UiPath shares tank 30% after company announces CEO shakeup

UiPath shares fell more than 30% on Wednesday after the software company announced that CEO Rob Enslin would resign effective June 1 and be replaced by co-founder Daniel Dines, who stepped down as co-CEO on January 31.

“I am convinced that UiPath will continue to define what’s possible for our customers and partners in the AI and automation market,” Enslin said, adding that his decision to resign was “after much reflection.”

Dines co-founded UiPath in 2005 alongside Marius Tirca. The company creates software that automates repetitive and “menial” tasks, but its stock has declined under Enslin’s sole leadership. Shares are down 26% year to date, following the company’s debut in one of the largest U.S. software IPOs in history.

The company lowered its full-year revenue forecast. It now expects revenue to range between $1.405 billion and $1.41 billion, down from $1.55 billion to $1.56 billion in the previous quarter.

Enslin joined UiPath from Google Cloud. Dines praised him at the time as an executive with “the right balance of experience and skills” and an operations background to help UiPath grow, allowing Dines to focus on “culture, vision, and product innovation.”

Dines’ decision to hire an operations executive was one that many founders have made. Facebook co-founder Mark Zuckerberg took a similar approach with former Chief Operating Officer Sheryl Sandberg, which is credited with propelling the company to maturity.

Enslin did not produce the same effect. Except for a brief post-IPO bump, UiPath shares have never traded above their IPO price. The stock is down nearly 76% since its May 2021 IPO.

— CNBC’s Ari Levy contributed to this story.