UiPath, Inc. Q1 FY2026 earnings call

• Product Launch: The agentic automation platform launch was a significant success, with strong first-quarter financial performance. ARR grew 12% year over year.
• Customer Engagement: High-impact events like the Agentic AI Summit and DevCon 2025 amplified the platform's potential. Customers are enthusiastically adopting new solutions like AgentBuilder and Maestro.
• Platform Advantages: UiPath's platform has five key advantages including an extensive installed base, bridging deterministic and probabilistic automation, vendor-agnostic architecture, secure platform, and unified end-to-end platform.
• New Solutions: Introduced Intelligent Extraction Processing (IXP), agentic testing, integrated PEAK, and formed strategic AI partnerships with Google Cloud and Microsoft.
• Partner Ecosystem: Launched a new partner program, with GSIs and regional partners driving adoption through initiatives like the Agentic Fast Track program.
• Operational Efficiency: Substantially completed transformation yielding operating leverage, with focus on driving internal adoption of the platform for further efficiency.

First-quarter revenue was $357 million. ARR ended the quarter at $1.693 billion, an increase of 12% year over year. On a non-GAAP basis, operating income was $70 million, representing a 20% margin, an improvement of 450 basis points year over year. The majority of customer attrition remains at the lower end, with customers having $100,000 or more in ARR increasing to 2,365 and those with $1 million or more in ARR increasing to 316. Dollar-based gross retention was 97% and dollar-based net retention rate was 108% as of the first quarter.

• Second quarter 2026: Expect revenue in the range of $345 million to $350 million, ARR in the range of $1.715 billion to $1.720 billion, and non-GAAP operating income of approximately $40 million.
• Full fiscal year 2026: Expect revenue in the range of $1.549 billion to $1.554 billion, ARR in the range of $1.820 billion to $1.825 billion, non-GAAP operating income of approximately $305 million, non-GAAP adjusted free cash flow of approximately $370 million, and non-GAAP gross margin of approximately 85%.

• Macroeconomic variability which remains a factor.
• Uncertainty in the public sector regarding budget finalization.
• Impact of foreign exchange rate fluctuations on financial results.

Q: When you reported in March, it did seem like we were near peak levels of uncertainty and you prudently factored that into your guidance. It does seem like some of the uncertainty has decreased then. And so would love to hear a little bit more on what you're seeing, how you factored that in. And then if I could tie in a second part here, we have seen some dollar weakening since you last reported Bloomberg dollar spot index down about 4% since mid-March? If you could flush out the FX impact in the quarter and then the potential tailwind to the full-year guide, that would be great.

A: Yes. Great question, Sheldon. Good to hear from you. So look, I think that in many ways, the macroeconomic environment, it's still variable. I think when you talk to customers, even when you read the news, right, every day, there's an evolving set of facts and set of circumstances. So we look at the environment as variable. I think we're pleased with how we executed through it in the first quarter. We have a good line of sight in terms of our second quarter. And therefore, we kind of adjusted our linearity as such, which, you know, for me is a favorable move from a revenue standpoint. I think when you look at the overall year, I think there's still uncertainty and variability, and we continue to have a prudent economic environment, from that standpoint. Second thing from an FX standpoint, it really was pretty minimal. We actually specifically looked at the exact FX rates at the time was, you know, within 2-3%, so to speak. And I think FX fluctuations are pretty high, meaning, you know, they can shift up and down very, you know, pretty depending on the day of the month. So we've maintained our FX assumptions materially to have no impact really for the year at this point. There's nothing significant or material that we would factor in.

Q: Understood. Great. And a quick follow-up. It was great to see the several new solutions around AI agents, coming out and then the new monetization strategy there. What's been the customer feedback of the unified pricing model and the platform units?

A: Well, we have experience already with the concept of AI units in pricing our more traditional IDP solution. And it's a bit early to tell, but the initial reaction is positive because the new pricing model is tied closer to the adoption of the software and yeah, we went a long way to simplify the model and make it easier to create a business model and to understand especially in this new world of Agentic, this is one of the most interesting challenges to solve. How can you price a use case? And we are working closely with customers in making them really understand better how pricing works and how it's tied to the use cases.