Company: PATH
Filing Date: 2025-06-03
Form Type: 10-Q
Source: 0001734722-25-000030
Chunk: 84

Company: UiPath, Inc.
Filing Date: 2025-06-03
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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0.4 million shares of Class A common stock (outside of the 2021 Plan) to be released to certain employee sellers in equal installments on the first, second, and third anniversaries of the closing date, subject to employment-related clawback provisions. As of April 30, 2025, total unrecognized compensation expense related to these shares was $0.6 million, which is expected to be recognized over a weighted-average remaining period of 0.2 years.Stock-Based Compensation ExpenseStock-based compensation expense is classified in the condensed consolidated statements of operations as follows (in thousands):Three Months Ended April 30,20252024Cost of subscription services revenue$3,874 $4,276 Cost of professional services and other revenue2,728 2,470 Sales and marketing23,586 36,216 Research and development34,595 29,142 General and administrative11,578 16,623 Total$76,361 $88,727 

13. Income Taxes

Our tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items arising in the applicable quarter. In each quarter, we update the estimated annual effective tax rate and make a year-to-date adjustment to the provision. The estimated annual effective tax rate may change due to several factors, including the relative amount of income we earn in various jurisdictions and certain book-tax differences.We had a provision for income taxes of $2.8 million, reflecting an effective tax rate of (14.3)%, and $3.8 million, reflecting an effective tax rate of (15.1)%, for the three months ended April 30, 2025 and 2024, respectively. For the three months ended April 30, 2025 and 2024, our effective tax rate differed from the U.S. federal statutory rate primarily as a result of not recognizing deferred tax expenses due to a full valuation allowance on U.S. and Romania deferred tax assets ("DTAs") and due to tax rate differences between the U.S. and foreign countries.

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Table of ContentsUiPath, Inc.Notes to Condensed Consolidated Financial Statements (Continued)(unaudited)

The realization of tax benefits of net DTAs is dependent upon future levels of taxable income of an appropriate character in the periods the items are expected to be deductible or taxable. As of April 30, 2025, based on the available positive and negative evidence, we believe it is