Hot AI startup UiPath’s job cuts were triggered after it burned cash faster than expected and missed its revenue target, according to an internal document


Daniel Dines CEO of UiPath

UiPath just ranked number one on Deloitte’s list of the 500 fastest growing tech companies in North America with an annual revenue growth rate of more than 37,000%.
But the AI startup was burning cash faster than expected and missed a key revenue target when it cut about 400 jobs, according to a board presentation reviewed by Business Insider.
UiPath’s third quarter annual recurring revenue totaled $296 million, below its target of $343 million, according to the presentation.
In the third quarter, UiPath’s “burn” — the amount of cash it used — was $96 million, well above its target of $57 million, according to the presentation.
The company’s Chief Financial Officer Marie Myers left suddenly, at the same time as the job cuts.
UiPath declined to comment on specific items in the presentation. Chief Marketing Officer Bobby Patrick told Business Insider: “It’s improper on behalf of a former employee to share privileged financial data that is out of context.”
Patrick stressed that UiPath is a strong company that is on track to be profitable in 2020 and may go public in 2021: “You’re going to see a company that is still one of the fastest growing enterprise software companies in the industry, a company with a very strong commitment to bottom line that is on the path to profitability next year. To be on the path to profitability in 2020 and be a hyper-growth company is pretty amazing.”
UiPath is seen as the dominant player in a new but fast growing market for robotic process automation, or RPA, which enables businesses to automate common and repetitive computer tasks.
UiPath drafted a plan, dubbed Project Dawn, aimed at dramatically reducing costs through mass layoffs, according to the presentation.
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UiPath was burning cash faster than expected and its revenue growth, although robust, was below its internal targets when the company launched a plan — dubbed Project Dawn — to slash hundreds of jobs and dramatically reduce costs, according to a presentation reviewed by Business Insider.

The plan was discussed by the company’s board in mid-October, shortly before UiPath let go of about 400 employees and announced the sudden departure of its well-regarded Chief Financial Officer Marie Myers.

It was a jolting development for UiPath, which just ranked No. 1 on Deloitte’s 2019 list of the fastest growing tech companies in North America and is the dominant player in a new, …read more


Source:: Business Insider

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