The shares of Romania-born NYSE-traded major robotic process automation (RPA) company UiPath (NYSE: PATH) tumbled by some 30% in after-hours trading after the company’s CEO Rob Enslin resigned and his seat was taken over by Daniel Dines – founder and former CEO.
At USD 18 at the end of the trading day, PATH was already far from the USD 69 NYSE debut in April 2021.
Prior to the 30% slump, PATH stock was down 26% ytd, at a time when most other AI companies are seeing enormous growth.
The RPA industry struggles to embrace GenAI technologies and keep pace with competition from OpenAI, Google, countless startups, and incumbent portfolio vendors. In this challenging context, Enslin’s abrupt resignation after only months on the job understandably prompted concerns more than the downward-revised revenues outlook.
“After much reflection, I have made the difficult decision to resign as CEO of UiPath. It has been an honour to be a part of, to lead, and to learn from an immensely talented team. […] I am convinced that UiPath will continue to define what’s possible for our customers and partners in the AI and automation market,” Enslin said.
Slightly better-than-expected revenue for the quarter ending April 2024 (USD 335 million, +16% y/y and above the USD 333 million consensus view) was overshadowed by downward-revised full-year revenue outlook: USD 1.405 billion to USD 1.410 billion from USD 1.555 billion to USD 1.560 billion.
“During the first quarter, we saw increased deal scrutiny and lengthening sales cycles for large, multi-year deals,” Chief Financial Officer Ashim Gupta said in a release. “We have considered these factors, the current macroeconomic environment, and our leadership transition in our updated guidance for the remainder of the year.”
iulian@romania-insider.com
(Photo source: Facebook/UiPath)
