Investors in UiPath Inc. (NYSE: PATH) bet that Robotic Process Automation (RPA) is the next big thing in tech.

To explain, Robotic Process Automaton is the use of software robots to perform jobs normally done by humans. For example, a retailer’s chatbot can take a customer’s order, process the order, accept payment, and send the order to the Fulfillment Center for shipping.

In addition, a manager can use UiPath’s Task Capture to document and map workflows. Consequently, a CEO could create a complete map of her company’s workflow with a click of her mouse.

Intelligent Document Processing Robots

Impressively, UiPath (PATH) claims it can build intelligent document processing robots. The document-processing robot could examine loan applications and reject incomplete applications.

UiPath claims its intelligent document processing reduced errors by 52%, cut the cost of manual document processing by 35%, and reduced the time spent on document-related tasks by 17%.

Other tasks that UiPath claims its robots can automate include include desktop functions, virtual desktop interfaces, text-based data, email, IT, the web, and Citrix. The UiPath robot could open and respond to emails or route the email to the proper recipient.

UiPath on the Cloud

UiPath claims its robots can work with Oracle (ORC), SAP, Microsoft (MSFT), Salesforce, Service Now, and Alphabet (GOOGL) products. Another advantage to UiPath’s system is that users can centrally manage robots.

For instance, a manager working from home could manage UiPath robots at corporate offices all over North America. Similarly, the UiPath Platform allows companies to build RPA ecosystems to can perform many of the business’s tasks.

Similarly, the UiPath Automation Cloud allows organizations to install UiPath Robots in their clouds. They can install the UiPath Robots as Infrastructure-as -a-Service (IaaS), Platform-as-a-Service and Software-as-a-Service (SAAS). Therefore, customers can buy access to an entire platform full of robots through the UiPath Automation Cloud.

UiPath even builds Attended Robots that can serve as personal robot assistants to any employee. For instance, an Attended Robot could answer a writer’s email and social media and market the writer’s work, while the writer is busy writing.

How Much Money is UiPath making?

Robotic Process Automation (RPA) can make some money. For instance, UiPath (PATH) reported a quarterly common net income of $26.26 million on 31 January 2021.

The quarterly common net income rose from -$70.80 million on 31 October 2020 and -$78.09 million on 31 January 2020. Similarly, UiPath’s quarterly gross profit rose from $102.05 million on 31 January 2020 to $187.54 million on 31 January 2021.

Unfortunately, no cash flow figures for UiPath Inc. (PATH) were available on 28 May 2021. No balance sheet information for UiPath was available on the same day.

However, UiPath is a growing company. Its quarterly revenues rose $114.83 million on 31 January 2020 to $207.88 million on 31 January 2021. Stockrow estimates UiPath’s revenues grew by 81.03% in the quarter ending on 31 January 2021.

UiPath is a Speculative Investment?

I consider UiPath (NYSE: PATH) a speculative investment with little present value.

UiPath is a speculative investment because it reports no cash or assets. Instead, the only assets are the software robots or digital robots. I think software robots will be big business but it will take several years to scale UiPath’s cloud and platforms up into a moneymaking venture.

Therefore, investors need to avoid UiPath until starts making money. I conclude there is no value at UiPath now.

Mr. Market, however, disagrees. Mr. Market paid $69 for UiPath at its April 21, 2021, initial public offering (IPO) and $80.48 for UiPath on 1 June 2021.

On the other hand, I think UiPath is a stock to watch. I believe UiPath’s digital robots, clouds and platforms will make enormous amounts of money someday. However, I think that day is years away. Until then, investors need to watch UiPath because I think it will many jobs and disrupt many industries and companies.

Originally published at https://marketmadhouse.com on June 1, 2021.