UiPath is possibly going to IPO 4/20/2021.
UiPath prides itself on automating companies.
It basically makes money by selling licenses.
Currently the CEO has majority ownership. After IPO, ceo is expected to hold 85% of the outstanding shares.
Class A shares have vote rights and are up for IPO.
Class B shares have 20 votes per share and are not up for IPO.
they have yet to make a profit.
The prospectus can be found at sec.report
It is not formatted well.
Their growth at scale chart looks impressive.
However, they have yet to make a profit and they plan to donate up to $500K to charity from the net proceeds of this IPO.
Net loss
2019: 261,649,000
2020: 519,993,000
2021: 92,393,000
Their fiscal year ends Jan 31. As of Jan 31, 2021 they have an accumulated deficit of 970.4 million dollars.
They have a bunch of competitors and their platform depends on third party tools.
Some of their competitors: Microsoft, Kyron Systerms, Appian Corp, Automation Anyware, WorkFusion
My guess is they hope to be acquired down the road.
In the prospectus they state the value of the class A shares could significantly decrease because of these and other risks (see prospectus).
they are dependent on a few core customers, if those customers fail to renew, then they could be badly harmed.
I have not read the whole prospectus. I don't plan on purchasing shares at IPO. If you are considering this company, what factors interest you?
I do plan to follow the company and see what happens with it. |
