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 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. 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 the acquisition of
SimpleNexus, (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, 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 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, 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 |
|
|
|
|
|
|
|
|
|
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 |
|
|
|
73,917 |
|
|
|
174,455 |
|
|
|
210,590 |
|
Gross margin % |
|
59 |
% |
|
|
61 |
% |
|
|
58 |
% |
|
|
60 |
% |
Operating
expenses |
|
|
|
|
|
|
|
Sales and marketing |
|
32,423 |
|
|
|
38,446 |
|
|
|
94,274 |
|
|
|
100,551 |
|
Research and development |
|
29,471 |
|
|
|
29,043 |
|
|
|
88,287 |
|
|
|
87,127 |
|
General and administrative |
|
18,690 |
|
|
|
19,334 |
|
|
|
62,575 |
|
|
|
59,239 |
|
Total operating expenses |
|
80,584 |
|
|
|
86,823 |
|
|
|
245,136 |
|
|
|
246,917 |
|
Loss from operations |
|
(18,444 |
) |
|
|
(12,906 |
) |
|
|
(70,681 |
) |
|
|
(36,327 |
) |
Non-operating income
(expense) |
|
|
|
|
|
|
|
Interest income |
|
87 |
|
|
|
685 |
|
|
|
115 |
|
|
|
2,057 |
|
Interest expense |
|
(580 |
) |
|
|
(854 |
) |
|
|
(1,849 |
) |
|
|
(3,277 |
) |
Other expense, net |
|
(2,911 |
) |
|
|
(2,320 |
) |
|
|
(5,498 |
) |
|
|
(2,633 |
) |
Loss before income taxes |
|
(21,848 |
) |
|
|
(15,395 |
) |
|
|
(77,913 |
) |
|
|
(40,180 |
) |
Income tax provision |
|
797 |
|
|
|
1,782 |
|
|
|
2,159 |
|
|
|
4,720 |
|
Net loss |
|
(22,645 |
) |
|
|
(17,177 |
) |
|
|
(80,072 |
) |
|
|
(44,900 |
) |
Net loss attributable to redeemable non-controlling interest |
|
(257 |
) |
|
|
(320 |
) |
|
|
(908 |
) |
|
|
(868 |
) |
Adjustment attributable to redeemable non-controlling interest |
|
1,191 |
|
|
|
(478 |
) |
|
|
2,348 |
|
|
|
(526 |
) |
Net loss attributable to nCino, Inc. |
$ |
(23,579 |
) |
|
$ |
(16,379 |
) |
|
$ |
(81,512 |
) |
|
$ |
(43,506 |
) |
Net loss per share
attributable to nCino, Inc.: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.21 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.39 |
) |
Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
|
110,897,811 |
|
|
|
112,951,553 |
|
|
|
110,434,171 |
|
|
|
112,484,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nCino, Inc.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) |
|
|
Nine Months Ended October 31, |
|
|
2022 |
|
|
|
2023 |
|
Cash flows from operating
activities |
|
|
|
Net loss attributable to nCino, Inc. |
$ |
(81,512 |
) |
|
$ |
(43,506 |
) |
Net loss and adjustment attributable to redeemable non-controlling
interest |
|
1,440 |
|
|
|
(1,394 |
) |
Net loss |
|
(80,072 |
) |
|
|
(44,900 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
25,458 |
|
|
|
37,337 |
|
Non-cash operating lease costs |
|
2,879 |
|
|
|
3,581 |
|
Amortization of costs capitalized to obtain revenue contracts |
|
6,160 |
|
|
|
7,368 |
|
Amortization of debt issuance costs |
|
131 |
|
|
|
138 |
|
Stock-based compensation |
|
38,476 |
|
|
|
41,969 |
|
Deferred income taxes |
|
452 |
|
|
|
881 |
|
Provision for bad debt |
|
323 |
|
|
|
1,124 |
|
Net foreign currency losses |
|
5,608 |
|
|
|
2,275 |
|
Loss on disposal of long-lived assets |
|
— |
|
|
|
161 |
|
Change in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
32,497 |
|
|
|
35,455 |
|
Costs capitalized to obtain revenue contracts |
|
(8,033 |
) |
|
|
(5,959 |
) |
Prepaid expenses and other assets |
|
(446 |
) |
|
|
3,374 |
|
Accounts payable |
|
(1,732 |
) |
|
|
1,184 |
|
Accrued expenses and other current liabilities |
|
(9,182 |
) |
|
|
(7,999 |
) |
Deferred revenue |
|
(2,883 |
) |
|
|
(23,789 |
) |
Operating lease liabilities |
|
(2,997 |
) |
|
|
(3,063 |
) |
Net cash provided by operating activities |
|
6,639 |
|
|
|
49,137 |
|
Cash flows from investing
activities |
|
|
|
Acquisition of business, net of cash acquired |
|
676 |
|
|
|
— |
|
Acquisition of assets |
|
(563 |
) |
|
|
(356 |
) |
Purchases of property and equipment |
|
(13,889 |
) |
|
|
(3,083 |
) |
Purchase of investment |
|
— |
|
|
|
(2,500 |
) |
Net cash used in investing activities |
|
(13,776 |
) |
|
|
(5,939 |
) |
Cash flows from financing
activities |
|
|
|
Investment from redeemable non-controlling interest |
|
— |
|
|
|
983 |
|
Proceeds from borrowings on revolving credit facility |
|
50,000 |
|
|
|
— |
|
Payments on revolving credit facility |
|
(20,000 |
) |
|
|
(30,000 |
) |
Payments of debt issuance costs |
|
(367 |
) |
|
|
— |
|
Exercise of stock options |
|
3,038 |
|
|
|
3,176 |
|
Stock issuance under the employee stock purchase plan |
|
2,424 |
|
|
|
2,698 |
|
Principal payments on financing obligations |
|
(458 |
) |
|
|
(888 |
) |
Net cash provided by (used in) financing
activities |
|
34,637 |
|
|
|
(24,031 |
) |
Effect of foreign currency exchange rate changes on cash, cash
equivalents, and restricted cash |
|
(4,098 |
) |
|
|
(762 |
) |
Net increase in cash, cash equivalents, and restricted
cash |
|
23,402 |
|
|
|
18,405 |
|
Cash, cash equivalents, and restricted cash, beginning of
period |
|
88,399 |
|
|
|
87,418 |
|
Cash, cash equivalents, and restricted cash, end of
period |
$ |
111,801 |
|
|
$ |
105,823 |
|
|
|
|
|
Reconciliation of cash, cash equivalents, and restricted
cash, end of period: |
|
|
|
Cash and cash equivalents |
$ |
106,451 |
|
|
$ |
100,475 |
|
Restricted cash included in prepaid expenses and other current
assets |
|
— |
|
|
|
5,000 |
|
Restricted cash included in other long-term assets |
|
5,350 |
|
|
|
348 |
|
Total cash, cash equivalents, and restricted cash, end of
period |
$ |
111,801 |
|
|
$ |
105,823 |
|
|
|
|
|
|
|
|
|
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.
- 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 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.
- 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 October 31, |
|
Nine Months Ended October 31, |
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
GAAP total
revenues |
$ |
105,296 |
|
|
$ |
121,942 |
|
|
$ |
299,134 |
|
|
$ |
352,850 |
|
|
|
|
|
|
|
|
|
GAAP cost of
subscription revenues |
$ |
26,844 |
|
|
$ |
30,605 |
|
|
$ |
78,499 |
|
|
$ |
89,481 |
|
Amortization expense - developed technology |
|
(4,249 |
) |
|
|
(3,990 |
) |
|
|
(12,767 |
) |
|
|
(12,431 |
) |
Stock-based compensation |
|
(392 |
) |
|
|
(515 |
) |
|
|
(1,120 |
) |
|
|
(1,314 |
) |
Restructuring charges |
|
— |
|
|
|
(12 |
) |
|
|
— |
|
|
|
(51 |
) |
Non-GAAP cost of
subscription revenues |
$ |
22,203 |
|
|
$ |
26,088 |
|
|
$ |
64,612 |
|
|
$ |
75,685 |
|
|
|
|
|
|
|
|
|
GAAP cost of
professional services and other revenues |
$ |
16,312 |
|
|
$ |
17,420 |
|
|
$ |
46,180 |
|
|
$ |
52,779 |
|
Amortization expense - other |
|
(47 |
) |
|
|
(82 |
) |
|
|
(47 |
) |
|
|
(247 |
) |
Stock-based compensation |
|
(1,778 |
) |
|
|
(2,571 |
) |
|
|
(5,564 |
) |
|
|
(6,660 |
) |
Restructuring charges |
|
— |
|
|
|
(26 |
) |
|
|
— |
|
|
|
(118 |
) |
Non-GAAP cost of
professional services and other revenues |
$ |
14,487 |
|
|
$ |
14,741 |
|
|
$ |
40,569 |
|
|
$ |
45,754 |
|
|
|
|
|
|
|
|
|
GAAP gross
profit |
$ |
62,140 |
|
|
$ |
73,917 |
|
|
$ |
174,455 |
|
|
$ |
210,590 |
|
Amortization expense - developed technology |
|
4,249 |
|
|
|
3,990 |
|
|
|
12,767 |
|
|
|
12,431 |
|
Amortization expense - other |
|
47 |
|
|
|
82 |
|
|
|
47 |
|
|
|
247 |
|
Stock-based compensation |
|
2,170 |
|
|
|
3,086 |
|
|
|
6,684 |
|
|
|
7,974 |
|
Restructuring charges |
|
— |
|
|
|
38 |
|
|
|
— |
|
|
|
169 |
|
Non-GAAP gross
profit |
$ |
68,606 |
|
|
$ |
81,113 |
|
|
$ |
193,953 |
|
|
$ |
231,411 |
|
|
|
|
|
|
|
|
|
The following
table sets forth reconciling items as a percentage of total revenue
for the periods presented.1 |
GAAP gross margin
% |
|
59 |
% |
|
|
61 |
% |
|
|
58 |
% |
|
|
60 |
% |
Amortization expense - developed technology |
|
4 |
|
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
Amortization expense - other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation |
|
2 |
|
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-GAAP gross margin
% |
|
65 |
% |
|
|
67 |
% |
|
|
65 |
% |
|
|
66 |
% |
|
|
|
|
|
|
|
|
GAAP sales &
marketing expense |
$ |
32,423 |
|
|
$ |
38,446 |
|
|
$ |
94,274 |
|
|
$ |
100,551 |
|
Amortization expense - customer relationships |
|
(2,167 |
) |
|
|
(2,167 |
) |
|
|
(6,502 |
) |
|
|
(6,502 |
) |
Amortization expense - trade name |
|
(605 |
) |
|
|
(10,713 |
) |
|
|
(1,813 |
) |
|
|
(11,921 |
) |
Stock-based compensation |
|
(3,326 |
) |
|
|
(4,153 |
) |
|
|
(10,144 |
) |
|
|
(11,194 |
) |
Restructuring charges |
|
— |
|
|
|
(24 |
) |
|
|
— |
|
|
|
(100 |
) |
Non-GAAP sales &
marketing expense |
$ |
26,325 |
|
|
$ |
21,389 |
|
|
$ |
75,815 |
|
|
$ |
70,834 |
|
|
|
|
|
|
|
|
|
GAAP research &
development expense |
$ |
29,471 |
|
|
$ |
29,043 |
|
|
$ |
88,287 |
|
|
$ |
87,127 |
|
Stock-based compensation |
|
(3,012 |
) |
|
|
(4,386 |
) |
|
|
(8,457 |
) |
|
|
(11,665 |
) |
Restructuring charges |
|
— |
|
|
|
(87 |
) |
|
|
— |
|
|
|
(352 |
) |
Non-GAAP research
& development expense |
$ |
26,459 |
|
|
$ |
24,570 |
|
|
$ |
79,830 |
|
|
$ |
75,110 |
|
|
|
|
|
|
|
|
|
GAAP general &
administrative expense |
$ |
18,690 |
|
|
$ |
19,334 |
|
|
$ |
62,575 |
|
|
$ |
59,239 |
|
Stock-based compensation |
|
(3,997 |
) |
|
|
(4,198 |
) |
|
|
(13,191 |
) |
|
|
(11,136 |
) |
Acquisition-related expenses |
|
(186 |
) |
|
|
(211 |
) |
|
|
(2,070 |
) |
|
|
(634 |
) |
Litigation expenses |
|
(1,225 |
) |
|
|
(153 |
) |
|
|
(5,093 |
) |
|
|
(4,502 |
) |
Restructuring charges |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(6 |
) |
Non-GAAP general &
administrative expense |
$ |
13,282 |
|
|
$ |
14,771 |
|
|
$ |
42,221 |
|
|
$ |
42,961 |
|
|
|
|
|
|
|
|
|
GAAP loss from
operations |
$ |
(18,444 |
) |
|
$ |
(12,906 |
) |
|
$ |
(70,681 |
) |
|
$ |
(36,327 |
) |
Amortization of intangible assets |
|
7,068 |
|
|
|
16,952 |
|
|
|
21,129 |
|
|
|
31,101 |
|
Stock-based compensation |
|
12,505 |
|
|
|
15,823 |
|
|
|
38,476 |
|
|
|
41,969 |
|
Acquisition-related expenses |
|
186 |
|
|
|
211 |
|
|
|
2,070 |
|
|
|
634 |
|
Litigation expenses |
|
1,225 |
|
|
|
153 |
|
|
|
5,093 |
|
|
|
4,502 |
|
Restructuring charges |
|
— |
|
|
|
150 |
|
|
|
— |
|
|
|
627 |
|
Non-GAAP operating
income (loss) |
$ |
2,540 |
|
|
$ |
20,383 |
|
|
$ |
(3,913 |
) |
|
$ |
42,506 |
|
|
|
|
|
|
|
|
|
The following
table sets forth reconciling items as a percentage of total revenue
for the periods presented.1 |
GAAP operating margin
% |
|
(18 |
)% |
|
|
(11 |
)% |
|
|
(24 |
)% |
|
|
(10 |
)% |
Amortization of intangible assets |
|
7 |
|
|
|
14 |
|
|
|
7 |
|
|
|
9 |
|
Stock-based compensation |
|
12 |
|
|
|
13 |
|
|
|
13 |
|
|
|
12 |
|
Acquisition-related expenses |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Litigation expenses |
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-GAAP operating
margin % |
|
2 |
% |
|
|
17 |
% |
|
|
(1 |
)% |
|
|
12 |
% |
|
|
|
|
|
|
|
|
GAAP net loss
attributable to nCino |
$ |
(23,579 |
) |
|
$ |
(16,379 |
) |
|
$ |
(81,512 |
) |
|
$ |
(43,506 |
) |
Amortization of intangible assets |
|
7,068 |
|
|
|
16,952 |
|
|
|
21,129 |
|
|
|
31,101 |
|
Stock-based compensation |
|
12,505 |
|
|
|
15,823 |
|
|
|
38,476 |
|
|
|
41,969 |
|
Acquisition-related expenses |
|
186 |
|
|
|
211 |
|
|
|
2,070 |
|
|
|
634 |
|
Litigation expenses |
|
1,225 |
|
|
|
153 |
|
|
|
5,093 |
|
|
|
4,502 |
|
Restructuring charges |
|
— |
|
|
|
150 |
|
|
|
— |
|
|
|
627 |
|
Income tax effect on non-GAAP adjustments |
|
(3 |
) |
|
|
(237 |
) |
|
|
(9 |
) |
|
|
(616 |
) |
Adjustment attributable to redeemable non-controlling interest |
|
1,191 |
|
|
|
(478 |
) |
|
|
2,348 |
|
|
|
(526 |
) |
Non-GAAP net income
(loss) attributable to nCino |
$ |
(1,407 |
) |
|
$ |
16,195 |
|
|
$ |
(12,405 |
) |
|
$ |
34,185 |
|
|
|
|
|
|
|
|
|
Basic and diluted GAAP
net loss attributable to nCino, Inc. per share |
$ |
(0.21 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.74 |
) |
|
$ |
(0.39 |
) |
Weighted-average
shares used to compute basic and diluted GAAP net loss attributable
to nCino, Inc. per share |
|
110,897,811 |
|
|
|
112,951,553 |
|
|
|
110,434,171 |
|
|
|
112,484,017 |
|
Basic non-GAAP net
income (loss) attributable to nCino, Inc. per share |
$ |
(0.01 |
) |
|
$ |
0.14 |
|
|
$ |
(0.11 |
) |
|
$ |
0.30 |
|
Weighted-average
shares used to compute basic non-GAAP net income (loss)
attributable to nCino, Inc. per share |
|
110,897,811 |
|
|
|
112,951,553 |
|
|
|
110,434,171 |
|
|
|
112,484,017 |
|
Diluted non-GAAP net
income (loss) attributable to nCino, Inc. per share |
$ |
(0.01 |
) |
|
$ |
0.14 |
|
|
$ |
(0.11 |
) |
|
$ |
0.30 |
|
Weighted-average
shares used to compute diluted non-GAAP net income (loss)
attributable to nCino, Inc. per share |
|
110,897,811 |
|
|
|
115,261,169 |
|
|
|
110,434,171 |
|
|
|
114,636,396 |
|
|
|
|
|
|
|
|
|
Free cash
flow |
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
$ |
(4,080 |
) |
|
$ |
5,870 |
|
|
$ |
6,639 |
|
|
$ |
49,137 |
|
Purchases of property and equipment |
|
(4,586 |
) |
|
|
(619 |
) |
|
|
(13,889 |
) |
|
|
(3,083 |
) |
Free cash
flow |
$ |
(8,666 |
) |
|
$ |
5,251 |
|
|
$ |
(7,250 |
) |
|
$ |
46,054 |
|
Principal payments on financing obligations2 |
|
(155 |
) |
|
|
(324 |
) |
|
|
(458 |
) |
|
|
(888 |
) |
Free cash flow less
principal payments on financing obligations |
$ |
(8,821 |
) |
|
$ |
4,927 |
|
|
$ |
(7,708 |
) |
|
$ |
45,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Columns may not foot due to rounding.2These amounts represent
the non-interest component of payments towards financing
obligations for facilities.
CONTACTS
INVESTOR CONTACTHarrison MastersnCino+1
910.734.7743Harrison.masters@ncino.com
MEDIA CONTACTNatalia
MoosenCinoNatalia.moose@ncino.com
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