UiPath Inc. (NYSE:PATH) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The US$12b market-cap company announced a latest loss of US$90m on 31 January 2024 for its most recent financial year result. As path to profitability is the topic on UiPath's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

UiPath is bordering on breakeven, according to the 22 American Software analysts. They expect the company to post a final loss in 2026, before turning a profit of US$37m in 2027. So, the company is predicted to breakeven approximately 3 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 72%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving UiPath's growth isn't the focus of this broad overview, but, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there's one aspect worth mentioning. UiPath currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of UiPath which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at UiPath, take a look at UiPath's company page on Simply Wall St. We've also compiled a list of important factors you should further research:

1. Valuation: What is UiPath worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether UiPath is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on UiPath's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.