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Fintech

Note On Pagaya (PGY)

Pagaya is offering 7.5Mn shares +1.125M optional, via a secondary public offering at $12.70. The dilution to existing shareholders is about 15%. They had reserved this as a shelf offering and it was always part of their disclosures, so we were always aware of dilution risk. However, the timing of this secondary offering, diluting shareholders so close to the share reverse split is a head scratcher. They’re putting the money to good use as business execution continues well, but the timing leaves a bit of a sour taste…

No change in strategy, holding for the long term.

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Enterprise Software

UiPath (PATH) Earnings Update: Impressive Growth and Profitability Achievements

Earnings update – UiPath (PATH)

Excellent results all around, a lot of growth initiatives from new products and partnerships, the emphasis on execution and profitability was appreciated. The 20% cash flow margin for FY2025 is impressive.They seem to be walking the talk. 

Q4 – FY 2024

  • Non-GAAP EPS of $0.22 beats by $0.06.
  • Revenue of $405.25M (+31.4% Y/Y) beats by $21.56M.
  • Achieves first quarter of GAAP profitability as a public company

Full Year Fiscal 2024 Financial Highlights

  • Revenue of $1.308 billion increased 24 percent year-over-year.
  • Net new ARR of $260 million.
  • GAAP gross margin was 85 percent.
  • Non-GAAP gross margin was 87 percent.
  • GAAP operating loss was $(165) million.
  • Non-GAAP operating income was $233 million.
  • Net cash flow from operations was $299 million.
  • Non-GAAP adjusted free cash flow was $309 million.

2025 Outlook: 

  • Revenue in the range of $1.555 billion to $1.560 billion, better than 1.550 expected.
  • ARR in the range of $1.725 billion to $1.730 billion as of January 31, 2025
  • Non-GAAP operating income of approximately $295 million – 18% margin.
  • Full Year Non-GAAP cash flow should be around 20% of revenues $310Mn