nCino Reports Second Quarter Fiscal Year 2025 Financial Results
nCino (NASDAQ: NCNO) reported strong Q2 fiscal 2025 results, with total revenues up 13% year-over-year to $132.4M and subscription revenues increasing 14% to $113.9M. The company saw improved margins, with GAAP operating margin at (6)%, up ~650 basis points, and non-GAAP operating margin at 15%, up ~500 basis points year-over-year. nCino experienced particular strength in the U.S. market across enterprise and community & regional segments, with increased demand for solutions spanning their platform. Despite some macro-economic challenges, especially in the U.S. mortgage market and international markets, the company maintains a positive outlook for the second half of the year. nCino also provided guidance for Q3 and fiscal year 2025, projecting continued growth in revenues and improved non-GAAP operating income.
nCino (NASDAQ: NCNO) ha riportato risultati solidi per il secondo trimestre dell'anno fiscale 2025, con entrate totali in aumento del 13% rispetto all'anno precedente, pari a 132,4 milioni di dollari e entrate da abbonamenti in crescita del 14% a 113,9 milioni di dollari. L'azienda ha registrato un miglioramento dei margini, con un margine operativo GAAP al (6)%, in aumento di circa 650 punti base, e un margine operativo non-GAAP al 15%, in aumento di circa 500 punti base rispetto all'anno precedente. nCino ha mostrato una particolare forza nel mercato statunitense nei segmenti enterprise e comunità & regionali, con una domanda crescente per soluzioni che si estendono sulla loro piattaforma. Nonostante alcune sfide macroeconomiche, specialmente nel mercato dei mutui negli Stati Uniti e nei mercati internazionali, l'azienda mantiene un outlook positivo per la seconda metà dell'anno. nCino ha inoltre fornito previsioni per il terzo trimestre e l'anno fiscale 2025, prevedendo una continua crescita delle entrate e un miglioramento dell'utile operativo non-GAAP.
nCino (NASDAQ: NCNO) reportó resultados sólidos para el segundo trimestre del año fiscal 2025, con ingresos totales que aumentaron un 13% interanual a 132,4 millones de dólares y ingresos por suscripción que crecieron un 14% a 113,9 millones de dólares. La compañía vio una mejora en los márgenes, con un margen operativo GAAP del (6)%, que subió aproximadamente 650 puntos básicos, y un margen operativo no-GAAP del 15%, que subió aproximadamente 500 puntos básicos interanualmente. nCino experimentó una fortaleza particular en el mercado de EE. UU. en los segmentos empresarial y comunitario & regional, con una creciente demanda de soluciones que abarcan su plataforma. A pesar de algunos desafíos macroeconómicos, especialmente en el mercado hipotecario estadounidense y en los mercados internacionales, la empresa mantiene una perspectiva positiva para la segunda mitad del año. nCino también proporcionó orientación para el tercer trimestre y el año fiscal 2025, proyectando un crecimiento continuo en los ingresos y una mejora en el ingreso operativo no-GAAP.
nCino (NASDAQ: NCNO)는 2025 회계연도 2분기 실적을 발표했으며, 여기서 총 수익이 전년 대비 13% 증가하여 1억 3,240만 달러에 달했다고 보고했으며, 구독 수익은 14% 증가하여 1억 1,390만 달러에 이르렀다. 이 회사는 GAAP 운영 마진이 (6)%로 약 650 베이시스 포인트 상승하고 비 GAAP 운영 마진이 15%로 약 500 베이시스 포인트 증가했다고 밝혔습니다. nCino는 미국 시장의 기업 및 지역 사회 부문에서 특히 강한 성과를 보였으며, 이들의 플랫폼에 걸쳐 솔루션에 대한 수요가 증가하고 있습니다. 미국 주택 시장 및 국제 시장에서의 일부 거시경제적 도전에도 불구하고, 회사는 하반기에 대한 긍정적인 전망을 유지하고 있습니다. nCino는 또한 2025 회계연도 3분기 및 연간 전망을 제공하였으며, 수익의 지속적인 성장과 비 GAAP 운영 수익의 개선을 예상하고 있습니다.
nCino (NASDAQ: NCNO) a annoncé des résultats solides pour le deuxième trimestre de l'exercice 2025, avec des revenus totaux en hausse de 13% par rapport à l'année précédente, atteignant 132,4 millions de dollars et des revenus d'abonnement en augmentation de 14% à 113,9 millions de dollars. L'entreprise a connu une amélioration des marges, avec une marge opérationnelle GAAP de (6)%, en hausse d'environ 650 points de base, et une marge opérationnelle non-GAAP de 15%, en hausse d'environ 500 points de base par rapport à l'année précédente. nCino a affiché une force particulière sur le marché américain dans les segments entreprise et communauté & régional, avec une demande accrue pour des solutions s'étendant sur leur plateforme. Malgré certaines difficultés macroéconomiques, notamment sur le marché hypothécaire américain et les marchés internationaux, l'entreprise maintient une perspective positive pour le second semestre de l'année. nCino a également fourni des prévisions pour le troisième trimestre et l'exercice 2025, projetant une croissance continue des revenus et une amélioration du résultat opérationnel non-GAAP.
nCino (NASDAQ: NCNO) hat starke Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 bekannt gegeben, mit einem Gesamterlös, der im Vergleich zum Vorjahr um 13% auf 132,4 Millionen USD gestiegen ist und Abonnementeinnahmen, die um 14% auf 113,9 Millionen USD zugenommen haben. Das Unternehmen verzeichnete verbesserte Margen, mit einer GAAP-Betriebsgewinne von (6)%, die um ca. 650 Basispunkte gestiegen ist, und einem Non-GAAP-Betriebsgewinn von 15%, der um ca. 500 Basispunkte gestiegen ist im Vergleich zum Vorjahr. nCino zeigte eine besondere Stärke im US-Markt in den Segmenten Enterprise und Community & Regional, mit gestiegener Nachfrage nach Lösungen, die über ihre Plattform erhältlich sind. Trotz einiger makroökonomischer Herausforderungen, insbesondere im US-Hypothekenmarkt und auf internationalen Märkten, hat das Unternehmen eine positive Aussicht für die zweite Jahreshälfte. nCino gab auch eine Prognose für das dritte Quartal und das Geschäftsjahr 2025 ab und rechnet mit einem anhaltenden Umsatzwachstum und einer Verbesserung des Non-GAAP-Betriebsgewinns.
- Total revenues increased 13% year-over-year to $132.4M
- Subscription revenues grew 14% year-over-year to $113.9M
- Non-GAAP operating margin improved to 15%, up ~500 basis points year-over-year
- Total Remaining Performance Obligation (RPO) increased 12% year-over-year to $1.041B
- Extended partnership with ABN AMRO, a Top 25 European Bank
- Signed largest bank customer to date for Portfolio Analytics
- GAAP loss from operations of $(7.9) million in Q2 fiscal 2025
- GAAP net loss attributable to nCino of $(11.0) million in Q2 fiscal 2025
- Macro-economic challenges persist in U.S. mortgage market and international markets
Insights
nCino's Q2 FY2025 results demonstrate solid growth and improved profitability. Total revenues increased 13% YoY to
The Total Remaining Performance Obligation (RPO) of
While facing challenges in the U.S. mortgage market and international segments, nCino's expansion with key clients like ABN AMRO and new product adoptions (e.g., Banking Advisor) are positive signs for future growth. The company's improved guidance for FY2025 reflects confidence in its business model and market position.
nCino's Q2 results highlight the growing demand for cloud-based banking solutions, particularly in the U.S. market. The company's success in cross-selling additional products to existing customers, such as consumer lending and deposit account opening, demonstrates the strength of its platform approach.
The adoption of nCino's Generative AI offering, Banking Advisor, by a
The extension of partnerships with major banks like ABN AMRO and a top 5 European bank underscores nCino's ability to deliver value through system consolidation and process unification. However, the company needs to address the challenges in international markets to maintain its growth trajectory and expand its global footprint.
• Total Revenues of
• Subscription Revenues of
• GAAP Operating Margin of (6)%, up ~650 basis points year-over-year
• Non-GAAP Operating Margin of
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 , a13% 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 of14% . - 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
$1.04 1 billion, compared with$928.6 million as of July 31, 2023, an increase of12% . RPO expected to be recognized in the next 24 months was$698.3 million , an increase of10% 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 t o$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 t o$0.69 .
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.
CONTACTS
INVESTOR CONTACT
Harrison Masters
nCino
+1 910.734.7743
Harrison.masters@ncino.com
MEDIA CONTACT
Natalia Moose
nCino
natalia.moose@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 | 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 | ) | (548 | ) | (223 | ) | |||||||
| Adjustment attributable to redeemable non-controlling interest | 73 | 75 | (48 | ) | 919 | ||||||||||
| Net loss attributable to nCino, Inc. | $ | (15,884 | ) | $ | (11,040 | ) | $ | (27,127 | ) | $ | (14,016 | ) | |||
| Net loss per share attributable to nCino, Inc.: | |||||||||||||||
| Basic and diluted | $ | (0.14 | ) | $ | (0.10 | ) | $ | (0.24 | ) | $ | (0.12 | ) | |||
| Weighted average number of common shares outstanding: | |||||||||||||||
| Basic and diluted | 112,396,716 | 115,180,130 | 112,262,527 | 114,694,001 | |||||||||||
| nCino, Inc. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
| Six Months Ended July 31, | |||||||
| 2023 | 2024 | ||||||
| Cash flows from operating activities | |||||||
| Net loss attributable to nCino, Inc. | $ | (27,127 | ) | $ | (14,016 | ) | |
| Net loss and adjustment attributable to redeemable non-controlling interest | (596 | ) | 696 | ||||
| Net loss | (27,723 | ) | (13,320 | ) | |||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 18,297 | 17,219 | |||||
| Non-cash operating lease costs | 2,421 | 2,715 | |||||
| Amortization of costs capitalized to obtain revenue contracts | 4,869 | 5,645 | |||||
| Amortization of debt issuance costs | 92 | 31 | |||||
| Stock-based compensation | 26,146 | 35,044 | |||||
| Deferred income taxes | 790 | (2,656 | ) | ||||
| Provision for bad debt | 756 | 25 | |||||
| Net foreign currency losses (gains) | (38 | ) | 392 | ||||
| Loss on disposal of long-lived assets | 144 | 30 | |||||
| Change in operating assets and liabilities: | |||||||
| Accounts receivable | 18,446 | 37,778 | |||||
| Costs capitalized to obtain revenue contracts | (3,002 | ) | (8,382 | ) | |||
| Prepaid expenses and other assets | 1,051 | (2,430 | ) | ||||
| Accounts payable | (1,406 | ) | 768 | ||||
| Accrued expenses and other liabilities | (9,313 | ) | (8,645 | ) | |||
| Deferred revenue | 13,772 | (2,572 | ) | ||||
| Operating lease liabilities | (2,035 | ) | (2,201 | ) | |||
| Net cash provided by operating activities | 43,267 | 59,441 | |||||
| Cash flows from investing activities | |||||||
| Acquisition of business, net of cash acquired | — | (90,839 | ) | ||||
| Acquisition of assets | (356 | ) | (300 | ) | |||
| Purchases of property and equipment | (2,464 | ) | (786 | ) | |||
| Net cash used in investing activities | (2,820 | ) | (91,925 | ) | |||
| Cash flows from financing activities | |||||||
| Proceeds from borrowings on revolving credit facility | — | 75,000 | |||||
| Payments on revolving credit facility | (30,000 | ) | (35,000 | ) | |||
| Payments of debt issuance costs | — | (370 | ) | ||||
| Exercise of stock options | 2,204 | 1,737 | |||||
| Stock issuance under the employee stock purchase plan | 2,698 | 2,514 | |||||
| Principal payments on financing obligations | (564 | ) | (722 | ) | |||
| Net cash provided by (used in) financing activities | (25,662 | ) | 43,159 | ||||
| Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash | 1,166 | (1,354 | ) | ||||
| Net increase in cash, cash equivalents, and restricted cash | 15,951 | 9,321 | |||||
| Cash, cash equivalents, and restricted cash, beginning of period | 87,418 | 117,444 | |||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 103,369 | $ | 126,765 | |||
| Reconciliation of cash, cash equivalents, and restricted cash, end of period: | |||||||
| Cash and cash equivalents | $ | 98,003 | $ | 121,410 | |||
| Restricted cash included in prepaid expenses and other current assets | 5,162 | — | |||||
| Restricted cash included in long-term prepaid expenses and other assets | 204 | 5,355 | |||||
| Total cash, cash equivalents, and restricted cash, end of period | $ | 103,369 | $ | 126,765 | |||
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 July 31, | Six Months Ended July 31, | ||||||||||||||
| 2023 | 2024 | 2023 | 2024 | ||||||||||||
| GAAP total revenues | $ | 117,236 | $ | 132,403 | $ | 230,908 | $ | 260,490 | |||||||
| GAAP cost of subscription revenues | $ | 29,719 | $ | 33,367 | $ | 58,876 | $ | 65,147 | |||||||
| Amortization expense - developed technology | (4,190 | ) | (4,404 | ) | (8,441 | ) | (8,522 | ) | |||||||
| Stock-based compensation | (485 | ) | (793 | ) | (799 | ) | (1,355 | ) | |||||||
| Restructuring charges | (21 | ) | — | (39 | ) | — | |||||||||
| Non-GAAP cost of subscription revenues | $ | 25,023 | $ | 28,170 | $ | 49,597 | $ | 55,270 | |||||||
| GAAP cost of professional services and other revenues | $ | 18,328 | $ | 20,564 | $ | 35,359 | $ | 39,964 | |||||||
| Amortization expense - other | (83 | ) | (83 | ) | (165 | ) | (165 | ) | |||||||
| Stock-based compensation | (2,460 | ) | (2,980 | ) | (4,089 | ) | (5,759 | ) | |||||||
| Restructuring charges | (46 | ) | — | (92 | ) | — | |||||||||
| Non-GAAP cost of professional services and other revenues | $ | 15,739 | $ | 17,501 | $ | 31,013 | $ | 34,040 | |||||||
| GAAP gross profit | $ | 69,189 | $ | 78,472 | $ | 136,673 | $ | 155,379 | |||||||
| Amortization expense - developed technology | 4,190 | 4,404 | 8,441 | 8,522 | |||||||||||
| Amortization expense - other | 83 | 83 | 165 | 165 | |||||||||||
| Stock-based compensation | 2,945 | 3,773 | 4,888 | 7,114 | |||||||||||
| Restructuring charges | 67 | — | 131 | — | |||||||||||
| Non-GAAP gross profit | $ | 76,474 | $ | 86,732 | $ | 150,298 | $ | 171,180 | |||||||
| The following table sets forth reconciling items as a percentage of total revenue for the periods presented.1 | |||||||||||||||
| GAAP gross margin % | 59 | % | 59 | % | 59 | % | 60 | % | |||||||
| Amortization expense - developed technology | 4 | 3 | 4 | 3 | |||||||||||
| Amortization expense - other | — | — | — | — | |||||||||||
| Stock-based compensation | 3 | 3 | 2 | 3 | |||||||||||
| Restructuring charges | — | — | — | — | |||||||||||
| Non-GAAP gross margin % | 65 | % | 66 | % | 65 | % | 66 | % | |||||||
| GAAP sales & marketing expense | $ | 32,164 | $ | 31,713 | $ | 62,105 | $ | 59,758 | |||||||
| Amortization expense - customer relationships | (2,167 | ) | (2,730 | ) | (4,335 | ) | (5,153 | ) | |||||||
| Amortization expense - trade name | (604 | ) | (104 | ) | (1,208 | ) | (147 | ) | |||||||
| Amortization expense - other | — | (28 | ) | — | (44 | ) | |||||||||
| Stock-based compensation | (3,830 | ) | (4,184 | ) | (7,041 | ) | (8,140 | ) | |||||||
| Restructuring charges | (38 | ) | — | (76 | ) | — | |||||||||
| Non-GAAP sales & marketing expense | $ | 25,525 | $ | 24,667 | $ | 49,445 | $ | 46,274 | |||||||
| GAAP research & development expense | $ | 29,889 | $ | 34,271 | $ | 58,084 | $ | 64,252 | |||||||
| Stock-based compensation | (4,279 | ) | (5,286 | ) | (7,279 | ) | (9,512 | ) | |||||||
| Restructuring charges | (131 | ) | — | (265 | ) | — | |||||||||
| Non-GAAP research & development expense | $ | 25,479 | $ | 28,985 | $ | 50,540 | $ | 54,740 | |||||||
| GAAP general & administrative expense | $ | 21,930 | $ | 20,394 | $ | 39,905 | $ | 42,938 | |||||||
| Stock-based compensation | (4,227 | ) | (5,596 | ) | (6,938 | ) | (10,278 | ) | |||||||
| Acquisition-related expenses | (212 | ) | (947 | ) | (423 | ) | (5,987 | ) | |||||||
| Litigation expenses | (3,204 | ) | (69 | ) | (4,349 | ) | (250 | ) | |||||||
| Restructuring charges | (2 | ) | — | (5 | ) | — | |||||||||
| Non-GAAP general & administrative expense | $ | 14,285 | $ | 13,782 | $ | 28,190 | $ | 26,423 | |||||||
| GAAP loss from operations | $ | (14,794 | ) | $ | (7,906 | ) | $ | (23,421 | ) | $ | (11,569 | ) | |||
| Amortization of intangible assets | 7,044 | 7,349 | 14,149 | 14,031 | |||||||||||
| Stock-based compensation | 15,281 | 18,839 | 26,146 | 35,044 | |||||||||||
| Acquisition-related expenses | 212 | 947 | 423 | 5,987 | |||||||||||
| Litigation expenses | 3,204 | 69 | 4,349 | 250 | |||||||||||
| Restructuring charges | 238 | — | 477 | — | |||||||||||
| Non-GAAP operating income | $ | 11,185 | $ | 19,298 | $ | 22,123 | $ | 43,743 | |||||||
| The following table sets forth reconciling items as a percentage of total revenue for the periods presented.1 | |||||||||||||||
| GAAP operating margin % | (13)% | (6)% | (10)% | (4)% | |||||||||||
| Amortization of intangible assets | 6 | 6 | 6 | 5 | |||||||||||
| Stock-based compensation | 13 | 14 | 11 | 13 | |||||||||||
| Acquisition-related expenses | — | 1 | — | 2 | |||||||||||
| Litigation expenses | 3 | — | 2 | — | |||||||||||
| Restructuring charges | — | — | — | — | |||||||||||
| Non-GAAP operating margin % | 10 | % | 15 | % | 10 | % | 17 | % | |||||||
| GAAP net loss attributable to nCino, Inc. | $ | (15,884 | ) | $ | (11,040 | ) | $ | (27,127 | ) | $ | (14,016 | ) | |||
| Amortization of intangible assets | 7,044 | 7,349 | 14,149 | 14,031 | |||||||||||
| Stock-based compensation | 15,281 | 18,839 | 26,146 | 35,044 | |||||||||||
| Acquisition-related expenses | 212 | 947 | 423 | 5,987 | |||||||||||
| Litigation expenses | 3,204 | 69 | 4,349 | 250 | |||||||||||
| Restructuring charges | 238 | — | 477 | — | |||||||||||
| Tax benefit related to acquisition | — | — | — | (3,609 | ) | ||||||||||
| Income tax effect on non-GAAP adjustments | (225 | ) | (454 | ) | (379 | ) | (793 | ) | |||||||
| Adjustment attributable to redeemable non-controlling interest | 73 | 75 | (48 | ) | 919 | ||||||||||
| Non-GAAP net income attributable to nCino, Inc. | $ | 9,943 | $ | 15,785 | $ | 17,990 | $ | 37,813 | |||||||
| Basic and diluted GAAP net loss attributable to nCino, Inc. per share | $ | (0.14 | ) | $ | (0.10 | ) | $ | (0.24 | ) | $ | (0.12 | ) | |||
| Weighted-average shares used to compute basic and diluted GAAP net loss attributable to nCino, Inc. per share | 112,396,716 | 115,180,130 | 112,262,527 | 114,694,001 | |||||||||||
| Basic non-GAAP net income attributable to nCino, Inc. per share | $ | 0.09 | $ | 0.14 | $ | 0.16 | $ | 0.33 | |||||||
| Weighted-average shares used to compute basic non-GAAP net income attributable to nCino, Inc. per share | 112,396,716 | 115,180,130 | 112,262,527 | 114,694,001 | |||||||||||
| Diluted non-GAAP net income attributable to nCino, Inc. per share | $ | 0.09 | $ | 0.14 | $ | 0.16 | $ | 0.32 | |||||||
| Weighted-average shares used to compute diluted non-GAAP net income attributable to nCino, Inc. per share | 114,549,192 | 116,849,057 | 114,336,289 | 116,706,457 | |||||||||||
| Free cash flow | |||||||||||||||
| Net cash provided by operating activities | $ | 11,964 | $ | 4,999 | $ | 43,267 | $ | 59,441 | |||||||
| Purchases of property and equipment | (859 | ) | (444 | ) | (2,464 | ) | (786 | ) | |||||||
| Free cash flow | $ | 11,105 | $ | 4,555 | $ | 40,803 | $ | 58,655 | |||||||
| Principal payments on financing obligations2 | (320 | ) | (363 | ) | (564 | ) | (722 | ) | |||||||
| Free cash flow less principal payments on financing obligations | $ | 10,785 | $ | 4,192 | $ | 40,239 | $ | 57,933 | |||||||
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
FAQ
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