Unleashing the Future Potential of UiPath in Comparison to Nvidia

Robotic Process Automation Landscape

When most people think of robots taking over for humans, they imagine physical robots. However, software robots are already doing it. Robotic process automation (RPA) uses software to automate human tasks, such as documentation, filling out forms, and other repetitive tasks. UiPath is a leader in this field, as deemed by third-party benchmarks such as Gartner's Magic Quadrant system.

PATH Revenue (TTM) data by YCharts

The company's $1.2 billion in annual revenue shows how big of a market player it is, so protecting that market share could lead to years of consistent growth as the market expands. UiPath faces competition from other technology companies like Microsoft. However, with UiPath's RPA focus, it has carved out its spot in the market.

A Stellar Earnings Report

UiPath had an excellent quarter, evidenced by its recent earnings report. The company's non-GAAP earnings per share were $0.22 in Q4, topping analysts' expectations by $0.06. Revenue came in at $405 million, $21 million over estimates, and a 31% year-over-year increase.

Management is guiding for up to $1.56 billion in revenue for its fiscal year 2025 (ending Jan. 31, 2025).

Shares are still down over 70% from their highs, last seen in their early days.

Is UiPath Navigating Underestimations?

No, it's not Nvidia-style rocketship growth, but UiPath has the makings of a long-term compounder. That can be powerful, especially when the stock is as cheap as UiPath is today.

• UiPath is a leader in robotic process automation (RPA)
• The company has shown consistent earnings growth and potential for future expansion
• Investors could benefit from long-term gains by investing in UiPath