UiPath Investor Presentation Deck
Definitions and Calculations
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Annualized Renewal Run-rate (ARR): We define ARR as annualized invoiced amounts per solution SKU from term subscription licenses and
maintenance obligations assuming no increases or reductions in their subscriptions. ARR does not include the costs we may incur to obtain such
subscription licenses or provide such maintenance and does not reflect any actual or anticipated reductions in invoiced value due to contract non-
renewals or service cancellations other than for specific bad debt or disputed amounts. Additionally, though we use ARR as a forward-looking
metric in the management of our business, it does not include invoiced amounts reported as perpetual licenses or professional services revenue
in our consolidated statement of operations, and is not a forecast of future revenue, which can be impacted by contract start and end dates,
duration, and renewal rates.
Dollar-Based Net Retention Rate: Dollar-based net retention rate represents the rate of net expansion of our ARR from existing customers over
the preceding 12 months. We calculate dollar-based net retention rate as of a period end by starting with the ARR from the cohort of all customers
as of 12 months prior to such period-end, or the Prior Period ARR. We then calculate the ARR from these same customers as of the current
period-end, or the Current Period ARR. Current Period ARR includes any expansion and is net of contraction or attrition over the last 12 months
but does not include ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to
arrive at the point-in-time dollar-based net retention rate.
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