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UiPath Shares Surged 23% After Raising $1.3B in IPO, Now PATH Stock Up 3% in Pre-market

UTC by Ibukun Ogundare · 3 min read
UiPath Shares Surged 23% After Raising $1.3B in IPO, Now PATH Stock Up 3% in Pre-market

UiPath’s strength lies in its ability to manage its customers, delivering a remarkable report in the pandemic year.

Global software company UiPath Inc (NYSE: PATH) saw a 23% spike in its shares after its initial public offering (IPO) on the 21st of April. UiPath pulled in $1.34 billion in its market debut, representing one of the largest US software IPOs ever. At press time, the company’s stock is at $71.10 in the pre-market. The trading price is a 3.04% gain over its first and previous close of $69. Before trading closed, PATH price was between the range of $64.84 and $70.74.

UiPath Shares after IPO

UiPath sold its nearly 24 million shares at $56 each on the day of the IPO. The trading price was above the company’s initial price target between $52 to $54. UiPath shares are now under the New York Stock Exchange with the ticker “PATH.” At the end of the IPO, UiPath had a market capitalization of $35.8 billion.

The software company, which develops a platform for robotic process automation, became public at a profitable time in the sector. Businesses are now seeking options to automate operations in their human resources, legal departments, and even finance. Hence, UiPath will benefit from the ongoing growth in the market.

Jake Dollarhide, the CEO of Longbow Asset Management, commented on the ongoing expansion among cloud vendors. He said:

“The cloud pre-pandemic was like a Tesla – it was new and hot. Coming out of the pandemic, it’s like the Model T. It’s become so ubiquitous.”

UiPath’s IPO is positioned to be the third-largest among software companies in the US, provided that underwriters buy their assigned shares. As the third-largest US software company IPO, the company would be behind cloud database provider Snowflake Inc (NYSE: SNOW) and software company Qualtrics ( NASDAQ: XM). Snowflake secured $3.9 billion in its offering in September, while Qualtrics generated $1.7 billion in January.

UiPath Fiscal Year

Furthermore, the software company has been performing well over the past months. The company’s revenue reached $607.6 million in its fiscal year ended in January, representing an 81% surge. In the same year, UiPath’s loss reduced from $519.9 million recorded in 2019 to $92.4 million. Additionally, the company has a gross margin of $89%, one of the highest in the software space.

UiPath’s strength lies in its ability to manage its customers, delivering a remarkable report in the pandemic year. In the company’s previous fiscal year, it said that net revenue retention was 145%. This shows that the company managed to convince customers to increase spending by 45% year on year.

The CEO of UiPath, Daniel Dines, was an engineer at the technology company Microsoft (NASDAQ: MSFT). Dines founded UiPath in 2005 in Romania. After a decade, the CEO moved the company to the US and stationed its headquarters in New York City. The company has expanded over the years and now has over 2,800 full-time employees.

Business News, Editor's Choice, IPO News, Market News, News
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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