UiPath, Inc. Q4 FY2025 earnings call

Daniel Dines thanked the team and customers, mentioned revenue of $424 million and ARR growth. Acknowledged impact from geopolitical climate and macroeconomic volatility. Strategic priorities include accelerating innovation, increasing adoption, and driving operational rigor. Product innovations like Agent Builder, Agentic Orchestration, and Agentic Testing were highlighted. Strong partner ecosystem with Deloitte and Microsoft. Customers are moving to the cloud, and AI products are driving adoption. Ashim Gupta discussed key operating priorities, financials, and progress in pipeline and customer health.

Fourth quarter revenue grew to $424 million, an increase of 5% year-over-year. Excluding an FX headwind of $2 million, revenue would have totaled $426 million. Total revenue for fiscal year 2025 was $1.43 billion, an increase of 9% year-over-year. ARR totaled $1.666 billion, an increase of 14% year-over-year. AI product attach rate is approximately 20% of total customers, with over 85% for customers with >$1 million in ARR. Cloud ARR ended the year at over $975 million, up over 50% year-over-year.

First fiscal quarter 2026 revenue expected in the range of $330 million to $335 million, ARR in the range of $1.686 billion to $1.691 billion, non-GAAP operating income of approximately $45 million. Full fiscal year 2026 revenue expected in the range of $1.525 billion to $1.530 billion, ARR in the range of $1.816 billion to $1.821 billion, non-GAAP operating income of approximately $270 million. First half revenue to be approximately $665 million, first half net new ARR to be approximately $48 million. Fiscal year non-GAAP gross margin to be approximately 85%, non-GAAP adjusted free cash flow of approximately $370 million, and dilution between 2% to 3% year-over-year.

Geopolitical climate impacting government deal closures, macroeconomic environment volatility affecting customer budgets, foreign exchange rate fluctuations.

Q: Jake Roberge asked about macroeconomic headwinds and agents' use cases.

A: Daniel Dines said deals are being delayed due to re-review, agents work in end-to-end enterprise processes.

Q: Bryan Bergin asked about public sector mix and net new ARR.

A: Ashim Gupta said public sector is a short-term disruption, first half under pressure.

Q: Unidentified Analyst asked about AI investment and market distribution.

A: Daniel Dines and Ashim Gupta said uncertainty affects all, but agentic has interest.

Q: Sheldon McMeans asked about federal monetization and agentic AI maturity.

A: Daniel Dines said IRS uses consumption-based model, some agencies under moratorium.

Q: Sanjit Singh asked about agent portfolio pricing.

A: Daniel Dines said consumption-based model to be announced soon.

Q: Michael Turrin asked about federal conversation and AI products.

A: Ashim Gupta said federal is a high-performing vertical, AI products have momentum.

Q: Unidentified Analyst asked about Peak acquisition.

A: Daniel Dines said Peak is for verticalized agentic space, not material.

Q: Scott Berg asked about cloud ARR and agent adoption.

A: Ashim Gupta said cloud growth from new and existing customers, agents have both small pilots and large deployments.