00:00 Speaker A
let’s talk about the third quarter because it was your first profitable third quarter. Um, you saw enterprises accelerating their spending on your automation, um um software and strategies. So, do you see that continuing that profitability trend?
00:20 Ashim
Yeah, absolutely. Um, look, our teams are executing at a high level. Um, we had our, we had an incredible quarter that was marked both by the innovation that we’re putting into the marketplace and customer responsiveness, as well as really good discipline in investing in areas that are needed for our future growth, but driving efficiencies, including agentifying ourselves internally. And when you put those two things together, we’re really excited about both the fourth quarter and next year, um, being able to continue the momentum that we’ve been seeing in the third quarter.
00:53 Speaker A
Ashim, can you explain for folks kind of what it is you do in terms of that automation process and sort of how that is different from or complementary to the AI wave that is affecting almost everything.
01:08 Ashim
Yeah, so UI, UI path provides an AI powered platform that helps organizations streamline and transform their businesses. What that looks like is taking advanced AI capabilities, software robots and process orchestration. and taking processes that are as simple and as common as accounts payable and enterprises to really specific processes that are that are highly complex, um, such as claims denials in health care, and taking the manual workout, increasing accuracy and reducing the cost of transactions and overall the cost of those processes to customers. For our customers, that means that they can invest in innovation. So that is what we do. Um, when you look at how we are versus other AI waves that are there, I would say we bring the ROI to a lot of the AI capabilities that has hit the market. So when you think about large language model capabilities, we integrate with a lot of the large language model um companies that are there. So their models can be used to read documents that are used in these manual processes today to automate them. We infuse our platform with a lot of the AI capabilities, um such that you can orchestrate a process and run agents in a safe and trustworthy way, using our process orchestration so you can monitor them. So we’re very complimentary and the key thing for us is taking the the language of AI and really making it have a tangible return to businesses so that they can underwrite their next waves of growth both in revenue and in earnings.
02:36 Speaker A
Um and a couple months ago, you all um signed a new partnership with NVI and with Open AI. So how how’s that working and do we yet see the fruits of that in the quarter?
02:50 Ashim
Yeah, when you think about the partnerships, I think the first thing is, um the partnerships are a real staple that UI path, you know, our bread and butter three years ago was around deterministic automation and RPA, but these partnerships signal that we are a real player in the AI space that is there. So I think from that standpoint, the results in the marketplace, it’s noticed by customers, it’s noticed by CIOs and CTOs and CFOs that are there. The second piece is those partnerships are foundational capabilities that allow us to bring the promises of AI into processes. So our integration with companies like Open AI allow us to take their models and bring them to the forefront of claims processing within health care or loan origination in financial services institutions. Um, in terms of how we see that play out in the future, I think these partnerships are going to enhance our technical capabilities and by doing that, the more ROI you can drive, the more revenue you’re going to drive. We see that with the 16% revenue growth this quarter as people are seeing us as a long-term part of their architecture, and we see this as just gaining momentum over the next quarters and years for us.
03:50 Speaker A
So, Ashim, it doesn’t sound like you guys are seeing any kind of hesitation or slowdown in uh enterprise spending.
03:57 Ashim
No, you know, it I would say the environment is different than five years ago. I think five years ago there were innovation funds and there’s different things that are there. What I would say it’s not a question of slow or fast, it’s a question of more discipline and more scrutiny. But where we feel very well positioned for that is the discipline and scrutiny is really saying, what is the return on investment? So when you can take a cybersecurity firm and transform their processes to get them millions of dollars of savings, that unlocks millions of dollars of funding for us, right? So I think that there’s discipline, there’s scrutiny, but I think that actually provides for a longer term sustainable growth versus quarters where you get a sugar rush of orders that comes in. Um so that is really what we’re seeing in the marketplace. It’s not about the levels of spend, it’s really about the discipline by which funds are being released.