On September 4, UiPath fell 7.79% in pre-market trading, trading at $16.78/share. The decline followed the company's fiscal Q2 earnings release, where revenue beat expectations but earnings stagnation and a leadership change triggered a sell-off.

UiPath reported fiscal Q2 revenue of $410.3 million, up from $361.7 million a year earlier and above the consensus estimate of approximately $397.9 million. However, adjusted earnings per share came in at $0.15, unchanged from the same period last year, disappointing investors who had expected improving profitability. The company raised its full-year revenue guidance to $1.789 billion to $1.794 billion, above the prior range and the FactSet estimate of $1.778 billion. For Q3, UiPath guided revenue of $440 million to $445 million, roughly in line with estimates.

Simultaneously, UiPath announced the promotion of Deputy CFO Hitesh Ramani to Chief Financial Officer, replacing Ashim Gupta, who will continue as COO. The management reshuffle added to uncertainty. Annual recurring revenue reached $1.938 billion, up 12% year-over-year. Despite the top-line beat and raised guidance, zero earnings growth combined with the executive transition weighed on sentiment, prompting profit-taking after the stock had recently benefited from UBS raising its price target to $19 from $12.

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