• UiPath Inc was founded in 2005 by Daniel Dines and Marius Tirca in Bucharest, Romania. The company specializes in robotic process automation (RPA) technology
• UiPath went public in April 2021, on the New York Stock Exchange, under the PATH ticker symbol. The stock is a component of the Russell 1000 index, which tracks the 1,000 highest-ranking companies in the Russell 3,000 index. The stock had an IPO price of $56
• UiPath's IPO was one of the largest software IPOs in history, raising $1.3 billion and valuing the company at over $29 billion
• UiPath employs over 3,800 people and operates in 40 countries around the world 
• As of April 28, 2023, UiPath had a market capitalization of over $7.9 billion 
• In addition to RPA, UiPath has invested in developing artificial intelligence and machine learning algorithms for its enterprise suite of products
• UiPath’s solutions can be used in a variety of industries, such as finance, healthcare, manufacturing, etc 
• The company has yet to generate a profit, but has significantly reduced its net losses year after year 
• UiPath has acquired several companies to expand its business, including StepShot, Cloud Elements, and ProcessGold
• As of April 28, 2023, the stock had a beta figure of 0.71 - making it considerably less volatile than the broader market

UiPath went public during a period of market boom and did so with a hefty valuation. While the market was booming, UiPath reached as high as $80. However, the 2021 bull market was soon over and investors were met by a completely different reality - high inflation, supply chain constraints and a general geopolitical instability. This, coupled with slower-than-expected revenue growth, prompted investors to offload their shares - sending UiPath stock on a downward spiral. 

As of April 28, 2023, the stock has lost over 80% of its IPO value, with its market capitalization currently standing at $7.9 billion. Thanks to a much lower valuation, UiPath now attracts considerably more institutional investors than before and one of the largest holders of UiPath stock is Cathie Wood’s ARK invest, through its ARK Innovation ETF (ARKK). UiPath accounts for 5.52% of the fund’s total holdings. 

In terms of financial performance, UiPath’s Q4 2022 earnings report has shown plenty of improvement for the company, such as:

• A revenue increase of 6.51% - reaching $308.55 million 
• Net loss reduction by 56.13% to $27.69 million 
• Diluted EPS increase of 58.33% to (0.05)

Improved operational performance was not enough to sustain UiPath’s rebound for long, which can be attributed to a generally bearish sentiment present on the market throughout 2022 and 2023. However, the earnings report did highlight that the company is on the right track towards eventual profitability, which is why ARK Invest is heavily banking on the stock to perform well in the long run. 

Before putting their capital at risk, investors need to consider the inherent risks and rewards associated with investing in UiPath stock in order to make an informed decision as to whether the stock is a good inclusion to their portfolio. 

Pros

• Growth - at its current valuation, UiPath has a lot of room for long-term growth, as the global RPA market is also rapidly expanding 
• Established customer base - UiPath has thousands of corporate clients around the world and is actively working towards expanding its customer base 
• Financial improvements - UiPath has made strides towards reducing its annual net loss and increasing revenues, which could mean that the company is on the right track towards profitability

Cons

• Unprofitability - UiPath remains an unprofitable company, which makes it difficult to assess its fair value - increasing the potential downside in the case of a market downturn
• Competition - the global RPA market is highly competitive and full of startups, which means that UiPath is in a race against time to assume a dominant position on the market
• Dependence on cloud providers - as UiPath’s business model is primarily cloud-based, the company is heavily reliant on companies, such as Amazon Web Services (AWS) for their digital infrastructure

• UiPath is a promising technology company offering process automation and AI services to companies from a wide range of industries
• The stock has lost over 80% of its value since going public in 2021, due to the major discrepancy between its market capitalization and book value 
• ARK Innovation ETF, which invests in disruptive technology companies, holds a substantial stake in the stock, which accounts for almost 8% of the fund’s entire holdings 
• At current valuation, UiPath is considered by many to be a solid investment for the long term