• Total Revenues of $132.4M, up 13% year-over-year
• Subscription Revenues of $113.9M, up 14% year-over-year
• GAAP Operating Margin of (6)%, up ~650 basis points year-over-year
• Non-GAAP Operating Margin of 15%, up ~500 basis points year-over-year
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, a 13% 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 of 14%.
- 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 $1.041 billion, compared with $928.6 million as of July 31, 2023, an increase of 12%. RPO expected to be recognized in the next 24 months was $698.3 million, an increase of 10% 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 to $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 to $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.
