As tech companies large and small are shedding staff in hopes of better aligning their income statements with a new market reality, it’s clear that cutting costs to satisfy investors is the new normal. But there are other ways to keep the investing public happy, including crushing growth and profitability expectations.
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That’s what UiPath did last week when it reported its underperforming financial performance, which included a top- and bottom-line beat compared to analyst expectations. His stocks skyrocketed.
As it turns out, while it’s fashionable among tech companies and many of their customers, while cutting staff, curtailing projects, and treating cash with more respect is all the rage these days, there’s a wrinkle in the trend. One way to make your workforce cheaper is to reduce it. Another is to make it more productive, making your spending per dollar more effective.
That’s where UiPath and the larger automation market — robotic process automation, or RPA — can have an edge over other software categories. Last month’s positive earnings report from Appian and lengthy discussions of automation work during the earnings call underlined that tech companies are seeing strong demand for automation help.
There’s even more data on the point we chewed on. A recent Battery Ventures software release report that we discussed earlier has even more optimistic data.
In short, of course everyone wants to save money on their software expenses. But if your startup builds technology to automate tasks and reap quick productivity gains, you may be able to sidestep the downturn. Let’s talk about it.
Today’s Cost-Conscious Business Climate Could Boost RPA by Anna Heim, originally published on londonbusinessblog.com
