UiPath Stock Exchange on the New York Stock Exchange.
Source: NYSE
UiPath rose 17% in the company’s stock market debut on Wednesday after the software provider and its investors raised $ 1.34 billion in the company’s stock market. The stock opened at $ 65.50.
The company, whose software helps businesses automate repetitive tasks, sold shares Tuesday night at $ 56 apiece, above the expected price range of $ 52 to $ 54. At the opening price, UiPath had a market value of $ 34 billion.
If underwriters buy their allotted shares, UiPath’s offer will be the third largest ever for a US software company, behind only cloud database vendor Snowflake, which raised $ 3.9 billion in September, and Qualtrics, which raised $ 1.78 billion in January. collected after leaving SAP. UiPath is reaching the market in a time of rapid growth as healthcare businesses to energy producers are looking for ways to automate operations in their finances, human resources and legal departments.
Revenue rose 81% last year to $ 607.6 million, and the company’s loss decreased to $ 92.4 million from $ 519.9 million in 2019. UiPath’s gross margin of 89% is some of the highest software .
While UiPath has been joining a long list of cloud software companies with a huge growth in the clouds for the past three years, its debut comes amid a shift in investor sentiment. After the WisdomTree Cloud Computing Fund, made up of 58 publicly traded cloud software vendors, more than doubled last year, it fell 6.7% this year, while the Dow Jones industrial average climbed 11% from Tuesday’s decline.
One of UiPath’s biggest strengths is the ability to retain customers and encourage them to increase spending over time. In its last financial year, UiPath reported a net retention of revenue of 145%, meaning that the average existing customer increased spending by 45% from the previous year.
UiPath, which ranks 50th on CNBC’s 2020 Disruptor 50 list. was founded in Romania in 2005 by Daniel Dines, a former Microsoft engineer. Dines moved UiPath to the United States about a decade later and established a headquarters in New York. About a quarter of its 2,863 full-time employees are in Bucharest, Romania.
The stock is traded on the New York Stock Exchange under the symbol “PATH”. Dines controls 88% of the voting shares and is the largest stakeholder, with more than 110 million shares worth $ 6.2 billion, based on the IPO price, including some shares sold in the offering.
LOOK: EY expects technical IPO boom to continue as e-commerce grows