Robotic Process Automation (RPA) software provider UiPath has hired Google Cloud and SAP veteran Robert Enslin as co-CEO -- a title he will share with UiPath founder Daniel Dines. The high-profile UiPath hire surfaces amid some concerns about slowing growth at the RPA software company -- though UiPath insists all is well at the business, which includes growing partner relationships with global systems integrators (GSIs) and distribution partners.
In a prepared statement about Enslin joining UiPath, Dines said:
“During this time of accelerating digital transformation, UiPath has never been more strategic for our customers who are focused on leveraging automation to achieve competitive differentiation and operational excellence. I’m bringing Rob on as my partner as we focus on growth at scale and building a company that reimagines how business is done. Rob brings the right balance of experience and skills to scale our operations, allowing me to focus on our company culture, vision, and product innovation, areas I am passionate about – and that bring considerable value to our employees and customers.”
Enslin previously was president of cloud sales at Google Cloud. Earlier, he spent nearly 30 years at SAP -- eventually rising to president of the ERP software company's cloud business group.
UiPath did not describe exactly how Dines and Enslin will divvy up the co-CEO responsibilities, but it's a safe bet Enslin will focus on revenue acceleration. In a blog, Dines mentioned:
"As my Co-CEO, Rob will focus on scaling our business. This will allow me to concentrate on our company culture, vision, and product innovation."
Enslin is UiPath's second high-profile executive hire in recent weeks. The company in March 2022 hired Microsoft veteran Chris Weber as chief business officer. Weber will oversee UiPath’s go-to-market strategy — including its partner organization.
UiPath: Robotic Process Automation Software Revenue Reality Check
Enslin and Weber arrive at UiPath during a period of continued growth for the RPA software market -- though critics wonder if the overall growth rate is starting to slow. The quick math looks like this:
- UiPath’s revenue was $289.7 million in Q4 of fiscal 2022, up 39 percent from Q4 of fiscal 2021.
- Also, UiPath announced a net loss of $63.1 million for the quarter, compared to a $26.2 million net profit in Q4 of fiscal 2021.
The result: UiPath's stock fell roughly 25 percent amid a weak earnings forecast on March 31, 2022. A somewhat related warning came when Hyperscience laid off 100 employees in early March 2022.
Still, UiPath sees multiple opportunities ahead -- including growing relationships with multiple global systems integrators. The company as of March 2022 had 5,100 partners — including names like Ingram Micro, Deloitte, Finastra and ISID, according to UiPath executives.
RPA Software: Market Forecast
Despite UiPath's apparent growing pains, the overall automation software market appears strong and growth in the RPA software segment also appears strong — at least in terms of overall market forecasts.
Indeed, the global robotic process automation market is expected to reach $10.7 billion by 2027, expanding at a CAGR (compound annual growth rate) of 33.6% from 2020 to 2027, according to Grand View Research Inc.
Amid the RPA market growth, multiple companies are acquiring RPA software providers and associated RPA consulting skills.
Key enterprise-focused RPA software companies include Automation Anywhere, Blue Prism, Microsoft Power Automate, Salesforce, ServiceNow and UiPath, among others.
Even IBM is jumping into the action, as part of IBM CEO Arvind Krishna’s M&A effort to pivot the enterprise technology provider toward multi-cloud software that drives business automation.
RPA Software: MSP Opportunities
Meanwhile, startups such as Rewst and ElectroNeek want to bring the power of RPA into the MSP sector.
Among the latest moves: Rewst hired ConnectWise and Perch Security veteran Wes Spencer as president in February 2022. Earlier, Rewst raised $3.5 million from Florida Funders in November 2021. Also, ElectroNeek in mid-29021 raised $20 million in Series A funding.
Elsewhere, Ingram Micro agreed to distribute UiPath’s RPA software worldwide, the two technology companies confirmed in May 2021.
Those milestones suggest automation software is catching on with MSPs. But those job cuts over at Hyperscience and slowing growth at UiPath offer timely reminders about business resets — especially as Wall Street and Venture Capitalists carefully with valuations worldwide…
Disclosure: ChannelE2E Editorial Director Joe Panettieri is a member of Florida Funders.
