UiPath, Inc. (NYSE:PATH) shares are slumping in the premarket session on Thursday after ending yesterday's run on a dull note.
The company announced that Rob Enslin will resign as CEO and member of the UiPath Board of Directors, effective June 1, 2024. Enslin will stay engaged with UiPath as an advisor during the transition.
Daniel Dines, founder and former CEO of UiPath, will be reappointed CEO, also effective June 1, 2024. Dines currently serves as Chief Innovation Officer and Executive Chairman of the Board.
According to Benzinga Pro, PATH stock has lost over 7% in the past six months.
Investors can gain exposure to the stock via ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) and ARK Innovation ETF (NYSE:ARKK).
Enslin transitioned to UiPath from Alphabet Inc.'s (NASDAQ: GOOG (NASDAQ: GOOGL) Google Cloud, acknowledged by Dines for his operational expertise, allowing Dines to concentrate on innovation, CNBC reported.
"Daniel's inspirational leadership and customer-obsessed mindset will be game-changing, and I am convinced that UiPath will continue to define what's possible for our customers and partners in the AI and automation market," Enslin said.
Increased Deal Scrutiny Warning
UiPath recorded its first quarter results yesterday, where the company said that it saw increased deal scrutiny and lengthening sales cycles for large multi-year deals.
"While our revenue and operating margin guidance are impacted by contract timing and duration, we have confidence in our ability to generate durable ARR growth at scale, and meaningful non-GAAP adjusted free cash flow," said Ashim Gupta, UiPath Chief Financial Officer.
The company's quarterly operating loss widened to $49.465 million compared to $46.411 million operating loss in the year-ago period.
UiPath reported quarterly adjusted earnings of 13 cents per share, which beat the analyst consensus estimate of 12 cents by 8.33%. Quarterly sales came in at $335 million, which beat the analyst consensus estimate of $333.04 million.
Given the uncertainties, UiPath lowered the fiscal year 2025 revenue outlook to $1.405 billion and $1.41 billion, compared with the previous outlook of $1.555 billion to $1.560 billion. The analyst consensus estimate pegs it at $1.56 billion.
The company expects second-quarter revenue of $300 million to $305 million, compared to a street view of $342.33 million.
Price Action: PATH shares are trading lower by 29.5% to $12.90 premarket at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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