Revenue Unicorn Club: UiPath

Congratulations to UiPath as it crosses $1 Billion in annual revenue and joins the software Revenue Unicorns!
Let's see what we can learn from UiPath's journey...
Revenue Growth

UiPath’s revenue grew significantly between $500 Million and $750 Million in revenue. After $750 Million in revenue, UiPath’s revenue growth trended toward the Revenue Unicorn median.
Gross Margin

UiPath has a strong gross margin structure, 10% or more above the Revenue Unicorn median across all revenue ranges. The only other Revenue Unicorns to consistently display 80%+ gross margins are Atlassian and Splunk.
Sales & Marketing

UiPath invested heavily in sales and marketing early in its business life cycle. As UiPath scaled, they continued their investment in sales and marketing above the Revenue Unicorn median.
Research & Development

UiPath invested efficiently in research and development. The company spent less on R&D than the median Revenue Unicorn above $500 Million in revenue. Other Revenue Unicorns with comparatively lower research and development investment include Docusign, HubSpot, Palo Alto Networks, ServiceNow, Splunk, Veeva, and Zoom.
General & Administrative

UiPath’s general and administrative expense was consistently above the median Revenue Unicorn across all revenue ranges.
Stock Based Compensation

UiPath had a higher SBC expense as a percentage of revenue compared to the Revenue Unicorn median, yet saw a decrease after passing $1 Billion in revenue. When viewing SBC expense as a percentage of enterprise value, UiPath is at 2.8%, which is double the Revenue Unicorn median of 1.4% in the $1 Billion+ revenue range.
Free Cash Flow

UiPath’s free cash flow margin has improved with scale and has been roughly steady from $750 Million to $1 Billion+ in revenue.
Time to Reach $1 Billion in Revenue
UiPath reached $1 Billion in revenue after 16.75 years. This is longer than the median time of 11.25 years it took other Revenue Unicorns to reach the $1 Billion mark. Other Revenue Unicorns that took a similar amount of time to achieve the $1 Billion revenue threshold include Palantir (17 years), Unity (16.75 years), and DocuSign (16.25 years).
Other Revenue Unicorns founded around the same time as Dynatrace (2005 founding) include Unity (2004), HubSpot (2005) and Wix (2006). This set of companies took a median of 15.50 years to achieve $1 Billion in revenue (Unity at 16.75 years, HubSpot at 15.50 years, and Wix at 14.25 years).
The Journey to $1 Billion in Revenue
For those of you that love data as much as we do, below is the full data set used for this analysis.
Again, congratulations to the UiPath team! Stay tuned for the next Revenue Unicorn update.


About UiPath
As per the Company’s materials, UiPath is an automation platform designed to transform the way humans work. The Company was founded in 2005 by Daniel Dines and Marius Tîrcă. UiPath provides customers with a robust set of capabilities that allows them to discover automation opportunities and to build, manage, run, engage, measure, and govern automations across departments within an organization. The UiPath platform leverages the power of artificial intelligence based computer vision to enable their software robots to perform a vast array of actions as a human would when executing business processes. These actions include, but are not limited to, logging into applications, extracting information from documents, moving folders, filling in forms, and updating information fields and databases. The ability of UiPath’s robots to replicate steps performed by humans in executing business processes drives continuous improvements in operational efficiencies and enables companies to deliver on key digital initiatives with greater speed, agility, and accuracy.
The Company reported $263 Million in third quarter revenue for the period ended October 31, 2022. Combined with results from the preceding quarters, this recent performance boosts UiPath across the $1 Billion in annual revenue threshold as measured on a last twelve month basis to become the latest software Revenue Unicorn.
About the Revenue Unicorn Playbook
The Revenue Unicorn Playbook is an analytical guide that explores the growth of public software companies from $100 Million to $1 Billion in revenue. The goal of the Playbook is to offer founders and company leaders a framework to examine their growth and investments as they scale.
You can find the original Revenue Unicorn article here and presentation here.
The information provided herein is the opinion of Friends & Family Capital and does not reflect the view of any other person or entity. It is for informational purposes and should not be construed as an investment recommendation. Data sources include CapIQ and Wall Street research. Copyright © 2023, S&P Global Market Intelligence (and its affiliates, as applicable). Friends & Family Capital is an investment adviser registered with the U.S. Securities and Exchange Commission.