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Item 1. Business

2023-03-24 compared with 2022-04-04 · 142 added, 202 removed, 72 unchanged (83% of the section changed)

Our automation platform is designed to transform the way humans work.

We provide our customers with a robust set of capabilities that allow them to discover automation opportunities and to build, manage, run, engage, measure, and govern automations across departments within an organization.

Our platform leverages the power of artificial intelligence ("AI") based computer vision to enable our software robots to perform a vast array of actions as a human would when executing business processes.

These actions include, but are not limited to, logging into applications, extracting information from documents, moving folders, filling in forms, and updating information fields and databases.

The ability of our robots to replicate steps performed by humans in executing business processes drives continuous improvements in operational efficiencies and enables companies to deliver on key digital initiatives with greater speed, agility, and accuracy.

Our platform interacts with and automates processes across a company’s existing enterprise stack.

As a result, our customers can leverage the power of our platform without the need to replace or change existing business applications, resulting in lower overall information technology ("IT") infrastructure cost.

Our platform enables employees to quickly build automations for both existing and new processes.

Employees can seamlessly maintain and scale automations across multiple deployment options, constantly improve and evolve automations, and continuously track and measure the performance of automations, all without substantial technical experience.

At the core of our automation platform is a set of capabilities that emulates human behavior and provides our customers with the ability to automate both simple and complex use cases.

Automations can be built, consumed, managed, and governed by any employee who interacts with computers, resulting in the potential for broad applicability across departments within an organization.

Many of our customers expand the scope and size of use cases across their organizations as they quickly realize the power of our platform.

We believe that the success of our land-and-expand business model is centered on our ability to deliver significant value in a short time.

We grow with our customers as they identify and expand the number of business processes to automate, which increases the number of robots deployed and the number of users interacting with robots.

We have an efficient go-to-market model, which consists primarily of an enterprise field sales force supplemented by a high velocity inside sales team focused on small and mid-sized customers, as well as a global strategic sales team focused on the largest global customers.

Our mission is to unlock human creativity and ingenuity by enabling the fully automated enterprise and empowering employees through automation.

Our society is at a turning point in how organizations execute work, and we believe that the ability to leverage software to enrich the employee experience will unlock tremendous value and efficiency opportunities.

While we are still in the early days of a multi-year journey, momentum is growing as organizations across the world are only now beginning to understand the power of automation.

We believe that we are disrupting a significant and fast-growing market and that the largely untapped opportunity ahead of us has the potential to be one of the biggest ever in enterprise software.

First established in a Bucharest, Romania apartment in 2005, UiPath was incorporated in Delaware in 2015 as a company principally focused on building and managing automations and developing computer vision technology, which remains the foundation of our platform today.

Since that time, we have evolved from our beginnings in RPA into an end-to-end A I -powered automation platform through development and acquisitions, launched new products, and expanded our operations across the globe.

Our vision is to enable automation across all knowledge work to accelerate human achievement.

The UiPath Business Automation Platform is The Foundation of Innovation™ because it can be used everywhere, by everyone, for everything, to benefit every business.

We provide our customers with a robust set of capabilities that allow them to discover opportunities for automation, automate using a digital workforce that seamlessly collaborates with humans, and operate a mission critical automation program at scale.

Our platform enables employees to quickly build automations for both existing and new processes and to utilize software robots to perform a vast array of actions including, but not limited to, logging into applications, extracting information from documents, moving folders, filling in forms, and updating information fields and databases.

The ability of our software robots to replicate steps performed by humans in executing business processes drives operational efficiencies and enables companies to deliver on key digital initiatives with greater speed, agility, and accuracy.

Enterprise automation is here, and its momentum is growing as organizations around the world begin to understand the power of automation to drive efficiency and business outcomes.

We aspire to be the defining company, advancing the evolution of automation as not just a tool, but as a way of operating and innovating.

Trends Shaping Our Industry

Explosive growth of cloud-based applications is creating a new era of IT complexity.

Businesses around the world are spending billions of dollars to adopt applications that help advance digital transformation and drive competitive advantages.

With the proliferation of cloud technologies and software-as-a-service ("SaaS"), traditional software suites have been disaggregated into point solutions.

For example, human capital management software has been segregated across recruiting, payroll, benefits administration, and other key business functions.

As a result, enterprises have transitioned from managing a handful of multi-purpose, largely on-premises applications to managing hundreds and even thousands of specialized point solutions deployed across on-premises, cloud, and hybrid environments.

These applications, which were generally not designed for interoperability, run in tandem with long-running, legacy technologies.

The increasing volume of applications has a compounding effect on the complexity of business processes and the IT environments that support them.

The benefits of digital transformation have yet to make their way to the workforce .

Modern enterprise applications enable deep and nuanced functionalities, such as conducting personalized marketing campaigns, predictive service delivery, and real time visibility of goods movement across the supply chain.

However, despite massive functional advancement, the true promise and potential of digital transformation—reallocating human capital towards cognitive, higher-value activities—remains elusive, which limits improvements in productivity.

Individual business processes rely on multiple business applications, and humans to orchestrate them.

While specialized applications deliver extensive functionality, they do not account for the full spectrum of how work gets done.

The proliferation of specialized applications has resulted in humans being the connective tissue in an enterprise, working across a wide range of applications that individually are not built to address the needs of the actual processes they are supporting.

As a result, activities performed by many employees today are still manual, mundane, and administrative, taking their focus away from higher-value activities that can directly improve business performance.

Manual and repetitive tasks have a negative impact on employee experience.

Employees must navigate an ever-increasing number of systems and applications to perform their day-to-day work.

This dynamic forces them to constantly execute manual, time-consuming, and repetitive tasks to get their work done.

The friction faced by employees often results in lost productivity that can have a direct impact on a company’s bottom line.

Traditional automation solutions intended to reduce this friction have generally been designed to be used by developers and engineers, rather than the employees directly involved in executing the actual work being automated.

As a result, employees are limited by the lack of flexibility of these traditional automation technologies, and employee productivity, innovation, and satisfaction suffer.

Empowering employees to automate their personal workflows is leading to a democratization of automation.

The emerging workforce is developing increasingly advanced technical skills and training in automation.

Individuals are entering the workforce with higher expectations related to job impact, satisfaction, and efficiency, and view software as a driving force in realizing those expectations.

As a result, organizations are seeking to empower employees with tools that optimize the more tedious parts of their jobs.

Together, the combination of technology that can emulate human behavior and a workforce with the knowledge and tools to create their own automations has enabled enterprises to begin to automate a significant number of use cases, from individual tasks to enterprise-wide processes.

Cost of skilled human capital is accelerating the evolution towards the fully automated enterprise.

The cost of skilled human capital continues to rise due to growing demand.

This trend has become particularly evident in light of the high rate of voluntary resignations following the COVID-19 pandemic, known as "The Great Resignation." We believe it is increasingly imperative for enterprises to leverage automation to liberate employees from menial, repetitive, and less productive tasks and to better utilize the positive qualities that only humans have, such as abstract thinking, making connections, dealing with ambiguity, creativity, innovation, passion, and community engagement.

We believe this will drive enterprise value and greater employee engagement.

Automation is the new frontier of competitive differentiation.

Enterprises want to be able to unify, tailor, and run applications without significant IT resources or changes to existing infrastructure.

Automation solutions that can accurately and consistently emulate human behavior are able to work within existing business processes in a way that traditional applications cannot, allowing businesses to harness the power of their specialized applications.

This new approach is disrupting traditional automation and transforming data-processing work by allowing customers to find efficiencies without materially changing business processes or infrastructure.

The market for robotic process automation ("RPA") is one of the fastest growing enterprise software markets and is increasingly competitive.

We believe our competitors primarily exist across the following three categories:

A fragmented application landscape complicates business processes and hinders digital transformation.

Businesses worldwide have spent billions of dollars on software in an attempt to drive efficiency and competitive advantages.

A proliferation of applications has resulted in a shift from traditional software suites to specialized point solutions.

Enterprises have transitioned from managing a handful of multi-purpose, largely on-premises applications to managing hundreds or thousands of point solutions deployed across on-premises, cloud, and hybrid environments.

These applications, which were generally not designed for interoperability, run in tandem with legacy technologies, relying on humans to act as the connective tissue in the performance of business processes.

As a result, employees lose valuable time navigating a fragmented application landscape and attention is diverted away from more cognitive activities that could directly improve business outcomes.

Automation of personal workflows can lead to a democratization of automation.

Employees must navigate an ever-increasing number of systems and applications and execute many manual and repetitive tasks in the performance of their day-to-day work, leading to frustration and lost productivity.

While traditional automation solutions have attempted to address this friction, they frequently fall short of expectations because they have been designed for use by developers and engineers, rather than the employees who are directly involved in and familiar with the work being automated.

By contrast, low-code solutions require little technical expertise and empower employees to use their firsthand knowledge of business processes to easily automate their personal workflows, resulting in personal and organizational benefits.

Resource constraints require organizations to maximize workforce productivity.

Enterprises are under pressure to maximize the productivity of their employees.

This is even more critical in the current macroeconomic climate.

Inflationary tensions have caused resource constraints for organizations, driving them to become more cost-conscious and seek new opportunities for efficiency and savings.

Investment in automation allows organizations to devote human capital resources to the highest value tasks that humans do best, such as abstract thinking, innovation, relationship building, and dealing with ambiguity.

Recent advancements in AI are enabling automation of sophisticated business processes and broader use cases.

While RPA can easily capture data and manipulate applications like a person would, automation of certain more complex and cognitive tasks has historically been out of reach.

The evolution of AI , which refers to decision-making capabilities demonstrated by computer programs, has now enabled the automation of processes with characteristics—such as high variability, inherent uncertainty, and unstructured data—that would have been impossible to automate with RPA alone.

AI expands capabilities by enabling software robots to learn how to read, write, listen, recognize patterns, and make complex decisions, bringing automation to a new level by opening a world of new opportunities for business growth, cost reduction, and improved productivity.

The market for automation is one of the fastest growing enterprise software markets and is increasingly competitive.

We believe our competitors primarily fall into the following three categories:

• Enterprise platform vendors that are acquiring, building, or investing in automation functionality or partnering with automation providers.

• RPA software providers that offer RPA platforms, but lack end-to-end automation capabilities.

• Adjacent automation and integration platform companies, such as low-code, intelligent business process management suite ("iBPMS"), integration platform as a service ("iPaaS"), process mining, and test automation vendors, that provide additional features that can be useful for automations.

We have alliances and integrations with the key vendors in each of these groups, but they often develop and market automation capabilities as extensions of their core platforms.

• Enterprise platform vendors that are acquiring, building, or investing in RPA functionality or partnering with RPA providers.

• Adjacent automation and integration platform companies, such as low-code, iBPMS , iPaaS , process mining, IDP , and test automation vendors, that provide additional features that can be useful for automations.

We have alliances and integrations with key vendors in each of these groups, but they often develop and market automation capabilities as extensions of their core platforms.

A number of technology companies have attempted to address the automation needs of organizations through the application of business process management, application development platform offerings, RPA tools, and AI point offerings, as well as other horizontal software applications.

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• lack of an end-to-end platform;

• overreliance on application programming interfaces ("APIs");

• inability to automate across applications;

• immature UI automation capabilities;

• challenges in linking AI capabilities to real-world execution;

• immature user interface ("UI") automation capabilities;

• need for changes to an enterprise's underlying infrastructure;

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• lack of governance capabilities at scale;

• onerous deployment;

• lack of openness and interoperability;

• lack of an engaged user community.

What We Offer

Our platform is purpose-built to be responsive to these challenges and to advance the next generation of automation with several key strengths:

• Our open ecosystem is architecture agnostic, which allows organizations to automate existing infrastructure and accelerate digital innovation without the need to replace or make large investments in their existing infrastructure.

• Our platform’s embedded AI and machine learning ("ML") capabilities improve decisioning and information processing by adapting to constantly changing variables.

• Our robots’ ability to emulate human behavior allows organizations to leverage our platform to address a myriad of use cases, from the simple to the complex, and makes automation accessible to employees throughout an organization.

• Our platform’s embedded AI, ML , and NLP capabilities improve decisioning and information processing by adapting to constantly changing variables.

• Our software robots’ ability to emulate human behavior allows organizations to address a myriad of use cases, from simple to complex, across levels and departments.

• Our platform allows users to seamlessly design and combine UI automations, API integrations, and AI-based document understanding in a single workflow.

• Our multi-tenant platform is built for enterprise deployment, with security and governance at its core, and can be deployed on-premises, in a public or private cloud, or in a hybrid environment.

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• Our technology democratizes automation, empowering employees and resulting in greater professional fulfillment and job satisfaction.

• Our platform was designed to enable people and robots to work together in harmony, with each focusing on the processes they execute best, to improve business outcomes.

Robots execute the time-consuming, manual processes that make work less interesting and satisfying, freeing up humans to think more creatively, innovate, and solve complex problems.

Our Platform and the Automation Lifecycle

Our platform is built to span the entire automation lifecycle.

We provide our customers with a comprehensive set of capabilities to discover, build, run, manage, engage, measure, and govern automations across departments and personas within an organization:

Discover combines AI with desktop recording, back-end mining of both human activity and system logs, and intuitive visualization tools, enabling users to discover, analyze, and identify unique processes to automate in a centralized portal.

• Automation Hub is a command center that enables an organization’s center of excellence ("COE") to easily source, manage, and control the automation pipeline in one place.

• Process Mining can natively extract, transform, and log data from business applications and productivity tools to get a thorough understanding of business processes.

• Task Mining automatically identifies and aggregates employee workflow across allowed applications.

• Task Capture allows employees to document processes on their computers by simply hitting “record.”

Build offers low-code development environments with easy-to-use, drag-and-drop functionality that users in an organization can use to create attended and unattended automations without any prior knowledge of coding.

• Studio is an easy-to-use development platform designed for RPA developers looking to build complex process automations with built-in governance capabilities.

• StudioX is our low-code, drag-and-drop, citizen development platform empowering employees to automate tasks for themselves and their immediate teams.

• Document Understanding leverages AI and ML to enable software robots to extract, interpret, and process data from structured, semi-structured, and unstructured documents.

• Integration Service empowers developers to seamlessly combine UI automation with API automation.

• Marketplace offers vetted, pre-built, and reusable automaton activities and components developed by our employees, customers, partners, and students to help enterprises rapidly implement automations and save development time and costs.

Run deploys robots in highly immersive attended experiences or in standalone, unattended modes behind the scenes, and can leverage native connectors built for commonly used line-of-business applications.

• Attended Robots work side by side with people, handling workflow tasks as specified and running either on command or based on pre-defined triggers.

• Assistant is a desktop launchpad that providers users with easy access to attended automations.

• Unattended Robots are designed to work independently and can handle complex, long-running processes, working in the background and involving people as needed to validate information or handle exceptions.

• Test Robots run test automations for both RPA testing and application testing.

Manage offers centralized tools designed to securely and resiliently manage, test, and deploy automations and ML models across the entire enterprise, with seamless access, enterprise-grade security, and endless scalability of data.

• Orchestrator is the heart of an enterprise’s automation management, giving an organization the power to provision, deploy, trigger, monitor, measure, and track the successful operation of a business’s robots from any supported device.

Orchestrator tracks and logs robot activity, along with what people do in tandem, to maintain strict compliance and governance through dashboards and visualization tools.

• Test Manager automates and centralizes testing to improve the quality of automations and applications before they go live, whether testing RPA workflows, web applications, enterprise applications, or mobile applications, and is seamlessly integrated with Atlassian Jira.

• Insights tracks, measures, and forecasts the performance of a single automation to the entire automation program through dashboards and one-click drilldowns, offering self-service analysis and tools to share reports with key stakeholders across the company.

• Data Service provides low-code data modeling and storage capabilities to centrally model, manage, and store automation data directly in our platform with enterprise-grade security.

• AI Center enables organizations to integrate and deploy their own ML models, pre-built UiPath models, or custom models from a UiPath partner or other third-party into their workflows.

Engage allows our customers to manage long running processes that orchestrate work between robots and humans.

From triggering robots to handling requests from robots, or consuming data that is surfaced by robots, people can easily remain a key part of the automated processes and launch, audit, and enhance automations.

• Apps enables users to easily develop a purpose-built presentation layer that acts as the interface between people and robots on a workstation desktop, tablet, or mobile phone.

• Action Center enables robots and people to collaborate more efficiently and effectively when an automation includes decisions that humans should make—such as approvals, escalations, and exceptions.

• Assistant enables users to view, manage, and set reminders for automations, as well as request to start or stop jobs and change settings based on user inputs.

• Chatbots enable users to trigger robots to accomplish tasks through conversational interfaces, social messaging apps, and even voice channels, in multiple languages.

Measure and Govern enable users to track, measure, and forecast the performance of automation in their enterprise and help businesses ensure compliance with business standards.

Our platform is designed to balance compliance with empowerment through granular control of what can be automated, who can build and publish automations, and complete lifecycle management with role-based access control and enforcement.

Measurement capabilities are driven by our Insights product, and Automation Ops provides policy-based administration for governance activities.

UiPath Community

We have created and cultivated a vibrant, global network of 1.9 million automation professionals who are building and sharing automations that are transforming work and their organizations.

Over one million users are enrolled in UiPath Academy, our online training platform that offers free, unlimited access to learning plans based on various automation-related job roles.

Approximately 1,800 universities, colleges and non-profit organizations across 68 countries are in our Academic Alliance program, which gives professors free automation curriculum to teach automation skills to future generations.

As of January 31, 2022, over 2,400 trained educators have provided learning courses to more than 300,000 students since the program's launch in 2019.

• Our platform was designed to enable people and software robots to work together in harmony, with each focusing on the processes they execute best, to improve business outcomes.

The UiPath Business Automation Platform

Our platform is built to span the full automation spectrum.

We recently updated its name to reflect our belief that our platform, the UiPath Business Automation Platform, is now at the center of the way our customers run their businesses—sitting between their application landscape, their processes, and their people—allowing their processes and people to move forward at the rate that they need to, by delivering resilient and robust automations and applications.

Continuously uncovers opportunities for process and task improvements, helping to identify the highest-ROI areas

Process Mining enables complete transparency into business processes and transforms them with automation and improvements that drive continuous operational efficiency.

Task Mining provides an objective, data-driven picture of desktop processes quicker and with fewer resources required, allowing organizations to act on gained insight through automation.

Communications Mining lets users mine, monitor, and automate service conversations to scale operations efficiently and improve the experience of their customers.

Idea Capture & Management enables organizations to centrally capture and manage automation ideas and process improvements, prioritized by impact and ROI.

Gets more done with a digital workforce that seamlessly collaborates with people and automates work via UI and API, powered with native-integrated AI

Low-code development empowers employees to build business apps and automations rapidly with low-code, visual tools.

UI and API automation are combined for maximum scale and speed across the broadest range of systems.

Process orchestration enables users to create smarter decision-making and collaboration between people and software robots.

Intelligent Document Processing removes the work from paperwork with semantic understanding of a wide range of documents—accurately and quickly.

Integrated NLP and AI/ML makes software robots smarter to seamlessly automate more sophisticated work.

An enterprise-grade foundation to run and optimize a mission critical automation program at high scale

Analytics provides the operational and business insight organizations need for their automation programs.

Continuous testing guarantees reliability by continuously testing and monitoring automations and the applications they rely on.

Unified management and governance allows the organization to monitor the integrated platform and their automation program centrally at the lowest cost of ownership.

Flexible deployment allows organizations to use the complete cloud-native platform SaaS or self-hosted for maximum flexibility.

Our Growth Strategies

We are pursuing a large market opportunity with growth strategies that include:

Acquire New Customers — Our market is rapidly growing and largely unpenetrated.

We believe that as more organizations adopt our automation platform and experience quantifiable competitive advantages, other organizations will also adopt automation as a necessary tool to compete.

Our go-to-market team sells to organizations of all sizes and across a broad range of industries.

We also use an inside sales team focused on small and mid-sized businesses.

We plan to continue to invest in our go-to-market team to grow our customer base both domestically and internationally.

Expand Within Our Existing Customer Base — Our customer base represents a significant opportunity for further sales expansion through the following vectors:

• deploy more software robots across different departments;

• provide more employees with their own robot assistants;

• increase adoption of platform products beyond core RPA, such as our Document Understanding offering and process discovery suite of tools;

• expand use cases for automation in the organization

Grow and Cultivate Our Partner and Channel Network —We are focused on maintaining and growing our ecosystem of partners that build, train, and certify skills on our technology as well as those that deploy our technology on behalf of their customers.

Continue to Innovate and Invest in Our Platform — We believe that we have built a differentiated automation platform and intend to continually increase the value we provide to our customers by investing in extending the capabilities of our platform.

We have made and will continue to make significant investments in research and development to enhance our technology.

Foster the Next Generation of Work and Grow Our Community — We have built an extensive ecosystem through our Community and UiPath Academy initiatives, which support and train individuals working with our platform.

We believe automation will be a foundation of the future of work and, as individuals build out their skillsets, this will drive greater adoption of our platform.

Continue to Invest in Major Markets — We believe there is a significant opportunity to expand use of our platform in the top 25 countries as measured by gross domestic product.

We intend to continue to make investments to expand our sales and drive adoption of our platform throughout those markets, and believe that North America, in particular, presents an important opportunity for us.

Opportunistically Pursue Strategic Acquisitions — We have acquired businesses and technologies to drive product and market expansion.

We will continue to evaluate acquisition opportunities that we believe will be complementary to our existing platform, enhance our technology, and increase the value proposition we deliver to our customers.

Sales and Marketing

We have made significant investments in our sales and marketing efforts globally, with physical sales presence in every major global software market.

Our global go-to-market strategy has enabled us to establish a geographically diverse revenue and customer base with meaningful contributions across the Americas, Europe, Middle East, and Africa, and Asia Pacific and Japan.

We sell our solution through a direct sales team and through channel partnerships.

Our sales organization is supported by a team of pre-sales engineers and our professional services organization that offer technical expertise to help customers speed adoption and return on investment.

We sell to organizations of all sizes across a broad range of industries, with a focus on enterprise customers.

In certain geographies, we maintain specialized vertical teams that concentrate their efforts on selling to banking and financial services, healthcare, and government entities.

Our go-to-market strategy is a land-and-expand model.

Our ability to expand within our existing customer base is facilitated by the breadth of our platform.

Customer Acquisition and Expansion— We have simplified our go-to-market approach to drive a level of alignment that we believe will result in refined market segmentation, higher sales productivity, and better customer experience.

We sell automation not merely as a tool, but as a way of operating and innovating, and emphasize the ability of our platform to deliver meaningful business outcomes for our customers.

We sell our platform through a direct sales team, supported by a team of pre-sales engineers and our professional services organization, who offer technical expertise to help customers accelerate adoption and time-to-value.

We also sell through channel partnerships and are focused on maintaining and growing a high-quality ecosystem of partners that build, train, and certify skills on our technology as well as those that deploy our technology on behalf of their customers.

We sell to organizations of all sizes across a broad range of industries and geographies, with a focus on enterprise customers.

In certain geographies, we maintain specialized teams that concentrate on specific verticals such as financial services, healthcare, manufacturing, and public sector.

We've designed our go-to-market engine to segment our customer base according to propensity to invest in automation, and align our coverage model accordingly:

• Enterprise— We dedicate a higher density of resources and coverage to the largest companies with the highest propensity to invest in and potential to adopt automation at scale.

We believe these accounts represent our largest growth opportunity.

Here we focus on selling positive business outcomes that resonate with C-level executives and leverage our largest partners for enablement.

Dense coverage ratios and industry alignment of sales teams allow us to accelerate both new customer acquisition and usage expansion.

• Corporate and Mid-Market— We focus our more efficient and cost-effective resources on companies in the earlier stages of their automation journey, with a one-to-many coverage ratio.

Our customers frequently see rapid time-to-value with our products, and we are able to quickly expand sales within organizations as customers add features, expand use cases, and increase the number of software robots beyond their initial deployment.

The potential for broad applicability of the UiPath platform enables us to sell across all levels and departments of an organization.

Our marketing team drives brand awareness, cultivates a large and growing community, and drives demand through a combination of global and local campaigns.

We employ a variety of marketing tactics to reach prospective customers, including community evangelism, in-person and digital events, content marketing, digital advertising, search optimization, partner marketing, social media, and public relations.

We host and present at regional and global events, including our own Forward, Together, and DevCon conferences, and our UiPath Live!

and virtual Reboot Work Festival, both of which launched during the COVID-19 pandemic.

We also allow prospective customers to try our software.

We provide easy access via our Community Edition and Enterprise Trial, both available online.

Community Edition is offered for free to small businesses, university students, and individuals.

Enterprise Trial provides prospective customers with full functionality of our platform for a limited time.

The broad applicability of our platform enables us to sell across all levels and departments of an organization, affording opportunity for eventual graduation to the enterprise level.

• Small and Mid-Sized Business— We seek to sell to the smallest companies primarily through our most efficient partner-led, self-service, and digital channels, focusing on new durable customer acquisition.

In addition, we are developing opportunities for product-led growth which will enable us to speak to users within the product to organically nurture adoption and sell additional capabilities.

Our sales efforts are complemented by our marketing initiatives, which build brand awareness, cultivate a large and growing community, and drive demand through a combination of global and local campaigns.

We employ a variety of approaches to reach prospective customers, including community evangelism, in-person and digital events, content marketing, digital advertising, search optimization, partner marketing, social media, and public relations.

We host and present regularly at regional and global events, including our own Forward and Together conferences.

Platform Investment and Innovation— We intend to improve outcomes for our customers by expanding our platform.

We have made and plan to continue to make significant investments in research and development to enhance our technology.

For example, in May 2022, we released version 22.4 of the UiPath Business Automation Platform.

This release introduced new SaaS robots hosted in the UiPath Automation Cloud™, which allow customers to deploy unattended software robots instantly without IT , resources, or infrastructure.

Other improvements in 22.4 included a larger library of ready-to-go automations, upleveled security and governance, and support for macOS.

In October 2022, we released version 22.10 of the UiPath Business Automation Platform.

This newest version provides browser-based access to a low-code build platform, the ability to build public-facing apps, enhanced process and task mining capabilities, and platform intelligence to help software robots understand both structured and unstructured data.

Strategic Acquisitions— We have acquired businesses and technologies to drive product and market expansion.

For example, in July 2022, we acquired Re:inter LTD, a provider of NLP software focused on unstructured documents and communications, laying the foundation for our Communications Mining technology, which has been a fitting complement to our existing Document Understanding capabilities.

We expect to continue to evaluate acquisition opportunities that we believe are complementary to our platform.

Community Engagement— We have built an extensive ecosystem through our Community, UiPath Academy and Academic Alliance initiatives, which support and train individuals working with our platform.

Additionally, we offer free access via our Community Edition and Enterprise Trial, both available online.

(Community Edition is a limited version of our platform that is offered for free to small businesses, university students, and individuals, whereas Enterprise Trial provides full functionality for a limited time.) The result is a global network of automation professionals who are actively building and sharing automations and transforming the way work gets done.

We believe that our highly engaged user community differentiates us from competitors and that helping individual users to build their skills will drive future adoption of our platform.

We have a large and diversified customer base across a broad range of industry sectors.

We had over 10,100 and over 7,900 customers as of January 31, 2022 and 2021, respectively.

We develop and maintain business and technology partnerships that help us to seamlessly integrate the latest technology into our platform and market and deliver our platform to our customers around the world.

Our business partners include more than 5,100 global and regional system integrators, value-added resellers, and business consultants.

We provide tiering recognition through Diamond, Gold, Silver, and Registered levels for partners that meet competency requirements and deliver and maintain a specified number of satisfied customers.

These partnerships enhance our market presence and drive greater sales efficiencies.

We determine our customer count by considering the number of accounts with a unique account identifier for which we have an active subscription in the period indicated, including entities to which we have sold our products either directly or through a channel partner.

A single organization with multiple divisions, segments, or subsidiaries is counted as a single customer.

Our customer count is subject to adjustment for acquisitions, consolidations, spin-offs, and other market activity.

Non-paying partners and resellers and users of free or trial subscriptions are excluded from our customer count.

We had approximately 10,800 and over 10,100 customers as of January 31, 2023 and 2022, respectively.

The following chart illustrates the growth of our customer base over the past five years*:

We develop and maintain business and technology partnerships that help us to integrate the latest technology into our platform and to market and deliver our platform to our customers around the world.

Our business partners include regional system integrators, value-added resellers, and business consultants that enhance our market presence and drive greater sales efficiencies.

In fiscal year 2023, we closed deals with a select number of partners that will offer our technology as managed services to their customers.

While we have historically tiered partners based on their maintenance of competency requirements and a specified number of satisfied customers, we are in the process of transforming our partner ecosystem to increase focus on driving customer adoption, consumption, usage, and time-to-value, emphasizing quality of relationships.

Our technology partners bring specialized capabilities to our platform.

They collaborate with us to develop integrations that simplify the interoperability of our platform with their technology, resulting in faster time-to-value.

Examples of integrations available to our customers include integrations with offerings from Amazon Web Services Inc., Alteryx, Inc., Atlassian Corp Plc, Box, Inc., CrowdStrike, Inc., DocuSign Inc., Microsoft Corporation, Oracle Corporation, Qlik Technologies Inc., Salesforce.com, Inc., SAP SE, ServiceNow, Inc., Snowflake Inc., and Workday, Inc.

We also drive innovation with leading AI technology partners that specialize in optical character recognition ("OCR"), natural language processing ("NLP"), and custom ML and AI algorithms that are additive to our platform and can enhance the long-term business outcomes for our customers’ automations.

Examples of integrations available to our customers include integrations with offerings from Amazon Web Services Inc., Adobe Inc., Alteryx, Inc., Atlassian Corp Plc, Box, Inc., CrowdStrike, Inc., DocuSign Inc., Microsoft Corporation, Oracle Corporation, OutSystems, Qlik Technologies Inc., Salesforce.com, Inc., SAP SE, ServiceNow, Inc., Snowflake Inc., Tableau Software, LLC, and Workday, Inc.

We also drive innovation with leading AI technology partners that specialize in OCR , NLP, and custom ML and AI algorithms that are additive to our platform and can enhance the long-term business outcomes of our customers’ automations.

Additionally, we maintain partnerships with leading cloud vendors, such as Amazon Web Services Inc., Google Inc., and Microsoft Corporation, to both simplify the deployment of our platform and to extend our platform to offer customers the benefits of cloud-based AI capabilities.

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Intellectual property rights are important to the success of our business.

We rely on a combination of patent, copyright, trademark, and trade secret laws in the United States ("U.S") and other jurisdictions, as well as license agreements, confidentiality procedures, non-disclosure agreements with third parties, and other contractual protections, to protect our intellectual property rights, including our proprietary technology, software, know-how, and brand.

As of January 31, 2022, we held 31 issued patents:

24 U.S., 5 South Korea, 1 Taiwan, and 1 China.

We also had 160 pending patent applications in the U.S., including 9 allowed U.S.

We rely on a combination of patent, copyright, trademark, and trade secret laws in the U.S.

and other jurisdictions, as well as license agreements, confidentiality procedures, non-disclosure agreements with third parties, and other contractual protections, to protect our intellectual property rights, including our proprietary technology, software, know-how, and brand.

As of January 31, 2023, we held 114 issued patents which are scheduled to expire between October 2039 and February 2043, across several jurisdictions:

As of January 31, 2023, we also had 171 pending patent applications in the U.S., including 5 allowed U.S.

patent applications, 124 pending Patent Cooperation Treaty applications, and 410 pending and 10 allowed patent applications in other jurisdictions.

Our issued patents are scheduled to expire between October 2039 and February 2040.

As of January 31, 2022, we held 11 registered U.S.

We held 10 registered U.S.

trademarks, 11 pending U.S.

trademark applications, and more than 500 active foreign trademark filings.

As of January 31, 2022, we also held 54 internet domain names.

We also held over 45 internet domain names.

We continually review our development efforts to assess and identify the existence and patentability of new intellectual property.

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Although we rely on intellectual property rights, including patents, copyrights, trademarks, and trade secrets, as well as contractual protections to establish and protect our proprietary rights, we believe that factors such as the technological and creative skills of our personnel, development of new services, features, and functionality, and frequent enhancements to our platform are equally essential to establishing and maintaining our technology leadership position.

We control access to and use of our proprietary technology and other confidential information through the use of internal and external controls, including contractual protections with employees, contractors, customers, and partners.

We require our employees, consultants, and certain other third parties to enter into confidentiality and

proprietary rights agreements, and we control and monitor access to our software, documentation, and other confidential information.

We restrict access to and use of our proprietary technology and other confidential information through the use of internal and external controls, including contractual protections with employees, contractors, customers, and partners.

We require our employees, consultants, and certain other third parties to enter into confidentiality and proprietary rights agreements, and we control and monitor access to our software, documentation, and other confidential information.

Our policy is to require all employees and independent contractors to sign agreements assigning to us any inventions, trade secrets, works of authorship, developments, processes, and other intellectual property generated by them on our behalf and under which they agree to protect our confidential information.

In addition, we generally enter into confidentiality agreements with our customers and partners.

See the section titled “ Risk Factors —Risks Related to Our Intellectual Property,” included in Item 1A of this Annual Report on Form 10-K, for a description of risks related to our intellectual property.

See the section titled

“ Risk Factors —Risks Related to Our Intellectual Property ,” included in Item 1A of this Annual Report on Form 10-K, for a description of risks related to our intellectual property.

Government Regulation

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Further, the impact of these laws and regulations may disproportionately affect our business in comparison to our competitors that have greater resources.

In the United States, we are subject to data security and privacy rules and regulations promulgated under the authority of the Federal Trade Commission, the Electronic Communications Privacy Act, the Computer Fraud and Abuse Act, the California Consumer Privacy Act of 2018, ("CCPA"), and other state and federal laws relating to privacy and data security.

In the U.S., we are subject to data security and privacy rules and regulations promulgated under the authority of the Federal Trade Commission, the Electronic Communications Privacy Act, the Computer Fraud and Abuse Act, the CCPA , and other state and federal laws relating to privacy and data security.

The CCPA requires covered businesses to provide new disclosures to California residents and to provide them new ways to opt out of the sale of personal information, and provides a private right of action and statutory damages for data breaches.

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are beginning to propose laws similar to the CCPA.

As a result of our international operations, we must comply with a multitude of data security and privacy laws that may vary significantly from jurisdiction to jurisdiction.

As a result of our international operations, we must comply with many data security and privacy laws that may vary significantly from jurisdiction to jurisdiction.

Virtually every jurisdiction in which we operate has established or is in the process of establishing data security and privacy legal frameworks with which we or our customers must comply.

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We must also comply with sanctions that are issued by countries in which we do business.

As of March 2022, in response to Russia’s military operations in Ukraine, the U.S., the European Union ("EU"), the United Kingdom ("U.K."), Australia, Japan and other countries imposed sanctions on Russia.

Russia has also started to impose sanctions.

While this represents, at present, a small percentage of our business, it is a complex and rapidly evolving area.

In response to Russia’s military operations in Ukraine, the U.S., the EU , the U.K.

, Australia, Japan and other countries have imposed sanctions on Russia.

Russia has also imposed sanctions.

While Russia, Belarus, and Ukraine represent an immaterial percentage of our business, this is a complex and evolving area.

For a discussion of the various risks we face from regulation and compliance matters, see the sections titled “ Risk Factors —Risks Related to Data Privacy and Cybersecurity ” and “ Risk Factors —Risks Related to Regulatory Compliance and Governmental Matters ” included in Item 1A of this Annual Report on Form 10-K.

Employees and Human Capital Resources

Human Capital

Human capital is our most important asset.

We were recognized as one of Inc.’s Best Workplaces for 2020 and won six Best Company awards from Comparably in 2020, including awards for Happiness, Professional Development, and Leadership.

We were recognized as one of Inc.’s Best Workplaces for 2022 and won eight Best Company awards from Comparably in 2022, including awards for Global Culture, Happiness, Perks and Benefits, Leadership, and Best Places to Work in New York.

We have been able to attract and motivate exceptionally talented, educated, and experienced employees, and believe that our ability to continue to do so is critical to our success.

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As of January 31, 2023, we had a total of 3,833 full-time employees, geographically distributed as follows:

*Includes 1% in Russia, Ukraine, and Belarus combined

The following chart presents our full-time employees by financial statement line as of January 31, 2023:

We are subject to, and comply with, local labor law requirements in all countries in which we operate.

We consider our employee relations to be good and we have not experienced any work stoppages.

Since the beginning of the COVID-19 pandemic, the majority of our workforce has been working remotely;

although we expect most of these employees to return to our offices in the future, the extent and timing of that return is still uncertain.

We are subject to local labor law requirements in all countries in which we operate.

We consider our employee relations to be good and have not experienced any work stoppages.

Culture and Values

We believe our culture and values are critical to our success and have helped us deliver tangible financial and operational benefits to our customers, employee s, and stockholders.

Early on in our company’s history, we decided

to make humility the center of our values.

While humility is a muscle to be trained, we believe it should come through in everything we do.

We complement humility with our other core tenets in our culture:

• Be humble – listen, learn, help

• Be bold – challenge, seek, explore

• Be immersed – consider, reflect, imagine

• Be fast – act, preempt, experiment

In addition to our four core values, we believe open and transparent communication is critical to a high-performing business.

We also believe that our employees must feel that they work in a psychologically safe environment.

We are determined to always act quickly to best serve our customers and partners, deliver on our product platform vision, and create a better place to work.

We believe that our culture and values are critical to our success and help us to deliver tangible financial and operational benefits to our customers, employee s, and stockholders.

Our core values are:

Diversity, Equity, and Belonging

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We have added dedicated diversity, equity, and belonging roles to our human resources organization and seek to create an environment where employees are valued, respected, and empowered.

We are committed to challenging inequities internally and in our communities and invest in education to create equity.

We increase job candidate pipeline diversity through external organizations such as Jobwel, NPower, Inroad, as well as outreach to Historically Black Colleges, Black Girls Who Code, and Women Impact Tech, and have increased focus on recruiting women into leadership roles and to our Board of Directors.

We are committed to challenging and seeking to address inequities internally and in our communities and we invest in education to create equity.

We increase job candidate pipeline diversity through external organizations such as Jobwel, NPower, and Inroad, as well as outreach to Historically Black Colleges, Black Girls Who Code, and Women Impact Tech, and have increased focus on recruiting women into leadership roles and to our Board of Directors.

Social Responsibility and Community Initiatives

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This is reflected in our desire to improve our communities by bringing our technology to underserved areas.

Through our global Automation for Good initiatives, we have worked with governments during the COVID-19 pandemic to deploy our technology to assist government entities, hospitals, and non-profit organizations to improve citizen response, free health care workers to spend more time with patients, and accelerate mission objectives.

Through our global Automation for Good initiatives, we worked with governments during the COVID-19 pandemic to deploy our technology to assist government entities, hospitals, and non-profit organizations to improve citizen response, free health care workers to spend more time with patients, and accelerate mission objectives.

As part of our commitment to make automation a force for good in the world, we have invested in research, collaborations, and partnerships to develop automation solutions to help solve global challenges and explore how to increase the positive impact of this technology for the benefit of people and our planet.

Furthermore, we have supported initiatives and opportunities dedicated to improving automation skills and technology access and creating social good, having reached more than one million learners worldwide on our free online platform, UiPath Academy.

Working with our partners to develop accessible paths towards fulfilling careers and foster meaningful employment opportunities remains a key priority for UiPath.

In 2021 we expanded our network of partner organizations to equip students and workers with automation skills as part of our UiPath Academic Alliance program.

The UiPath Foundation, a Romanian charity, aims to provide children living in poverty with the skills and tools necessary to reach their potential.

In April 2021, we joined the Pledge 1% movement, and reserved 2.8 million shares of our Class A common stock to fund our social impact and environmental, social, and governance initiatives, to be distributed over ten years.

Corporate Information

We were founded in Bucharest, Romania in 2005 and incorporated in Delaware on June 9, 2015.

Our principal executive offices are located at 452 5th Avenue, 22nd Floor, New York, New York 10018, and our telephone number is (844) 432-0455.

The UiPath logo, “UiPath,” “Automation Cloud,” and our other registered and common law trade names, trademarks, and service marks are the property of UiPath, Inc.

Furthermore, we have supported initiatives and opportunities dedicated to improving automation skills and technology access and creating social good with ou r free online learning platform, UiPath Academy.

Workin g with

our partners to develop accessible paths toward fulfilling careers and foster meaningful employment opportunities remains a key priority for UiPath, and we have expanded our network of partner organizations to equip students and workers with automation skills as part of our UiPath Academic Alliance program.

We also founded the UiPath Foundation, an independent non-governmental, non-profit, non-political, and non-religious global organization, headquartered in Romania, which aims to provide children living in poverty with the skills and tools necessary to reach their potential.

In April 2021, we joined the Pledge 1% movement;

as of January 31, 2023, we have donated 0.3 million shares of our Class A common stock to fund projects related to our environmental, social, and governance initiatives, with an additional 2.5 million shares of our Class A common stock reserved for distribution by April 2031.

Corporate and Available Information

We were first established in Bucharest, Romania in 2005 and incorporated in Delaware on June 9, 2015.

Our principal executive offices are located at One Vanderbilt Avenue, 60th Floor, New York, New York 10017, and our telephone number is (844) 432-0455.

The UiPath logo, “UiPath,” “Automation Cloud,” "The Foundation of Innovation," and our other registered and common law trade names, trademarks, and service marks are the property of UiPath, Inc.

or our subsidiaries.

Any other trade names, trademarks and service marks used in this Annual Report on Form 10-K are the property of their respective owners.

Available Information

Our website address is www.uipath.com.

Information found on, or accessible through, our website is not a part of, and is not incorporated into, this Annual Report on Form 10-K.

We file electronically with the U.S.

Securities and Exchange Commission ("SEC") our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act.

We file electronically with the SEC our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act .

We make available on our website at www.uipath.com, free of charge, copies of these reports and other information as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.

The SEC maintains an internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov.

We may use our website as a distribution channel for material company information.

Financial and other important information regarding UiPath is routinely posted on and accessible through our website at www.uipath.com.

We therefore encourage investors and others interested in UiPath to review the information that we make available on our website, in addition to following our filings with the SEC, webcasts, press releases, and conference calls.

In addition, you may automatically receive email alerts and other information about UiPath when you enroll your email address by visiting “Resources” under the "Investor Relations" section at www.uipath.com.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business