UiPath Plans for IPO With $580 Million in Revenue for Its AI Business

By Bruce Harpham Sunday, April 11, 2021

UiPath has announced plans for an IPO (initial public offering). The AI business filed an S-1 document with the SEC (Securities and Exchange Commission) in March. The company plans to use the stock ticker symbol PATH. Founded in 2005, the AI company has rapidly grown revenue over the past few years.

Daniel Dines, co-founder and CEO of UiPath

UiPath by the Numbers

The AI (artificial intelligence) business has revealed that it is growing quickly and getting closer to profitability in its S-1 disclosure.

  • Customers. The business has nearly 8,000 customers, and 1,002 of those customers pay more than $100,000 per year. The company has significant business users like Siemens Mobility, Coke Canada Bottling, EY, and Capgemini. Overall, UiPath counts 61% of its Fortune Global 500 as customers.
  • Revenue. In fiscal 2020, the company generated $336 million in total revenue. Total revenue jumped to $607 million in fiscal 2021. The company’s fiscal year ends on January 31 (i.e., fiscal 2021 ended on January 31, 2021). Most of the increases in revenue came from existing customers spending more with UiPath.
  • Profitability. The AI business is edging closer to profitability. In fiscal 2021, the business reported a net loss of $92 million (vs. a loss of more than $500 million the year before). The improving profitability is driven by higher revenue and cost savings (e.g., sales and marketing expenses fell by $103 million due to pandemic restrictions on trade shows and similar events).
  • Time Savings. The S-1 company document points out several cases of business users saving considerable time by using UiPath. SMBC Group, a Japanese multinational company, has saved 3.5 million hours by using UiPath from 2017 to 2019. Equifax, a data and credit score business, has deployed several hundred UiPath bots to free up over one million hours of employee work time. Rogers Communications, a multibillion-dollar Canadian company, has used UiPath to generate $20 million in savings.

The company’s growth also depends on retaining and expanding a network of a thousand partners and value-added resellers.

Robotic Process Automation vs. AI

In the technology business, UiPath is often described as a robotic process automation (RPA) company. RPA is best understood as a type of limited-scope AI. For example, RPA is well-suited to solve repetitive business problems. UiPath gives the example of building technology to help a customer service agent process customers’ orders quicker. By focusing on immediate process problems, robotic process automation helps business users generate immediate gains.

UiPath has also been recognized as a leader in robotic process automation technology by Forrester. Beyond UiPath, Forrester identifies Automation Anywhere, Kryon, and Microsoft as leaders in the field. According to G2, a business software review website, 91 robotic process automation software products are on the market, including six aimed at small business customers.

The Multibillion-Dollar Market for Automation

The AI business expects to grow quickly in the next few years. Based on an estimate from Bain & Company, UiPath sees a potential market of $65 billion for automation software in the future. Already, business users are spending heavily on this type of software. IDC, a technology research company, estimated that the market for "intelligent process automation" was already worth $17 billion by the end of 2020.

About the Author

Headshot of Bruce Harpham

Bruce Harpham is an author and marketing consultant based in Canada. His first book, "Project Managers At Work," shared real-world success lessons from NASA, Google, and other organizations. His articles have been published in CIO.com, InfoWorld, Canadian Business, and other organizations. Visit BruceHarpham.com for articles, interviews with tech leaders, and updates on future books.

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