PATH - Here's Why UiPath Stock Absolutely Crashed Today
2024-05-30 11:13:26 ET
When a company greatly reduces its full-year financial guidance and its new CEO abruptly leaves the company, investors tend to react negatively. And that's exactly what's happening with enterprise software company UiPath (NYSE: PATH) on Thursday. As of 9:45 a.m. ET, UiPath stock was down a painful 35% as investors processed the disheartening developments from its report for its fiscal first quarter of 2025.
UiPath's Q1 ended in April. The company provides businesses with software that automates repetitive tasks and is frequently recognized as a leader in its industry. Even today, it announced that it was just recognized as a leader in document mining and analytics, according to Forrester Research . But despite being a leader, the business still has its struggles.
There's only the faintest hint of the issue at hand in UiPath's Q1 report. The company's revenue of $335 million was at the high end of guidance and up 16% year over year. However, its annual recurring subscription revenue -- a forward-looking metric -- was at the lower end of its previous guidance.
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Here's Why UiPath Stock Absolutely Crashed Today