nCino, Inc. (NASDAQ: NCNO), a pioneer in cloud banking and digital
transformation solutions for the global financial services
industry, today announced financial results for its third quarter
of fiscal year 2023, ended October 31, 2022.
“Our team executed extremely well in the third quarter, again
exceeding both top and bottom-line expectations,” said Pierre
Naudé, Chairman and Chief Executive Officer of nCino. “We are
particularly pleased to have posted our first quarter of non-GAAP
operating income as a public company. Despite the challenging
macro-environment, we believe we are uniquely positioned with the
right vision, strategy, product portfolio, and people to continue
leading the digital transformation of financial institutions around
the world.”
Financial Highlights
- Revenues: Total revenues for the third quarter
of fiscal 2023 were $105.3 million, a 50% increase from $70.0
million in the third quarter of fiscal 2022. Subscription revenues
for the third quarter were $88.3 million, up from $57.1 million one
year ago, an increase of 55%. These revenues include the results of
SimpleNexus. Organic subscription revenues, which exclude the
revenues of SimpleNexus, were $72.9 million, a 28% increase from
the third quarter of fiscal 2022.
- Loss from Operations: GAAP loss from
operations in the third quarter of fiscal 2023 was ($18.4) million
compared to ($12.7) million in the same quarter of fiscal 2022.
Non-GAAP operating income (loss) in the third quarter was $2.5
million compared to ($3.2) million in the third quarter of fiscal
2022.
- Net Loss Attributable to nCino: GAAP net loss
attributable to nCino in the third quarter of fiscal 2023 was
($23.6) million compared to ($13.6) million in the third quarter of
fiscal 2022. Non-GAAP net loss attributable to nCino in the third
quarter was ($1.4) million compared to ($3.7) million in the third
quarter of fiscal 2022.
- Net Loss Attributable to nCino per Share: GAAP
net loss attributable to nCino in the third quarter of fiscal 2023
was ($0.21) per share compared to ($0.14) per share in the third
quarter of fiscal 2022. Non-GAAP net loss attributable to nCino in
the third quarter was ($0.01) per share compared to ($0.04) per
share in the third quarter of fiscal 2022.
- Remaining Performance Obligation: Total
Remaining Performance Obligation (RPO) as of October 31, 2022,
was $919.2 million, an increase of 28% compared to the third
quarter of fiscal 2022. Organic RPO, which excludes RPO for
SimpleNexus, was $846.5 million, an increase of 18% compared to the
third quarter of fiscal 2022.
- Cash: Cash, cash equivalents, and restricted
cash were $111.8 million as of October 31, 2022.
Recent Business Highlights
- Signed a New Zealand-Based Lender: Signed Bank
of New Zealand, a top-four New Zealand bank by asset size, to
implement nCino’s Bank Operating System as a foundational
technology platform.
- Expanded Asia-Pacific Go Lives: Kiraboshi
Bank, a regional bank based in Tokyo, Japan, went live on the nCino
Bank Operating System during the third quarter. The USD
$48-billion-asset bank implemented nCino’s Commercial Banking
Solution to enhance its business financing, part of its journey to
create a single, cloud-based platform to better serve its business
clients. nCino also had two additional commercial lending go-lives
in Japan during the quarter, including SMBC Trust Bank.
- Took First German Customer Live: Hamburg
Commercial Bank (HCOB), who was recognized by Euromoney as “World’s
Best Bank Transformation for 2022,” completed a successful
implementation of the nCino Bank Operating System. nCino is
supporting the Bank’s transformation efforts as a key technology
partner to help improve workflow, expedite processes and enable
increased efficiencies.
- Signed Significant Expansion Deals Within Existing
Customer Base: A Big-4 U.K. bank signed for a new use case
in an adjacent business line; a $7-billion-asset Colorado bank
expanded its use case from Commercial Lending to add Deposit
Account Opening and Treasury Sales & Onboarding; another
$7-billion-asset bank based in Hawaii added nCino for Retail
Lending and Deposit Account Opening; and one of the world’s largest
credit unions added Portfolio Analytics to its existing suite of
nCino solutions.
- Completed Additional SimpleNexus
Cross-Sells: SimpleNexus
continued to execute well under challenging market conditions, with
six competitive takeaways of customers from other vendors and five
cross-sells into the nCino customer base.
Financial Outlook nCino is providing
guidance for its fourth quarter
ending January 31, 2023 as
follows:
- Total revenues between $104 million and $105 million.
- Subscription revenues between $90 million and $91 million.
- Non-GAAP operating loss between ($3.0) million and ($4.0)
million.
- Non-GAAP net loss attributable to nCino per share of ($0.04)
and ($0.05).
nCino is providing guidance for its fiscal year
2023 ending
January 31, 2023 as
follows:
- Total revenues between $403 million and $404 million.
- Subscription revenues between $342 million and $343
million.
- Non-GAAP operating loss between ($7.0) million and ($8.0)
million.
- Non-GAAP net loss attributable to nCino per share of ($0.15) to
($0.17).
Conference CallnCino 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 nCinonCino (NASDAQ: NCNO) is the
worldwide leader in cloud banking. The nCino Bank Operating System®
empowers financial institutions with scalable technology to help
them achieve revenue growth, greater efficiency, cost savings and
regulatory compliance. In a digital-first world, nCino's single
cloud-based platform enhances the employee and client experience to
enable financial institutions to more effectively onboard clients,
make loans and manage the entire loan life cycle, and open deposit
and other accounts across lines of business and channels.
Transforming how financial institutions operate through innovation,
reputation and speed, nCino is partnered with more than 1,750
financial institutions of all types and sizes on a global basis.
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) the impact of the COVID-19 pandemic,
including the impact to the financial services industry, the impact
on general economic conditions and the impact of government
responses, restrictions, and actions; (ii) risks associated with
the acquisition of SimpleNexus, (iii) breaches in our security
measures or unauthorized access to our customers’ or their clients'
data; (iv) the accuracy of management’s assumptions and estimates;
(v) our ability to attract new customers and succeed in having
current customers expand their use of our solution; (vi)
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; (vii) 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;
(viii) fluctuation of our results of operations, which may make
period-to-period comparisons less meaningful; (ix) our ability to
manage our growth effectively including expanding outside of the
United States; (x) adverse changes in our relationship with
Salesforce; (xi) our ability to successfully acquire new companies
and/or integrate acquisitions into our existing organization,
including SimpleNexus; (xii) 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;
(xiii) 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; (xiv) our ability to maintain our corporate culture
and attract and retain highly skilled employees; (xv) adverse
changes in the financial services industry, including as a result
of customer consolidation; (xvi) adverse changes in economic,
regulatory, or market conditions, including as a direct or indirect
consequence of the outbreak of hostilities in Ukraine and higher
interest rates; and (xvii) 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, 2022 |
|
October 31, 2022 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
88,014 |
|
|
$ |
106,451 |
|
Accounts receivable, net |
|
74,528 |
|
|
|
39,627 |
|
Costs capitalized to obtain revenue contracts, current portion,
net |
|
7,583 |
|
|
|
8,663 |
|
Prepaid expenses and other current assets |
|
13,384 |
|
|
|
13,219 |
|
Total current assets |
|
183,509 |
|
|
|
167,960 |
|
Property and equipment,
net |
|
60,677 |
|
|
|
83,537 |
|
Operating lease right-of-use
assets, net |
|
13,170 |
|
|
|
12,047 |
|
Costs capitalized to obtain
revenue contracts, noncurrent, net |
|
16,403 |
|
|
|
16,772 |
|
Goodwill |
|
841,487 |
|
|
|
839,918 |
|
Intangible assets, net |
|
180,122 |
|
|
|
159,491 |
|
Investment |
|
4,031 |
|
|
|
4,031 |
|
Other long-term assets |
|
1,615 |
|
|
|
7,447 |
|
Total assets |
$ |
1,301,014 |
|
|
$ |
1,291,203 |
|
Liabilities,
redeemable non-controlling interest, and stockholders’
equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
11,366 |
|
|
$ |
10,840 |
|
Accrued compensation and benefits |
|
21,454 |
|
|
|
18,363 |
|
Accrued expenses and other current liabilities |
|
14,744 |
|
|
|
6,823 |
|
Deferred revenue, current portion |
|
122,643 |
|
|
|
117,281 |
|
Financing obligations, current portion |
|
621 |
|
|
|
697 |
|
Operating lease liabilities, current portion |
|
3,548 |
|
|
|
3,830 |
|
Total current liabilities |
|
174,376 |
|
|
|
157,834 |
|
Operating lease liabilities,
noncurrent |
|
11,198 |
|
|
|
9,667 |
|
Deferred income taxes,
noncurrent |
|
1,675 |
|
|
|
2,280 |
|
Deferred revenue,
noncurrent |
|
44 |
|
|
|
6 |
|
Revolving credit facility,
noncurrent |
|
— |
|
|
|
30,000 |
|
Financing obligations,
noncurrent |
|
33,478 |
|
|
|
32,944 |
|
Construction liability,
noncurrent |
|
9,736 |
|
|
|
22,518 |
|
Total liabilities |
|
230,507 |
|
|
|
255,249 |
|
Commitments and
contingencies |
|
|
|
Redeemable non-controlling
interest |
|
2,882 |
|
|
|
4,092 |
|
Stockholders’ equity |
|
|
|
Common stock |
|
55 |
|
|
|
55 |
|
Additional paid-in capital |
|
1,277,258 |
|
|
|
1,318,829 |
|
Accumulated other comprehensive income (loss) |
|
(72 |
) |
|
|
1,758 |
|
Accumulated deficit |
|
(209,616 |
) |
|
|
(288,780 |
) |
Total stockholders’ equity |
|
1,067,625 |
|
|
|
1,031,862 |
|
Total liabilities, redeemable non-controlling interest, and
stockholders’ equity |
$ |
1,301,014 |
|
|
$ |
1,291,203 |
|
|
|
|
|
|
|
|
|
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, |
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
Revenues |
|
|
|
|
|
|
|
Subscription |
$ |
57,085 |
|
|
$ |
88,290 |
|
|
$ |
162,052 |
|
|
$ |
251,924 |
|
Professional services and other |
|
12,951 |
|
|
|
17,006 |
|
|
|
36,858 |
|
|
|
47,210 |
|
Total revenues |
|
70,036 |
|
|
|
105,296 |
|
|
|
198,910 |
|
|
|
299,134 |
|
Cost of
revenues |
|
|
|
|
|
|
|
Subscription |
|
15,753 |
|
|
|
26,844 |
|
|
|
46,007 |
|
|
|
78,499 |
|
Professional services and other |
|
11,501 |
|
|
|
16,312 |
|
|
|
34,121 |
|
|
|
46,180 |
|
Total cost of revenues |
|
27,254 |
|
|
|
43,156 |
|
|
|
80,128 |
|
|
|
124,679 |
|
Gross profit |
|
42,782 |
|
|
|
62,140 |
|
|
|
118,782 |
|
|
|
174,455 |
|
Gross margin % |
|
61 |
% |
|
|
59 |
% |
|
|
60 |
% |
|
|
58 |
% |
Operating
expenses |
|
|
|
|
|
|
|
Sales and marketing |
|
20,586 |
|
|
|
32,423 |
|
|
|
58,227 |
|
|
|
94,274 |
|
Research and development |
|
19,956 |
|
|
|
29,471 |
|
|
|
55,990 |
|
|
|
88,287 |
|
General and administrative |
|
14,964 |
|
|
|
18,690 |
|
|
|
45,931 |
|
|
|
62,575 |
|
Total operating expenses |
|
55,506 |
|
|
|
80,584 |
|
|
|
160,148 |
|
|
|
245,136 |
|
Loss from operations |
|
(12,724 |
) |
|
|
(18,444 |
) |
|
|
(41,366 |
) |
|
|
(70,681 |
) |
Non-operating income
(expense) |
|
|
|
|
|
|
|
Interest income |
|
57 |
|
|
|
87 |
|
|
|
173 |
|
|
|
115 |
|
Interest expense |
|
(379 |
) |
|
|
(580 |
) |
|
|
(977 |
) |
|
|
(1,849 |
) |
Other income (expense), net |
|
(255 |
) |
|
|
(2,911 |
) |
|
|
(325 |
) |
|
|
(5,498 |
) |
Loss before income taxes |
|
(13,301 |
) |
|
|
(21,848 |
) |
|
|
(42,495 |
) |
|
|
(77,913 |
) |
Income tax provision |
|
356 |
|
|
|
797 |
|
|
|
1,030 |
|
|
|
2,159 |
|
Net loss |
|
(13,657 |
) |
|
|
(22,645 |
) |
|
|
(43,525 |
) |
|
|
(80,072 |
) |
Net loss attributable to redeemable non-controlling interest |
|
(389 |
) |
|
|
(257 |
) |
|
|
(1,259 |
) |
|
|
(908 |
) |
Adjustment attributable to redeemable non-controlling interest |
|
368 |
|
|
|
1,191 |
|
|
|
61 |
|
|
|
2,348 |
|
Net loss attributable to nCino, Inc. |
$ |
(13,636 |
) |
|
$ |
(23,579 |
) |
|
$ |
(42,327 |
) |
|
$ |
(81,512 |
) |
Net loss per share
attributable to nCino, Inc.: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.14 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.74 |
) |
Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
|
96,431,082 |
|
|
|
110,897,811 |
|
|
|
95,510,413 |
|
|
|
110,434,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nCino, Inc.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(In
thousands)(Unaudited)
|
Nine Months Ended October 31, |
|
|
2021 |
|
|
|
2022 |
|
Cash flows from operating
activities |
|
|
|
Net loss attributable to nCino, Inc. |
$ |
(42,327 |
) |
|
$ |
(81,512 |
) |
Net loss and adjustment attributable to redeemable non-controlling
interest |
|
(1,198 |
) |
|
|
1,440 |
|
Net loss |
|
(43,525 |
) |
|
|
(80,072 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
6,139 |
|
|
|
25,458 |
|
Non-cash operating lease costs |
|
1,847 |
|
|
|
2,879 |
|
Amortization of costs capitalized to obtain revenue contracts |
|
4,157 |
|
|
|
6,160 |
|
Amortization of debt issuance costs |
|
— |
|
|
|
131 |
|
Stock-based compensation |
|
20,549 |
|
|
|
38,476 |
|
Deferred income taxes |
|
192 |
|
|
|
452 |
|
Provision for bad debt |
|
84 |
|
|
|
323 |
|
Net foreign currency losses |
|
393 |
|
|
|
5,608 |
|
Change in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
21,614 |
|
|
|
32,497 |
|
Costs capitalized to obtain revenue contracts |
|
(5,848 |
) |
|
|
(8,033 |
) |
Prepaid expenses and other assets |
|
(1,430 |
) |
|
|
(446 |
) |
Accounts payable |
|
3,934 |
|
|
|
(1,732 |
) |
Accounts payable, related parties |
|
873 |
|
|
|
— |
|
Accrued expenses and other current liabilities |
|
(2,047 |
) |
|
|
(9,182 |
) |
Deferred revenue |
|
(3,192 |
) |
|
|
(2,883 |
) |
Operating lease liabilities |
|
(1,917 |
) |
|
|
(2,997 |
) |
Net cash provided by operating activities |
|
1,823 |
|
|
|
6,639 |
|
Cash flows from investing activities |
|
|
|
Acquisition of business, net of cash acquired |
|
— |
|
|
|
676 |
|
Acquisition of assets |
|
— |
|
|
|
(563 |
) |
Purchases of property and equipment |
|
(3,640 |
) |
|
|
(13,889 |
) |
Net cash used in investing activities |
|
(3,640 |
) |
|
|
(13,776 |
) |
Cash flows from financing activities |
|
|
|
Proceeds from borrowings on revolving credit facility |
|
— |
|
|
|
50,000 |
|
Payments on revolving credit facility |
|
— |
|
|
|
(20,000 |
) |
Payments of debt issuance costs |
|
— |
|
|
|
(367 |
) |
Exercise of stock options |
|
12,620 |
|
|
|
3,038 |
|
Stock issuance under the employee stock purchase plan |
|
— |
|
|
|
2,424 |
|
Principal payments on financing obligations |
|
(181 |
) |
|
|
(458 |
) |
Net cash provided by financing activities |
|
12,439 |
|
|
|
34,637 |
|
Effect of foreign currency exchange rate changes on cash, cash
equivalents, and restricted cash |
|
(632 |
) |
|
|
(4,098 |
) |
Net increase in cash, cash equivalents, and restricted
cash |
|
9,990 |
|
|
|
23,402 |
|
Cash, cash equivalents, and restricted cash, beginning of
period |
|
371,425 |
|
|
|
88,399 |
|
Cash, cash equivalents, and restricted cash, end of
period |
$ |
381,415 |
|
|
$ |
111,801 |
|
|
|
|
|
Reconciliation of cash, cash equivalents, and restricted
cash, end of period: |
|
|
|
Cash and cash equivalents |
$ |
381,080 |
|
|
$ |
106,451 |
|
Restricted cash included in other long-term assets |
|
335 |
|
|
|
5,350 |
|
Total cash, cash equivalents, and restricted cash, end of
period |
$ |
381,415 |
|
|
$ |
111,801 |
|
|
|
|
|
|
|
|
|
Non-GAAP Financial MeasuresIn 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.
- 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.
- 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.
- Acquisition-Related Expenses. nCino excludes expenses related
to acquisitions as they limit comparability of operating results
with prior periods. We believe these costs are non-recurring in
nature and outside the ordinary course of
business.
- Fees and Expenses Related to the Antitrust Matters. nCino
excludes fees and expenses related to the government antitrust
investigation and related civil action disclosed in our SEC filings
as we do not believe these matters relate to the operating business
and their exclusion from non-GAAP operating expenses will
facilitate a more meaningful explanation of operating results and
comparisons with prior period results.
- 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 October 31, |
|
Nine Months Ended October 31, |
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
GAAP total
revenues |
$ |
70,036 |
|
|
$ |
105,296 |
|
|
$ |
198,910 |
|
|
$ |
299,134 |
|
|
|
|
|
|
|
|
|
GAAP cost of
subscription revenues |
$ |
15,753 |
|
|
$ |
26,844 |
|
|
$ |
46,007 |
|
|
$ |
78,499 |
|
Amortization expense - developed technology |
|
(388 |
) |
|
|
(4,249 |
) |
|
|
(1,177 |
) |
|
|
(12,767 |
) |
Stock-based compensation |
|
(179 |
) |
|
|
(392 |
) |
|
|
(721 |
) |
|
|
(1,120 |
) |
Non-GAAP cost of
subscription revenues |
$ |
15,186 |
|
|
$ |
22,203 |
|
|
$ |
44,109 |
|
|
$ |
64,612 |
|
|
|
|
|
|
|
|
|
GAAP cost of
professional services and other revenues |
$ |
11,501 |
|
|
$ |
16,312 |
|
|
$ |
34,121 |
|
|
$ |
46,180 |
|
Amortization expense - other |
|
— |
|
|
|
(47 |
) |
|
|
— |
|
|
|
(47 |
) |
Stock-based compensation |
|
(1,209 |
) |
|
|
(1,778 |
) |
|
|
(3,881 |
) |
|
|
(5,564 |
) |
Non-GAAP cost of
professional services and other revenues |
$ |
10,292 |
|
|
$ |
14,487 |
|
|
$ |
30,240 |
|
|
$ |
40,569 |
|
|
|
|
|
|
|
|
|
GAAP gross
profit |
$ |
42,782 |
|
|
$ |
62,140 |
|
|
$ |
118,782 |
|
|
$ |
174,455 |
|
Amortization expense - developed technology |
|
388 |
|
|
|
4,249 |
|
|
|
1,177 |
|
|
|
12,767 |
|
Amortization expense - other |
|
— |
|
|
|
47 |
|
|
|
— |
|
|
|
47 |
|
Stock-based compensation |
|
1,388 |
|
|
|
2,170 |
|
|
|
4,602 |
|
|
|
6,684 |
|
Non-GAAP gross
profit |
$ |
44,558 |
|
|
$ |
68,606 |
|
|
$ |
124,561 |
|
|
$ |
193,953 |
|
|
|
|
|
|
|
|
|
The following
table sets forth reconciling items as a percentage of total revenue
for the periods presented.1 |
GAAP gross margin
% |
|
61 |
% |
|
|
59 |
% |
|
|
60 |
% |
|
|
58 |
% |
Amortization expense - developed technology |
|
1 |
|
|
|
4 |
|
|
|
1 |
|
|
|
4 |
|
Amortization expense - other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation |
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
Non-GAAP gross margin
% |
|
64 |
% |
|
|
65 |
% |
|
|
63 |
% |
|
|
65 |
% |
|
|
|
|
|
|
|
|
GAAP sales &
marketing expense |
$ |
20,586 |
|
|
$ |
32,423 |
|
|
$ |
58,227 |
|
|
$ |
94,274 |
|
Amortization expense - customer relationships |
|
(418 |
) |
|
|
(2,167 |
) |
|
|
(1,253 |
) |
|
|
(6,502 |
) |
Amortization expense - trade name |
|
— |
|
|
|
(605 |
) |
|
|
— |
|
|
|
(1,813 |
) |
Stock-based compensation |
|
(1,685 |
) |
|
|
(3,326 |
) |
|
|
(5,415 |
) |
|
|
(10,144 |
) |
Non-GAAP sales &
marketing expense |
$ |
18,483 |
|
|
$ |
26,325 |
|
|
$ |
51,559 |
|
|
$ |
75,815 |
|
|
|
|
|
|
|
|
|
GAAP research &
development expense |
$ |
19,956 |
|
|
$ |
29,471 |
|
|
$ |
55,990 |
|
|
$ |
88,287 |
|
Stock-based compensation |
|
(1,351 |
) |
|
|
(3,012 |
) |
|
|
(4,580 |
) |
|
|
(8,457 |
) |
Non-GAAP research
& development expense |
$ |
18,605 |
|
|
$ |
26,459 |
|
|
$ |
51,410 |
|
|
$ |
79,830 |
|
|
|
|
|
|
|
|
|
GAAP general &
administrative expense |
$ |
14,964 |
|
|
$ |
18,690 |
|
|
$ |
45,931 |
|
|
$ |
62,575 |
|
Stock-based compensation |
|
(1,421 |
) |
|
|
(3,997 |
) |
|
|
(5,952 |
) |
|
|
(13,191 |
) |
Acquisition-related expenses |
|
(902 |
) |
|
|
(186 |
) |
|
|
(902 |
) |
|
|
(2,070 |
) |
Fees and expenses related to the Antitrust Matters |
|
(2,021 |
) |
|
|
(1,225 |
) |
|
|
(8,168 |
) |
|
|
(5,093 |
) |
Non-GAAP general &
administrative expense |
$ |
10,620 |
|
|
$ |
13,282 |
|
|
$ |
30,909 |
|
|
$ |
42,221 |
|
|
|
|
|
|
|
|
|
GAAP loss from
operations |
$ |
(12,724 |
) |
|
$ |
(18,444 |
) |
|
$ |
(41,366 |
) |
|
$ |
(70,681 |
) |
Amortization expense - developed technology |
|
388 |
|
|
|
4,249 |
|
|
|
1,177 |
|
|
|
12,767 |
|
Amortization expense - other |
|
— |
|
|
|
47 |
|
|
|
— |
|
|
|
47 |
|
Amortization expense - customer relationships |
|
418 |
|
|
|
2,167 |
|
|
|
1,253 |
|
|
|
6,502 |
|
Amortization expense - trade name |
|
— |
|
|
|
605 |
|
|
|
— |
|
|
|
1,813 |
|
Stock-based compensation |
|
5,845 |
|
|
|
12,505 |
|
|
|
20,549 |
|
|
|
38,476 |
|
Acquisition-related expenses |
|
902 |
|
|
|
186 |
|
|
|
902 |
|
|
|
2,070 |
|
Fees and expenses related to the Antitrust Matters |
|
2,021 |
|
|
|
1,225 |
|
|
|
8,168 |
|
|
|
5,093 |
|
Non-GAAP operating
income (loss) |
$ |
(3,150 |
) |
|
$ |
2,540 |
|
|
$ |
(9,317 |
) |
|
$ |
(3,913 |
) |
|
|
|
|
|
|
|
|
The following
table sets forth reconciling items as a percentage of total revenue
for the periods presented.1 |
GAAP operating margin
% |
|
(18 |
)% |
|
|
(18 |
)% |
|
|
(21 |
)% |
|
|
(24 |
)% |
Amortization expense - developed technology |
|
1 |
|
|
|
4 |
|
|
|
1 |
|
|
|
4 |
|
Amortization expense - other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Amortization expense - customer relationships |
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
Amortization expense - trade name |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
Stock-based compensation |
|
8 |
|
|
|
12 |
|
|
|
10 |
|
|
|
13 |
|
Acquisition-related expenses |
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Fees and expenses related to the Antitrust Matters |
|
3 |
|
|
|
1 |
|
|
|
4 |
|
|
|
2 |
|
Non-GAAP operating
margin % |
|
(4 |
)% |
|
|
2 |
% |
|
|
(5 |
)% |
|
|
(1 |
)% |
|
|
|
|
|
|
|
|
GAAP net loss
attributable to nCino |
$ |
(13,636 |
) |
|
$ |
(23,579 |
) |
|
$ |
(42,327 |
) |
|
$ |
(81,512 |
) |
Amortization expense - developed technology |
|
388 |
|
|
|
4,249 |
|
|
|
1,177 |
|
|
|
12,767 |
|
Amortization expense - other |
|
— |
|
|
|
47 |
|
|
|
— |
|
|
|
47 |
|
Amortization expense - customer relationships |
|
418 |
|
|
|
2,167 |
|
|
|
1,253 |
|
|
|
6,502 |
|
Amortization expense - trade name |
|
— |
|
|
|
605 |
|
|
|
— |
|
|
|
1,813 |
|
Stock-based compensation |
|
5,845 |
|
|
|
12,505 |
|
|
|
20,549 |
|
|
|
38,476 |
|
Acquisition-related expenses |
|
902 |
|
|
|
186 |
|
|
|
902 |
|
|
|
2,070 |
|
Fees and expenses related to the Antitrust Matters |
|
2,021 |
|
|
|
1,225 |
|
|
|
8,168 |
|
|
|
5,093 |
|
Adjustment attributable to redeemable non-controlling interest |
|
368 |
|
|
|
1,191 |
|
|
|
61 |
|
|
|
2,348 |
|
Non-GAAP net loss
attributable to nCino |
$ |
(3,694 |
) |
|
$ |
(1,404 |
) |
|
$ |
(10,217 |
) |
|
$ |
(12,396 |
) |
|
|
|
|
|
|
|
|
Weighted-average
shares used to compute net loss per share, basic and
diluted |
|
96,431,082 |
|
|
|
110,897,811 |
|
|
|
95,510,413 |
|
|
|
110,434,171 |
|
|
|
|
|
|
|
|
|
GAAP net loss
attributable to nCino per share |
$ |
(0.14 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.74 |
) |
Non-GAAP net loss
attributable to nCino per share |
$ |
(0.04 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
Free cash
flow |
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
$ |
(19,076 |
) |
|
$ |
(4,080 |
) |
|
$ |
1,823 |
|
|
$ |
6,639 |
|
Purchases of property and equipment |
|
(2,368 |
) |
|
|
(4,586 |
) |
|
|
(3,640 |
) |
|
|
(13,889 |
) |
Free cash
flow |
$ |
(21,444 |
) |
|
$ |
(8,666 |
) |
|
$ |
(1,817 |
) |
|
$ |
(7,250 |
) |
Principal payments on financing obligations2 |
|
(86 |
) |
|
|
(155 |
) |
|
|
(181 |
) |
|
|
(458 |
) |
Free cash flow less
principal payments on financing obligation |
$ |
(21,530 |
) |
|
$ |
(8,821 |
) |
|
$ |
(1,998 |
) |
|
$ |
(7,708 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Columns may not foot due to rounding.2These amounts represent
the non-interest component of payments towards financing
obligations for facilities.
CONTACTS
INVESTOR CONTACTJoAnn HorneMarket Street
Partners+1 415.445.3240jhorne@marketstreetpartners.com
MEDIA CONTACTKathryn CooknCino+1
919.691.4206Kathryn.cook@ncino.com
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