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UiPath, a business automation software company, saw its shares soar in extended trading today after reporting fiscal Q1 profits and forecasts that went above expectations.

The firm reported a net loss of $122.6 million for the quarter, with profits per share of three cents before certain expenditures such as stock compensation. UiPath also reported $245.1 million in revenue, up 32% from the previous year’s same period.

Wall Street analysts had predicted a bigger loss of 5 cents per share on reduced sales of $226 million, but the results were better than expected.

Shares went up

UiPath’s shares jumped more than 8% in response to the news after losing just over 1% earlier in the ordinary trading session.

UiPath co-founder and co-Chief Executive Daniel Dines said that the company outperformed expectations across the board, citing a 50% increase in annual recurring revenue to $977 million from a year earlier.

UiPath’s financial strategy and robust balance sheet “position us well” in the current macroeconomic environment, according to Chief Financial Officer Ashim Gupta, dismissing predictions that the company would suffer amid the economic uncertainty that has afflicted so many IT companies this year.

A market leader

Gupta added that given the verifiable return on investment the company produces for its customers and the breadth and depth of its automation platform, the automation industry is vast and expanding.

In the robotic process automation sector, UiPath is a market leader. It provides a robotic process automation (RPA) platform that helps businesses cut costs and eliminate operational inefficiencies by automating repetitive tasks. It is based on artificial intelligence algorithms that understand how employees do regular business activities. The company then develops software robots that can reproduce those procedures, decreasing the requirement for many of those jobs to be performed manually.

Its fast-increasing ARR shows that UiPath’s platform is in high demand. This essential indicator indicates how much revenue the firm anticipates to generate, serving as both a gauge of progress and a future growth forecast.