UiPath at BMO 2025 Virtual Software Conference: Strategic Insights on Automation

On Tuesday, 10 June 2025, UiPath (NYSE:PATH) executives participated in the BMO 2025 Virtual Software Conference, discussing the company’s strategic outlook amidst a challenging macroeconomic environment. While highlighting growth prospects, they also acknowledged hurdles such as federal transitions and market variability. The call emphasized UiPath’s strong customer relationships and innovative product offerings, notably its Agentic platform.

Key Takeaways

• UiPath remains cautiously optimistic about its 2025 calendar year projections.
• The Agentic platform is a key growth driver, with significant contributions expected in 2026.
• Organizational changes post-IPO aim to enhance customer-centricity and innovation.
• Federal sector challenges are factored into the company’s prudent guidance.
• Strong partnerships and a comprehensive automation platform differentiate UiPath in the competitive landscape.

Financial Results

• UiPath is taking a cautious approach to its 2025 guidance, considering macroeconomic and federal transitions.
• The company anticipates first-half seasonality to affect ARR, with a rebound expected in the second half.
• Current guidance does not include major revenue contributions from the Agentic platform.

Operational Updates

• UiPath has restructured its organization to reduce churn and costs, focusing on stability.
• The company is navigating federal transitions, with its capabilities aligning well with government efficiency goals.
• The Agentic platform, launched in April, is gaining early momentum with hundreds of proof of concepts underway.

Future Outlook

• UiPath expects the Agentic platform to contribute significantly to revenue in 2026.
• Net retention rates are expected to stabilize, with no major shift from new logos to expansion.
• The company is strengthening its partnership with SAP, particularly for S/4HANA migrations.

Q&A Highlights

• UiPath positions itself as "Switzerland" in the automation market, integrating across business functions.
• The company sees Microsoft as a partner, differentiating through enterprise-grade productivity.
• Stronger win rates are observed with companies using UiPath’s full platform offering.

For further details, refer to the full transcript below.

Full transcript - BMO 2025 Virtual Software Conference:

Keith Bachman, Analyst, BMO: Okay. Good morning. Good afternoon, everybody. It’s Keith Bachman here from BMO. We’re part of our ongoing virtual software conference.

We’re thrilled to have Ashin from UiPath. And so with that normal process here, we’re going be about thirty five, forty minutes. I’m going ask questions. I think there’s a way that you can also pose questions or candidly just email me directly and we’ll do our best to get to them. So with that said, let’s go ahead and get started, Sheam.

Again, on behalf of Bank of Montreal, thanks very much for joining us. Much appreciated. Let’s talk about a little bit about we’re going do some big picture questions and then without much surprise, we’re going to jump right into AI. Let’s go to the big picture though. You recently reported your quarters, we think about calendar year 2025.

How do you think about, A, the puts and takes this year on net new ARR? And a way to ask the question within context is also how do you think about, say, the coverage ratio of that guidance, meaning the pipeline, the visibility versus the years past?

Ashim, Executive, UiPath: Awesome. thanks for having me. And, again, thanks for everybody for joining in. So look. Look.

I think we you know, as we look at this year, you know you know, as as we typically did for first quarter, really looked at the environment. We we go through our f and a model. We go through AI models, data science, and we also go through a lot a lot of customer stories and customer discussions. I would say second quarter is relatively consistent to what we saw what we talked about in the first quarter. So from a guidance perspective, you know, we don’t always guide what we see in front of us.

So we evaluate our pipeline in pretty detailed way. So as we’re talking about our current forecast, etcetera, my my view is very, well covered because it is we we guide guide to what’s in front us. We we continue to take

Keith Bachman, Analyst, BMO: a very prudent approach

Ashim, Executive, UiPath: to our guidance for the rest of the year. You know, the macroeconomic environment continues to remain variable. I I think you can turn on your news. I I don’t think that’s much of the VP in my in my mind. There is There is, you know, there

Keith Bachman, Analyst, BMO: is there

Ashim, Executive, UiPath: is there is hopefully raises hope here of stability coming. When we talk about our customers, whether it’s policy, whether it is kind of economic here, whether it’s geopolitical, I think there just remains a lot of there are more questions than answers, frankly. And and look at that always as having a way you know, weighing on the environment similar to what we talk about in first quarter. The is the federal transitioning transition in The US. It’s still evolving, and we remain prudent on that.

So when you look at certain agencies, we’re still waiting for full confirmations in certain places of some key roles. There are for all intensive purposes, there continues to be doge deep dives and reviews. We are super excited about where we’re positioned with the federal government. But just given where it is in the transition, we do remain prudent around that. You know, the AgenTeq launch, we feel very good about it.

The POC the proof of concepts, the momentum that we are seeing early from our customers, it is it is very encouraging both in terms of the product feedback as well as and I know we’re gonna talk about this, The synergy between, you know, our workflow automation or RPA platform that we built between, you know, over the last twenty years or Daniel’s built over the last twenty years as well as the AgenTic offering and AgenTic orchestration. I think everybody is you know, this year is around proof of concept, so it’s early innings of a large and growing market opportunity. So we’re you know, we haven’t factored in major revenue upside from AgenTik at this moment, which we think is the right thing to do. But overall, when we look at what’s there, we feel good about our coverage ratios. We feel good about the signals from our customers.

I would tell you, I don’t I don’t think we’ve ever been as connected as a team and as connected with our customers as we are today versus the last three years. And that’s a function of the restructuring, leaning out a lot of middle functions that have existed within the company.

Keith Bachman, Analyst, BMO: Well, let’s pull in a couple of those threads. One, I wanna just clarify. Given, you know, what you said at the outset about your macro or excuse me, your coverage ratios, because of the Fed and perhaps some of the other issues, would you say there’s a higher level of conservatism or scrutiny this year? Or is it the same process where you put your filter on and you come out with your forecast? Is it the same in the last couple of years or a tweak higher?

Ashim, Executive, UiPath: My view is we’re better. And the reason for that, Bia, is not because of the federal uncertainty, just more, again, because of the connectivity we have with the team. I don’t think that means that we were bad in years past, but I just think that there when you have you know, if I separate you and me with five people who are all talking, it’s harder for you and I to have the signals together. I think we are much closer to our customers, much closer to our deals than in the past, and I think that is structural and cultural as Daniel stepped back into the CEO role over the last year. But, otherwise, I also think we’re taking a lot of the good things in the past.

The data really being understanding our FP and A models, our data science, our coverage ratios. I think we we have a very good understanding, and we’ve remained consistent on that as well.

Keith Bachman, Analyst, BMO: So you you think your your your visibility and your pipe is higher is the is the way to rephrase it because it’s that better data. Okay.

Ashim, Executive, UiPath: And also better customer connectivity. I think that’s very important. Stronger customer connectivity.

Keith Bachman, Analyst, BMO: Yep. I hope you don’t mind. I’m taking notes while I’m talking to you. So we’re doing two things at once, which is usually a little dangerous. As you think about just to sort of ask it more bluntly, said our organization is better.

Path has gone through some changes since the IPO. From a leadership perspective, some organizational and you know, I’ve been but more so than other companies that that that I’ve had visibility to post public. And the two parts to the question are, why has there been more sort of con I’d say organizational changes, and b, is is everything sorted out?

Ashim, Executive, UiPath: Yeah. So I think, you know, the one’s a hard question to answer. And I I don’t I’ve seen companies that have significant change in, you know, when we put the comparison. I think one is the scale at which the process of speed at which we scaled beyond the end went to the IPO, I think, was also unprecedented. So I think, you know, when you get into that into into that significant scale at a at a, what I would say, almost a record pace.

I think, you know, you you go through different structures to understand what really works for the company. And so I think I I have no regrets about the past. I think Daniel has talked about his reasons for stepping back into the role. And I think a founder led company has been you know, has really restored us to our roots. What I would say is the changes of the past actually solidify my conviction that we do feel like we have the answers today.

And, you know, those answers rest not solely on people, but on principles. Principle one, you know, less central organizations. Central organizations create a lot of churn. They create a lot of cost. And I think when you look at a lot of the leaders that have come in and out, there’s also a lot of roles that are that within that that have been more central or internally focused than external.

The principle is customer and I think that lends itself to the piece. And the is really around speed and innovation. And you see that manifest itself just with the speed about which we brought our AgenTik platform into the market. So I think with if you take those three principles, I feel very good about where we are. Stability is a big point of emphasis for us this year.

Right. When you look at our sales leadership, well, from the outside, it feels like there’s a lot of changes. Our key sales leaders have more than two years of experience with UiPath. One you know, our America’s leader kinda had a left and then came back just given the changes we were making and was super excited to return to the company. When you look at our major vertical leaders, they’ve been in seat for for multiple years now.

Our average tenure of our Salesforce continues to improve. So we feel really good about the stability that we are driving within the company k. You know, from our leadership team down.

Keith Bachman, Analyst, BMO: Okay. Okay. Let’s I wanna transition to the the Fed for a With all the changes in Elon leaving and what have you, or do do you feel like the scrutiny is if the Fed or Doge has tweaked down a a a little bit, or is it still the same pressure?

Ashim, Executive, UiPath: I I I talked to three federal customers just over the last, you know, fifteen days. I I don’t think it’s about Elon leaving or Doge screening. I think there’s just tremendous pressure, given the ambition and the transition of the current administration and the goals that have been set.

Keith Bachman, Analyst, BMO: Okay.

Ashim, Executive, UiPath: And so I don’t think that that pressure has been has been gone. What I do see as improving is they’re starting to get more clarity around who are the decision makers within the administration. And I think that it will enable budgets to being set and priorities to being set. What we’re excited about is as we talk to a lot of our federal customers and federal partners, department of government efficiency aligns very well with what UiPath does. People able to do more with less.

That is very aligned to where we are positioned. And so, you know, we we’re really pleased with the renewal rates we’ve seen. We had the Augentic Airmen deal that I thought was a great deal in the first quarter that closed that shows and highlights a combination of, like, how deep we are with some of our agencies and the Department of Defense in that example as well as the promise of AgenTex. So we feel better we feel very good about position, but we have to be patient to allow the administration to kinda work through and the agencies work through the changes that they’re undergoing. And I think that’s gonna continue through the second quarter, and that’s what we factored into our guidance from a prudent standpoint.

Keith Bachman, Analyst, BMO: And maybe just review how you guys are thinking about the FETI in terms of the ARR growth that you’ve provided.

Ashim, Executive, UiPath: Yeah. We we definitely saw the we we definitely accounted for first half seasonality to be impacted. And you see that in the numbers. We talked about it in March. We really didn’t change much on that.

We do see we do see and and continue to track, you know, a prudent level of activity for the half. It improves, but it’s still prudent from our standpoint. Just given the uncertainty that’s there, we you know, we’re we’re assuming that there’s going to be a level of transition that continues throughout the year.

Keith Bachman, Analyst, BMO: But but half seasonality is a little better than past in in terms of net Yeah.

Ashim, Executive, UiPath: I I would say overall volume, we feel like has come down in the fed, you know, just given the uncertainty for the year. And the seasonality is more back half loaded than front half loaded. Yeah. So we feel like the back half is you you start seeing the moratoriums released, the budgets kinda getting solidified. And we’re very while we’ve taken we’ve taken a prudent approach on that, you know, we definitely see some level of rebound of the federal business in the half.

Keith Bachman, Analyst, BMO: Okay. Okay. Let let’s transition to to products and we’ll just jump right into agents and agentic offerings. And this question you and I spoke about after your report, but I want to revisit it. I’m one of the few people on the sell side that actually covers a small company like IBM as well as ServiceNow.

And the way we’re seeing the world is you have the application vendors like Salesforce and Workday and others offering their agents within the broad within the scope of their portfolio. Then you have horizontal plays, including agent orchestration for companies like IBM as well as ServiceNow. And so I’m just trying to figure out, maybe review for us or revisit why you think you have a right to win in this offering, what is increasingly a crowded field associated with AgenTic capabilities and orchestration more specifically.

Ashim, Executive, UiPath: Yeah. I the thing is, I I think, you know, crowded also defines by the opportunity. And I think we don’t we don’t think there is a one, you know, one winner in this space. It’s too large of a space. If you look at every manual task that is being done that can be automated with rules based automation and then further enhanced by reasoning or probabilistic automation, we feel like it is a massive, massive market.

And so, you know, we are one of the players that has a right to win, and I’ll expand on that here as we go through as we go through the question. The piece is to really understand, like, what’s UiPath’s platform fully. We have both our traditional workflow automation capabilities, RPA, document processing, communications mining, process discovery. I I say this, and it doesn’t always move the needle from a we are not an RPA company. A year ago, even pre AgenTic, it was not RPA.

It is the end to end automation platform that existed. And now when you add AgenTic capabilities, it further broadens that. And then you put AgenTic orchestration, which allows us to orchestrate agents, humans, and robots, you really don’t find a company that has that breadth of automation capabilities as us. The piece of it is there is inherent link between agentic orchestration agentic automation and deterministic or robotic auto process automation.

Keith Bachman, Analyst, BMO: Mhmm.

Ashim, Executive, UiPath: There are you are the the notion that says that all automation will be probabilistic does not make sense from a governance standpoint, from a cost standpoint, and even if cost came down, which we do see from a complexity standpoint. The piece is we’re Switzerland. So I think Salesforce, incredible platform, they’re going to be more geared towards the agentic automation within their spaces. Right? You see that Yep.

For companies that specialize. We really are the Switzerland. So whether you are a mean frame application within a large bank, whether you are a a newer company, we really sit across the entire stack and automate across it, which gives us a difference. Now that’s the vendor talking. I admit.

I’m I’m representing the vendor. When you look at our customers, Magentic Airmen closed in the first quarter. When you look at kinda second quarter, we talked about closing one of the large deals, or a significant incentive deal with a Fortune 20 health care company. And they really we had to sell into the head of AI, and they look at real transformation both with our RPA platform, but really with the agentic capabilities and agentic orchestration that we’re doing. We have hundreds of POCs right now that we feel really super positive about, and customers are seeing that differentiate that, yeah, that ability to do so.

And we are also verticalizing where appropriate. If you look at our peak acquisition, we are now agents that can do pricing and inventory optimization. We are specializing agents within health care and within financial services. So our customers have really been pleased, you know, with what they’re what they have seen. And just to give you a couple examples, medical device company, they’re they’re implementing agents into their revenue cycle management process.

Now why that’s important? When you think about the best place to find agent agent opportunities, go to find where the robot and human are working together. Because there’s things that that human is doing that now an agent can do. So when you have 10,800 customers, hundreds of thousands of workflows that are in production, you really can go to that set of workflows and start looking for AgenTeq opportunities. And we feel really we feel really comfortable about that also being a core differentiator for us and giving us a head start kind of in this race for customer for customer trust.

Keith Bachman, Analyst, BMO: Right. Right. Right.

Ashim, Executive, UiPath: And sorry. I I forget one last thing. As people as the investors look across, I really wanna emphasize, there is personal productivity. Summarizing an email.

Keith Bachman, Analyst, BMO: Yeah.

Ashim, Executive, UiPath: There is enterprise grade productivity. The level of governance and controls that are needed that are inherent to our platform to automate mortgage processing, patient record management, revenue cycle management, customs, that is significant, and that is inherently differentiated within our platform as well.

Keith Bachman, Analyst, BMO: Okay. Before we move off the competitive context, I just wanted to hear your your thoughts on Microsoft, which admittedly, in my opinion, is behind in agents. They had sort of a toe in the water in RPA. It seems like that’s not a focus for them. But how are you guys thinking about Microsoft as you articulate your strategy on humans plus robots plus agents?

Ashim, Executive, UiPath: So one is I think we have really good product partnership with Microsoft, ironically, internally is more of a friend than it is a foe. We have really good relations as relations all the way up throughout the entire Microsoft senior senior management. Our Azure consumption is actually significant and is important to them. So they are interested invested in bringing workloads to our platform because that, in turn, creates workloads for Azure. So they are a partner, and that’s why even three, four years ago, even when, you know, in the RPA space, forget about advanced agent capabilities, they talked about us as being their preferred automation partner and vendor.

Keith Bachman, Analyst, BMO: Right. That’s there.

Ashim, Executive, UiPath: The piece is, I think when you look at Microsoft, they still are going to be geared more towards that personal productivity side. We differentiate really through the enterprise grade productivity that we wanna go after. And we look at that as separate spaces. And, frankly, the feedback from many of our customers is is those are separate capabilities that are there. And that’s why you continue to see net new ARR growing for us as a company despite, you know, Microsoft now having been, you know, in the automation space, quote, unquote, for, you know, the last how many years, you know, since IPO for us.

Right. Right.

Keith Bachman, Analyst, BMO: Okay. Let’s talk a little bit about the cadence. Break it down into two parts, and we’re staying on Agencik capabilities for the moment. You mentioned you have hundreds of POCs. How are those POCs unfolding?

What I mean by that is are these more experiments within the context of companies? And sort of the root of my question is big opportunities you identified, why is it not moving faster? I guess you alluded to it in terms of governance is probably one of the key sources of friction. I know it is for Salesforce and others, but maybe just talk about kind of the the pipeline of AgenTeq opportunities within those POCs, and what’s the source of friction?

Ashim, Executive, UiPath: Well, one is I I don’t I kinda don’t agree that it’s not moving fast. I think it’s it’s a question of expectations and perspective. So is we just launched our platform at the April. Right? So from that perspective, we had already closed we had number of customers in private preview.

We had already closed some of those deals that we’ve talked about, whether it’s AgenTic Airmen or whether it is, you know, the health care example that I gave. The is I think it’s unrealistic in the enterprise productivity in the enterprise workflow space to say, you know, everything’s gonna kinda, like, just shoot through in a couple months. And in fact, a lot of customers had been burned by overpromising of the AI hype, and we see that as really contributing to making sure there is more proof of concepts that have been really tried, trued, and vetted as as as they’re making their decisions and their investment decisions. Right? And that is something I think that’s been well covered, and that’s been well heard by us from our customers.

We actually thrive when it comes to a bake off because we have product truth. So if somebody comes and says we wanna do a proof of concept, it actually makes us super happy to do that in terms of where that looks. The piece is, I think, when you look at you know, I came from a large company in GE. As fast as companies change, their organizations also need time to adjust to it. Right?

So you you have entire organizational dynamics and security dynamics and all of these things that are taking shape within an enterprise, and I think those things just take time. At the same time, having hundreds of POCs right after you go into your GA, you know, the activity that we’re seeing with our customers is super exciting. And, frankly, the success rate of our proof of concepts is also super exciting. So if you look at those things, and I feel like we’re moving at a good speed that’s realistic. And, you know, it’s become cliche, but everybody says everybody overestimates the short term and underestimates the midterm.

I think we’re trying to be realistic about that. Right. We look at this year as really proof of concepts, but we see this as a meaningful opportunity. It should be bigger than the RPA opportunity. And the RPA Yeah.

We help scale us in five years from, you know, almost nothing to a billion dollars.

Keith Bachman, Analyst, BMO: Right. If you think about I wanted to ask the the part of the question is you you said, a little bit of contribution this year, but more meaningful contribution in CY 2026, right, has been, excuse me, the agentic kind of backdrop. And is there enough to make some contribution in Q4 though, know, as in in net new ARRs, but it’s really or we should be really focused on CY ’26.

Ashim, Executive, UiPath: I would be more focused on CY ’26. I’ve given my guidance. I think Yeah. You know, I factor that in. We’ve talked about no meet nothing meaningful for this year.

Nothing meaningful doesn’t mean nothing. I think that’s really important. I think sometimes people forget that word meaningful in that discussion. So in our minds, we really look at this as the year of proof of concepts. You know, the set of customers coming on board as you get those success stories, I think success breeds success.

So a successful ’25 in terms of fiscal twenty six, I think will breed, you know, a successful ’27, from that standpoint. When

Keith Bachman, Analyst, BMO: you’re in the POCs, presumably, are done with RFQs or, you know, there’s competitive dynamics surrounding even doing POCs, I would assume. A, is that true? And b, who who is also in there with you trying to to to win those workflows?

Ashim, Executive, UiPath: Great question. You know, it’s interesting. You don’t get a lot of RFPs or RFQs in a lot of examples. Like, as I talked about that 10,000 customer installed base

Keith Bachman, Analyst, BMO: Yes.

Ashim, Executive, UiPath: You know, we are getting called in just because people are like, wow. You know, we know UiPath. We’ve had great success with UiPath. They hear our launch. They know our products.

Our our our reps and our customer success teams and presales teams are very close with them, and they just wanna see the product in motion. In the examples where you see kinda real tests and trials that are more competitive, actually, internal, people are testing their internal capabilities. Is this something we can build, or do we do we need a plan? And what’s what’s fascinating is I think the models people think that they can build. The platform, the governance, the orchestration, the connectivity, that has really been able to differentiate.

So we didn’t really talk too much about Maestro. Maestro connects agents, robots, and people. It delivers fixed workflows at the enterprise level, and it gives you insights into those workflows. That, you know, built on a modern stack, is a real differentiator for us. And it’s almost impossible for an internal organization to replicate that, and that really gives us a step up versus just saying, you know, how are you incorporating a model into an automation or a workflow?

You know, we’re there are multiple tools and there’s multiple dimensions that we’re able to win in that discussion versus internal.

Keith Bachman, Analyst, BMO: Okay. Thank you. Yeah. Maestro is gonna be my next question, so I appreciate you bringing it up. Ashim, how about, the journey from POCs to revenues?

Again, not this year, but what does that process look like in terms of this agentic world combined with Maestro, the whole category? How should we be thinking how does that translate into I shouldn’t have said revenues. I I was more thinking ARR, but but what does that what does that journey look like?

Ashim, Executive, UiPath: Look. I think proof of concept shows proof of there’s two things that you’re proven out, technology and ROI.

Keith Bachman, Analyst, BMO: Yeah.

Ashim, Executive, UiPath: So I think the proof of the technology gives you the right to play, the right to compete. I think the proof of the ROI gives you the right to revenue, the right to ARR. And so we’re not going after our proof of concepts of, you know, a few demos or PowerPoints or precast videos. Our proof of concepts is saying, can we make things faster, better, more accurate? And in my mind, Bia, as we solidify that, you’re gonna start seeing, you know, far like, not far behind proof of ROI is is realization of revenue.

Yeah. And then from the question becomes, like, what is going to be the the the the bite the bite, and how how big are the subsequent bites from it. And I think that is gonna be a function of both the environment as well as budgets as as well as kind of internal organizational culture. And, you know, I don’t have a formula for that. I think it’s different depending on the technology.

I you know, if you look at the early wins, we’re really excited by the mix of some companies are going all in, you know, both in their proof of concepts as well as organizational. But think that’s gonna be a relatively similar mix to the past, but we’re gonna have to see how that unfolds.

Keith Bachman, Analyst, BMO: Okay. Sheen, one of the as you’re, I’m sure, well aware and Jake also, you know, I think the the reason UiPath has what we would characterize as a relatively modest multiple is because it’s you to be still an RPA company, which you’ve asserted as an inappropriate reflection of the business. Part of the way to respond to that is to give more granularity about the business mix. So would you envision at some point in time giving metrics associated with legacy or robots versus other, or do you view them now as all intertwined so that’s not appropriate?

Ashim, Executive, UiPath: Well, is I I’d point everybody to kind of our fourth quarter earnings back in March. We we did disclose RPA and the attach rate of our AI based products. So when you look at that, I think we said 18%, if if I were if I recall, but we can get the exact number that was there. But when you look at you know, the thing is we have increased our disclosure around it. The is we go through it.

We always want to we we we wanna give as much granularity as possible. We we increased our, as an example, the disclosure around customer cohorts. Yeah. So, like, customers greater than $30,000 and how they grow. So we will always look to give as much disclosure to give the best investor decisions.

It’s a double edged sword. So once you give it the obviously, then we’re committed to continuing to give it. And I think there’s a maturity that we also wanna make sure is realized that’s there. At the same time, I think AgenTic, we’re giving a lot of transparency into the script of our AgenTic wins around subs about metrics around our, you know, our trials, the number of customers, the number of agent runs that we’ve seen. Formal revenue disclosures, we’ll continue to evaluate.

Keith Bachman, Analyst, BMO: Okay. Perfect. Okay. Only have about eight minutes left, and and I’ve only gotten to two subjects, so shame on me. With that said, if I step back for a I understand that net retention rates are backward looking metric.

But with all these really interesting opportunities unfolding surrounding the expansion of your portfolio, if you think about over the next twelve months to eighteen months, how would you envision NRR moving around?

Ashim, Executive, UiPath: Yeah. Look. I think, you know, is, it is backwards metering. It’s a preview it’s a trailing twelve months. We’ve talked about this year being a point of stabilization.

And then if you adjust for macro and fed, you know, that is essentially what we feel from our internal execution and market capabilities. So I look at via, like, when you think about our half guidance, you can see implicitly, you know, what’s assumed in there. We don’t see a substantial shift from new logos to ex from expansion to new logos, so it’s pretty easy to see the trajectory of net new ARR that’s there. And, again, that’s with no meaningful agentic revenue inside.

Keith Bachman, Analyst, BMO: Right. Right.

Ashim, Executive, UiPath: Implicit within it. So I feel I honestly feel good about what the future holds and the stabilization of not just that metric, but overall metrics that we have.

Keith Bachman, Analyst, BMO: Okay. Yeah. We actually do that breakout. Let’s shift gears for a to a small company SAP. And how do you think about the the evolution of your relationship with SAP, and how does your agentic maturation with your product portfolio, how does that impact the relationship with with SAP into incremental opportunities?

Ashim, Executive, UiPath: Look. I think our partnership has really started with kind of our core automation portfolio because we had just launched Gentic recently. We’ll continue to explore not just with SAP, but with every company, you know, the ability to partner with us. We look at partnerships as a strategic lever for both mindshare as well as wallet share within a company. That being said, I think we we wanna we still see tremendous opportunity with the s four HANA migrations for getting our core automation platform out there.

Just to just to put it in perspective Yeah. You know, we ourselves had implemented our our ERP here internally, and we had a 93% clean core. Just if you if you kinda think about that, that is a step function and a game function change for ERP implementations, and that is really possible by our technology and UiPath’s platform. I think SAP sees the same thing, and that’s why we’re continuing to focus on driving joint customer pursuits together. And that partnership, like you said, it’s it’s a it’s a pretty as you indicated, it’s a large company.

It takes time, but we feel positive still about the overall potential for what SAP could play.

Keith Bachman, Analyst, BMO: Okay. And and and, Ashim, I know you’re an automation company, you sort of have the business that you grew up with in robots and you’ve broadened the portfolio quite broadly. But do do you feel like the the the legacy business for lack of a better word is at a point of stabilization? And some of that you’ve had, what I’ll call low end customers that have been degrading a little bit. That’s probably more of a customer issue than an ARR issue.

But how should investors think about if they want to break the business into two pieces, the RPA business unfolding versus all these new opportunities, Maestro and Agents?

Ashim, Executive, UiPath: Well, you can the thing is I I really don’t I I will wanna change the concept of a legacy. I think it’s still very relevant and present. So why? Just think about the number of tasks that still remain to be automated across enterprises. It is a highly relevant technology.

The piece of technology has moved, so our our attention span seems to change. But, actually, it’s still you know, from that perspective, we’re still, in our minds, there’s still a large and growing market. You can look at IBC’s numbers of, you know, double digits growth within that segment or in that area of automation, you know, excluding AgenTek, and I think that that is the piece that I would emphasize. So if I think about foundational or deterministic automation, we still see that as a growing base. We see that as attracting new customers.

We see people who are still able to expand across departments to cross to cross sell into different capabilities within workflow automation. To break apart AgenTic and RPA is like breaking apart a workflow. Yeah. Yeah. So in our minds, it is highly synergistic to have robots, humans, and agents working together.

And so from our perspective, when you go to the robotic workflows, they should lend itself to more agentic workflows. Just go to any workflow where a robot’s working with a human and say, what is, you know, what is that human doing? There’s probably an agentic capability that’s there that can be unlocked in that existing workflow. And let’s say we unlock a new process, and one of our partners actually said this. They did a workshop with a number of customers.

They said one of our conclusions, which is interesting, every idea that in the two days that started actually was more of a robot idea or a deterministic idea than a probabilistic idea. So so that’s why I asked the question in there.

Keith Bachman, Analyst, BMO: Yes. Yeah. Well, I sorta asked the question in that spirit in that. Do you think customers understand the difference in terms of

Ashim, Executive, UiPath: Not fully.

Keith Bachman, Analyst, BMO: Or is that actually creating confusion on do I use an agent or do I use an a robot?

Ashim, Executive, UiPath: I don’t think it creates confusion for the right people who have to make that decision. If I’m a business user, my goal is to say, how do you make my life easier? And the fact that I UiPath has both robots and agents means I don’t have to ask, do I talk to UiPath or do I not? We can do either. Our goal is to have faster, more automated, less costly, more accurate workflows.

Keith Bachman, Analyst, BMO: Right.

Ashim, Executive, UiPath: When you turn it around, we feel really good about automation leaders, heads of AI who know to say, if something is rules based, I am not gonna go and put a probabilistic agent in there and create a 5% or a 3% additional transfer error. Yeah. And I want something that has both UI automation, API automation, and advanced AI capabilities that can go across any application in my stack. From that perspective, we feel really good about where we’re positioned.

Keith Bachman, Analyst, BMO: Okay. Yeah. Well, there’s lots more we could do there. Maybe I’ll just ask my last question. I’m gonna unfortunately have to condense it a little bit in the interest of time.

It’s just on go to market. In terms of how do you feel about the stability and where you are now in terms of feet on the street as well as pricing, the unified pricing models? What’s the feedback? Do you feel like there’s still some tweaks you may may be may need to make? Any comments there?

Ashim, Executive, UiPath: I think is go to market is stable, more connected with our customer. We’re talking more, and we’re innovating more with our customers. So, like, we feel really good about the core tenets of our go to market organization. Our partner ecosystem, you know, they’re they’re they’re a good measure for us. I feel like even in that area, we’re more connected.

Whether it’s companies like Lydonia, Accelerate, Wonderbox, which are regional, or companies like Deloitte where we’re advancing AgenTik ERP together, you know, and PwC, etcetera, we feel really good about our connection and our position there. So I feel like go to market as a whole, we feel very good. The discussion around unified pricing, the the set of feedback has been really good. It’s early, though. So I don’t wanna oversell on that in the beginning.

I think people like the idea of a simplified pricing model. I think we and our customers both value the platform, which in our pricing2.0 is more explicit of the value of the platform. And it gives it empowers customers really with more choice and more opportunity. So initial feedback is good, but, you know, I wanna see how this year progresses before, you know, I declare victory or we declare victory in that role.

Keith Bachman, Analyst, BMO: Yeah. A good good practice, good policy. Ashim, again, we’re gonna leave it there. We’re one minute over, but I I appreciate you coming on and spending time with us. Really interesting time for u r UiPath, and and we wish you all the best of luck, and we’ll be focused on the journey and how you guys unfold all these opportunities in front of you.

Again, thanks very much for your time. We appreciate it. Thank you. Cheers.

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