UiPath Inc. (NYSE:PATH) Q4 2024 Earnings Call Transcript

Rob Enslin: Yes, appreciate the question. So yes, when we look at — we said our focus was to — to target the high-propensity customers that would invest in automation in a significant way. And we feel that that’s coming through with our $1 million customers and deals above $5 million, it’s definitely coming through. When you look at customers in terms of the platform and solution sets, I would say, IDP and test is a driver for the platform. But once they’ve seen what they can do with IDP, Intelligent document processing, they want to then start to uncover more and more opportunities. And I would use an example of Indosat, where the CEO of Indosat looked at what we can do with the NorthStar with opportunities in process mining and communication mining and getting that whole organization behind understanding how to drive efficiencies and more importantly, look for new revenue streams.

That’s what excites the customers. So I would — we’re in the early stages of driving the platform through the customer base. I feel like many, many more customers will take on the platform in a significant way. And there’s a lot of opportunity in the future.

Keith Bachman: Okay, thank you Rob.

Operator: Thank you. Our next question comes from the line of Brad Sills with Bank of America. Please proceed with your question.

Unidentified Analyst: This is Adam [Indiscernible] on for Brad Sills. So you guys have all done a great job selling back into the customer base and that’s been a relative focus. How are you thinking about the go-to-market mission for FY 2025? Thank you.

Rob Enslin: Yes, Brad [ph], so pretty much the same execution, productivity, continue to drive the platform, driving more industry verticalization as we see more and more solutions are successful and then bringing them globally into different markets. We are investing in product specialists in these areas where companies are interested in understanding more. So we’ll see some more product specialists in our growth products in the platform. But we feel really good about all the go-to-market changes we have made and the execution of those changes. And so in 2025, it’s all about execution.

Operator: Our next question comes from the line of Fred Havemeyer with Macquarie. Please proceed with your question.

Fred Havemeyer: Thank you. I’m risk of being repetitive here because I want to go back to a theme of question I asked last quarter because there’s a lot happening with autonomous agents since we really last called out — like last night, Cognition, the start-up launched their new AI software engineer and some posted some demos about it. And with this, you can see that some of these new AI initiative, generative AI initiatives are giving computers access to work environment, machine vision and a number of things here. So I’d like to ask, how are you thinking about the cooperative or even competitive environment for UiPath platform with the rise of this kind of autonomous, self-reasoning technology?

Daniel Dines: Yes. Let me take this one. We are thinking quite a lot in how we can build our own, what we call, like digital assistants. So we put together the best team that we have in UiPath, the best AI team. And we are working to build our own like foundational model that combine the knowledge of a subject matter expert, like an accountant or like an auditor with knowledge of how to use the system applications that facilitate these type of tasks, where the company are in a great position to build this type of assistance. We have tremendous access to computer screens, application data. Our computer vision service is one of the most used — we have — we scaled actually to like 5 million calls a month, and it’s growing up consistently month-over-month.

In the end, all these autonomous agents require a great platform to operate on. You will have a platform to ensure the security, the governance, the audit that are required to performing autonomous work. And this is where I think that we really shine combining our great offering, our existing data and building the trends on the top of the platform.

Fred Havemeyer: Thank you, Dan.,

Operator: Thank you. Our next question comes from the line of Terry Tillman with Truist Securities. Please proceed with your question.

Terry Tillman: Yes, thanks for taking my question and congrats from me as well on the GAAP profitability. Rob, it’s a question for you in terms of just the SAP relationship. It seems like low-hanging fruit around test suite. But I’m curious, is the relationship evolving? And are you seeing opportunities or signed business whereby they’re taking your platform and actually extending the core as they upgrade to S/4HANA. So it’s not just test automation, it’s actually helping build new — almost business logic, if you will, with your platform. Just would love to learn more about how this could expand and become extensible. Thank you.

Robert Enslin: Yes. I mean I think the good way to look at it is SAP is focused on clean core. We help clean core in a significant way where you can build automations on top and combined together with SAP processes and automation, customers can get a clean core, and they can get what they need from the business model. When you combine with Deloitte, taking the advanced methodology, the SAP advancement methodology and they’re combining UiPath automation on top, so they can take both to the customer together, it tells you that the combination of both is actually how — where customers will get the benefit. The customers that we see on the migration that are also driven from Test is not only Test, they’re looking at full automation, and that’s why they actually are combining UiPath, when we showcase how we demo the combination of running an SAP invoice creation process and automation on top of that, extracting information from documents and automatically creating those invoice orders, customers are like, wow.

And so that’s the process we’re going through. And when you start looking at new logos, Marks and Spencer and the customer in Switzerland, these are significant organizations and they are significant new logos for us to continue to win.

Operator: Thank you. Our next question comes from the line of Alex Zukin with Wolfe Research. Please proceed with your question.