UiPath's stock price drops 25% due to poor market forecast.

• UiPath's stock price decreased following the release of its fiscal first quarter 2023 guidance, which was considered weak.
• The war in Ukraine may cause uncertainty due to the exposure of CEO Daniel Dines in Europe.

On Thursday, shares of the enterprise automation software company dropped 25.7% after it announced a weak forecast for the fiscal first quarter of 2023.

UiPath reported its fiscal fourth quarter results on Wednesday after the market closed.

• According to a Refinitiv survey of analysts, earnings were 5 cents higher than expected.
• Revenue: $290 million vs. $283 million expected, according to Refinitiv

Daniel Dines, CEO, stated in a reference to the conflict in Ukraine, "We are confident in our market-leading position in automation and future growth prospects. However, we are cautious about our European exposure and go-to-market leadership transition, which we have factored into our financial outlook."

Dines said UiPath operates in Russia and other countries in eastern Europe.

The company anticipates Q1 revenue to be between $223 million and $225 million, which is lower than the analysts' expectation of $236 million. For the full fiscal year, the company now expects revenue in the range of $1.075 billion to $1.085 billion, which is also lower than the analysts' anticipation of $1.13 billion.

UiPath stated in the release that the unpredictable fluctuations in the stock price will significantly affect the variability of stock-based compensation expense specific to equity compensation awards, which may have a significant impact on our future GAAP financial results.

On Wednesday, UiPath announced the appointment of former executive Chris Weber as its new Chief Business Officer, while also stating that Chief Revenue Officer Thomas Hansen would be departing the company for other opportunities. Hansen will remain with the company until the end of fiscal Q1 2023 to assist with the transition.