Company: PATH
Filing Date: 2025-09-08
Form Type: 10-Q
Source: 0001734722-25-000043
Chunk: 82

Company: UiPath, Inc.
Filing Date: 2025-09-08
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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 discounts and premiums on marketable securities.

Provision For Income Taxes

Provision for income taxes consists of U.S. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business. Our effective tax rate is impacted by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as by non-deductible expenses as permanent differences, and by changes in our valuation allowances. We currently maintain a full valuation allowance on our U.S. federal and state and Romania DTAs, as we have concluded as of July 31, 2025 that it is more likely than not that these DTAs will not be realized. However, given our current earnings and anticipated future earnings, we believe that there is a reasonable possibility that sufficient positive evidence may become available to allow us to conclude that a valuation allowance is no longer needed for our U.S. DTA within the next six months, and for our Romania DTA, or a portion thereof, within the next 18 months, which would result in income tax benefit in the period of the respective release.

31

Results of Operations

The following tables set forth selected condensed consolidated statement of operations data and such data as a percentage of total revenue for each of the periods indicated: Three Months Ended July 31,Six Months Ended July 31, 2025202420252024 (in thousands)(in thousands)Revenue:  Licenses$112,161 $112,251 $240,447 $252,379 Subscription services238,363 194,673 455,666 379,804 Professional services and other11,204 9,329 22,239 19,182 Total revenue361,728 316,253 718,352 651,365 Cost of revenue:Licenses (1)1,200 2,393 2,468 4,994 Subscription services (1)(2)(3)(4)38,229 43,529 76,697 80,283 Professional services and other (2)(3)(4)24,951 17,398 49,072 33,368 Total cost of revenue64,380 63,320 128,237 118,645 Gross profit297,348 252,933 590,115 532,720 Operating expenses:Sales and marketing (1)(2)(3)(4)166,303 194,330 325,964 374