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IPO Of Software Developer UiPath Raises $1.3 Billion As Trading Begins

UiPath (PATH) exceeded expectations with an initial public offering that raised $1.3 billion for the business software developer. The UiPath IPO began trading Wednesday on the New York stock exchange under the ticker PATH.




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The company priced 23.9 million shares at $56, above the high end of its estimated range of $52 to $54. The offering price gave it a market valuation of $29 billion.

UiPath stock climbed 19%, near 66.70, during afternoon trading on the stock market today.

The company says its platform is designed to transform the way humans work, with software that customers use to automate both simple and complex tasks

“We provide our customers with a robust set of capabilities to discover automation opportunities,” according to the UiPath IPO filing.

Using The Power Of Artificial Intelligence

“Our platform leverages the power of artificial intelligence, or AI-based computer vision, to enable our software robots to perform a vast array of actions as a human would when executing business processes,” it said.

As of Jan. 31, UiPath has 7,968 customers. That’s up 32% from the same period a year ago, it says.

Its customers include Adobe (ADBE), Chipotle Mexican Grill (CMG), CrowdStrike (CRWD), Uber (UBER) and CVS Health (CVS)

UiPath IPO: Revenue Jumps 81%

For the period ended Jan. 31, UiPath reported revenue of $607.6 million, up 81% from the year-ago period. It showed a net loss of $92.4 million. However, that’s a sharp improvement from a loss of $520 million in the prior year. The company’s gross margin of 89% is eye-popping even for software.

The lead underwriters for the UiPath IPO include Morgan Stanley, JPMorgan and BofA Securities.

It was an explosive time for initial public offerings in the first quarter, the busiest since 2000.

Recent IPOs are where you often find some of the market’s best stocks. Also, new IPOs are typically in their early stages of growth. Big earnings growth potential is generally what fuels an IPO stock’s price performance. IBD’s IPO Leaders section has special screening criteria to find up-and-coming stocks with strong fundamental and technical traits.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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