Company: PATH
Filing Date: 2025-09-08
Form Type: 10-Q
Source: 0001734722-25-000043
Chunk: 86

Company: UiPath, Inc.
Filing Date: 2025-09-08
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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 in personnel-related expenses, which included a $0.7 million decrease in stock-based compensation expense. The decrease in cost of subscription services revenue was primarily driven by a $7.4 million decrease in personnel-related expenses, which included a $4.8 million decrease in salary-related and bonus expenses associated with reduced headcount and a $1.6 million decrease in stock-based compensation expense, partially offset by a $2.3 million increase in third-party hosting and software services costs as a result of increased usage of our subscription services. Cost of subscription revenue was also impacted by a $0.9 million decrease in costs associated with the use of third-party vendors. The decrease in cost of licenses revenue was primarily attributable to lower depreciation and amortization expense.

Our gross margin increased to 82% for the three months ended July 31, 2025 compared to 80% for the three months ended July 31, 2024, primarily driven by increased subscription services revenue and subscription services revenue margin.

Operating Expenses

Sales and Marketing

 Three Months Ended July 31,   20252024ChangeChange % (dollars in thousands)Sales and marketing$166,303 $194,330 $(28,027)(14)%Percentage of revenue46 %62 %  

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Sales and marketing expense decreased by $28.0 million, or 14%, for the three months ended July 31, 2025 compared to the three months ended July 31, 2024. The decrease was primarily attributable to a $30.7 million decrease in personnel-related expenses, which included a $14.1 million decrease in stock-based compensation expense, a $6.8 million decrease in salary-related and bonus expenses associated with reduced headcount, a $7.4 million decrease in employee termination benefits due to reduced activity under our Fiscal Year 2025 Workforce Restructuring, and a $1.4 million decrease in general employee severance. This decrease was partially offset by a $2.1 million increase in third-party consulting fees and a $1.2 million increase in sales commissions expense.

Research and Development

 Three Months Ended July 31,   20252024ChangeChange % (dollars in thousands)Research and development$98,341 $98,433 $(92)— %Percentage of revenue27 %31 %  

Research and development expense remained relatively constant for the three months ended July 31, 2025 compared to the three months