Getting to the Bottom of UiPath’s Plummeting Valuation – TechCrunch

A little over a year A few years ago, UiPath was among the most popular startups in the world. Last February, the company raised a massive $750 million seed round at a staggering $35 billion valuation. The Robotic Process Automation, or RPA, company was running full steam ahead.

By the time UiPath went public in April last year, its final private price seemed a bit pricey. The company’s first IPO price range was lower than its last valuation, but after increasing that range and pricing above it, the unicorn was still valued at a modest deficit at that $35 billion figure. .

In its first day of trading, however, the company managed to hit the price set by its round worth three-quarters of a billion dollars. TechCrunch spoke with the company’s CFO about its method of going public at that time and when it debuted for more context; the executive hailed the ability to attract new investors in a traditional offering, instead of the more fashionable direct listing option.

UiPath’s value soared as high as $90 per share, pushing its valuation to around $43 billion according to YCharts data.

Since then, however, things have gone badly for UiPath, at least in terms of valuation. The company was down more than 3% at $18.29 per share on Friday afternoon, bringing its valuation to less than $10 billion. From hot unicorn, to uneven IPO, to strong early trading, to painful descent – ​​what went wrong with UiPath?

TechCrunch has two hypotheses: the first being that the company simply got caught up in a broad reassessment of tech earnings by public market investors; this isn’t a new story, and if it explains UiPath’s valuation drops, it would put the tech company in good company. However, there could also be a technology-related explanation at play. And, of course, both factors could be at play at the same time.

To understand what may have happened with UiPath’s fading valuation, let’s talk numbers first, then riff on the technical side of the coin!

Has UiPath just been affected by the technological repricing of the market?

UiPath remains a company on the move. In the fourth quarter of its fiscal 2022 — in English, the three months ending January 31, 2022 — the RPA market leader reported revenue of $289.7 million in total revenue and an annual recurring revenue (ARR) figure. of $925.3 million at the end of the quarter. From these data points, you can see how public markets have changed their minds about the value of software revenue.

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