Shares of UiPath Inc. (PATH) surged 13.3% in after-hours trading on Thursday, reaching a 19-month high. The automation-software company announced impressive financial results for the fiscal third quarter, surpassing expectations. Notably, the licenses and subscription services businesses experienced significant growth.

Impressive Financial Performance

During the quarter ending on October 31, UiPath narrowed its net losses to $31.5 million, or 6 cents per share. This is a substantial improvement compared to the previous year’s net losses of $57.7 million, or 10 cents per share. Adjusted earnings per share increased from 5 cents to 12 cents, exceeding the FactSet consensus of 7 cents.

Total revenue for the quarter reached $325.9 million, representing a 24% growth, which outperformed the FactSet consensus of $315.6 million. The licenses revenue alone witnessed a remarkable increase of 25.3%, reaching $148.1 million. Additionally, subscription services revenue climbed 28.7%, amounting to $167.5 million.

Positive Outlook for Q4

UiPath is optimistic about its future performance and expects revenue between $381 million and $386 million for the fourth quarter. This outlook aligns with the FactSet consensus of $383 million.

Impressive Stock Performance

Despite experiencing a slight dip of 0.6% during regular-session hours before closing at a 15-month high, UiPath’s stock has witnessed an impressive upward trend over the past three months. It has gained 26.6% in value, while the SPDR S&P Software & Services ETF (XSW) has seen a modest increase of 1.3% and the S&P 500 (SPX) has edged up by 1.2%.

UiPath Inc.’s strong quarterly results and positive market outlook have undoubtedly positioned the company for continued success in the automation-software industry.

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