UiPath (PATH) - Opportunity or sinking ship?
Stock performance:
- Shares of $PATH+1.3% have fallen by more than half from their February high.
- Down 35% in a single trading session after disappointing Q1 results.
Management and Outlook:
- The sudden departure of CEO Rob Enslin made investors nervous.
- Reduced revenue guidance to USD 1.405-1.410 billion (previously USD 1.555-1.560 billion).
Competitive pressure:
- Competitor C3.ai raised its revenue outlook to $382.5 million, a 43% year-over-year increase.
- The reduction in $PATH'+1.3% s outlook indicates a loss of competitive advantage against C3.ai.
Financial Health:
- GAAP loss of $87 million over the past 12 months.
- Generating positive free cash flow of $325 million over the past year.
Valuation:
- Shares of $PATH+1.3% trade at approximately 20.5 times trailing free cash flow.
- Long-term growth opportunity for investors looking for profitable software companies.
Customer base:
- Customer retention with a net dollar retention rate of 118%.
- Partnership with Microsoft and integration with Copilot for Microsoft 365.
- Stock is potentially attractive to long-term investors after a significant decline.
- Growth prospects due to growing demand for automation of repetitive office tasks.
- Stock down -56% from February high.
- Reduced revenue outlook: $1.405-1.410 billion vs. $1.555-1.560 billion previously.
- Profit margin: generates positive free cash flow of $325 million.
- Valuation: 20.5 times trailing free cash flow.
- Customer retention: 118% net dollar retention rate.
What is your opinion of the company?
![PATH](https://media.bulios.com/media/ticker/e03847ed-20de-4796-8d93-558287eeb846.jpeg)
I've heard of the company, but somehow I'm not interested in this stock. You have their stock in your portfolio?