UiPath’s stock soars toward a 19-month high after profit, revenue rise above expectations

Shares of UiPath Inc.
PATH,
-0.55%
shot up 13.3% toward a 19-month high in after-hours trading Thursday, after the automation-software company reported fiscal third-quarter adjusted profit and revenue that rose above expectations, amid strength in the licenses and subscription services businesses. Net losses for the quarter to Oct. 31 narrowed to $31.5 million, or 6 cents a share, from $57.7 million, or 10 cents a share, in the year-ago period. Excluding nonrecurring items, such as stock-based compensation expenses, adjusted earnings per share rose to 12 cents from 5 cents to beat the FactSet consensus of 7 cents. Total revenue grew 24% to $325.9 million, above the FactSet consensus of $315.6 million, as licenses revenue jumped 25.3% to $148.1 million and subscription services revenue climbed 28.7% to $167.5 million. For the fourth quarter, the company expects revenue of $381 million to $386 million, which surrounds the FactSet consensus of $383 million. The stock, which fell 0.6% during regular-session hours after closing the previous session at a 15-month high, has run up 26.6% over the past three months, while the SPDR S&P Software & Services ETF
XSW,
-0.60%
has tacked on 1.3% and the S&P 500
SPX,
+0.38%
has edged up 1.2%.