Staff turnover had also hit partner programs, marketing, and sales, just as rivals ramped up their go-to-market budgets. Although several months on, some are experimenting with the tech as it’s optically free of charge. The company released a flurry of new products earlier in 2021 (Interact and Service Assist, finally Dechiper, etc.), bundling them with its revamped “all-in licensing.” However, the view from its customers was that this was too little, too late. But, as UiPath reports, only 1,247 of those earn more than $100,000 each per year.Įven within loyal Blue Prism clients, the expansion has not been at the rate the British-founded business may have hoped for. UiPath has romped to 9,100-plus customers to deliver an annual recurring revenue (ARR) of $726.5 million. Its top 50 customers (among its total of 2,000) spend an average of $1.5 million a year with the company. It lost significant mindshare and, with it, growth opportunities.īlue Prism would say its growth has been in expansion within loyal clients. Its growth rate has been a problem for Blue Prism, and the source of much of that is the pandemic era, in which competitors have been noisily forging ahead while Blue Prism ill-advisedly went quiet when the world had little else to do but listen. If nothing else, this deal does much to burst the RPA hype bubble and inject some reality back into the market. Other investors in RPA would be wise to take note. A realistic price, at just less than seven times its annual revenueĪt between 6.5 and 7 times revenue, $1.5 billion represents a fair price. Let’s not forget, this is a market it pretty much started when- working with HFS in 2012-it coined the phrase “robotic process automation” (RPA). Second, access to capital and more customers could be just what Blue Prism needs to get its mojo back and with it, the confidence to cut through the RPA-focused hype to reclaim leadership to meet the broadening needs of a maturing automation market. Financially, the business is heading in the right direction, albeit too slowly to please investors. Operating losses fell in the six months to April 2021 (from approximately $73 million to $30 million). This is no fire sale and the price paid isn’t chump change. There are the regulatory processes of being listed on the London Stock Exchange to overcome, for a start. But what does the $1.5 billion deal mean for current and prospective enterprise customers?įirst, we think we can reassure customers that Blue Prism is not about to be broken up and sold for parts. The firm that invented robotic process automation, Blue Prism, is headed for sale to private equity firm Vista, where it will be folded into enterprise data firm Tibco-if shareholders agree. The Bottom Line: To reassure customers, Tibco and Blue Prism must quit being coy, align fast to support the end-to-end automation life cycle, and be loud and proud about it.
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