UiPath stock drops even as results top Street expectations

UiPath Inc. shares fell in the extended session Wednesday even as the "software robots" provider's quarterly results topped Wall Street expectations.

UiPath shares fell 3.04% after hours, following a 1.6% rise in the regular session to close at $47.71, or 15% below their April IPO price of $56 a share.

The company reported a third-quarter loss of $122.8 million, or 23 cents a share, compared with a loss of $70.8 million, or 41 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were break-even a share, compared with a loss of 4 cents a share in the year-ago period.

Revenue rose to $220.8 million from $147.3 million in the year-ago quarter. The company's annualized renewal run rate, or ARR, rose 58% to $818.4 million from a year ago. ARR is a metric often used by software-as-a-service companies to show how much revenue the company can expect based on subscriptions.

Analysts surveyed by FactSet had forecast a loss of 4 cents a share on revenue of $208.3 million and an ARR of $797.9 million, based on UiPath's forecast revenue of $207 million to $209 million and ARR of $796 million to $798 million for the third quarter.