UiPath Inc.’s annual conference was back in person in Las Vegas this week, after skipping a year due to the COVID-19 pandemic. And it’s a very different world these days compared to 2019, as the market leader in automation has returned to the City of Light for the Before IV conference.
But the pandemic has actually led to some good news for the adoption of automation. In 2019, UiPath envisioned a total addressable market of $ 30 billion. Today, it is estimated at $ 60 billion or more, according to Dave Vellante, co-host of theCUBE, the live-streaming studio of SiliconANGLE Media, which, along with the co-host Lisa Martin were on hand to discuss the opening keynote for the Day 1 event.
“They threw a statistic [in the keynote] today that 2% of processes are automated. It tells me that everything digital is going to be automated, which represents hundreds of billions of dollars in market opportunities, ”Vellante said.
During their analysis of the opening speech on Day 1, Vellante and Martin discussed UiPath’s market opportunities and strategy, whether Microsoft’s advances in the automation market constitute a threat to business and the evolution of industry conferences. (* Disclosure below.)
UiPath Expected to Maintain Market Lead, Despite Falling Stock Values
After a strong opening performance, UiPath stock is on a downtrend. That’s because “the street doesn’t quite understand this business,” according to Vellante. Company founder Daniel Dine is both an outsider of Silicon Valley and an undisputed leader of a public company. Additionally, the company made the quarterly growth forecast too cautious for the street, according to Vellante, who featured UiPath in this week’s Breaking Analysis column.
But with annual recurring revenue growth of 60% and many loyal customers, Vellante is “not concerned” about the decline in the company’s shares after the IPO. “It’s not a sprint; it’s a long-term game. These guys are the leaders and they are pulling away from the pack, ”he said.
The automation market can be split between companies that serve automation within their stack and “pure-play” companies, such as UiPath, which specialize in automating horizontally across all of these software stacks, according to Vellante. This makes UiPath “less of a direct competitor with Microsoft,” he said. As for the threat from rival Automation Anywhere Inc., UiPath “is growing faster than Automation Anywhere from what we can tell, and it is still the leader in this horizontal game,” added Vellante.
This vision of “how to embrace a broader automation agenda and drive automation across the organization” is the differentiator of UiPath and the area where the company should make announcements at the conference, according to Vellante.
“UiPath needs to show that this is really what is happening with customers and that they have the wallet to offer,” he said.
Watch the full video interview below, and be sure to check out more of SiliconANGLE and theCUBE’s coverage from UiPath Forward IV. (* Disclosure: TheCUBE is a paid media partner for UiPath’s Forward IV conference. Neither UiPath Inc., theCUBE’s event coverage sponsor, nor other sponsors have editorial control over the content of theCUBE or SiliconANGLE.)