UiPath Inc at Barclays Global Technology Conference Transcript

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

Question: Raimo Lenschow - Barclays - Analyst : Yeah. Quick one like because you had to report numbers out last week. Maybe we start with a quick summary on the numbers, and then we take it from there.

Question: Raimo Lenschow - Barclays - Analyst : And then so as we are on that kind of more kind of current subject, like what are you seeing in terms of macro environment? Because that's the big debate, like sales force sounded like a little bit better but not 100% sure. I also (inaudible) post-election is like the question you want to get today a lot.

Question: Raimo Lenschow - Barclays - Analyst : Okay. And then the elephant in the room for you guys is kind of or that comes up a lot in my investor conversations is like GenAI. So what's the role of UiPath in this new GenAI world? And I'm starting with like what's your message to the client? Like, I mean, like first maybe start differently is it -- does it come up as much of a discussion in terms of how you fit in when you talk about clients versus investors? Because investors, there's a lot of like hot debates, how are clients thinking about it?

Question: Raimo Lenschow - Barclays - Analyst : I mean, it does sound like it's a higher level than what people initially thought in their early thinking. It's like the debate that where it starts is like, dude, there's a large language model, sorry, that's all the time, dude. But like there's a large language model, and they can just do exactly what the board can do, so -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 4:40PM, PATH.N - UiPath Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays - Analyst : Okay. And then, so if you think about like where your -- you said your customer understand about like what's your customer interaction like, or what's the customer thinking in terms of adoption? Because you have like the field force with agent force, and et cetera, that kind of market the heck out of this kind of like a machine. So how do you fit in that in a way, like what's your position?

Question: Raimo Lenschow - Barclays - Analyst : So it's the idea that in a way that the like an agent force will be on sales, or like on call center, and we do that, and they do really well. But it's -- if you think corporate wide, it's going to be broader (multiple speakers) and then, okay. So how does that -- what does it mean to the competitive landscape for you guys? Is that kind of then not straight into Microsoft, et cetera or?

Question: Raimo Lenschow - Barclays - Analyst : So you're kind of in a -- will, you not then be the, well, you always had it, so we want to be the automation platform program.

Question: Raimo Lenschow - Barclays - Analyst : Yeah. I mean on (inaudible) machine. Like that's the one thing where I still have confusion with a lot of investors, in a way when you had your previous Co-CEO, what was still there -- that was kind of the -- you want to be the automation platform. But then when he left, it was we want to be more nimble and more smaller and more to be prabmental, how does that fit together? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 4:40PM, PATH.N - UiPath Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays - Analyst : Okay. So how do you measure success? And now it is part of this, like if this works for you, like where would you see it like or how do you measure that?

Question: Raimo Lenschow - Barclays - Analyst : So then in a way, like if it works then that 119% is like that, well, lot of lock numbers brings it down a little bit, but it's kind of the number, if that goes up, it's kind of like --

Question: Raimo Lenschow - Barclays - Analyst : Yeah, okay, makes sense. We'll look for that. The one thing that you talked a lot about on the last earnings call and it was something that I had kind of thought that should be interesting covering SAP as well with testing, like that came up a little bit more than in previous quarters. Can you talk to that, like what's going on there?

Question: Raimo Lenschow - Barclays - Analyst : Because like you didn't name like SAP, SAP moving to S/4HANA, that must be like a huge.

Question: Raimo Lenschow - Barclays - Analyst : Sorry. And it's -- I apologize because it's actually an SAP question. It's like -- so like I think they have the deadline 2027, where by the time all the customers need to be over. So trying to do innings or where are we on that journey? Like it in theory that it's been going on for a while, and SAP shares kind of keep acting well because of it.

Question: Raimo Lenschow - Barclays - Analyst : And I mean, it's up to 20%. So that's like a multiyear story. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 4:40PM, PATH.N - UiPath Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays - Analyst : Yeah. And I had you on a lot like as a CFO like that was the CEO had, now the CFO had. You gave us an idea about growth next year already and it's Q3. So everyone was a little bit surprised. But you talked about stable net ARR next year. Given all the uncertainty while we're hoping it's getting better in the economy, but given all the uncertainty, people were like, okay, that's a statement, like what drove you to kind of --

Question: Raimo Lenschow - Barclays - Analyst : I mean if you -- and there's a lot of guys that run models and numbers here, stable net ARR means that the year-over-year growth for ARR is still coming down?

Question: Raimo Lenschow - Barclays - Analyst : And then how did you like in a way because it's the -- you're giving me one number, your new net ARR and like a $210 million as you said, and but because you're only giving us one number, you could have given us like a $250 million or $150 million you know, so it's a level. How did you come up with it? Because (technical difficulty) and so we're going to turn to Ashim not to Daniel, if that number doesn't come in. How did you get comfortable about that?

Question: Raimo Lenschow - Barclays - Analyst : If you're -- like how much of -- how much extra visibility do you get from looking at to renew a pool in terms of thinking like --

Question: Raimo Lenschow - Barclays - Analyst : Yeah. Okay. Shifting gear a little bit on the -- you kind of adjusted the organization a little bit over the summer. Like can you speak to what was going on there?

Question: Raimo Lenschow - Barclays - Analyst : Is that a little bit like and like full disclosure, I've seen this before, if you take someone from a very large organization, they kind of do what they've seen before. But in a very large organization that's kind of probably how you would do it. And then it's kind of you overbuild compared to because then you think you build and then you kind of feel it later, but it never really works.

Question: Raimo Lenschow - Barclays - Analyst : And then the one question I got it. So like a lot of like how much disruption, like if you think about it, there was like you've changed a little bit on sales and marketing, so that everyone is like nervous about like, how do we make numbers? Like how the sell is going, et cetera? Like what was the impact there?

Question: Raimo Lenschow - Barclays - Analyst : Yeah. And how sustainable are those changes? Because like obviously you kind of feel that pulled back, but sometimes you kind of pull back to build up, like I think about -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 4:40PM, PATH.N - UiPath Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays - Analyst : So when -- I don't know if you think about investment style. So if you -- if I put these two together, you give me like a number where I can kind of think about the growth profile for next year. We have the profitability. So would you kind of position -- well, how do you think that positions you when you talk to investors like a (inaudible) type growth, how do you think about that?

Question: Raimo Lenschow - Barclays - Analyst : And it's the last question for me is like how do you then think about if you have the cash generation and you have good cash flow margins, how do you think about capital structure from here then or what do you do with the money?

Question: Raimo Lenschow - Barclays - Analyst : Yes. Okay. Perfect. Thank you, Ashim, Five seconds left. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 11, 2024 / 4:40PM, PATH.N - UiPath Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays - Analyst : Okay. Perfect. Thank you.