NCNO - 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 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.

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.

¹ Columns may not foot due to rounding.
² These 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