Shares of workplace automation software company UiPath (NYSE: PATH) plunged 23.3% in September, according to data provided by S&P Global Market Intelligence . Early in the month, the company reported financial results for the second quarter of its fiscal 2023, which was met by a plethora of downgrades from Wall Street. And while the company did announce new partnerships and host an investor-day event, it wasn't enough to overcome the negative reaction to its second-quarter results.
In Q2, UiPath generated revenue of $242 million, exceeding the high end of management's guidance of $231 million. Annualized renewal run rate (ARR) -- contracted subscription and maintenance obligations -- surpassed $1 billion for the first time and was within management's guidance. And its non-GAAP (adjusted) operating loss of $11.2 million was better than management's guidance for a non-GAAP loss of $55 million to $60 million.
That all sounds good. But analysts seemed concerned with UiPath's commentary about the economy and many consequently lowered their expectations. According to The Fly, analysts with Morgan Stanley , KeyBanc, Canaccord , and more all downgraded UiPath stock shortly after the company reported Q2 financial results.
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Here's Why UiPath Stock Plunged 23% Last Month