This Unicorn Could Be One of the Biggest IPOs in 2021

UiPath has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering. The company intends to price its 21.28 million shares in the range of $43 to $50 per share, with an overallotment option for an additional 3.47 million shares. At the maximum price, the entire offering is valued up to $1.22 billion. However, this would value the company as a whole closer to $26 billion. UiPath intends to list its shares on the New York Stock Exchange under the symbol PATH.

The underwriters for the offering are Morgan Stanley, JPMorgan, BofA Securities, Credit Suisse, Barclays, Wells Fargo, SMBC Nikko, BMO Capital Markets, Mizuho Securities, KeyBanc Capital Markets, TD Securities, Truist Securities, Cowen, Evercore ISI, Macquarie, Nomura, RBC Capital Markets, Canaccord Genuity, DA Davidson, Oppenheimer and Needham.

This company designs software that aids in business automation, robotics and artificial intelligence. At the core of this automation platform is a set of capabilities that emulates human behavior, which would provide customers with the ability to automate both simple and complex use cases. Automations on the platform can be built, consumed, managed and governed by any employee who interacts with computers, resulting in the potential for broad applicability of the platform across departments within an organization.

At the end of January 2020, UiPath had 6,009 customers, including 80% of the Fortune 10 and 61% of the Fortune Global 500. In January 2021, the firm had 7,968 customers, including 80% of the Fortune 10 and 63% of the Fortune Global 500.

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UiPath described its finances as follows:

Our ARR was $351.4 million and $580.4 million in the fiscal years ended January 31, 2020 and 2021, respectively, representing a growth rate of 65%. We generated revenue of $336.2 million and $607.6 million, representing a growth rate of 81%, and a net loss of $519.9 million and $92.4 million in the fiscal years ended January 31, 2020 and 2021, respectively. Our operating cash flows were $(359.4) million and $29.2 million and our free cash flows were $(380.4) million and $26.0 million in the fiscal years ended January 31, 2020 and 2021, respectively.

The company intends to use the net proceeds from the offering for working capital and general corporate purposes. Note that some shares being sold in the offering are coming from selling shareholders, not the company.

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