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My $PATH trades
I'm going down with this ship.

Just kidding (hopefully).

UiPath is having a rough go of it but this was somewhat expected as transitioning from a licensing model to a subscription model is rarely smooth sailing. The Brian's (@brianferoldi & @brianstoffel) did a great job covering UiPath and their model change in the video linked below from ~5 months ago.

So why did I buy again? I still believe. They're struggling but I think their technology and place as an industry leader in the emerging RPA field will make this a long-term market beating stock. Overall customer count grew 15% while >$100,000 ARR customers grew 33% and >$1M ARR customers grew 61%. Once they get a customer on board, they monetize them incredibly well, as further evidenced by their 132% DBNRR (135% net of Russia) and incredible 98% DBGRR. RPO was up 36% YoY showing their backlog is robust and ARR broke $1 billion for the first time.

I'm still watching margins but not eagle-eyed as they're still in the hypergrowth stage. Regardless, operating and net margins have improved by 1,150and 910bps, respectively, TTM over the previous TTM. I'd love to see FCF start to swing positive.

All in all, I increased my share count by 26% with this buy and I've now purchased shares 6 times over the past 18 months. It's now my 3rd highest position in regards to total $ purchased. I'm trailing my benchmarks ($SPY and $QQQ) pretty badly but I'm not deterred. I haven't yet seen anything that makes me worried.

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