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UiPath (PATH) Put Sales See Limited Downside for Recent IPO

by | Apr 30, 2021

UI Path (PATH) with 3650 November $50 puts sold to open yesterday for $2.10, first notable options trade in the name that debuted recently. PATH is a leader in robotic process automation or RPA – a form of business process automation using software bots or AI. As opposed to a normal workflow automation tool, an RPA basically watches a user perform a task in the devices GUI and then created an automated process by repeating those tasks through the same interface. They are cost-effective and also easier to use, lowering the barrier of entry for many users versus using APIs. The company notes that manual processing results in about a 50% decline in productivity growth and billions of hours spent on manual tasks. For example, a financial firm doing deal analysis may use six different programs for their analysis like Bloomberg, Excel, Factset, Pitchbook and more. And then they import financials, build models, respond to emails, populate data, and review filings. PATH allows that process to be largely automated with AI/computer vision reading screens, machine learning deciding what processes to do and interacting with other programs. Their growth has been impressive. PATH has had a 65% ARR growth rate Y/Y with 145% dollar-based net retention and 70% customer CAGR. They have 60% of the Fortune 500 as customers with end-market exposure across financial services, healthcare, energy, tech, media and retail. The market opportunity is massive too. Automation was a $10B market in 2015 but expected to grow to $30B in 2024 and then $60B+ over time.