Shares of UiPath, an AI Stock, dropped by 8% on Thursday due to analysts’ bearish outlook caused by the light forecast of the company. In Q1, UiPath reported earnings of $0.11 per share on revenue of $289.6 million, representing 18% of year-over-year increase.
The subscription revenue came at $146.4M, surpassing expected estimates while the annualized recurring revenue was in-line at $1.25B.
In the Q2 forecast, the company projected revenue to be in the range of $279-284M, lower than the expected figures of $284.3M. The annualized recurring revenue is also seen in between $1.30B and $1.31B, lagging behind the projected revenue of $1.3B.
Needham & Company analysts commented that the weakened forecast likely to fuel the bearish view in the near future. On the other hand, Mizuho analysts praised the profitability improvements made by UiPath, still believing that the shares could remain range-bound until there is a significant repositioning of the company towards growth.
UiPath is a software company specializing in automation, with many customers utilizing their combination of generative AI and automation platforms as an efficient and user-friendly solution in both the enterprise and consumer markets. Co-Chief Executive Officers, Daniel Dines and Rob Enslin, have worked to lead UiPath to its position of success amidst the changing tides of the AI industry.
