Latest news with #nCino
Yahoo
3 days ago
- Business
- Yahoo
Market Sentiment Around Loss-Making nCino, Inc. (NASDAQ:NCNO)
With the business potentially at an important milestone, we thought we'd take a closer look at nCino, Inc.'s () future prospects. nCino, Inc., a software-as-a-service company, provides software solutions to financial institutions in the United States, the United Kingdom, and internationally. The US$3.0b market-cap company posted a loss in its most recent financial year of US$38m and a latest trailing-twelve-month loss of US$29m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which nCino will turn a profit, with the big question being 'when will the company breakeven?' We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. According to the 15 industry analysts covering nCino, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2027, before generating positive profits of US$45m in 2028. Therefore, the company is expected to breakeven roughly 3 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 96% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected. Given this is a high-level overview, we won't go into details of nCino's upcoming projects, however, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment. Check out our latest analysis for nCino Before we wrap up, there's one aspect worth mentioning. The company has managed its capital prudently, with debt making up 19% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company. This article is not intended to be a comprehensive analysis on nCino, so if you are interested in understanding the company at a deeper level, take a look at nCino's company page on Simply Wall St. We've also put together a list of pertinent factors you should further research: Valuation: What is nCino worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether nCino is currently mispriced by the market. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on nCino's board and the CEO's background. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
6 days ago
- 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
7 days ago
- Business
- Yahoo
NCino (NCNO) Q1 Earnings Meet Estimates
NCino (NCNO) came out with quarterly earnings of $0.16 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.12, delivering a surprise of -33.33%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. nCino , which belongs to the Zacks Internet - Software industry, posted revenues of $144.14 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 2.90%. This compares to year-ago revenues of $128.09 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. NCino shares have lost about 19.7% since the beginning of the year versus the S&P 500's gain of 0.7%. While nCino has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for nCino: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.15 on $144.2 million in revenues for the coming quarter and $0.68 on $577.15 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, UiPath (PATH), has yet to report results for the quarter ended April 2025. The results are expected to be released on May 29. This enterprise automation software developer is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of -23.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. UiPath's revenues are expected to be $332.33 million, down 0.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report nCino Inc. (NCNO) : Free Stock Analysis Report UiPath, Inc. (PATH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
7 days ago
- 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
7 days ago
- 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.
