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.
UiPath
PATH,
-3.17%
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
SPX,
-0.41%
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…
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