UiPath Inc Q4 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jake Roberge - William Blair & Company - Analyst : Just wanted to follow up on the headwinds that you've seen over the past few weeks. I understand the public sector dynamic in January, but could you flesh out those comments about the significant volatility over the past two weeks and just what you're starting to see and hear from customers on that front?

Question: Jake Roberge - William Blair & Company - Analyst : Okay. That's helpful. And then great to hear about the 3,000 agents that have already been created on the platform. Can you talk a little bit more about the early areas or use cases that you're gaining traction with agents? And then maybe just comparing interest, how agents are being monetized versus your existing RPA deployments.

Question: Bryan Bergin - TD Cowen - Analyst : First on the public sector pressure. Is there any way you can help frame the scale of this and maybe the mix of business, that is for you, particularly the US federal within public sector? And just maybe how you see that part of the portfolio performing just so we can segment that out from the broader commercial portfolio.

Question: Bryan Bergin - TD Cowen - Analyst : Okay. Understood. As we think about the shape of '26 as you see it now, any finer points on how and maybe some of the net new ARR comments you had assumed based on your current plan, give us a sense of where you see that stabilization or trough potentially of net new ARR as you move through the year?

Question: Arti Vula - JPMorgan - Analyst : This is Ari on for Mark Murphy. As you're seeing this increase in -- certainty in the market out there kind of probably putting a damper customer willingness to invest in new technologies and one could extrapolate that to AI. But do you think this incremental uncertainty is kind of going to make customers a little bit less reluctant to invest in new technologies? Or do you think you're going to see it as maybe the way out of what's going on in the lever for more efficiency and cost savings.

Question: Arti Vula - JPMorgan - Analyst : And just as a quick follow-up. If we're kind of looking at the commercial side of things, do you see any difference in the impact of these stresses to the US versus Europe kind of in the other international markets? Or is it pretty evenly distributed?

Question: Sheldon McMeans - Barclays - Analyst : This is Sheldon McMeans on for Raimo. So UiPath has worked with federal government agencies like the IRS to increase automation and efficiency. And I think the ROI is clearly there, but when there's a widespread efficiency initiative like we're seeing, there could be screens at show shelf ware that's not indicative of value, particularly for the IRS that sees more activity around this time of the year. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 9:00PM, PATH.N - Q4 2025 UiPath Inc Earnings Call My question is, is there an opportunity to shift to more of a consumption-based model to help more tangibly align monetization to value? Or could you give us any more color on what proactive approaches you're taking here?

Question: Sheldon McMeans - Barclays - Analyst : Understood. And a few quarters ago, you called out some hesitation and decision making due to the rapidly evolving AI landscape. And I was wondering, is that part of the change that you're seeing maybe customers waiting for more maturity around Agentic AI before putting new automation use cases into production?

Question: Sanjit Singh - Morgan Stanley - Analyst : Dan, I was wondering if we could get an update and then sort of followed on the previous question about monetization with respect to some of the government use cases. But broadly, can you walk us through your pricing and monetization strategy for your agent portfolio?

Question: Sanjit Singh - Morgan Stanley - Analyst : Understood. So we'll definitely look up for that. Ashim, going back to federal, I guess, sort of two related questions. Do you have confidence that federal will be a long-term customer of UiPath. And if that's the case, this year is just going to be a headwind because of those, is there any way you can sort of frame out the underlying growth of the business ex federal, how that shaped up either in Q4 or what you think that looks like for the balance of the year?

Question: Michael Turrin - Wells Fargo Securities, LLC - Analyst : I guess on last quarter -- and I appreciate there's a lot going on. Last quarter, the commentary was more around stable net new ARR. Is it fair for us to sign -- it sounds like it maybe is the case. The delta between that and what we're seeing today just to the increasing uncertainty you're calling out. And just is there anything you can comment on just what you're able to do to ensure you're at least in the federal conversation appreciating this is something that's somewhat outside of your control? And then as kind of the third part to the follow-up on the AI products, how should we think about those as a potential offset? And maybe just speak overall to how you're embedding any newer products into initial forecast.

Question: Chirag Ved - Evercore ISI - Analyst : This is Chirag on for Kirk. There's been a lot of energy and optimism in the Agentic space, especially at initial POC stages, and on the call, you've highlighted your attach rates, the innovation and some customer deals. So just at a high level, how would you characterize iPads competitive advantage and right to win in this category when looking out over the next year or next two years? Thank you.