Risk/Reward Rating: Negative
UiPath (NYSE: PATH) reported its Q2 fiscal 2022 earnings after the market closed on September 7, 2021, sending the shares down 9.5% the following day. This was UiPath’s second quarterly report as a public company. Following the company’s first quarterly report after the market closed on June 8, 2021, an identical selloff of 9.5% occurred the following day. The company is batting 100% in terms of disappointing investors since its IPO on April 21, 2021.
For those unfamiliar with UiPath, the company’s slogan is: “We make software robots, so people don’t have to be robots.” In essence, UiPath creates software to automate business processes alleviating the need for manual intervention in the management of information. The company was founded in Romania in 2005 and incorporated in Delaware in 2015 before coming public. Of note, the stock is a large ‘innovation’ holding of Cathie Wood’s ARK Investment Management at the time of this article.
Troubling Revenue Trends
The large selloffs after UiPath’s first two quarterly reports as a public company are in reaction to several troubling trends.
Continue reading this report with a stoxdox membership.