nCino Reports First Quarter Fiscal Year 2025 Financial Results 发布时间：2024-05-30 来源：nCino

• 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 nCino’s 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 nCino’s 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 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				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	)			(3,663	)
Non-operating income (expense)
Interest income		537				605
Interest expense		(1,379	)			(1,477	)
Other expense, net		(782	)			(744	)
Loss before income taxes		(10,251	)			(5,279	)
Income tax provision (benefit)		1,393				(2,982	)
Net loss		(11,644	)			(2,297	)
Net loss attributable to redeemable non-controlling interest		(280	)			(165	)
Adjustment attributable to redeemable non-controlling interest		(121	)			844
Net loss attributable to nCino, Inc.	$	(11,243	)		$	(2,976	)
Net loss per share attributable to nCino, Inc.:
Basic and diluted	$	(0.10	)		$	(0.03	)
Weighted average number of common shares outstanding:
Basic and diluted		112,032,536				114,197,068

 

 

nCino, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
	Three Months Ended April 30,
	2023				2024
Cash flows from operating activities
Net loss attributable to nCino, Inc.	$	(11,243	)		$	(2,976	)
Net loss and adjustment attributable to redeemable non-controlling interest		(401	)			679
Net loss		(11,644	)			(2,297	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		9,131				8,290
Non-cash operating lease costs		1,189				1,615
Amortization of costs capitalized to obtain revenue contracts		2,439				2,741
Amortization of debt issuance costs		46				10
Stock-based compensation		10,865				16,205
Deferred income taxes		332				(3,441	)
Provision for (recovery of) bad debt		298				(131	)
Net foreign currency losses		363				756
Change in operating assets and liabilities:
Accounts receivable		18,278				37,464
Costs capitalized to obtain revenue contracts		(1,035	)			(5,105	)
Prepaid expenses and other assets		(1,238	)			(2,092	)
Accounts payable		(259	)			3,812
Accrued expenses and other liabilities		(13,227	)			(8,192	)
Deferred revenue		16,755				6,175
Operating lease liabilities		(990	)			(1,368	)
Net cash provided by operating activities		31,303				54,442
Cash flows from investing activities
Acquisition of business, net of cash acquired		—				(90,737	)
Acquisition of assets		(356	)			(150	)
Purchases of property and equipment		(1,605	)			(342	)
Net cash used in investing activities		(1,961	)			(91,229	)
Cash flows from financing activities
Proceeds from borrowings on revolving credit facility		—				75,000
Payments on revolving credit facility		(15,000	)			(20,000	)
Payments of debt issuance costs		—				(262	)
Exercise of stock options		1,388				1,601
Principal payments on financing obligations		(244	)			(359	)
Net cash provided by (used in) financing activities		(13,856	)			55,980
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash		593				(1,799	)
Net increase in cash, cash equivalents, and restricted cash		16,079				17,394
Cash, cash equivalents, and restricted cash, beginning of period		87,418				117,444
Cash, cash equivalents, and restricted cash, end of period	$	103,497			$	134,838
Reconciliation of cash, cash equivalents, and restricted cash, end of period:
Cash and cash equivalents	$	98,136			$	129,481
Restricted cash included in prepaid expenses and other current assets		5,160				—
Restricted cash included in long-term prepaid expenses and other assets		201				5,357
Total cash, cash equivalents, and restricted cash, end of period	$	103,497			$	134,838

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.

• 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. We believe these costs, which are primarily related to legal, consulting and other professional services fees, 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 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.
• Tax Benefit Related to Acquisitions. In connection with deferred tax liabilities assumed from acquisitions, nCino may reduce the valuation allowance against deferred tax assets, resulting in a one-time tax benefit recorded in Income tax provision (benefit). We believe that the exclusion of this benefit from our non-GAAP net income attributable to nCino and non-GAAP net income 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, Inc.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In thousands, except share and per share data)
(Unaudited)
	Three Months Ended April 30,
	2023				2024
GAAP total revenues	$	113,672			$	128,087
GAAP cost of subscription revenues	$	29,157			$	31,780
Amortization expense - developed technology		(4,251	)			(4,118	)
Stock-based compensation		(314	)			(562	)
Restructuring charges		(18	)			—
Non-GAAP cost of subscription revenues	$	24,574			$	27,100
GAAP cost of professional services and other revenues	$	17,031			$	19,400
Amortization expense - other		(82	)			(82	)
Stock-based compensation		(1,629	)			(2,779	)
Restructuring charges		(46	)			—
Non-GAAP cost of professional services and other revenues	$	15,274			$	16,539
GAAP gross profit	$	67,484			$	76,907
Amortization expense - developed technology		4,251				4,118
Amortization expense - other		82				82
Stock-based compensation		1,943				3,341
Restructuring charges		64				—
Non-GAAP gross profit	$	73,824			$	84,448
The following table sets forth reconciling items as a percentage of total revenue for the periods presented.1
GAAP gross margin %		59	%			60	%
Amortization expense - developed technology		4				3
Amortization expense - other		—				—
Stock-based compensation		2				3
Restructuring charges		—				—
Non-GAAP gross margin %		65	%			66	%
GAAP sales & marketing expense	$	29,941			$	28,045
Amortization expense - customer relationships		(2,168	)			(2,423	)
Amortization expense - trade name		(604	)			(43	)
Amortization expense - other		—				(16	)
Stock-based compensation		(3,211	)			(3,956	)
Restructuring charges		(38	)			—
Non-GAAP sales & marketing expense	$	23,920			$	21,607
GAAP research & development expense	$	28,195			$	29,981
Stock-based compensation		(3,000	)			(4,226	)
Restructuring charges		(134	)			—
Non-GAAP research & development expense	$	25,061			$	25,755
GAAP general & administrative expense	$	17,975			$	22,544
Stock-based compensation		(2,711	)			(4,682	)
Acquisition-related expenses		(211	)			(5,040	)
Litigation expenses		(1,145	)			(181	)
Restructuring charges		(3	)			—
Non-GAAP general & administrative expense	$	13,905			$	12,641
GAAP loss from operations	$	(8,627	)		$	(3,663	)
Amortization of intangible assets		7,105				6,682
Stock-based compensation		10,865				16,205
Acquisition-related expenses		211				5,040
Litigation expenses		1,145				181
Restructuring charges		239				—
Non-GAAP operating income	$	10,938			$	24,445
The following table sets forth reconciling items as a percentage of total revenue for the periods presented.1
GAAP operating margin %		(8	)%			(3	)%
Amortization of intangible assets		6				5
Stock-based compensation		10				13
Acquisition-related expenses		—				4
Litigation expenses		1				—
Restructuring charges		—				—
Non-GAAP operating margin %		10	%			19	%
GAAP net loss attributable to nCino, Inc.	$	(11,243	)		$	(2,976	)
Amortization of intangible assets		7,105				6,682
Stock-based compensation		10,865				16,205
Acquisition-related expenses		211				5,040
Litigation expenses		1,145				181
Restructuring charges		239				—
Tax benefit related to acquisition		—				(3,609	)
Income tax effect on non-GAAP adjustments		(154	)			(339	)
Adjustment attributable to redeemable non-controlling interest		(121	)			844
Non-GAAP net income attributable to nCino, Inc.	$	8,047			$	22,028
Basic and diluted GAAP net loss attributable to nCino, Inc. per share	$	(0.10	)		$	(0.03	)
Weighted-average shares used to compute basic and diluted GAAP net loss attributable to nCino, Inc. per share		112,032,536				114,197,068
Basic non-GAAP net income attributable to nCino, Inc. per share	$	0.07			$	0.19
Weighted-average shares used to compute basic non-GAAP net income attributable to nCino, Inc. per share		112,032,536				114,197,068
Diluted non-GAAP net income attributable to nCino, Inc. per share	$	0.07			$	0.19
Weighted-average shares used to compute diluted non-GAAP net income attributable to nCino, Inc. per share		114,027,584				116,553,054
Free cash flow
Net cash provided by operating activities	$	31,303			$	54,442
Purchases of property and equipment		(1,605	)			(342	)
Free cash flow	$	29,698			$	54,100
Principal payments on financing obligations2		(244	)			(359	)
Free cash flow less principal payments on financing obligations	$	29,454			$	53,741

1Columns may not foot due to rounding.
2These amounts represent the non-interest component of payments towards financing obligations for facilities.

CONTACTS

INVESTOR CONTACT
Harrison Masters
nCino
+1 910.734.7743
Harrison.masters@ncino.com

MEDIA CONTACT
Natalia Moose
nCino
Natalia.moose@ncino.com