Automation software company UiPath (NYSE:PATH) will be announcing earnings results tomorrow after market close. Here's what investors should know.

Last quarter UiPath reported revenues of $325.9 million, up 24% year on year, beating analyst revenue expectations by 3.3%. It was a strong quarter for the company, with an impressive beat of analysts' ARR (annual recurring revenue), reported revenue, and non-GAAP operating profit expectations. Guidance for next quarter was fine, with ARR ahead while revenue and non-GAAP operating profit were roughly in line.

Is UiPath buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting UiPath's revenue to grow 24.4% year on year to $383.7 million, improving on the 6.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.2%.

Looking at UiPath's peers in the automation software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Appian delivered top-line growth of 15.5% year on year, beating analyst estimates by 3.2% and Everbridge reported revenue decline of 1.2% year on year, exceeding estimates by 1%. Appian traded up 10.9% on the results.

Read our full analysis of Appian's results here and Everbridge's results here.

Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, and while some of the automation software stocks have fared somewhat better, they have not been spared, with share price declining 3.7% over the last month. UiPath is down 8.8% during the same time, and is heading into the earnings with analyst price target of $25.1, compared to share price of $24.51.

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.