nCino Reports First Quarter Fiscal Year 2025 Financial Results
Total Revenues of $128.1M, up 13% year-over-year
Subscription Revenues of $110.4M, up 13% year-over-year
GAAP Operating Margin of (3)%, up ~500 basis points year-over-year
Non-GAAP Operating Margin of 19%, up ~900 basis points year-over-year
WILMINGTON, N.C., May 29, 2024 (GLOBE NEWSWIRE) -- nCino, Inc. (NASDAQ: NCNO), a pioneer in cloud banking for the global financial services industry, today announced financial results for the first quarter of fiscal year 2025, ended April 30, 2024.
"Building on our fourth quarter momentum, we had a great start to the year, achieving our highest first-quarter gross sales in Company history, said Pierre Naudé, Chairman and CEO at nCino. Our strong sales execution produced wins across multiple markets, highlighting the breadth and depth of our product portfolio and the effectiveness of our single platform strategy. This was reinforced by the positive feedback we received at nSight, our annual customer conference, where we saw strong demand for our products, especially those that embed intelligence into essential business processes. Just as nCino led financial institutions to the cloud, we are uniquely positioned to lead them on the path to greater efficiency through the use of data, analytics, and AI."
Financial Highlights
- Revenues: Total revenues for the first quarter of fiscal 2025 were $128.1 million, a 13% increase from $113.7 million in the first quarter of fiscal 2024. Subscription revenues for the first quarter were $110.4 million, up from $97.3 million one year ago, an increase of 13%.
- Income (Loss) from Operations: GAAP loss from operations in the first quarter of fiscal 2025 was $(3.7) million compared to $(8.6) million in the same quarter of fiscal 2024. Non-GAAP operating income in the first quarter of fiscal 2025 was $24.4 million compared to $10.9 million in the first quarter of fiscal 2024.
- Net Income (Loss) Attributable to nCino: GAAP net loss attributable to nCino in the first quarter of fiscal 2025 was $(3.0) million compared to $(11.2) million in the first quarter of fiscal 2024. Non-GAAP net income attributable to nCino in the first quarter of fiscal 2025 was $22.0 million compared to $8.0 million in the first quarter of fiscal 2024.
- Net Income (Loss) Attributable to nCino per Share: GAAP net loss attributable to nCino in the first quarter of fiscal 2025 was $(0.03) per basic and diluted share compared to $(0.10) per basic and diluted share in the first quarter of fiscal 2024. Non-GAAP net income attributable to nCino in the first quarter was $0.19 per diluted share compared to $0.07 per diluted share in the first quarter of fiscal 2024.
- Remaining Performance Obligation: Total Remaining Performance Obligation (RPO) as of April 30, 2024, was $1.069 billion, compared with $914.0 million as of April 30, 2023, an increase of 17%. RPO expected to be recognized in the next 24 months was $701.8 million, an increase of 13% from $622.6 million as of April 30, 2023.
- Cash: Cash, cash equivalents, and restricted cash were $134.8 million as of April 30, 2024.
Recent Business Highlights
- Signed expansion agreement with M&T Bank for Continuous Credit Monitoring: nCino's Continuous Credit Monitoring Solution leverages Rich Data Co's explainable AI platform and is designed to bring transparency to every decision, giving financial institutions more comprehensive insights into cash flow health, credit risk, and lending opportunities at both the customer and portfolio level.
- Grew relationship with an over $15 billion-asset bank: An existing customer for Treasury Management expanded its commitment to nCino to include nCinos Deposit Account Opening, Small Business and Consumer Banking Solutions.
- Expanded with a district bank in the Farm Credit System: Expanded our partnership with one of the nation's four district banks within the Farm Credit System through 2031 to deliver on a single platform vision.
- Added a new logo with a specialist lender in the U.K.: A high-growth specialist lender serving the U.K. SME market selected nCino to leverage nIQ capabilities for automating processes and driving better data consistency by consolidating disparate systems onto one platform.
- Hosted nSight 2024: Welcomed over 1,600 attendees to a sold-out conference in Charlotte, N.C., representing hundreds of financial institutions from 12 countries.
Financial Outlook
nCino is providing guidance for its second quarter ending July 31, 2024, as follows:
- Total revenues between $130.5 million and $131.5 million.
- Subscription revenues between $112.5 million and $113.5 million.
- Non-GAAP operating income between $17.0 million and $18.5 million.
- Non-GAAP net income attributable to nCino per diluted share of $0.12 to $0.13.
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 $86.0 million and $89.0 million.
- Non-GAAP net income attributable to nCino per diluted share of $0.65 to $0.68.
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 nCinos website: https://investor.ncino.com/news-events/events-and-presentations.
About nCino
nCino (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.
Forward-Looking Statements:
This press release contains forward-looking statements about nCino's financial and operating results, which include statements regarding nCinos future performance, outlook, guidance, the assumptions underlying those statements, the benefits from the use of nCinos 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 nCinos 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 nCinos 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 managements 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 nCinos 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 | April 30, 2024 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 112,085 | $ | 129,481 | |||
| Accounts receivable, net | 112,975 | 78,508 | |||||
| Costs capitalized to obtain revenue contracts, current portion, net | 10,544 | 11,356 | |||||
| Prepaid expenses and other current assets | 15,171 | 17,239 | |||||
| Total current assets | 250,775 | 236,584 | |||||
| Property and equipment, net | 79,145 | 77,701 | |||||
| Operating lease right-of-use assets, net | 19,261 | 16,702 | |||||
| Costs capitalized to obtain revenue contracts, noncurrent, net | 17,425 | 18,909 | |||||
| Goodwill | 838,869 | 907,513 | |||||
| Intangible assets, net | 115,572 | 142,705 | |||||
| Investments | 9,294 | 9,294 | |||||
| Long-term prepaid expenses and other assets | 10,089 | 14,484 | |||||
| Total assets | $ | 1,340,430 | $ | 1,423,892 | |||
| Liabilities, redeemable non-controlling interest, and stockholders equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 11,842 | $ | 16,118 | |||
| Accrued compensation and benefits | 16,283 | 11,064 | |||||
| Accrued expenses and other current liabilities | 10,847 | 8,816 | |||||
| Deferred revenue, current portion | 170,941 | 179,835 | |||||
| Financing obligations, current portion | 1,474 | 1,520 | |||||
| Operating lease liabilities, current portion | 3,649 | 4,338 | |||||
| Total current liabilities | 215,036 | 221,691 | |||||
| Operating lease liabilities, noncurrent | 16,423 | 13,423 | |||||
| Deferred income taxes, noncurrent | 3,687 | 10,288 | |||||
| Deferred revenue, noncurrent | 656 | ||||||
| Revolving credit facility, noncurrent | 55,000 | ||||||
| Financing obligations, noncurrent | 52,680 | 52,275 | |||||
| Other long-term liabilities | 2,577 | ||||||
| Total liabilities | 287,826 | 355,910 | |||||
| Commitments and contingencies | |||||||
| Redeemable non-controlling interest | 3,428 | 4,105 | |||||
| Stockholders equity | |||||||
| Common stock | 57 | 57 | |||||
| Additional paid-in capital | 1,400,881 | 1,417,838 | |||||
| Accumulated other comprehensive income | 996 | 872 | |||||
| Accumulated deficit | (352,758 | ) | (354,890 | ) | |||
| Total stockholders equity | 1,049,176 | 1,063,877 | |||||
| Total liabilities, redeemable non-controlling interest, and stockholders equity | $ | 1,340,430 | $ | 1,423,892 | |||
| nCino, Inc. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (In thousands, except share and per share data) | |||||||
| (Unaudited) | |||||||
| Three Months Ended April 30, | |||||||
| 2023 | 2024 | ||||||
| Revenues | |||||||
| Subscription | $ | 97,340 | $ | 110,406 | |||
| Professional services and other | 16,332 | 17,681 | |||||
| Total revenues | 113,672 | 128,087 | |||||
| Cost of revenues | |||||||
| Subscription | 29,157 | 31,780 | |||||
| Professional services and other | 17,031 | 19,400 | |||||
| Total cost of revenues | 46,188 | 51,180 | |||||
| Gross profit | 67,484 | 76,907 | |||||
| Gross margin % | 59 | % | 60 | % | |||
| Operating expenses | |||||||
| Sales and marketing | 29,941 | 28,045 | |||||
| Research and development | 28,195 | 29,981 | |||||
| General and administrative | 17,975 | 22,544 | |||||
| Total operating expenses | 76,111 | 80,570 | |||||
| Loss from operations | (8,627 | ) | |||||