UiPath (PATH) - Opportunity or sinking ship?
Stock performance:
- Shares of $PATH+0.1% 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'+0.1% 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+0.1% 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?
I've heard of the company, but somehow I'm not interested in this stock. You have their stock in your portfolio?