together to help people qualify for the various tests,” he said.

KOTC’s mission, as its founder sees it, is simple: transform students’ stress into success. That way, the student of today becomes the professional of tomorrow.

Solving a National Medical Crisis

In its own way, KOTC’s unique strategy for prepping students for the MCAT is helping to get more applicants accepted. Training competent physicians can take as long as 10 years, according to the 2022 AMA President Gerald E. Harmon, M.D., in a Leadership Viewpoints column.

The Association of American Medical Colleges (AAMC) projected the U.S. faces a shortage of 37,800 physicians — and 124,000 within 12 years — in its report released in June 2021. In the wake of this pending physician shortage, KOTC’s gamified techniques go a long way to preventing “Game Over” for doctor hopefuls.

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Rutledge-Jukes stated that 60% of the people who apply to medical school are not accepted. Applicants are three times more likely to attend medical school if they score above 510 on the MCAT, and it is the only part of the med school application that is standardized.

KOTC’s success rate in helping applicants score higher is impressive. The MCAT’s score range for the four-part written test is from 472 to 528. Scores for the four sections are combined to create a total score. The midpoint is 500.

The KOTC development team is staffed by people who know the MCAT testing process well. In order to be hired, they must have scored in the 99th percentile.

Expansion Plans

The app developer also met that standard, which makes sense from an app user’s perspective. Rutledge-Jukes took the MCAT and scored well “above the curve,” so he is well versed in its content. Starting out, he handled most of the question silos and app construction tasks himself.

“I consider myself a technical founder in that sense as well. Not just technical on the content side, but technical on the kind of development side,” he offered.

He built most of the initial apps and taught himself app programming over the pandemic shutdown. He started the KOTC project with the help of two co-founders and an angel investor. One of his primary jobs now, even while attending medical school, is leading the team.

Since generating more revenue from monetizing in-app feature additions, he has been able to onboard more workers. Once users get into the app, they can purchase customization and additional upgrades.

His company employees vacillate between two-to-10 full-time and part-time employees who excel in either test content areas or app building. That includes four interns, two content specialists, and two developers.

“We definitely are expanding the team as we grow. Right now, we are about to open a round for investment to expand the team even more,” Rutledge-Jukes said.

Test Prep Course Inventory

KOTC’s learning lineup now offers test prep apps for a series of professional admissions tests with more updates on the way. The staff is comprised of students and researchers in each of the test prep areas. They maintain high-level content.

The primary course inventory includes medical school admissions tests for the nursing test (NCLEX), the test Master’s Physician Assistant College Admission Test (PA-CAT), and the Registered Dietitian test (RDE).

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According to Rutledge-Jukes, the company plans to expand into two other high-pressure academic test prep areas: the LSAT for law school hopefuls and the Bachelor of Accounting (BAcc) entrance exam.

To provide another all-inclusive option for future users, the company plans to expand its existing website as a home base for online learning separate from offering test prep through mobile apps, confided Rutledge-Jukes.

The apps are now available for Android, iPhone, and iPad devices. Some are not available on all three platforms, however.

For Established Medical Professionals

KOTC’s ongoing purpose is to help students and entry-level health care professionals hone their knowledge. It also is now addressing the needs of already established physicians. These other app categories address a more comprehensive range of content and target specific professional areas that are mostly medical-science related.

For instance, Current Procedural Terminology (CPT) targets improving the patient experience with medical providers at the bedside. A team of pre-medical students designed its intuitive technology to limit barriers for patients in discussing the finances involved in critical medical decisions.

One of the latest that Rutledge-Jukes initiated in March 2022 is Telecatalyst. This app specifically fills the needs of medical personnel in Tanzania who need a data collection and telehealth app.

Also under development for medical assistance is the Regenerative Pain and Spine app. Anesthetists will use it to generate reports regarding their patients during surgery to record blood pressure, machine checks, and patient information.

Serious Learning While Gamifying the Process

According to the developer, med school hopefuls have few options besides paying the high tuition attached to taking the industry-standard test or hiring tutors.

“We’ve crafted our app to promote a sports and social element because all these students are going through the same process. They should be on the same team as they move forward,” said Rutledge-Jukes.

Built into this all-in-one MCAT study game are some 7,000 questions divided into six categories: biology, biochemistry, general chemistry, organic chemistry, physics, and the behavioral sciences.

“We just basically dump all the questions on the user at the beginning. We are able to provide the product to people if they absolutely cannot afford a subscription. They can still use it and could still prepare effectively,” he said.

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But the add-ons let students maximize their effectiveness by zeroing in on specific parts of the test, he added. The app recommends videos to watch and points students to particular parts of the study guide based on the accuracy of answers.

Another advantage to KOTC is the comment sections on individual questions where people can explain their rationale. The test prep lets students challenge other users to compare scores section-by-section as they go through the program.

“This is more of the gamification, but we also have monthly competitions between schools. For instance, every March, we imitate March Madness, but we do it with schools from around the United States, and their users will Excellerate with them,” the developer explained.

Covering All Bases

KOTC is built on the overall picture of EdTech, including elements from adaptive learning fields. Competency-based learning is also a significant element.

“I think competency-based learning is the future of education,” said Rutledge-Jukes. “Once you have the foundations, it hits these checkboxes.”

King of the Curve is available at Google Play and the App Store.

For third year in a row, UiPath receives the Customer Relationship Management Institute’s prestigious NorthFace ScoreBoard Service Award℠ for superior customer service

NEW YORK, February 07, 2023--(BUSINESS WIRE)--UiPath (NYSE: PATH), a leading enterprise automation software company, today announced that it has received the 2022 NorthFace ScoreBoard Service Award℠ (NFSB) from the Customer Relationship Management Institute (CRMI) LLC in recognition of achieving excellence in customer service and support for the UiPath Business Automation Platform. This marks the third consecutive year that UiPath has been honored with this recognition, demonstrating its ongoing commitment to building profitable, long-term customer loyalty by continuously exceeding customer expectations.

Since 2000, the NFSB Service Award has been presented annually to companies who – as rated solely by their own customers – exceeded expectations in customer service through a deep commitment to customer centricity. The award criteria includes providing Customer Satisfaction (CSAT) survey results for the calendar year, achieving a CSAT minimum rating of 4.0 out of 5.0 or an equivalent rating system such as Net Promoter Score® (NPS), successfully passing an audit of CSAT survey results, and providing written verification of CSAT survey results by the Company’s customer support management.

With an overall CSAT rating of 94% from its customers in 2022—an increase from 91% in 2021—UiPath is in an elite class of B2B software technology companies. According to industry benchmarking, the average CSAT for software organizations is 77%, for example. Further, UiPath earned a NorthFace ScoreBoard Index (SBI) rating of 4.6 out of 5, based on an audit of customer responses to more than 45,000 surveys sent to customers as part of the interaction with customer support.

"We are incredibly proud of our dedicated global customer support teams for achieving this remarkable milestone for the third year in a row," said Deepak Chawla, UiPath Senior Vice President of Global Product Support. "Being recognized by our customers is the pinnacle of achievements. Putting them first—and exceeding their expectations—will always be fundamental to the success of our business. On behalf of everyone at UiPath, we thank our customers and the Customer Relationship Management Institute for this recognition."

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"The NorthFace ScoreBoard Service Award is widely recognized as the most prestigious award for customer service excellence due to its unique customer-only vote criteria," said John Alexander Maraganis, CRMI President and CEO. "We’re proud to recognize organizations like UiPath who not only offer exemplary customer service, but who also center their company’s DNA on a deep commitment to continuously exceed customer expectations."

About UiPath

UiPath has a vision to deliver the Fully Automated Enterprise™, one where companies use automation to unlock their greatest potential. UiPath offers an end-to-end platform for automation, combining the leading Robotic Process Automation (RPA) solution with a full suite of capabilities that enable every organization to rapidly scale digital business operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230207005150/en/

Contacts

Media
Toni Iafrate
UiPath
pr@uipath.com

Investor Relations
Kelsey Turcotte
UiPath
investor.relations@uipath.com