UiPath Inc at William Blair Growth Stock Conference Transcript

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

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : But thanks, Ashim, for being with us today.

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : That sounds great. Well, thanks, Ashim. I appreciate you level setting with us there and just given a good overview. But just to kick off the questions here. One of the recent dynamics we've seen in the automation space is just the appetite from customers to consolidate tools onto broader platforms. You laid out your discover, automate, orchestrate or optimize product suite there. What's driving that appetite to consolidate on the broader platforms? And how does that change your competitive positioning in the market?

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : Yes, that's helpful. And then there are some -- you talked about the logos in terms of partners with AWS, Microsoft, some of those larger vendors. But there's also some larger software vendors that are trying to address the automation opportunity with Microsoft and ServiceNow. So maybe help us understand what are the functional swim lanes between your platform and what those vendors are doing?

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : Yes, that's helpful. And then just double-clicking into the Microsoft relationship because they have RPA technology, but there's also a really tight partnership. So can you just help us understand what exactly that coopetition dynamic is? And how exactly that works in the market?

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : Yes. That's helpful. And then just in terms of the platforms, you've recently kind of been expanding beyond RPA over the past few years and gone into areas like process mining, document understanding, test suite. Can you talk about how adoption for those other products have been? And just kind of what milestones investors should be looking at for success in those products?

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : Yes. That's helpful. And then maybe just jumping into some of the recent results. Q1, there's a little bit of noise during the quarter. So maybe if you could just walk through kind of what happened in the quarter, some of the recent dynamics that you've seen in the business and just how things have changed over the past few quarters?

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : Yes, that's helpful. Maybe just double clicking into the CEO change that's going on. Can you just better -- help us better understand what's going on in there? And what are some of Daniel's priorities as he steps back into the CEO role?

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : Yes, that's helpful. And then just last thing on the kind of current results and current demand environment. You talked about some growth investments might not be panning out as well as you would have hoped. How do you think about kind of rightsizing those to continue to drive leverage in the model while already being at a decent profitability profile, but how do you keep pushing that from. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 06, 2024 / 2:20PM, PATH.N - UiPath Inc at William Blair Growth Stock Conference

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : Yes, that makes sense. Switching gears over to the AI part of the story. You've obviously been leveraging AI for some time now. So maybe talk about how you've previously been using it and then how GenAI changes what you're able to do with the platform?

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : That makes sense. And then you've talked about earlier, the nice traction you're seeing with IDP and Autopilot. I guess just in terms of the traction you could see going forward, like how big of opportunities -- could those products be?

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : Yes. That makes sense. And then you noted on the last call that the GenAI hype might be causing some confusion among customers and maybe crowding out some mind share. Can you just help us understand what those comments were about and how customers are viewing the combination of AI and RPA versus those different factors?

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : Yes. That makes sense. And then shifting gears over to the partner channel. You obviously had a lot of big logos up there, but one that really sticks out is SAP. So maybe if you could kind of dig into that partnership, how it looks different from some of the others and just the opportunities you see ahead with that?

Question: Jacob Roberge - William Blair & Company, L.L.C. (Research) - Analyst : That makes sense. We're coming up on time here, so maybe last question of the fireside chat. But you have close to $2 billion on the balance sheet, targeting close to $300 million in free cash flow this year. How should we be thinking about capital allocation on a go-forward basis?