People celebrate the UiPath IPO on April 21, 2021 in front of the New York Stock Exchange.

Source: NYSE

UiPath rose 17% in the company’s IPO on Wednesday after the software company and its investors grossed $ 1.34 billion in the company’s IPO. The shares opened at $ 65.50.

The company, whose software helps companies automate repetitive tasks, sold shares Tuesday night for $ 56 each, above its expected price range of $ 52 to $ 54. At the opening price, UiPath had a market value of $ 34 billion.

If underwriters buy their allotted shares, UiPath’s offering will be the third largest ever for a US software company, behind only cloud database provider Snowflake, which raised $ 3.9 billion in September, and Qualtrics , which grossed $ 1.78 billion in January after spinning off SAFT. UiPath comes at a time of rapid growth as companies from healthcare to energy producers are looking for ways to automate the operations of their finance, human resources, and legal departments.

Daniel Dines, CEO of UiPath on the company’s IPO on the New York Stock Exchange on April 21, 2021.

Source: NYSE

Revenue increased 81% to $ 607.6 million last year, and the company’s loss decreased from $ 519.9 million in 2019 to $ 92.4 million. UiPath’s 89% gross margin is among the highest in software.

As UiPath has joined a long list of high-growth cloud software companies for the past three years, it’s debut amid shifting investor sentiment. After more than doubling in value last year, the WisdomTree Cloud Computing Fund, which consists of 58 publicly traded cloud software providers, has fallen 6.7% this year, while the Dow Jones Industrial Average closed at Tuesday’s close 11% has increased.

One of UiPath’s greatest strengths is its ability to retain customers and encourage them to increase their spending over time. Last fiscal year, UiPath reported a net revenue tie of 145%, meaning the average existing customer increased spending 45% year over year.

UiPath, ranked 50th on CNBC’s 2020 Disruptor 50 list. was founded in Romania in 2005 by Daniel Dines, a former Microsoft engineer. Dines moved UiPath to the United States about a decade later and set up a headquarters in New York. Around a quarter of the 2,863 full-time employees work in Bucharest, Romania.

The stock trades on the New York Stock Exchange under the symbol “PATH”. Dines controls 88% of the voting stock and is the largest stakeholder with over 110 million shares valued at $ 6.2 billion based on the IPO price including some shares sold on offer.

CLOCK: UiPath CEO Daniel Dines making his public debut