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PATH’s ARR rose 60% year-over-year to $726.5 million, while its net new ARR grew 30% from its year-ago value to $73.9 million in the second quarter of its fiscal year 2022.
However, PATH’s shares have retreated 10.2% in price over the past month and 23.5% over the past three months, ahead of its lock-up expiration date. Although the software company’s groundbreaking Academic Alliance program should help it capitalize on the growing demand for automation, increasing competition from dominant players in the industry could challenge its market share growth. Furthermore, the company’s significant cash burn and stretched valuation could cause its shares to retreat further.
