Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

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Equity Bottom-Up

<ul><li>1QFY27 results delivered a beat on revenue, operating income, and net new ARR, with management raising full-year guidance for both revenue and operating income. </li><li>Agentic and orchestration products that hit GA last May are moving from pilot to production and DevCon’s UiPath for Coding Agents broadens the story to “build, orchestrate, and self-heal.” </li><li>The wrinkle in an otherwise strong print: billings and long-term deferred revenue missed Street estimates by wide margins, which management framed as ASC 606 timing and deal mix rather than a demand signal.</li></ul>

1QFY27 results delivered a beat on revenue, operating income, and net new ARR, with management raising full-year guidance for both revenue and operating income. Agentic and orchestration products that hit GA last May are moving from pilot to production and DevCon’s UiPath for Coding Agents broadens the story to “build, orchestrate, and self-heal.” The wrinkle in an otherwise strong print: billings and long-term deferred revenue missed Street estimates by wide margins, which management framed as ASC 606 timing and deal mix rather than a demand signal.

PATH: 1QFY27 Results; Strong Revenue and Net New ARR; Can Billings and Deferred Self-Heal?

UiPath Inc

PATH: 1QFY27 Results; Strong Revenue and Net New ARR; Can Billings and Deferred Self-Heal?