When Will UiPath Inc. (NYSE:PATH) Become Profitable?

UiPath Inc. (NYSE:PATH) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. UiPath Inc. provides an end-to-end automation platform that offers a range of robotic process automation (RPA) solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. The US$11b market-cap company announced a latest loss of US$90m on 31 January 2024 for its most recent financial year result. Many investors are wondering about the rate at which UiPath will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for UiPath

According to the 22 industry analysts covering UiPath, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$37m in 2027. So, the company is predicted to breakeven approximately 3 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 72%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for UiPath given that this is a high-level summary, but, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that UiPath has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on UiPath, so if you are interested in understanding the company at a deeper level, take a look at UiPath's company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:

1. Valuation: What is UiPath worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether UiPath is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on UiPath’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.