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Shares of UiPath jumped as much as 26% on Wednesday during its public debut at the New York Stock Exchange, bringing its valuation $37 billion at intraday highs.
Founded in Bucharest, Romania, the automation software startup opened at $65.50, 17% higher than its initial public offering price of $56 per share.
The rally in UiPath indicates the growing demand for such services as more businesses automate their operations, especially during the pandemic.
“COVID accelerated cloud adoption helping both new companies build lasting franchises, and existing companies stay relevant,” Dharmesh Thakker, general partner at Battery Ventures, told Insider.
He continued: “Companies like UIPath, which help automate mundane tasks, not only help with bottom-line savings, but also help companies stay productive in a hybrid WFH environment, and help companies focus on differentiated strategic initiatives.”
Founded in 2005 by former Microsoft executive Daniel Dines and Marius Tirca, UiPath automates mundane, repetitive, and time-consuming office tasks through artificial intelligence and machine learning.
“Covid-19 has heightened the critical need of automation to address challenges and create value in days and weeks, not months and years. We are committed to working harder to help our customers evolve, transform, and succeed fast in the new normal,” Dines said in a statement during its Series E funding in July.
More than 36 investors — including Accel Partners, CapitalG (formerly Google Capital), Sequoia Capital, and Kleiner Perkins — have put billions into the company. UiPath was initially valued at $35 billion this year.
“The pandemic gives UiPath the perfect trajectory to define the market, but they have to deliver on that,” Craig Le Clair, Forrester principal analyst and automation expert, told Insider. “It’s very hard to get super unicorn valuation if you’re doing something just a little better in an existing market.”
Snowflake, a data-management company that went public in September, has seen its stock drop since its debut.
Still, records show UiPath is on a good track. Annual recurring revenue grew 65% to $580 million from $351 million in the fiscal year ending January 31, 2021, compared to the previous year. Revenue climbed 81% to $607 million from $336 million in the same period.
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Source:: Business Insider