Latest news with #SeanDesmond
Yahoo
29-05-2025
- Business
- Yahoo
NCNO Q1 Earnings Call: Subscription Growth, AI Initiatives, and Cost Structure Changes
Bank software company nCino (NASDAQ:NCNO) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 12.5% year on year to $144.1 million. Its non-GAAP profit of $0.16 per share was in line with analysts' consensus estimates. Is now the time to buy NCNO? Find out in our full research report (it's free). Revenue: $144.1 million (12.5% year-on-year growth) Adjusted EPS: $0.16 vs analyst estimates of $0.16 (in line) Adjusted Operating Income: $24.83 million vs analyst estimates of $24.08 million (17.2% margin, 3.1% beat) Revenue Guidance for Q2 CY2025 is $143 million at the midpoint, roughly in line with what analysts were expecting Management raised its full-year Adjusted EPS guidance to $0.71 at the midpoint, a 4.4% increase Operating Margin: -1%, up from -2.9% in the same quarter last year Billings: $156.6 million at quarter end, up 13.8% year on year Market Capitalization: $3.09 billion nCino's first quarter results reflected ongoing demand for its cloud-based banking platform despite a competitive and evolving technology landscape. Management attributed performance to uptake in subscription services, especially among regional banks, as well as progress in international markets and the credit union segment. CEO Sean Desmond highlighted the importance of recently launched AI capabilities and enhanced omnichannel experiences, which were showcased at the company's annual nSight Customer Conference. The leadership team also discussed the impact of streamlined operations and product development cycles, supported by workforce reductions and more focused investment in core product areas. Looking ahead, nCino's forward guidance is anchored by its expectation that new AI-driven features and expanded platform functionality will help drive both new customer wins and greater usage among existing clients. Management believes that investments in automation, data strategy, and international expansion will be key to sustaining growth. CFO Greg Orenstein noted that recent cost-saving measures—primarily from restructuring and increased use of AI tools—are intended to preserve flexibility for future investments and margin improvement. As Desmond stated, the company aims to accelerate software delivery cycles and broaden its reach in markets like Europe and Japan, while closely monitoring the pace of adoption for its AI-based offerings. Management pointed to subscription revenue momentum, enhanced product features, and targeted efficiency initiatives as the primary drivers of first quarter performance. AI feature rollout: nCino introduced 16 new AI banking adviser capabilities at its nSight Customer Conference, designed to improve productivity and reduce costs for financial institution clients. Management regards these features as central to the company's long-term differentiation and future subscription revenue growth. Omnichannel platform enhancements: Upgrades to the onboarding and digital experience components of the platform were completed, offering a more unified experience for bank and credit union customers. These enhancements are available to existing clients as part of their platform upgrade with no incremental cost, which management believes could facilitate broader adoption. Restructuring and cost efficiencies: The company undertook a restructuring that reduced its global workforce by approximately 7%, targeting operational streamlining and greater efficiency in product development. Management expects to realize $24 million in gross annualized expense savings, with a portion already reflected in first quarter results. Credit union and international traction: nCino closed new deals with both an $800 million credit union and a top Japanese bank, while also securing expanded commitments from a $25 billion regional bank. Management views the credit union market and international expansion as significant growth opportunities. Professional services margin focus: Ongoing efforts to redesign products for faster implementation and increased use of AI tools are expected to gradually improve professional services margins. Management acknowledged that margin improvement will take time as legacy projects wind down and new processes are scaled up. nCino's outlook relies on increasing adoption of AI-powered solutions, operational efficiencies, and expanding sales capacity, but faces headwinds from challenging comparisons and variable customer demand. AI-driven product adoption: Management expects that recent and upcoming investments in AI capabilities, such as banking adviser and workflow automation, will drive incremental usage across the existing customer base and attract new clients. These features are positioned as a differentiator in a market where financial institutions seek efficiency and real-time data insights. Operational cost savings and reinvestment: The restructuring is projected to deliver $24 million in annualized expense savings, enabling the company to both improve margins and potentially reinvest in areas like product development and sales. Leadership emphasized the intention to preserve flexibility, evaluating whether to flow additional cost savings into margin expansion or growth initiatives based on evolving market signals. Geographic and segment expansion: Continued investment in credit union-focused offerings and international markets, particularly Europe and Japan, is expected to support future revenue growth. However, management acknowledged that adoption rates and deal cycles in these regions may be variable, and that U.S. mortgage market stability remains a key factor in achieving guidance. In upcoming quarters, the StockStory team will watch (1) the pace at which financial institutions adopt nCino's new AI-enabled features and banking adviser tools, (2) progress on professional services margin improvement as legacy projects wind down and new efficiency measures take hold, and (3) the company's ability to secure additional wins in international markets and among U.S. credit unions. The impact of ongoing product integration from recent acquisitions will also be a key indicator of the company's execution. nCino currently trades at a forward price-to-sales ratio of 5.3×. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Ncino Inc (NCNO) Q1 2026 Earnings Call Highlights: Strong Revenue Growth Amid Strategic ...
Total Revenue: $144.1 million, up 13% year over year. Subscription Revenue: $125.6 million, up 14% year over year. Professional Services Revenue: $18.5 million, up 5% year over year. Non-U.S. Total Revenue: $31.6 million, up 22% year over year. Non-GAAP Operating Income: $24.8 million, representing 17% of total revenues. Non-GAAP Net Income: $18.4 million or $0.16 per diluted share. Share Repurchase: Approximately 1.8 million shares repurchased at an average price of $22.17. Q2 Revenue Guidance: $142 million to $144 million. Q2 Subscription Revenue Guidance: $124.5 million to $126.5 million. Q2 Non-GAAP Operating Income Guidance: $23.5 million to $24.5 million. Fiscal '26 Subscription Revenue Guidance: $507 million to $511 million. Fiscal '26 Total Revenue Guidance: $578.5 million to $582.5 million. Fiscal '26 Non-GAAP Operating Income Guidance: $112 million to $116 million. Fiscal '26 Non-GAAP Net Income Guidance: $0.69 to $0.72 per diluted share. Restructuring Event: Affected approximately 7% of global workforce, expected to realize $24 million in gross annualized expense savings. Warning! GuruFocus has detected 3 Warning Sign with NCNO. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ncino Inc (NASDAQ:NCNO) reported total revenues of $144.1 million for Q1, a 13% increase year over year, with subscription revenues rising by 14%. The company exceeded expectations in non-GAAP operating income, reporting $24.8 million, or 17% of total revenues. Ncino Inc (NASDAQ:NCNO) showcased significant enhancements to its platform at the Annual nSight Customer Conference, including 16 new AI-driven banking adviser capabilities. The company saw strong international growth, with non-U.S. total revenues up 22% year over year, and a significant add-on deal at a top Canadian bank. Ncino Inc (NASDAQ:NCNO) is leveraging AI to streamline operations and improve efficiency, which is expected to drive future subscription revenue growth. Ncino Inc (NASDAQ:NCNO) announced a restructuring event affecting approximately 7% of its global workforce, indicating potential internal challenges. Professional services gross margins have been a drag on overall gross margin, with ongoing cost pressures in the community bank space. The company is not flowing through the approximately $800,000 of seasonal overperformance in U.S. mortgage subscription revenues to its full-year guidance. There are concerns about decelerating subscription revenue growth in fiscal 2026, with difficult comps expected in the second half of the year. The restructuring is expected to incur $7.5 million to $9 million in onetime costs, impacting fiscal '26 free cash flow. Q: How are you thinking about underlying demand and willingness to invest with your bank clients? A: Sean Desmond, Chief Customer Success Officer, expressed confidence in the demand, validated by strong interest at their nSight user conference. Despite macroeconomic challenges, banks are maintaining their budgets and focusing on driving efficiency, indicating strong demand for nCino's solutions. Q: Can you discuss the professional services gross margins and the path to improvement? A: Gregory Orenstein, Chief Financial Officer, noted that cost pressures have been concentrated in the community bank space. They are redesigning products for quicker implementation and leveraging AI to improve margins. While it will take time to see results, they are confident in executing these improvements. Q: What is most misunderstood about nCino's story? A: Sean Desmond believes there is good alignment and understanding of nCino's focus on execution discipline and growth initiatives. He feels confident that investors understand their strategy, including their focus on AI and market opportunities in onboarding, credit unions, and international expansion. Q: How is AI playing a role in workforce efficiency and office space utilization? A: Sean Desmond explained that they have streamlined operations, including office space, to align with current needs. AI is being leveraged to modernize software development, increasing efficiency and reducing headcount while maintaining or increasing productivity. Q: Can you provide insights into the consumer lending momentum and its impact on ACV targets? A: Sean Desmond highlighted strong momentum in consumer lending, with a mix of revenues from commercial, consumer, and mortgage sectors. The activation of the credit union go-to-market team is expected to further boost growth, with significant opportunities in both banks and credit unions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
nCino (NASDAQ:NCNO) Posts Better-Than-Expected Sales In Q1
Bank software company nCino (NASDAQ:NCNO) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 12.5% year on year to $144.1 million. The company expects next quarter's revenue to be around $143 million, close to analysts' estimates. Its non-GAAP profit of $0.16 per share was in line with analysts' consensus estimates. Is now the time to buy nCino? Find out in our full research report. Revenue: $144.1 million vs analyst estimates of $140.3 million (12.5% year-on-year growth, 2.7% beat) Adjusted EPS: $0.16 vs analyst estimates of $0.16 (in line) Adjusted Operating Income: $24.83 million vs analyst estimates of $24.08 million (17.2% margin, 3.1% beat) The company slightly lifted its revenue guidance for the full year to $580.5 million at the midpoint from $576.5 million Management raised its full-year Adjusted EPS guidance to $0.71 at the midpoint, a 4.4% increase Operating Margin: -1%, up from -2.9% in the same quarter last year Free Cash Flow was $52.6 million, up from -$10.37 million in the previous quarter Market Capitalization: $3.11 billion "Strong execution drove financial results above guidance, underscoring our ability to deliver value for shareholders and customers," said Sean Desmond, CEO at nCino. Founded in 2011 in North Carolina, nCino (NASDAQ:NCNO) makes cloud-based operating systems for banks and provides that software-as-a-service. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, nCino's sales grew at a decent 22.1% compounded annual growth rate over the last three years. Its growth was slightly above the average software company and shows its offerings resonate with customers. This quarter, nCino reported year-on-year revenue growth of 12.5%, and its $144.1 million of revenue exceeded Wall Street's estimates by 2.7%. Company management is currently guiding for a 8% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 5.4% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and indicates its products and services will face some demand challenges. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. nCino does a decent job acquiring new customers, and its CAC payback period checked in at 44.1 months this quarter. The company's relatively fast recovery of its customer acquisition costs gives it the option to accelerate growth by increasing its sales and marketing investments. It was great to see nCino raise its full-year revenue and EPS guidance. We were also happy this quarter's revenue and adjusted operating income outperformed Wall Street's estimates. Overall, this was a solid print. The stock remained flat at $26.85 immediately after reporting. Is nCino an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
Hamilton Spectator
28-05-2025
- Business
- Hamilton Spectator
nCino Reports First Quarter Fiscal Year 2026 Financial Results
• Total Revenues of $144.1M , up 13% year-over-year • Subscription Revenues of $125.6M , up 14% year-over-year WILMINGTON, N.C., May 28, 2025 (GLOBE NEWSWIRE) — nCino, Inc. (NASDAQ: NCNO), the leading provider of intelligent, best-in-class banking solutions, today announced financial results for the first quarter of fiscal year 2026, ended April 30, 2025. 'Strong execution drove financial results above guidance, underscoring our ability to deliver value for shareholders and customers,' said Sean Desmond, CEO at nCino. 'We're fulfilling our commitments and advancing key platform capabilities across commercial, consumer, and mortgage solutions, while enhancing onboarding and omnichannel experiences. At the same time, we're accelerating our AI strategy to reimagine key banking workflows and seamlessly embedding intelligence across the entire nCino Platform to deliver more intuitive and engaging customer experiences.' Financial Highlights Recent Business Highlights Financial Outlook nCino is providing guidance for its second quarter ending July 31, 2025, as follows: nCino is providing guidance for its fiscal year 2026 ending January 31, 2026, as follows: Conference Call nCino will host a conference call at 4:30 p.m. ET today to discuss its financial results and outlook. The conference call will be available via live webcast and replay at the Investor Relations section of nCino's website: . About nCino nCino (NASDAQ: NCNO) is powering a new era in financial services. The Company was founded to help financial institutions digitize and reengineer business processes to boost efficiencies and create better banking experiences. With over 2,700 customers worldwide - including community banks, credit unions, independent mortgage banks, and the largest financial entities globally - nCino offers a trusted platform of best-in-class, intelligent solutions. By integrating artificial intelligence and actionable insights into its platform, nCino is helping financial institutions consolidate legacy systems to enhance strategic decision-making, improve risk management, and elevate customer satisfaction by cohesively bringing together people, AI and data. For more information, visit . INVESTOR CONTACT Harrison Masters MEDIA CONTACT Natalia Moose press@ Forward-Looking Statements: This press release contains forward-looking statements about nCino's financial and operating results, which include statements regarding nCino's future performance, outlook, guidance, the benefits from the use of nCino's solutions, our strategies, and general business conditions. Forward-looking statements generally include actions, events, results, strategies and expectations and are often identifiable by use of the words 'believes,' 'expects,' 'intends,' 'anticipates,' 'plans,' 'seeks,' 'estimates,' 'projects,' 'may,' 'will,' 'could,' 'might,' or 'continues' or similar expressions and the negatives thereof. Any forward-looking statements contained in this press release are based upon nCino's historical performance and its current plans, estimates, and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent nCino's expectations as of the date of this press release. Subsequent events may cause these expectations to change and, except as may be required by law, nCino does not undertake any obligation to update or revise these forward-looking statements. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially including, but not limited to risks associated with (i) adverse changes in the financial services industry, including as a result of customer consolidation or bank failures; (ii) adverse changes in economic, regulatory, or market conditions, including as a direct or indirect consequence of higher interest rates; (iii) risks associated with acquisitions we undertake, (iv) breaches in our security measures or unauthorized access to our customers' or their clients' data; (v) the accuracy of management's assumptions and estimates; (vi) our ability to attract new customers and succeed in having current customers expand their use of our solution, including in connection with our migration to an asset-based pricing model; (vii) competitive factors, including pricing pressures and migration to asset-based pricing, consolidation among competitors, entry of new competitors, the launch of new products and marketing initiatives by our competitors, and difficulty securing rights to access or integrate with third party products or data used by our customers; (viii) the rate of adoption of our newer solutions and the results of our efforts to sustain or expand the use and adoption of our more established solutions; (ix) fluctuation of our results of operations, which may make period-to-period comparisons less meaningful; (x) our ability to manage our growth effectively including expanding outside of the United States; (xi) adverse changes in our relationship with Salesforce; (xii) our ability to successfully acquire new companies and/or integrate acquisitions into our existing organization; (xiii) the loss of one or more customers, particularly any of our larger customers, or a reduction in the number of users our customers purchase access and use rights for; (xiv) system unavailability, system performance problems, or loss of data due to disruptions or other problems with our computing infrastructure or the infrastructure we rely on that is operated by third parties; (xv) our ability to maintain our corporate culture and attract and retain highly skilled employees; and (xvi) the outcome and impact of legal proceedings and related fees and expenses. Non-GAAP Financial Measures In nCino's public disclosures, nCino has provided non-GAAP measures, which are measurements of financial performance that have not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, nCino uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing our financial results. For the reasons set forth below, nCino believes that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures. There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by nCino's management about which items are adjusted to calculate its non-GAAP financial measures. nCino compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. nCino encourages investors and others to review our financial information in its entirety, not to rely on any single financial measure to evaluate our business, and to view our non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below. 1Columns may not foot due to rounding. 2Effective the beginning of our first quarter for fiscal year 2026, we are excluding intercompany foreign currency exchange gains and losses from the remeasurement of intercompany loans and transactions that are denominated in currencies other than the underlying functional currency of the applicable entity. Prior period amounts have been recast to reflect this change. 3Income tax adjustments for prior periods have been recast related to excluding intercompany foreign currency exchange gains and losses related to intercompany loans and transactions from the remeasurement of intercompany loans and transactions that are denominated in currencies other than the underlying functional currency of the applicable entity as stated in the note above. 4These amounts represent the non-interest component of payments towards financing obligations for facilities.
Yahoo
28-05-2025
- Business
- Yahoo
nCino Reports First Quarter Fiscal Year 2026 Financial Results
• Total Revenues of $144.1M, up 13% year-over-year• Subscription Revenues of $125.6M, up 14% year-over-year WILMINGTON, N.C., May 28, 2025 (GLOBE NEWSWIRE) -- nCino, Inc. (NASDAQ: NCNO), the leading provider of intelligent, best-in-class banking solutions, today announced financial results for the first quarter of fiscal year 2026, ended April 30, 2025. "Strong execution drove financial results above guidance, underscoring our ability to deliver value for shareholders and customers," said Sean Desmond, CEO at nCino. "We're fulfilling our commitments and advancing key platform capabilities across commercial, consumer, and mortgage solutions, while enhancing onboarding and omnichannel experiences. At the same time, we're accelerating our AI strategy to reimagine key banking workflows and seamlessly embedding intelligence across the entire nCino Platform to deliver more intuitive and engaging customer experiences." Financial Highlights Revenues: Total revenues for the first quarter of fiscal 2026 were $144.1 million, a 13% increase from $128.1 million in the first quarter of fiscal 2025. Subscription revenues for the first quarter were $125.6 million, up from $110.4 million one year ago, an increase of 14%. Income (Loss) from Operations: GAAP loss from operations in the first quarter of fiscal 2026 was $(1.5) million compared to $(3.7) million in the same quarter of fiscal 2025. Non-GAAP operating income in the first quarter of fiscal 2026 was $24.8 million compared to $24.4 million in the first quarter of fiscal 2025, an increase of 2%. Net Income (Loss) Attributable to nCino: GAAP net income (loss) attributable to nCino in the first quarter of fiscal 2026 was $5.6 million compared to $(3.0) million in the first quarter of fiscal 2025. Non-GAAP net income attributable to nCino in the first quarter of fiscal 2026 was $18.4 million compared to $22.8 million in the first quarter of fiscal 2025. Net Income (Loss) Attributable to nCino per Share: GAAP net income (loss) attributable to nCino in the first quarter of fiscal 2026 was $0.05 per basic and diluted share compared to $(0.03) per basic and diluted share in the first quarter of fiscal 2025. Non-GAAP net income attributable to nCino in the first quarter was $0.16 per diluted share compared to $0.20 per diluted share in the first quarter of fiscal 2025. Cash: Cash, cash equivalents, and restricted cash were $133.6 million as of April 30, 2025 and $208.5 million was outstanding under nCino's revolving credit facility. In the first quarter ended April 30, 2025, nCino repurchased approximately 1.8 million shares of the Company's outstanding common stock at an average share price of $22.17 for total consideration of $40.6 million. Recent Business Highlights Signed a multi-solution expansion agreement with a $25 billion AUM bank in the U.S.: A regional bank in the U.S. doubled its annual commitment to nCino with an expansion agreement for Consumer Lending and U.S. Mortgage, accompanying a five-year renewal. Completed rollout of a top-5 bank in the U.S.: A top-5 bank in the U.S. completed its rollout of nCino Commercial Lending, bringing all of its commercial and business lending onto the nCino Platform. Selected by San ju San Bank for mortgage lending: A regional Japanese bank based in Yokkaichi City will use nCino to digitize its mortgage lending processes with the aim of improving employee efficiency and shortening loan cycle times. Benefited from expansion opportunities brought about by customer M&A: Signed expansion agreements with a top-50 bank in the U.S. and a top-10 Canadian bank following respective customers' completed acquisitions. Hosted nSight 2025: Welcomed over 1,600 attendees to annual conference, nSight, where the Company unveiled its latest product enhancements leveraging advanced AI to tackle key challenges in financial services, including operations analytics, smarter risk management, personalized customer experiences, and streamlined compliance processes. Established the nCino Research Institute (nRI): At nSight, the Company also launched the nCino Research Institute (nRI), an initiative designed to offer economic trends analysis and banking benchmark data and analysis to help nCino's customers excel in an unpredictable economic landscape. By leveraging the data within the nCino Platform and interpreting global economic indicators, the nRI delivers unique insights on banking performance and innovation, with actionable guidance to drive strategy and growth. Financial Outlook nCino is providing guidance for its second quarter ending July 31, 2025, as follows: Total revenues between $142.0 million and $144.0 million. Subscription revenues between $124.5 million and $126.5 million. Non-GAAP operating income between $23.5 million and $24.5 million. Non-GAAP net income attributable to nCino per diluted share of $0.13 to $0.14. nCino is providing guidance for its fiscal year 2026 ending January 31, 2026, as follows: Total revenues between $578.5 million and $582.5 million. Subscription revenues between $507.0 million and $511.0 million. Non-GAAP operating income between $112.0 million and $116.0 million. Non-GAAP net income attributable to nCino per diluted share of $0.69 to $0.72. Annual Contract Value (ACV) between $564.0 million and $567.0 million. Conference CallnCino will host a conference call at 4:30 p.m. ET today to discuss its financial results and outlook. The conference call will be available via live webcast and replay at the Investor Relations section of nCino's website: About nCinonCino (NASDAQ: NCNO) is powering a new era in financial services. The Company was founded to help financial institutions digitize and reengineer business processes to boost efficiencies and create better banking experiences. With over 2,700 customers worldwide - including community banks, credit unions, independent mortgage banks, and the largest financial entities globally - nCino offers a trusted platform of best-in-class, intelligent solutions. By integrating artificial intelligence and actionable insights into its platform, nCino is helping financial institutions consolidate legacy systems to enhance strategic decision-making, improve risk management, and elevate customer satisfaction by cohesively bringing together people, AI and data. For more information, visit INVESTOR CONTACT Harrison Masters MEDIA CONTACT Natalia Moose press@ Forward-Looking Statements: This press release contains forward-looking statements about nCino's financial and operating results, which include statements regarding nCino's future performance, outlook, guidance, the benefits from the use of nCino's solutions, our strategies, and general business conditions. Forward-looking statements generally include actions, events, results, strategies and expectations and are often identifiable by use of the words 'believes,' 'expects,' 'intends,' 'anticipates,' 'plans,' 'seeks,' 'estimates,' 'projects,' 'may,' 'will,' 'could,' 'might,' or 'continues' or similar expressions and the negatives thereof. Any forward-looking statements contained in this press release are based upon nCino's historical performance and its current plans, estimates, and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent nCino's expectations as of the date of this press release. Subsequent events may cause these expectations to change and, except as may be required by law, nCino does not undertake any obligation to update or revise these forward-looking statements. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially including, but not limited to risks associated with (i) adverse changes in the financial services industry, including as a result of customer consolidation or bank failures; (ii) adverse changes in economic, regulatory, or market conditions, including as a direct or indirect consequence of higher interest rates; (iii) risks associated with acquisitions we undertake, (iv) breaches in our security measures or unauthorized access to our customers' or their clients' data; (v) the accuracy of management's assumptions and estimates; (vi) our ability to attract new customers and succeed in having current customers expand their use of our solution, including in connection with our migration to an asset-based pricing model; (vii) competitive factors, including pricing pressures and migration to asset-based pricing, consolidation among competitors, entry of new competitors, the launch of new products and marketing initiatives by our competitors, and difficulty securing rights to access or integrate with third party products or data used by our customers; (viii) the rate of adoption of our newer solutions and the results of our efforts to sustain or expand the use and adoption of our more established solutions; (ix) fluctuation of our results of operations, which may make period-to-period comparisons less meaningful; (x) our ability to manage our growth effectively including expanding outside of the United States; (xi) adverse changes in our relationship with Salesforce; (xii) our ability to successfully acquire new companies and/or integrate acquisitions into our existing organization; (xiii) the loss of one or more customers, particularly any of our larger customers, or a reduction in the number of users our customers purchase access and use rights for; (xiv) system unavailability, system performance problems, or loss of data due to disruptions or other problems with our computing infrastructure or the infrastructure we rely on that is operated by third parties; (xv) our ability to maintain our corporate culture and attract and retain highly skilled employees; and (xvi) the outcome and impact of legal proceedings and related fees and expenses. nCino, CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited) January 31, 2025 April 30, 2025 Assets Current assets Cash and cash equivalents $ 120,928 $ 133,230 Accounts receivable, net 146,787 104,417 Costs capitalized to obtain revenue contracts, current portion, net 13,462 13,928 Prepaid expenses and other current assets 21,072 22,109 Total current assets 302,249 273,684 Property and equipment, net 74,953 77,293 Operating lease right-of-use assets, net 16,026 15,560 Costs capitalized to obtain revenue contracts, noncurrent, net 23,735 23,233 Goodwill 1,019,375 1,080,657 Intangible assets, net 154,571 161,316 Investments 9,294 7,262 Long-term prepaid expenses and other assets 10,178 11,937 Total assets $ 1,610,381 $ 1,650,942 Liabilities, redeemable non-controlling interest, and stockholders' equity Current liabilities Accounts payable $ 13,640 $ 15,101 Accrued expenses and other current liabilities 39,865 35,185 Deferred revenue, current portion 191,174 203,659 Financing obligations, current portion 1,680 1,729 Operating lease liabilities, current portion 5,153 5,068 Total current liabilities 251,512 260,742 Operating lease liabilities, noncurrent 12,819 12,338 Deferred income taxes, noncurrent 13,851 20,718 Deferred revenue, noncurrent 269 277 Revolving credit facility, noncurrent 166,000 208,500 Financing obligations, noncurrent 51,172 50,713 Other long-term liabilities 17,160 16,707 Total liabilities 512,783 569,995 Commitments and contingencies Redeemable non-controlling interest 8,286 8,729 Stockholders' equity Common stock 58 59 Treasury stock, at cost — (40,588 ) Additional paid-in capital 1,474,413 1,490,590 Accumulated other comprehensive income 176 1,551 Accumulated deficit (385,335 ) (379,394 ) Total stockholders' equity 1,089,312 1,072,218 Total liabilities, redeemable non-controlling interest, and stockholders' equity $ 1,610,381 $ 1,650,942 nCino, CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share data)(Unaudited) Three Months Ended April 30, 2024 2025 Revenues Subscription $ 110,406 $ 125,588 Professional services and other 17,681 18,549 Total revenues 128,087 144,137 Cost of revenues Subscription 31,780 36,125 Professional services and other 19,400 21,570 Total cost of revenues 51,180 57,695 Gross profit 76,907 86,442 Gross margin % 60 % 60 % Operating expenses Sales and marketing 28,045 32,971 Research and development 29,981 33,341 General and administrative 22,544 21,643 Total operating expenses 80,570 87,955 Loss from operations (3,663 ) (1,513 ) Non-operating income (expense) Interest income 605 417 Interest expense (1,477 ) (4,450 ) Other income (expense), net (744 ) 16,097 Net income (loss) before income taxes (5,279 ) 10,551 Income tax provision (benefit) (2,982 ) 4,534 Net income (loss) (2,297 ) 6,017 Net income (loss) attributable to redeemable non-controlling interest (165 ) 76 Adjustment attributable to redeemable non-controlling interest 844 379 Net income (loss) attributable to nCino, Inc. $ (2,976 ) $ 5,562 Net income (loss) per share attributable to nCino, Inc.: Basic $ (0.03 ) $ 0.05 Diluted $ (0.03 ) $ 0.05 Weighted average number of common shares outstanding: Basic 114,197,068 114,781,654 Diluted 114,197,068 116,578,848 nCino, CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) Three Months Ended April 30, 2024 2025 Cash flows from operating activities Net income (loss) attributable to nCino, Inc. $ (2,976 ) $ 5,562 Net income (loss) and adjustment attributable to redeemable non-controlling interest 679 455 Net income (loss) (2,297 ) 6,017 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 8,290 10,705 Non-cash operating lease costs 1,615 1,161 Amortization of costs capitalized to obtain revenue contracts 2,741 3,591 Amortization of debt issuance costs 10 72 Stock-based compensation 16,205 15,814 Change in fair value of contingent consideration — 200 Deferred income taxes (3,441 ) 2,656 Provision for (recovery of) bad debt (131 ) 202 Net foreign currency losses (gains) 756 (13,669 ) Gains on investments — (1,652 ) Loss on disposal of long-lived assets — 73 Change in operating assets and liabilities: Accounts receivable 37,464 45,717 Costs capitalized to obtain revenue contracts (5,105 ) (3,158 ) Prepaid expenses and other assets (2,092 ) (1,542 ) Accounts payable 3,812 480 Accrued expenses and other liabilities (8,192 ) (15,796 ) Deferred revenue 6,175 5,245 Operating lease liabilities (1,368 ) (1,335 ) Other long term liabilities — (461 ) Net cash provided by operating activities 54,442 54,320 Cash flows from investing activities Acquisition of business, net of cash acquired (90,737 ) (50,263 ) Acquisition of assets (150 ) — Purchases of property and equipment (342 ) (1,718 ) Sale of investment — 3,684 Net cash used in investing activities (91,229 ) (48,297 ) Cash flows from financing activities Repurchases of common stock — (40,588 ) Proceeds from borrowings on revolving credit facility 75,000 102,500 Payments on revolving credit facility (20,000 ) (60,000 ) Payments of debt issuance costs (262 ) — Exercise of stock options 1,601 748 Principal payments on financing obligations (359 ) (410 ) Net cash provided by financing activities 55,980 2,250 Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash (1,799 ) 4,040 Net increase in cash, cash equivalents, and restricted cash 17,394 12,313 Cash, cash equivalents, and restricted cash, beginning of period 117,444 121,267 Cash, cash equivalents, and restricted cash, end of period $ 134,838 $ 133,580 Reconciliation of cash, cash equivalents, and restricted cash, end of period: Cash and cash equivalents $ 129,481 $ 133,230 Restricted cash included in long-term prepaid expenses and other assets 5,357 350 Total cash, cash equivalents, and restricted cash, end of period $ 134,838 $ 133,580 Non-GAAP Financial MeasuresIn nCino's public disclosures, nCino has provided non-GAAP measures, which are measurements of financial performance that have not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, nCino uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing our financial results. For the reasons set forth below, nCino believes that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures. Amortization of Purchased Intangibles. nCino incurs amortization expense for purchased intangible assets in connection with certain mergers and acquisitions. Because these costs have already been incurred, cannot be recovered, are non-cash, and are affected by the inherent subjective nature of purchase price allocations, nCino excludes these expenses for our internal management reporting processes. nCino's management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Although nCino excludes amortization expense for purchased intangibles from these non-GAAP measures, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Stock-Based Compensation Expenses. nCino excludes stock-based compensation expenses primarily because they are non-cash expenses that nCino excludes from our internal management reporting processes. nCino's management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, nCino believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies. Acquisition-Related Expenses. nCino excludes expenses related to acquisitions as they limit comparability of operating results with prior periods. Acquisition-related expenses include but are not limited to: costs incurred from third-party professional services firms in connection with business combination and one-time integration activities. We believe these costs are non-recurring in nature and outside the ordinary course of business. Litigation Expenses. nCino excludes fees and expenses related to litigation expenses incurred from legal matters outside the ordinary course of our business as we believe their exclusion from non-GAAP operating expenses will facilitate a more meaningful explanation of operating results and comparisons with prior period results. Restructuring Costs. nCino excludes costs incurred related to bespoke restructuring plans and other one-time costs, if any, that are fundamentally different in strategic nature and frequency from ongoing initiatives. We believe excluding these costs facilitates a more consistent comparison of operating performance over time. Adjustments to stock-based compensation in connection with restructuring events are presented in Stock-Based Compensation Expenses. Intercompany Foreign Currency Exchange Gains/Losses. Beginning with the first quarter of fiscal 2026, nCino adjusts for foreign currency exchange gains and losses primarily from the remeasurement of intercompany loans and transactions that are denominated in currencies other than the underlying functional currency of the applicable entity. We believe foreign currency gains and losses on intercompany loans and transactions is not indicative of our results and business outlook. Prior period amounts have been recast to reflect this change. Tax (Benefit) Provision Related to Acquisitions. Upon certain acquisitions, nCino reduced the valuation allowance against U.S. deferred tax assets, resulting in a one-time tax benefit recorded in Income tax (benefit) provision. We believe that the exclusion of this benefit from our non-GAAP net loss attributable to nCino and non-GAAP net loss attributable to nCino per share provides a more direct comparison to all periods presented. Income Tax Effect on Non-GAAP Adjustments. The income tax effects are related to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses. Adjustment to Redeemable Non-Controlling Interest. nCino adjusts the value of redeemable non-controlling interest of its joint venture nCino K.K. in accordance with the operating agreement for that entity. nCino believes investors benefit from an understanding of the company's operating results absent the effect of this adjustment, and for comparability, has reconciled this adjustment for previously reported non-GAAP results. There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by nCino's management about which items are adjusted to calculate its non-GAAP financial measures. nCino compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. nCino encourages investors and others to review our financial information in its entirety, not to rely on any single financial measure to evaluate our business, and to view our non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below. nCino, OF GAAP TO NON-GAAP MEASURES(In thousands, except share and per share data)(Unaudited) Three Months Ended April 30, 2024 2025 GAAP total revenues $ 128,087 $ 144,137 GAAP cost of subscription revenues $ 31,780 $ 36,125 Amortization expense - developed technology (4,118 ) (5,075 ) Stock-based compensation (562 ) (664 ) Non-GAAP cost of subscription revenues $ 27,100 $ 30,386 GAAP cost of professional services and other revenues $ 19,400 $ 21,570 Amortization expense - other (82 ) (82 ) Stock-based compensation (2,779 ) (2,754 ) Non-GAAP cost of professional services and other revenues $ 16,539 $ 18,734 GAAP gross profit $ 76,907 $ 86,442 Amortization expense - developed technology 4,118 5,075 Amortization expense - other 82 82 Stock-based compensation 3,341 3,418 Non-GAAP gross profit $ 84,448 $ 95,017 The following table sets forth reconciling items as a percentage of total revenue for the periods presented.1 GAAP gross margin % 60 % 60 % Amortization expense - developed technology 3 4 Stock-based compensation 3 2 Non-GAAP gross margin % 66 % 66 % GAAP sales & marketing expense $ 28,045 $ 32,971 Amortization expense - customer relationships (2,423 ) (3,580 ) Amortization expense - trade name (43 ) (424 ) Amortization expense - other (16 ) (28 ) Stock-based compensation (3,956 ) (2,928 ) Acquisition-related expenses — (335 ) Non-GAAP sales & marketing expense $ 21,607 $ 25,676 GAAP research & development expense $ 29,981 $ 33,341 Stock-based compensation (4,226 ) (4,115 ) Acquisition-related expenses — (90 ) Non-GAAP research & development expense $ 25,755 $ 29,136 GAAP general & administrative expense $ 22,544 $ 21,643 Stock-based compensation (4,682 ) (5,353 ) Acquisition-related expenses (5,040 ) (915 ) Litigation expenses (181 ) — Non-GAAP general & administrative expense $ 12,641 $ 15,375 GAAP loss from operations $ (3,663 ) $ (1,513 ) Amortization of intangible assets 6,682 9,189 Stock-based compensation 16,205 15,814 Acquisition-related expenses 5,040 1,340 Litigation expenses 181 — Non-GAAP operating income $ 24,445 $ 24,830 The following table sets forth reconciling items as a percentage of total revenue for the periods presented.1 GAAP operating margin % (3 )% (1 )% Amortization of intangible assets 5 6 Stock-based compensation 13 11 Acquisition-related expenses 4 1 Non-GAAP operating margin % 19 % 17 % GAAP net income (loss) attributable to nCino, Inc. $ (2,976 ) $ 5,562 Amortization of intangible assets 6,682 9,189 Stock-based compensation 16,205 15,814 Acquisition-related expenses 5,040 1,340 Litigation expenses 181 — Intercompany foreign currency Exchange (gain)/loss2 844 (14,300 ) Tax benefit related to acquisition (3,609 ) (1,955 ) Income tax effect on non-GAAP adjustments3 (450 ) 2,378 Adjustment attributable to redeemable non-controlling interest 844 379 Non-GAAP net income attributable to nCino, Inc. $ 22,761 $ 18,407 Basic GAAP net income (loss) attributable to nCino, Inc. per share $ (0.03 ) $ 0.05 Weighted-average shares used to compute basic GAAP net income (loss) attributable to nCino, Inc. per share 114,197,068 114,781,654 Diluted GAAP net income (loss) attributable to nCino, Inc. per share $ (0.03 ) $ 0.05 Weighted-average shares used to compute diluted GAAP net income (loss) attributable to nCino, Inc. per share 114,197,068 116,578,848 Basic non-GAAP net income attributable to nCino, Inc. per share $ 0.20 $ 0.16 Weighted-average shares used to compute basic non-GAAP net income attributable to nCino, Inc. per share 114,197,068 114,781,654 Diluted non-GAAP net income attributable to nCino, Inc. per share $ 0.20 $ 0.16 Weighted-average shares used to compute diluted non-GAAP net income attributable to nCino, Inc. per share 116,553,054 116,578,848 Free cash flow Net cash provided by operating activities $ 54,442 $ 54,320 Purchases of property and equipment (342 ) (1,718 ) Free cash flow $ 54,100 $ 52,602 Principal payments on financing obligations4 (359 ) (410 ) Free cash flow less principal payments on financing obligations $ 53,741 $ 52,192 1Columns may not foot due to rounding.2Effective the beginning of our first quarter for fiscal year 2026, we are excluding intercompany foreign currency exchange gains and losses from the remeasurement of intercompany loans and transactions that are denominated in currencies other than the underlying functional currency of the applicable entity. Prior period amounts have been recast to reflect this change.3Income tax adjustments for prior periods have been recast related to excluding intercompany foreign currency exchange gains and losses related to intercompany loans and transactions from the remeasurement of intercompany loans and transactions that are denominated in currencies other than the underlying functional currency of the applicable entity as stated in the note above.4These amounts represent the non-interest component of payments towards financing obligations for in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
