UiPath – The most anticipated IPO of 2021
UiPath is a company that lets users build and apply bots to their operational processes. Think of it as Wix (website builder), but for automation and artificial intelligence, only Wix simplifies the process of web design for their users, while UiPath simplifies the process of designing and applying intelligent bots and automation. Their purpose, they claim, is “to accelerate human achievement”.
“Our platform leverages the power of AI-based computer vision to enable our 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. Our robots’ ability to learn from and replicate workers’ steps 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.”
What are its fundamentals?
- Market cap of 37 billion USD
- It has excellent gross margins, between 82-89% for the last two years.
- They’ve cut their operating costs from $520M to $92M in just a single year, trimming their cost of sales and marketing from 144% of revenue to 62%.
- It has generated revenues of $336M and $607M in the last two years, representing a growth rate of 81% Year over Year.
- They also disclose that their top 50 customers increased their spending by a multiple of 81x from their first month to present spending! In other words, the clients with the most money to spend couldn’t wait to give this company more money.
As of February 2021, they have 7,968 customers, including 8 of the Fortune 10 companies and 63% of the Fortune Global 500. They are also already disrupting the accounting industry. A representative from PricewaterhouseCoopers spoke about them saving 5 million hours of work by using UiPath, already saving them 500 million.
UiPath’s product is an RPA(Robot Process Automation) process automation software that makes it easy to manage and deploy software robots, that emulate humans actions interacting with digital systems and software. You may say that we have had process automation for a long time already. This is true, but UiPath takes this concept and makes it available to people that are not necessarily software developers. There are a lot of automation tools, frameworks and libraries out there but they are meant to be used by people with a software development background. Adding a high amount of usability to an existing concept is something that defines the success of some big tech players we currently have in the market.
Think about how many age-old processes are out there. Any job that is related to data operation is a possible subject for RPA. I’m sure that most people, including me in school, or others at work, have had to deal with a super boring repetitive task, such as copy-pasting something from a website into a spreadsheet, or something similar to this. Imagine how many companies have operators that do exactly these kinds of jobs and how appealing it would be for these companies to say goodbye to the human operator and welcome a "robot" instead.
via r/wallstreetbets https://ift.tt/3qhG8Zq
July 22, 2021 at 11:18AM