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

Equity Research Firm

Equity Bottom-Up

<ul><li>The Token Tax Haven; AI Still a “Show Me” Story. 2QFY27 delivered a beat on revenue, operating income, and net new ARR, and management raised full-year revenue and operating income guidance again.</li><li>However, the FY27 ARR guide implies 2H net new ARR that is roughly flat Y/Y, with modest growth on a constant currency basis.</li><li>Founder, Executive Chairman, and CEO Daniel Dines made a credible case for deterministic, “tokenless” automation alongside probabilistic AI, but we view PATH as increasingly a “show me” story on AI monetization.</li></ul>

The Token Tax Haven; AI Still a “Show Me” Story. 2QFY27 delivered a beat on revenue, operating income, and net new ARR, and management raised full-year revenue and operating income guidance again.However, the FY27 ARR guide implies 2H net new ARR that is roughly flat Y/Y, with modest growth on a constant currency basis.Founder, Executive Chairman, and CEO Daniel Dines made a credible case for deterministic, “tokenless” automation alongside probabilistic AI, but we view PATH as increasingly a “show me” story on AI monetization.

PATH: 2QFY27 Results; The Token Tax Haven; AI Still A "Show Me" Story

UiPath Inc

PATH: 2QFY27 Results; The Token Tax Haven; AI Still A "Show Me" Story