Description

UiPath’s $418 Million Quarter: Automation Growth Meets Customer Attrition Risk!

UiPath, a leader in enterprise automation software, reported its first quarter of fiscal 2027 results with mixed signals that highlight both operational strengths and areas of potential challenge. The company achieved $418 million in revenue—a 17% year-over-year increase—with annual recurring revenue (ARR) reaching $1.901 billion, representing a 12% increase. Net new ARR added $49 million. The ARR growth was supported by a strong retention rate, with dollar-based gross retention at 97% and dollar-based net retention at 109% (108% adjusted for foreign exchange). The total customer base grew to approximately 10,550, with increases in higher-value cohorts: customers generating over $100,000 ARR up 11% and those exceeding $1 million ARR rising 18%. However, attrition remained concentrated among smaller customers. Profitability metrics showed improvement. UiPath recorded non-GAAP operating income of $92 million, a 22% margin improving over 250 basis points year-over-year, driven by operational efficiencies and disciplined execution.