Shares of UiPath Inc. jumped more than 11% today after the company reported preliminary third-quarter financial results that exceeded its guidance.

NYSE-listed UiPath posted the preliminary financial results in a regulatory filing released on Monday. In the filing, the company also disclosed a workforce reduction initiative that is expected to affect 6% of its employees. UiPath had about 4,025 employees as of Oct. 31.

UiPath provides a robotic process automation, or RPA, platform that organizations use to make their business operations more efficient. UiPath’s platform uses machine learning to observe how workers perform a task in a business application. It then generates a software bot that can carry out the task automatically, which reduces manual work for business users and lowers the risk of human error.

UiPath estimates that it generated about $260 million in revenue during its fiscal third quarter ended Oct. 31. That’s higher than the $243 million to $245 million the company had projected in September. UiPath’s preliminary results also topped the FactSet consensus estimate, which forecast revenues of $246.3 million.

UiPath’s annualized recurring revenue reached $1.108 billion in the 12 months through Oct. 31. Analysts polled for the FactSet consensus estimate projected $1.093 billion.

In its regulatory filing, UiPath also posted a preliminary adjusted operating income of $15 million for the third quarter. In September, the company projected an operating loss of $25 million to $30 million. 

In conjunction with the release of its preliminary quarterly results, UiPath disclosed plans to let go about 6% of its employees. The move follows a round of layoffs that was announced in June and affected approximately 5% of the company’s workforce. The new workforce reduction “will further support the company’s strategic positioning designed to increase execution velocity, operational efficiency, and customer centricity,” UiPath stated. 

The company anticipates that most of the reductions will take place by year’s end. UiPath expects to incur restructuring expenses of $30 million in connection with the move during the third and fourth quarters.

UiPath will report its third quarter earnings on Dec. 1. In its September earnings guidance, UiPath stated that it expects to end the 2022 fiscal year with an approximately $15 million net loss on revenues of between $1.002 billion and $1.007 billion. The company projects that its annualized recurring revenue will range from $1.153 billion to $1.158 billion on Jan. 31, 2023.

In the longer term, UiPath plans to pursue a revenue growth strategy that will seek to balance market share expansion with profitability. Chief Financial Officer Ashim Gupta stated earlier this year that the company intends to “consistently expand non-GAAP operating margin and deliver sustainable positive non-GAAP adjusted free cash flow in fiscal year 2024 and beyond.”

Photo: UiPath