nCino Reports Third Quarter Fiscal Year 2024 Financial Results

AGÊNCIA DE COMUNICAÇÃO Conteúdo de responsabilidade da empresa 29 de novembro de 2023

nCino, Inc.

• Total Revenues of $121.9M, up 16% year-over-year
• Subscription Revenues of $104.8M, up 19% year-over-year
• GAAP Operating Margin of (11)%, up 700 basis points year-over-year
• Non-GAAP Operating Margin of 17%, up 1,400 basis points year-over-year

WILMINGTON, N.C., Nov. 29, 2023 (GLOBE NEWSWIRE) — nCino, Inc. (NASDAQ: NCNO), a pioneer in cloud banking for the global financial services industry, today announced financial results for the third quarter of fiscal year 2024, ended October 31, 2023.

We posted another solid quarter in Q3, with revenues and profitability again exceeding expectations, said Pierre Naudé, Chairman and CEO of nCino. Notably, we added key new customers, such as our first enterprise Consumer ending deal with a $200 billion bank in the U.S., and our largest customer to date in Japan. We are also pleased that our U.S. mortgage business achieved double-digit revenue growth despite generationally-high interest rates.”

Naudé continued, “With years of experience successfully managing through market cycles, our financial strength allows us to continue investing and innovating to expand our market leadership. I am confident nCino has the products, strategy, and team to continue driving sustainable and profitable growth in Q4 and beyond.   

Financial Highlights

• Revenues: Total revenues for the third quarter of fiscal 2024 were $121.9 million, a 16% increase from $105.3 million in the third quarter of fiscal 2023. Subscription revenues for the third quarter were $104.8 million, up from $88.3 million one year ago, an increase of 19%.
• Income (Loss) from Operations: GAAP loss from operations in the third quarter of fiscal 2024 was $(12.9) million compared to $(18.4) million in the same quarter of fiscal 2023. Non-GAAP operating income in the third quarter was $20.4 million compared to $2.5 million in the third quarter of fiscal 2023.
• Net Income (Loss) Attributable to nCino: GAAP net loss attributable to nCino in the third quarter of fiscal 2024 was $(16.4) million compared to $(23.6) million in the third quarter of fiscal 2023. GAAP net loss attributable to nCino in the third quarter of fiscal 2024 includes the impact of accelerated sales and marketing amortization expense of $10.1 million to fully amortize the remaining SimpleNexus trade name intangible asset in connection with rebranding the SimpleNexus solution to nCino Mortgage. Non-GAAP net income attributable to nCino in the third quarter was $16.2 million compared to a $(1.4) million net loss attributable to nCino in the third quarter of fiscal 2023.
• Net Income (Loss) Attributable to nCino per Share: GAAP net loss attributable to nCino in the third quarter of fiscal 2024 was $(0.15) per basic and diluted share compared to $(0.21) per basic and diluted share in the third quarter of fiscal 2023. GAAP net loss attributable to nCino includes the impact of accelerated sales and marketing amortization expense equivalent to $0.09 per basic and diluted share to fully amortize the remaining SimpleNexus trade name intangible asset in connection with rebranding the SimpleNexus solution to nCino Mortgage. Non-GAAP net income attributable to nCino in the third quarter was $0.14 per diluted share compared to a net loss of $(0.01) per basic and diluted share in the third quarter of fiscal 2023.
• Remaining Performance Obligation: Total Remaining Performance Obligation (RPO) as of October 31, 2023, was $917.1 million, compared with $919.2 million as of October 31, 2022. RPO expected to be recognized in the next 24 months was $627.6 million, an increase of 4% from October 31, 2022.
• Cash: Cash, cash equivalents, and restricted cash were $105.8 million as of October 31, 2023.

Recent Business Highlights

• Signed first enterprise bank for Consumer lending: Added a net-new $200 billion U.S. bank as Company’s largest Consumer lending customer.   
• Signed expansion agreement with a regional bank for Mortgage Point-of-Sale: Signed an over $35 billion-asset bank, representing the largest cross-sell customer to adopt the nCino Mortgage Suite. This customer has now adopted nCino for Commercial, Consumer, and Mortgage lending.
• Signed largest customer in Japan: Added Yamaguchi Financial Group, an over $150 billion USD asset bank as a net-new customer for Mortgage lending.
• Completed expansion deal with a top Irish bank: Expanded relationship with an existing account for Corporate and Institutional banking, Small and Medium Enterprise banking, Commercial Pricing & Profitability, ESG, and end-to-end Mortgage origination.

Financial Outlook
nCino is providing guidance for its fourth quarter ending January 31, 2024, as follows:

• Total revenues between $123.5 million and $125.5 million.
• Subscription revenues between $105.5 million and $107.5 million.
• Non-GAAP operating income between $15.0 million and $16.0 million.
• Non-GAAP net income attributable to nCino per share of $0.11 to $0.13.

nCino is providing guidance for its fiscal year 2024 ending January 31, 2024, as follows:

• Total revenues between $476.5 million and $478.5 million.
• Subscription revenues between $407.5 million and $409.5 million.
• Non-GAAP operating income between $57.5 million and $58.5 million.
• Non-GAAP net income attributable to nCino per share of $0.40 to $0.42.

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 the acquisition of SimpleNexus, (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, including SimpleNexus; (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, 2023				October 31, 2023
Assets
Current assets
Cash and cash equivalents	$	82,036			$	100,475
Accounts receivable, net		99,497				62,012
Costs capitalized to obtain revenue contracts, current portion, net		9,386				9,715
Prepaid expenses and other current assets		16,274				18,670
Total current assets		207,193				190,872
Property and equipment, net		84,442				80,557
Operating lease right-of-use assets, net		10,508				8,855
Costs capitalized to obtain revenue contracts, noncurrent, net		18,229				16,293
Goodwill		839,440				838,585
Intangible assets, net		152,825				121,695
Investments		6,531				9,031
Long-term prepaid expenses and other assets		8,101				1,656
Total assets	$	1,327,269			$	1,267,544
Liabilities, redeemable non-controlling interest, and stockholders equity
Current liabilities
Accounts payable	$	11,878			$	12,526
Accrued compensation and benefits		22,623				13,748
Accrued expenses and other current liabilities		10,897				11,439
Deferred revenue		154,871				130,308
Financing obligations, current portion		1,015				1,429
Operating lease liabilities, current portion		3,874				3,523
Total current liabilities		205,158				172,973
Operating lease liabilities, noncurrent		7,282				6,460
Deferred income taxes, noncurrent		2,797				3,241
Revolving credit facility, noncurrent		30,000
Financing obligations, noncurrent		54,365				53,063
Total liabilities		299,602				235,737
Commitments and contingencies
Redeemable non-controlling interest		3,589				3,198
Stockholders equity
Common stock		56				57
Additional paid-in capital		1,333,669				1,382,019
Accumulated other comprehensive income		694				906
Accumulated deficit		(310,341	)			(354,373	)
Total stockholders equity		1,024,078				1,028,609
Total liabilities, redeemable non-controlling interest, and stockholders equity	$	1,327,269			$	1,267,544

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nCino, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited)
	Three Months Ended October 31,								Nine Months Ended October 31,
		2022				2023				2022				2023
Revenues
Subscription	$	88,290			$	104,759			$	251,924			$	301,996
Professional services and other		17,006				17,183				47,210				50,854
Total revenues		105,296				121,942				299,134				352,850
Cost of revenues
Subscription		26,844				30,605				78,499				89,481
Professional services and other		16,312				17,420				46,180				52,779
Total cost of revenues		43,156				48,025				124,679				142,260
Gross profit		62,140