Shares Uipath (NYSE) stocks fell nearly 15% on Thursday in premarket trading after the release of a weaker Q1 revenue outlook.

The adjusted Q4 EPS reported by the software manufacturer was 5c. That’s well above analyst expectations of 2.6c. Revenue totaled $289.7million in quarter.

UiPath anticipates that revenue will range from $223 million-$225 million for the quarter. This is lower than the consensus estimate of $246.4 millions. It expects Q1 adjusted operational loss to be between $25 million and $30 million.

Daniel Dines (CEO) said, “We’ve built a business in the global market that services customers in over 115 countries including Russia and eastern Europe.”

Looking forward, while we remain confident in our market-leading position for automation and the prospects of future growth at scale, we believe that it is prudent now to consider both our European exposures and our go-tomarket leadership transition in the financial outlook we provide this afternoon.

Phil Winslow from Credit Suisse believes PATH’s guidance shows significant conservatism. An analyst reduced the price target from $75.00 to $57.50.

For FY2023, ARR guidance without headwinds for FY2023 would have $0 ARR contribution by new customers. DBNRR would decline from 145% to 13%4% “despite the best-in-class range, compared with 153% at FY2020. “We reiterate our thesis about the global market opportunity for automatable wages, and we believe UiPath with its only purpose-built hyperautomation platform is leading the paradigm change toward fully-automated enterprises,” Winslow wrote in a client letter.

Bryan Bergin from Cowen sees many moving parts to the PATH story, even after EPS.

PATH reported a solid fourth quarter beating Street. However, the FY23 outlook is not good. Bergin wrote in a memo that clients, “While this story isn’t complicated, we think the initial stock reaction of -14%AH is excessive when you consider a number of uncontrollable effects (Russia/FX), an otherwise broad positive pipeline, and competitive positioning views.”

By Senad Karaahmetovic