UiPath is one of the most amazing not-really-an-overnight success stories in Cloud, SaaS, and software.
It was founded way back in 2005 as an outsourcing company, then developed Windows software to automate scripts and more, and turned this into a powerhouse for automating complex functions integrating Cloud and on-prem. Even ten years on, in 2015, it still had just 10 full-time employees. And then after a decade … it started to come together.
While it went on to become one of the fastest-growing software companies of all times, it took its time to figure out its place and get there.
5 Interesting Learnings:
#1. NPS of 71 and 145% NRR. Yes, NPS can be a bit subjective. And yes, it seems like everyone has a high NPS these days. But having 145% NRR and 71 NPS go together like milk and cookies. They build on each other, into something powerful.
#2. Customer count growing 33%, revenue growing 65% — the “Golden Ratio” for future growth. UiPath grew from 6,009 customers last year to 7,968 at January 2021, or 33% growth. Fast, but revenue grew much faster (65%). This is sort of what you’d expect with 145% NRR, that revenue would be growing faster than new customers.
#3. Technology partners and SIs are key to growth. 3,700 total partners, with 50 key elite ones. This is an important piece of the UiPath story many miss. Much of its growth has been fueled by huge Cloud migration initiatives Deloitte, Cognizant, Accenture, Capgemini, etc. have. They buy UiPath licenses and in essence charge 3x-10x more for the end deployment at Big Customers.
#4. UiPath uses the term “ARR” loosely. ARR used to mean true recurring revenues. Today, its definition has … loosened. Merely to revenue that generally recurs.
#5. Top 50 customers grew bookings 81x since 2016, and all 2016 customers together grew 57x. Wow. Now that’s the power of high NRR, when you see it this way. 140%+ NRR compounds to something truly awesome 5+ years out: