By Iulian Ernst in Bucharest
The resignation of NYSE-traded major robotic process automation (RPA) company UiPath's CEO Rob Enslin was followed by a sharp fall in the Romania-born company's share price by some 30% in after-hours trading. Enslin is being replaced by UiPath founder and former CEO Daniel Dines.
By the end of the trading day, UiPath's share price had dropped to $18, well below the $69 achieved on its NYSE debut in April 2021. Even before the 30% slump, UiPath stock was down by 26% ytd, at a time when most other artificial intelligence (AI) companies are reporting robust growth.
The RPA company is struggling to embrace GenAI technologies and keep pace with competition from OpenAI, Google, countless startups, and incumbent portfolio vendors. In this challenging context, Enslin’s abrupt resignation after only months on the job understandably prompted more concerns than the downward-revised revenues outlook.
“After much reflection, I have made the difficult decision to resign as CEO of UiPath. It has been an honour to be a part of, to lead, and to learn from an immensely talented team … I am convinced that UiPath will continue to define what's possible for our customers and partners in the AI and automation market,” Enslin said.
Slightly better-than-expected revenue for the quarter ending April 2024 ($335mn, +16% y/y and above the $333mn consensus view) was overshadowed by downward-revised full-year revenue outlook: $1.405bn-1.410bn from $1.555bn-1.560bn.
“During the first quarter we saw increased deal scrutiny and lengthening sales cycles for large, multi-year deals,” chief financial officer Ashim Gupta said in a release. “We have considered these factors, the current macroeconomic environment and our leadership transition in our updated guidance for the remainder of the year.”
