William Blair initiated research coverage of UiPath, Inc. (PATH $25.52), a leading provider of workflow automation and process optimization software.
Analyst Jake Roberge estimated that the company would generate EBITDA of $223 million in 2024, up from $84 million in 2023 and rising to $280 million in 2025.
“UiPath was founded in 2005 to help customers automate legacy and labor-intensive tasks so that employees could focus on more value-added work,” said Roberge. “In 2013, the company released its first robotic process automation, or RPA, solution, UiPath Studio, which helped customers create and deploy automations. Over the past few years, UiPath has expanded its product suite beyond traditional RPA use-cases and into a broader workflow automation and process optimization platform.
“Since 2020, UiPath has released solutions around document processing, process/task mining, and low-code application development, among others,” Roberge added. “These products have been well received, and in 2022, UiPath saw a sixfold increase in process mining customers, a fivefold increase in apps launched by its low-code app development platform, and a fourfold increase in documents processed by its document understanding solution. UiPath is also expanding into new opportunities, such as generative AI, API integration, and application testing. While UiPath is already at a large scale with over $1.3 billion in annual recurring revenue and nearly 11,000 customers, we believe its total addressable market is significant and, although logo growth has slowed, we believe there are plenty of growth drivers ahead for the company, especially as UiPath’s platform sales start to ramp up more meaningfully.”
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