• Total Revenues of $132.4M, up 13% year-over-year• Subscription Revenues of $113.9M, up 14% year-over-year• GAAP Operating Margin of (6)%, up ~650 basis points year-over-year• Non-GAAP Operating Margin of 15%, up ~500 basis points year-over-year
WILMINGTON, N.C., Aug. 27, 2024 (GLOBE NEWSWIRE) -- nCino, Inc. (NASDAQ:NCNO), a pioneer in cloud banking for the global financial services industry, today announced financial results for the second quarter of fiscal year 2025, ended July 31, 2024."We are pleased to report that we again exceeded quarterly guidance for total and subscription revenues as well as non-GAAP operating income," said Pierre Naudé, Chairman and CEO at nCino. "In the second quarter we saw particular strength in the U.S. across both the enterprise and community & regional segments, with increased demand for solutions that span the breadth of the nCino platform including consumer lending and deposit account opening, as well as our Generative AI offering, Banking Advisor. While some macro-economic challenges persist, particularly in the U.S. mortgage market and international markets, we have a positive outlook on the second half of the year."
Financial Highlights
Revenues: Total revenues for the second quarter of fiscal 2025 were $132.4 million, a 13% increase from $117.2 million in the second quarter of fiscal 2024. Subscription revenues for the second quarter were $113.9 million, up from $99.9 million one year ago, an increase of 14%.
Income (Loss) from Operations: GAAP loss from operations in the second quarter of fiscal 2025 was $(7.9) million compared to $(14.8) million in the same quarter of fiscal 2024. Non-GAAP operating income in the second quarter of fiscal 2025 was $19.3 million compared to $11.2 million in the second quarter of fiscal 2024.
Net Income (Loss) Attributable to nCino: GAAP net loss attributable to nCino in the second quarter of fiscal 2025 was $(11.0) million compared to $(15.9) million in the second quarter of fiscal 2024. Non-GAAP net income attributable to nCino in the second quarter of fiscal 2025 was $15.8 million compared to $9.9 million in the second quarter of fiscal 2024.
Net Income (Loss) Attributable to nCino per Share: GAAP net loss attributable to nCino in the second quarter of fiscal 2025 was $(0.10) per basic and diluted share compared to $(0.14) per basic and diluted share in the second quarter of fiscal 2024. Non-GAAP net income attributable to nCino in the second quarter was $0.14 per diluted share compared to $0.09 per diluted share in the second quarter of fiscal 2024.
Remaining Performance Obligation: Total Remaining Performance Obligation (RPO) as of July 31, 2024, was $1.041 billion, compared with $928.6 million as of July 31, 2023, an increase of 12%. RPO expected to be recognized in the next 24 months was $698.3 million, an increase of 10% from $636.2 million as of July 31, 2023.
Cash: Cash, cash equivalents, and restricted cash were $126.8 million as of July 31, 2024. During the second quarter, the Company repaid $15 million on its revolving credit facility.
Recent Business Highlights
Extended partnership with ABN AMRO, a Top 25 European Bank: As a result of the successful project and go-live, nCino and ABN AMRO have extended their partnership. By implementing nCino, ABN AMRO is unlocking added business value through enhanced collateral management and consolidating multiple legacy systems into one platform, unifying its end-to-end lending process for both customers and employees.
Completed Banking Advisor add-on with an approximately $45 billion-asset bank: A bank using nCino for Commercial lending, Mortgage POS, and multiple solutions powered by nIQ, including Commercial Pricing and Profitability and Automated Spreading became the first Enterprise customer to add Banking Advisor.
Signed largest bank customer to date for Portfolio Analytics: An over $20B asset institution became the largest bank by asset size to expand their use of the platform from Commercial lending and Deposit Account Opening to include Portfolio Analytics for CRE stress testing.
Extended relationship with largest client in the UK: Renewed relationship with a Top 5 European bank for an additional three years.
Financial Outlook nCino is providing guidance for its third quarter ending October 31, 2024, as follows:
Total revenues between $136.0 million and $138.0 million.
Subscription revenues between $117.0 million and $119.0 million.
Non-GAAP operating income between $21.0 million and $22.0 million.
Non-GAAP net income attributable to nCino per diluted share of $0.15 to $0.16.
nCino is providing guidance for its fiscal year 2025 ending January 31, 2025, as follows:
Total revenues between $538.5 million and $544.5 million.
Subscription revenues between $463.0 million and $469.0 million.
Non-GAAP operating income between $87.0 million and $90.0 million.
Non-GAAP net income attributable to nCino per diluted share of $0.66 to $0.69.
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: https://investor.ncino.com/news-events/events-and-presentations.
About nCinonCino (NASDAQ:NCNO) is the worldwide leader in cloud banking. Through its single software-as-a-service (SaaS) platform, nCino helps financial institutions serving corporate and commercial, small business, consumer, and mortgage customers modernize and more effectively onboard clients, make loans, manage the loan lifecycle, and open accounts. Transforming how financial institutions operate through innovation, reputation and speed, nCino is partnered with more than 1,800 financial services providers globally. For more information, visit www.ncino.com.
CONTACTSINVESTOR CONTACTHarrison MastersnCino+1 CONTACTNatalia
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 assumptions underlying those statements, 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; (vii) competitive factors, including pricing pressures, 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.
Additional risks and uncertainties that could affect nCino's business and financial results are included in our reports filed with the U.S. Securities and Exchange Commission (available on our web site at www.ncino.com or the SEC's web site at www.sec.gov). Further information on potential risks that could affect actual results will be included in other filings nCino makes with the SEC from time to time.
nCino, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 31, 2024
July 31, 2024
Assets
Current assets
Cash and cash equivalents
$
112,085
$
121,410
Accounts receivable, net
112,975
78,819
Costs capitalized to obtain revenue contracts, current portion, net
10,544
11,565
Prepaid expenses and other current assets
15,171
16,957
Total current assets
250,775
228,751
Property and equipment, net
79,145
76,785
Operating lease right-of-use assets, net
19,261
15,928
Costs capitalized to obtain revenue contracts, noncurrent, net
17,425
19,137
Goodwill
838,869
908,000
Intangible assets, net
115,572
135,524
Investments
9,294
9,294
Long-term prepaid expenses and other assets
10,089
15,328
Total assets
$
1,340,430
$
1,408,747
Liabilities, redeemable non-controlling interest, and stockholders' equity
Current liabilities
Accounts payable
$
11,842
$
13,137
Accrued compensation and benefits
16,283
11,555
Accrued expenses and other current liabilities
10,847
7,930
Deferred revenue, current portion
170,941
172,038
Financing obligations, current portion
1,474
1,567
Operating lease liabilities, current portion
3,649
4,750
Total current liabilities
215,036
210,977
Operating lease liabilities, noncurrent
16,423
12,508
Deferred income taxes, noncurrent
3,687
11,196
Deferred revenue, noncurrent
—
569
Revolving credit facility, noncurrent
—
40,000
Financing obligations, noncurrent
52,680
51,865
Other long-term liabilities
—
2,644
Total liabilities
287,826
329,759
Commitments and contingencies
Redeemable non-controlling interest
3,428
4,133
Stockholders' equity
Common stock
57
58
Additional paid-in capital
1,400,881
1,439,245
Accumulated other comprehensive income
996
1,407
Accumulated deficit
(352,758
)
(365,855
)
Total stockholders' equity
1,049,176
1,074,855
Total liabilities, redeemable non-controlling interest, and stockholders' equity
$
1,340,430
$
1,408,747
nCino, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended July 31,
Six Months Ended July 31,
2023
2024
2023
2024
Revenues
Subscription
$
99,897
$
113,911
$
197,237
$
224,317
Professional services and other
17,339
18,492
33,671
36,173
Total revenues
117,236
132,403
230,908
260,490
Cost of revenues
Subscription
29,719
33,367
58,876
65,147
Professional services and other
18,328
20,564
35,359
39,964
Total cost of revenues
48,047
53,931
94,235
105,111
Gross profit
69,189
78,472
136,673
155,379
Gross margin %
59
%
59
%
59
%
60
%
Operating expenses
Sales and marketing
32,164
31,713
62,105
59,758
Research and development
29,889
34,271
58,084
64,252
General and administrative
21,930
20,394
39,905
42,938
Total operating expenses
83,983
86,378
160,094
166,948
Loss from operations
(14,794
)
(7,906
)
(23,421
)
(11,569
)
Non-operating income (expense)
Interest income
835
321
1,372
926
Interest expense
(1,044
)
(1,835
)
(2,423
)
(3,312
)
Other income (expense), net
469
150
(313
)
(594
)
Loss before income taxes
(14,534
)
(9,270
)
(24,785
)
(14,549
)
Income tax provision (benefit)
1,545
1,753
2,938
(1,229
)
Net loss
(16,079
)
(11,023
)
(27,723
)
(13,320
)
Net loss attributable to redeemable non-controlling interest
(268
)
(58
)
