Shares of UiPath (PATH) are down 30% after the software company announced a change to its chief executive officer (CEO).
The company, which makes robotic process automation software, said that CEO Rob Enslin is resigning effective June 1 and will be replaced by the company’s co-founder Daniel Dines.
Before this year, Dines had served as co-CEO of UiPath.
Enslin’s resignation comes a UiPath’s stock has declined 23% year to date. The company held its initial public offering (IPO) in 2021 and, since then, the share price has fallen 76%.
News of Enslin’s resignation was made along with the company’s first-quarter financial results.
UiPath reported earnings per share (EPS) of $0.13 U.S., which beat analysts’ consensus forecasts of $0.12 U.S. a share.
Revenue in the quarter totaled $335 million U.S., up 16% from a year earlier and better than the Wall Street estimate of $333 million U.S.
Despite the Q1 earnings beat, UiPath lowered its full-year guidance, saying it expects revenue of $1.405 billion U.S. to $1.41 billion U.S.
The new sales outlook was lower than previous guidance that called for $1.55 billion U.S. to $1.56 billion U.S. in revenue.
Enslin had joined UiPath from Google Cloud. He was billed as having “the right balance of experience and skills” and an operations background to grow UiPath.
The hiring of Enslin as CEO was made to free up Dines so that he could focus on UiPath’s “culture, vision and product innovation,” said the company at the time.
Now Dines is stepping back into the CEO role at the company he co-founded.
UiPath’s shares have never traded above their IPO price. Before today (May 30), the stock was changing hands at $18.30 U.S. per share.