(Reuters) -Robotic process automation company UiPath, valued at $35 billion during a funding round earlier this year, reported a surge in revenue during the pandemic, according to a filing for an initial public offering (IPO) that was made public on Friday.
The New York-based company recorded an 81% jump in total revenue in the year ended Jan. 31, 2021 to $607.6 million, while net losses narrowed significantly to $92.4 million from $519.9 million a year earlier as it became cash flow positive, according to the filing.
More than 95% of its revenue recurs annually, an important metric for investors valuing software-as-a-service companies.
UiPath joins a long list of tech firms seeking to tap into the red-hot U.S. IPO market. It plans to raise around $1 billion via the stock market listing, although it said in the filing that was a “placeholder” amount and likely to change.
It did not say how many shares it would sell nor the price range at which it plans to sell them.
People familiar with the matter said UiPath, which uses AI capabilities and low-code tools to help large corporations and government agencies automate repetitive and routine tasks in areas such as accounting and human resources, had considered going public through a direct listing but ultimately opted for a traditional stock market flotation.
Founded in 2005 in Romania by former Microsoft executive Daniel Dines and Marius Tirca, the company has tripled its customer base to nearly 8000 in the past two years, while competing with UK-based Blue Prism and Automation Anywhere.
Automation platforms had an addressable market of about $65 billion, according to a Bain & Company report earlier this month, with companies looking to simplify operations and cut costs.
In February, UiPath raised $750 million in a funding round that valued it at $35 billion, more than three times more than at an investment round last July.
Backed by investors including Accel, Coatue, Dragoneer, IVP, Sequoia, Tiger Global and T. Rowe Price Associates, UiPath has raised nearly $2 billion to date.
It will list its shares under the symbol “PATH”. Morgan Stanley and J.P.Morgan are the offering’s lead underwriters.
Reporting by Anirban Sen and Noor Zainab Hussain in Bengaluru, Krystal Hu in New York; Editing by Sriraj Kalluvila, Vinay Dwivedi and Kirsten Donovan
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