Here's Why UiPath Stock Plunged 23% Last Month
Shares of workplace automation software company UiPath (NYSE: PATH) plunged 23.3% in September, according to data provided by S&P Global Market Intelligence. Early in the month, the company reported financial results for the second quarter of its fiscal 2023, which was met by a plethora of downgrades from Wall Street. And while the company did announce new partnerships and host an investor-day event, it wasn't enough to overcome the negative reaction to its second-quarter results.
In Q2, UiPath generated revenue of $242 million, exceeding the high end of management's guidance of $231 million. Annualized renewal run rate (ARR) -- contracted subscription and maintenance obligations -- surpassed $1 billion for the first time and was within management's guidance. And its non-GAAP (adjusted) operating loss of $11.2 million was better than management's guidance for a non-GAAP loss of $55 million to $60 million.
That all sounds good. But analysts seemed concerned with UiPath's commentary about the economy and many consequently lowered their expectations. According to The Fly, analysts with Morgan Stanley, KeyBanc, Canaccord, and more all downgraded UiPath stock shortly after the company reported Q2 financial results.
Source Fool.com
