SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of UiPath, Inc. - PATH
News provided byACCESSWIRE
Sep 19, 2023, 1:30 PM ET
NEW YORK, NY / ACCESSWIRE / September 19, 2023 / Pomerantz LLP is investigating claims on behalf of investors of UiPath, Inc. ("UiPath" or the "Company") (NYSE:PATH). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org 888-476-6529, ext. 7980.
The investigation concerns whether UiPath and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On September 7, 2021, UiPath issued a release disclosing the Company's financial results for the quarter ended July 31, 2021 (the "2Q22 Release"). The 2Q22 Release revealed an unexpected slowdown in UiPath's revenues and reported annual recurring revenue ("ARR") metrics. Specifically, the 2Q22 Release disclosed that UiPath's net new ARR annual growth rate had declined dramatically from approximately 55% in the prior quarter to just 33% in the current quarter and further that growth in UiPath's leading license revenue category had fallen from 57% year-over-year in the prior quarter to just 20% in the current quarter. On the corresponding conference call, Chief Financial Officer Ashim Gupta also revealed that UiPath had engaged in substantial discounting of its products prior to the Company's initial public offering ("IPO") and that the Company was in the process of altering the structure of its contracts to include a "ramping" feature whereby customer contract commitments would start small and increase over time and thereby reduce the need for the Company to offer widespread discounting as it had before.
On this news, UiPath's stock price fell $8.06 per share, or 12.9%, over the following two trading days, to close at $54.40 per share on September 9, 2021.
Then, on December 9, 2021, UiPath issued a release announcing its financial results for the quarter ended October 31, 2021 (the "3Q22 Release"). The 3Q22 Release revealed that UiPath's growth had stalled further, disclosing that its ARR annual growth rate during the quarter had declined for the third quarter in a row to 58% and that its net new ARR remained subdued at 42% growth year-over-year, down substantially from the 55% growth reported in the 1Q22 Release.
On this news, UiPath's stock price fell $3.66 per share, or 7.67%, over the following two trading sessions, to close at $44.05 per share on December 10, 2021.
Finally, on March 30, 2022, UiPath issued a release announcing its financial results for the quarter and year ended January 31, 2022 (the "4Q22 Release"). The 4Q22 Release disclosed that UiPath had earned revenues of just $289.7 million during the quarter, representing year-over-year growth of 39%. In addition, the 4Q22 Release contained deeply disappointing ARR and revenue guidance revealing that the declining growth trends adversely impacting UiPath were expected to continue. Specifically, UiPath projected first quarter 2023 ARR in the range of $960 million to $965 million and fiscal 2023 ARR in the range of $1.2 billion to $1.21 billion. UiPath also projected 2023 revenue in the range of $223 million to $225 million and fiscal 2023 revenue in the range of $1.075 billion to $1.085 billion. All of these figures were substantially below consensus analysts' expectations. That same day, UiPath announced the abrupt departure of its Chief Revenue Officer.
On this news, UiPath's stock price fell $7.45 per share, or 25.65%, to close at $21.59 per share on March 31, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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SOURCE: Pomerantz LLP
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