UiPath Inc. shares dropped in the extended session Tuesday after the “software robot” provider reduced its forecast for the year due to foreign currency headwinds and macroeconomic uncertainty.
shares fell about 16% after hours, following a 3.2% decline in the regular session to close at $15.59, well below its April 2021 IPO price of $56 a share. The stock price has fallen more than 75% over the past 12 months, while the S&P 500 index
has declined 14% over that time.
UiPath forecast third-quarter revenue of $243 million to $245 million and an annualized renewal run rate, or ARR, around $1.09 billion, while analysts had forecast revenue of $269.6 million and ARR around $1.12 billion. ARR is a metric often used by software-as-a-service companies to show how much revenue the company can expect based on subscriptions.
For the year, UiPath rolled back its forecast a bit. The company now expects revenue of $1 billion to $1.01 billion and ARR of $1.15 billion to $1.16 billion, compared with its previous forecast of revenue around $1.09 billion and ARR of $1.22 billion to $1.23 billion for the year.
Analysts surveyed by FactSet had estimated revenue of $1.09 billion and ARR of $1.22 billion for the year.
Read: UiPath IPO: 5 things to know about the ‘software robots’ company valued at nearly $30 billion
“We delivered a solid second-quarter fiscal 2023 despite increasing FX headwinds and macro uncertainty,” said Ashim Gupta, UiPath’s chief financial officer, in a statement. “While our global footprint is an asset to the business, it exposes us to foreign exchange and macroeconomic volatility. which is reflected both in our fiscal second-quarter results and our fiscal third-quarter and full-year 2023 financial outlook,”
The company reported a second-quarter loss of $120.4 million, or 22 cents a share, compared with a loss of $100 million, or 19 cents a share, in the year-ago period. The adjusted loss, which excludes stock-based…