1 Software Stock Posts a Massive Jump in Profitability -- Is It a Top Buy for 2024 and Beyond?
Robotic process automation (RPA) software provider UiPath (NYSE: PATH) has notched a stellar rebound. Since the start of 2023, share prices are up over 80%, and the quarterly update for the fourth quarter of fiscal 2024 (for the three months ended January 2024) helped support the run higher. The company posted its first-ever profit based on generally accepted accounting principles (GAAP), on top of growing quarterly revenue by 31% from the year prior.
UiPath's management shake-up last summer paid off handsomely, and in a new era of artificial intelligence (AI), the company's RPA platform looks like it is poised to keep delivering the goods to shareholders. Here's what investors need to know.
In the wake of the U.S. Federal Reserve's interest rate hike scheme in 2022-2023 to try to tame inflation, investors collectively demanded that software businesses work at boosting their profit margins -- even small "grow-first" companies like UiPath. It wasn't the fastest to reach the GAAP profitability milestone. Nevertheless, UiPath turned profitable on all counts to close out its last fiscal year.
Source Fool.com
