$PATH Reports Q1 Revenue of $335 Million, Adjusted EPS of $0.13, ARR of $1.508B, and Provides Lower Q2 Guidance

$PATH reported Q1 earnings with revenue of $335 million, a 16% year-over-year increase. The company achieved an ARR of $1.508 billion, up 21% year-over-year, and a net new ARR of $44 million. The dollar-based net retention rate was 118%, and the GAAP gross margin stood at 83%. Adjusted EPS was $0.13, surpassing estimates of $0.12, and adjusted gross margin was 86%. Adjusted operating income was $50 million. The company provided Q2 revenue guidance of $300-305 million, below the estimated $342.33 million, and full-year revenue guidance of $1.405-1.41 billion, also below the estimated $1.557 billion. Full-year ARR guidance was $1.66-1.665 billion. License revenues increased by 4.5% to $140.128 million, and subscription revenues rose by 26.5% to $185.131 million. Customers with $100K+ ARR grew by 12.6% to 2,092, and customers with $1M+ ARR increased by 12% to 288.