Automation software company UiPath Inc. rode on the back of growing enterprise enthusiasm for all things artificial intelligence to surpass Wall Street’s expectations for its second-quarter results today.

It also raised its revenue guidance for the full year, and investors nodded their appreciation, sending the stock up more than 10% after-hours.

The company reported earnings before certain costs such as stock compensation of fouor cents per share, narrowly beating the Street’s forecast of three cents per share. Revenue increased by 10% from a year earlier, to $316 million, easily beating analysts’ consensus estimate of $304 million. All told, UiPath delivered a net loss of $86 million in the quarter, rising from a loss of $60 million one year earlier.

However, any investors who may be concerned about the company’s profitability were likely appeased by the announcement that UiPath has approved a share buyback program of up to $500 million.

As a leader in the market for robotic process automation software, UiPath has benefited from businesses’ enthusiasm for AI technology. The company sells tools that can help organizations to reduce costs and operational errors by automating repetitive tasks such as data entry. Its technology relies on AI models that study how employees perform common tasks in various business applications, so they can replicate that work.

UiPath founder and Chief Executive Daniel Dines (pictured) said he was pleased with the company’s latest results, noting that its annual recurring revenue grew by 19%, even more than its total revenue. That, he said, is a testament to the company’s “improved execution” and the “compelling value” of its automation platform.

“Our conversations with customers and partners deepen our conviction that there is an increasing need for AI and automation,” Dines said.

That growing desire for AI and automation gave UiPath the confidence to raise its full-year revenue forecast. It said it now expects fiscal 2025 revenue of between $1.42 billion and $1.43 billion, up from its prior outlook of $1.41 billion to $1.42 billion. That puts it well ahead of the Street’s consensus view of $1.41 billion.

UiPath’s guidance for the third quarter was also narrowly ahead of the Street’s target. It said it’s looking for sales of between $345 million and $350 million in the current period, with the midpoint of $347.5 million slightly higher than the Street’s forecast of $347.3 million.

During the quarter, the company announced cost-cutting measures that included a significant number of job cuts, with more than 10% of its workforce to be laid off in a push for “increased efficiency.”

Today, the company announced further changes, this time in its leadership team. It said it’s handing Chief Financial Officer Ashim Gupta an expanded role, as he will assume the role of chief operating officer in addition to his current job.

Dines said Gupta fully deserves this opportunity, having helped to transform the company with his extensive financial and operational capabilities during his tenure.

“He has played a pivotal role in helping us to drive operational efficiencies across the business, while delivering long-term shareholder value and sustained growth at scale,” the CEO said. “Formalizing his operational leadership with his expanded role as COO will serve the company well now and into the future.”

Photo: SiliconANGLE