UiPath Inc. stock rose sharply in after-hours trading Wednesday after the company’s fourth-quarter, full-year results and outlook exceeded Wall Street’s expectations.
UiPath PATH, +1.95% shares climbed about 15% after hours, after an almost 2% increase in the regular session to close at $ 14.64.
The automation-software company had “a very strong fourth quarter, reflecting the progress we have made on our strategic initiatives and the strength of our AI-powered business automation platform,” co-Chief Executive Rob Enslin said on the company’s conference call with analysts. Enslin added that the company “closed a record number of deals over $ 1 million.”
UiPath reported a fourth-quarter net loss of $ 27.7 million, or 5 cents a share, compared with $ 63.1 million, or 12 cents a share, in the year-ago period. Adjusted for stock-based compensation, restructuring and other costs, earnings were 15 cents a share.
Revenue rose to $ 308.5 million from $ 289.7 million in the year-ago quarter. The annualized renewal run rate rose 30% to $ 1.2 billion year over year. Software-as-a-service companies use ARR to show sales expectations based on subscriptions, and Enslin said the company now has 229 customers with $ 1 million or more in ARR, and 1,785 customers with $ 100,000 or more in ARR.
Analysts surveyed by FactSet had forecast adjusted earnings of 7 cents a share on revenue of $ 278.6 million.
For the full year, the company reported a net loss of $ 328.4 million, or 60 cents a share, on revenue of $ 1.06 billion. That compares with the previous year’s net loss of $ 525.6 million, or $ 1.16 a share, on revenue of $ 892.3 million. Adjusted earnings were 14 cents a share. Analysts had expected adjusted earnings of 6 cents a share on revenue of $ 1.029 billion.
UiPath expects first-quarter revenue of $ 270 million to $ 272 million, while analysts had forecast earnings of 1 cent a share on revenue of $ 269.6 million. For the full year, the company expects revenue of $ 1.253 billion to $ 1.258 billion, beating analysts’ expectation of $ 1.214 billion.
Shares of UiPath have risen 15% so far this year, while the S&P 500 index SPX, -0.70% has seen about a 1% increase year to date.