nCino, Inc. (NASDAQ: NCNO), the leading provider of intelligent,
best-in-class banking solutions, today announced financial results
for the third quarter of fiscal year 2025, ended October 31,
2024.
"We are very pleased with our third quarter results, once again
exceeding expectations for both revenues and non-GAAP operating
income," said Pierre Naudé, Chairman and CEO at nCino. "The team
delivered solid execution globally, with over 30 multi-solution
deals and more gross bookings from net new customers than the
previous two quarters combined. Multi-solution deals continue to
show the demand for a true end-to-end platform for financial
institutions to onboard customers, open accounts, originate loans
and manage the portfolio across multiple business lines. We remain
focused on innovation and delivering efficiencies that create real
business value, and we're excited by the strength and expansion we
saw in our business this quarter as a result of that
reputation."
Financial Highlights
- Revenues: Total revenues for the third quarter
of fiscal 2025 were $138.8 million, a 14% increase from $121.9
million in the third quarter of fiscal 2024. Subscription revenues
for the third quarter were $119.9 million, up from $104.8 million
one year ago, an increase of 14%.
- Income (Loss) from Operations: GAAP loss from
operations in the third quarter of fiscal 2025 was $(0.8) million
compared to $(12.9) million in the same quarter of fiscal 2024.
Non-GAAP operating income in the third quarter of fiscal 2025 was
$28.0 million compared to $20.4 million in the third quarter of
fiscal 2024, an increase of 38%.
- Net Income (Loss) Attributable to nCino: GAAP
net loss attributable to nCino in the third quarter of fiscal 2025
was $(5.3) million compared to $(16.4) million in the third quarter
of fiscal 2024. Non-GAAP net income attributable to nCino in the
third quarter of fiscal 2025 was $24.4 million compared to $16.2
million in the third quarter of fiscal 2024, an increase of
51%.
- Net Income (Loss) Attributable to nCino per
Share: GAAP net loss attributable to nCino in the third
quarter of fiscal 2025 was $(0.05) per basic and diluted share
compared to $(0.15) per basic and diluted share in the third
quarter of fiscal 2024. Non-GAAP net income attributable to nCino
in the third quarter was $0.21 per diluted share compared to $0.14
per diluted share in the third quarter of fiscal 2024.
- Remaining Performance Obligation: Total
Remaining Performance Obligation (RPO) as of October 31, 2024,
was $1.095 billion, compared with $917.1 million as of
October 31, 2023, an increase of 19%. RPO expected to be
recognized in the next 24 months was $730.0 million, an increase of
16% from $627.6 million as of October 31, 2023.
- Cash: Cash, cash equivalents, and restricted
cash were $258.3 million as of October 31, 2024, which
reflected refinancing the revolving credit facility and included
$129.7 million that was subsequently utilized to acquire
FullCircl on November 5, 2024.
Recent Business Highlights
- Completed acquisition of FullCircl: Closed the
acquisition of FullCircl on November 5, 2024, expanding nCino's
onboarding capabilities by adding data aggregation components to
the platform for financial institutions in EMEA.
- Signed a multi-solution expansion agreement with a
top-40 bank in the U.S.: Shortly after quarter end,
expanded relationship with a top-40 bank in the U.S. for Commercial
and Small Business Lending, Commercial Pricing & Profitability,
Automated Spreading and Banking Advisor.
- Signed first Banking Advisor deal in
Australia: Extended relationship with a top-5 Australian
bank for three years with the addition of Banking Advisor.
- Signed largest customer in Japan: Tokushima
Taisho Bank selected nCino to transform its business lending
operations, making the bank nCino’s largest customer in Japan.
- Signed an expansion agreement with the largest bank in
Norway: The bank expanded its adoption of nCino Commercial
Lending, including Banking Advisor, and will also be running Credit
Portfolio Management and ESG reporting on nCino.
- One of the largest home builders in the U.S. went live
on the nCino Mortgage Solution: The affiliate mortgage
company of a large, national home builder completed its rollout of
the nCino Mortgage Solution.
Financial Outlook nCino is providing
guidance for its fourth quarter
ending January 31, 2025, as
follows:
- Total revenues between $139.5 million and $141.5 million.
- Subscription revenues between $122.5 million and $124.5
million.
- Non-GAAP operating income between $23.25 million and $24.25
million.
- Non-GAAP net income attributable to nCino per diluted share of
$0.18 to $0.19.
nCino is providing guidance for its fiscal year
2025 ending
January 31, 2025, as
follows:
- Total revenues between $539.0 million and $541.0 million.
- Subscription revenues between $467.0 million and $469.0
million.
- Non-GAAP operating income between $95.0 million and $96.0
million.
- Non-GAAP net income attributable to nCino per diluted share of
$0.72 to $0.73.
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 powering a
new era in financial services. The Company was founded to help
financial institutions digitize and reengineer business processes
to boost efficiencies and create better banking experiences. With
over 1,800 customers worldwide - including community banks, credit
unions, independent mortgage banks, and the largest financial
entities globally - nCino offers a trusted platform of
best-in-class, intelligent solutions. By integrating artificial
intelligence and actionable insights into its platform, nCino is
helping financial institutions consolidate legacy systems to
enhance strategic decision-making, improve risk management, and
elevate customer satisfaction by cohesively bringing together
people, AI and data. 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 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 |
|
October 31, 2024 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
112,085 |
|
|
$ |
257,894 |
|
Accounts receivable, net |
|
112,975 |
|
|
|
65,013 |
|
Costs capitalized to obtain revenue contracts, current portion,
net |
|
10,544 |
|
|
|
12,214 |
|
Prepaid expenses and other current assets |
|
15,171 |
|
|
|
13,523 |
|
Total current assets |
|
250,775 |
|
|
|
348,644 |
|
Property and equipment,
net |
|
79,145 |
|
|
|
75,711 |
|
Operating lease right-of-use
assets, net |
|
19,261 |
|
|
|
14,938 |
|
Costs capitalized to obtain
revenue contracts, noncurrent, net |
|
17,425 |
|
|
|
20,185 |
|
Goodwill |
|
838,869 |
|
|
|
908,559 |
|
Intangible assets, net |
|
115,572 |
|
|
|
128,344 |
|
Investments |
|
9,294 |
|
|
|
9,294 |
|
Long-term prepaid expenses and
other assets |
|
10,089 |
|
|
|
10,931 |
|
Total assets |
$ |
1,340,430 |
|
|
$ |
1,516,606 |
|
Liabilities,
redeemable non-controlling interest, and stockholders’
equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
11,842 |
|
|
$ |
12,123 |
|
Accrued compensation and benefits |
|
16,283 |
|
|
|
16,370 |
|
Accrued expenses and other current liabilities |
|
10,847 |
|
|
|
11,594 |
|
Deferred revenue, current portion |
|
170,941 |
|
|
|
132,382 |
|
Financing obligations, current portion |
|
1,474 |
|
|
|
1,614 |
|
Operating lease liabilities, current portion |
|
3,649 |
|
|
|
4,830 |
|
Total current liabilities |
|
215,036 |
|
|
|
178,913 |
|
Operating lease liabilities,
noncurrent |
|
16,423 |
|
|
|
11,829 |
|
Deferred income taxes,
noncurrent |
|
3,687 |
|
|
|
10,577 |
|
Deferred revenue,
noncurrent |
|
— |
|
|
|
431 |
|
Revolving credit facility,
noncurrent |
|
— |
|
|
|
166,000 |
|
Financing obligations,
noncurrent |
|
52,680 |
|
|
|
51,624 |
|
Other long-term
liabilities |
|
— |
|
|
|
3,726 |
|
Total liabilities |
|
287,826 |
|
|
|
423,100 |
|
Commitments and
contingencies |
|
|
|
Redeemable non-controlling
interest |
|
3,428 |
|
|
|
5,243 |
|
Stockholders’ equity |
|
|
|
Common stock |
|
57 |
|
|
|
58 |
|
Additional paid-in capital |
|
1,400,881 |
|
|
|
1,456,411 |
|
Accumulated other comprehensive income |
|
996 |
|
|
|
1,615 |
|
Accumulated deficit |
|
(352,758 |
) |
|
|
(369,821 |
) |
Total stockholders’ equity |
|
1,049,176 |
|
|
|
1,088,263 |
|
Total liabilities, redeemable non-controlling interest, and
stockholders’ equity |
$ |
1,340,430 |
|
|
$ |
1,516,606 |
|
|
|
|
|
|
|
|
|
|
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, |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
Revenues |
|
|
|
|
|
|
|
Subscription |
$ |
104,759 |
|
|
$ |
119,894 |
|
|
$ |
301,996 |
|
|
$ |
344,211 |
|
Professional services and other |
|
17,183 |
|
|
|
18,903 |
|
|
|
50,854 |
|
|
|
55,076 |
|
Total revenues |
|
121,942 |
|
|
|
138,797 |
|
|
|
352,850 |
|
|
|
399,287 |
|
Cost of
revenues |
|
|
|
|
|
|
|
Subscription |
|
30,605 |
|
|
|
33,769 |
|
|
|
89,481 |
|
|
|
98,916 |
|
Professional services and other |
|
17,420 |
|
|
|
19,976 |
|
|
|
52,779 |
|
|
|
59,940 |
|
Total cost of revenues |
|
48,025 |
|
|
|
53,745 |
|
|
|
142,260 |
|
|
|
158,856 |
|
Gross profit |
|
73,917 |
|
|
|
85,052 |
|
|
|
210,590 |
|
|
|
240,431 |
|
Gross margin % |
|
61 |
% |
|
|
61 |
% |
|
|
60 |
% |
|
|
60 |
% |
Operating
expenses |
|
|
|
|
|
|
|
Sales and marketing |
|
38,446 |
|
|
|
29,729 |
|
|
|
100,551 |
|
|
|
89,487 |
|
Research and development |
|
29,043 |
|
|
|
33,039 |
|
|
|
87,127 |
|
|
|
97,291 |
|
General and administrative |
|
19,334 |
|
|
|
23,108 |
|
|
|
59,239 |
|
|
|
66,046 |
|
Total operating expenses |
|
86,823 |
|
|
|
85,876 |
|
|
|
246,917 |
|
|
|
252,824 |
|
Loss from operations |
|
(12,906 |
) |
|
|
(824 |
) |
|
|
(36,327 |
) |
|
|
(12,393 |
) |
Non-operating income
(expense) |
|
|
|
|
|
|
|
Interest income |
|
685 |
|
|
|
482 |
|
|
|
2,057 |
|
|
|
1,408 |
|
Interest expense |
|
(854 |
) |
|
|
(1,653 |
) |
|
|
(3,277 |
) |
|
|
(4,965 |
) |
Other income (expense), net |
|
(2,320 |
) |
|
|
432 |
|
|
|
(2,633 |
) |
|
|
(162 |
) |
Loss before income taxes |
|
(15,395 |
) |
|
|
(1,563 |
) |
|
|
(40,180 |
) |
|
|
(16,112 |
) |
Income tax provision |
|
1,782 |
|
|
|
2,589 |
|
|
|
4,720 |
|
|
|
1,360 |
|
Net loss |
|
(17,177 |
) |
|
|
(4,152 |
) |
|
|
(44,900 |
) |
|
|
(17,472 |
) |
Net loss attributable to redeemable non-controlling interest |
|
(320 |
) |
|
|
(186 |
) |
|
|
(868 |
) |
|
|
(409 |
) |
Adjustment attributable to redeemable non-controlling interest |
|
(478 |
) |
|
|
1,286 |
|
|
|
(526 |
) |
|
|
2,205 |
|
Net loss attributable to nCino, Inc. |
$ |
(16,379 |
) |
|
$ |
(5,252 |
) |
|
$ |
(43,506 |
) |
|
$ |
(19,268 |
) |
Net loss per share
attributable to nCino, Inc.: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.15 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.17 |
) |
Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
|
112,951,553 |
|
|
|
115,611,833 |
|
|
|
112,484,017 |
|
|
|
114,970,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nCino,
Inc.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(In thousands)(Unaudited) |
|
|
|
Nine Months Ended October 31, |
|
2023 |
|
2024 |
Cash flows from operating
activities |
|
|
|
Net loss attributable to nCino, Inc. |
$ |
(43,506 |
) |
|
$ |
(19,268 |
) |
Net loss and adjustment attributable to redeemable non-controlling
interest |
|
(1,394 |
) |
|
|
1,796 |
|
Net loss |
|
(44,900 |
) |
|
|
(17,472 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
37,337 |
|
|
|
26,132 |
|
Non-cash operating lease costs |
|
3,581 |
|
|
|
3,844 |
|
Amortization of costs capitalized to obtain revenue contracts |
|
7,368 |
|
|
|
8,724 |
|
Amortization of debt issuance costs |
|
138 |
|
|
|
60 |
|
Stock-based compensation |
|
41,969 |
|
|
|
53,015 |
|
Deferred income taxes |
|
881 |
|
|
|
(2,496 |
) |
Provision for bad debt |
|
1,124 |
|
|
|
25 |
|
Net foreign currency losses (gains) |
|
2,275 |
|
|
|
(658 |
) |
Loss on disposal of long-lived assets |
|
161 |
|
|
|
35 |
|
Change in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
35,455 |
|
|
|
50,184 |
|
Costs capitalized to obtain revenue contracts |
|
(5,959 |
) |
|
|
(13,199 |
) |
Prepaid expenses and other assets |
|
3,374 |
|
|
|
656 |
|
Accounts payable |
|
1,184 |
|
|
|
1,056 |
|
Accrued expenses and other liabilities |
|
(7,999 |
) |
|
|
(148 |
) |
Deferred revenue |
|
(23,789 |
) |
|
|
(41,604 |
) |
Operating lease liabilities |
|
(3,063 |
) |
|
|
(2,936 |
) |
Net cash provided by operating activities |
|
49,137 |
|
|
|
65,218 |
|
Cash flows from investing
activities |
|
|
|
Acquisition of business, net of cash acquired |
|
— |
|
|
|
(90,839 |
) |
Acquisition of assets |
|
(356 |
) |
|
|
(450 |
) |
Purchases of property and equipment |
|
(3,083 |
) |
|
|
(1,466 |
) |
Purchase of investment |
|
(2,500 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(5,939 |
) |
|
|
(92,755 |
) |
Cash flows from financing
activities |
|
|
|
Investment from redeemable non-controlling interest |
|
983 |
|
|
|
— |
|
Proceeds from borrowings on revolving credit facility |
|
— |
|
|
|
241,000 |
|
Payments on revolving credit facility |
|
(30,000 |
) |
|
|
(75,000 |
) |
Payments of debt issuance costs |
|
— |
|
|
|
(1,382 |
) |
Exercise of stock options |
|
3,176 |
|
|
|
2,223 |
|
Stock issuance under the employee stock purchase plan |
|
2,698 |
|
|
|
2,514 |
|
Principal payments on financing obligations |
|
(888 |
) |
|
|
(916 |
) |
Net cash provided by (used in) financing
activities |
|
(24,031 |
) |
|
|
168,439 |
|
Effect of foreign currency exchange rate changes on cash, cash
equivalents, and restricted cash |
|
(762 |
) |
|
|
(93 |
) |
Net increase in cash, cash equivalents, and restricted
cash |
|
18,405 |
|
|
|
140,809 |
|
Cash, cash equivalents, and restricted cash, beginning of
period |
|
87,418 |
|
|
|
117,444 |
|
Cash, cash equivalents, and restricted cash, end of
period |
$ |
105,823 |
|
|
$ |
258,253 |
|
|
|
|
|
Reconciliation of cash, cash equivalents, and restricted
cash, end of period: |
|
|
|
Cash and cash equivalents |
$ |
100,475 |
|
|
$ |
257,894 |
|
Restricted cash included in prepaid expenses and other current
assets |
|
5,000 |
|
|
|
— |
|
Restricted cash included in long-term prepaid expenses and other
assets |
|
348 |
|
|
|
359 |
|
Total cash, cash equivalents, and restricted cash, end of
period |
$ |
105,823 |
|
|
$ |
258,253 |
|
|
|
|
|
|
|
|
|
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, 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 October 31, |
|
Nine Months Ended October 31, |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
GAAP total revenues |
$ |
121,942 |
|
|
$ |
138,797 |
|
|
$ |
352,850 |
|
|
$ |
399,287 |
|
|
|
|
|
|
|
|
|
GAAP cost of
subscription revenues |
$ |
30,605 |
|
|
$ |
33,769 |
|
|
$ |
89,481 |
|
|
$ |
98,916 |
|
Amortization expense - developed technology |
|
(3,990 |
) |
|
|
(4,404 |
) |
|
|
(12,431 |
) |
|
|
(12,926 |
) |
Stock-based compensation |
|
(515 |
) |
|
|
(733 |
) |
|
|
(1,314 |
) |
|
|
(2,088 |
) |
Restructuring charges |
|
(12 |
) |
|
|
— |
|
|
|
(51 |
) |
|
|
— |
|
Non-GAAP cost of
subscription revenues |
$ |
26,088 |
|
|
$ |
28,632 |
|
|
$ |
75,685 |
|
|
$ |
83,902 |
|
|
|
|
|
|
|
|
|
GAAP cost of
professional services and other revenues |
$ |
17,420 |
|
|
$ |
19,976 |
|
|
$ |
52,779 |
|
|
$ |
59,940 |
|
Amortization expense - other |
|
(82 |
) |
|
|
(82 |
) |
|
|
(247 |
) |
|
|
(247 |
) |
Stock-based compensation |
|
(2,571 |
) |
|
|
(2,940 |
) |
|
|
(6,660 |
) |
|
|
(8,699 |
) |
Restructuring charges |
|
(26 |
) |
|
|
— |
|
|
|
(118 |
) |
|
|
— |
|
Non-GAAP cost of
professional services and other revenues |
$ |
14,741 |
|
|
$ |
16,954 |
|
|
$ |
45,754 |
|
|
$ |
50,994 |
|
|
|
|
|
|
|
|
|
GAAP gross
profit |
$ |
73,917 |
|
|
$ |
85,052 |
|
|
$ |
210,590 |
|
|
$ |
240,431 |
|
Amortization expense - developed technology |
|
3,990 |
|
|
|
4,404 |
|
|
|
12,431 |
|
|
|
12,926 |
|
Amortization expense - other |
|
82 |
|
|
|
82 |
|
|
|
247 |
|
|
|
247 |
|
Stock-based compensation |
|
3,086 |
|
|
|
3,673 |
|
|
|
7,974 |
|
|
|
10,787 |
|
Restructuring charges |
|
38 |
|
|
|
— |
|
|
|
169 |
|
|
|
— |
|
Non-GAAP gross
profit |
$ |
81,113 |
|
|
$ |
93,211 |
|
|
$ |
231,411 |
|
|
$ |
264,391 |
|
|
|
|
|
|
|
|
|
The following
table sets forth reconciling items as a percentage of total revenue
for the periods presented.1 |
GAAP gross margin
% |
|
61 |
% |
|
|
61 |
% |
|
|
60 |
% |
|
|
60 |
% |
Amortization expense - developed technology |
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
3 |
|
Amortization expense - other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation |
|
3 |
|
|
|
3 |
|
|
|
2 |
|
|
|
3 |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-GAAP gross margin
% |
|
67 |
% |
|
|
67 |
% |
|
|
66 |
% |
|
|
66 |
% |
|
|
|
|
|
|
|
|
GAAP sales &
marketing expense |
$ |
38,446 |
|
|
$ |
29,729 |
|
|
$ |
100,551 |
|
|
$ |
89,487 |
|
Amortization expense - customer relationships |
|
(2,167 |
) |
|
|
(2,736 |
) |
|
|
(6,502 |
) |
|
|
(7,889 |
) |
Amortization expense - trade name |
|
(10,713 |
) |
|
|
(107 |
) |
|
|
(11,921 |
) |
|
|
(254 |
) |
Amortization expense - other |
|
— |
|
|
|
(28 |
) |
|
|
— |
|
|
|
(72 |
) |
Stock-based compensation |
|
(4,153 |
) |
|
|
(4,394 |
) |
|
|
(11,194 |
) |
|
|
(12,534 |
) |
Restructuring charges |
|
(24 |
) |
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
Non-GAAP sales &
marketing expense |
$ |
21,389 |
|
|
$ |
22,464 |
|
|
$ |
70,834 |
|
|
$ |
68,738 |
|
|
|
|
|
|
|
|
|
GAAP research &
development expense |
$ |
29,043 |
|
|
$ |
33,039 |
|
|
$ |
87,127 |
|
|
$ |
97,291 |
|
Stock-based compensation |
|
(4,386 |
) |
|
|
(4,208 |
) |
|
|
(11,665 |
) |
|
|
(13,720 |
) |
Restructuring charges |
|
(87 |
) |
|
|
— |
|
|
|
(352 |
) |
|
|
— |
|
Non-GAAP research
& development expense |
$ |
24,570 |
|
|
$ |
28,831 |
|
|
$ |
75,110 |
|
|
$ |
83,571 |
|
|
|
|
|
|
|
|
|
GAAP general &
administrative expense |
$ |
19,334 |
|
|
$ |
23,108 |
|
|
$ |
59,239 |
|
|
$ |
66,046 |
|
Stock-based compensation |
|
(4,198 |
) |
|
|
(5,696 |
) |
|
|
(11,136 |
) |
|
|
(15,974 |
) |
Acquisition-related expenses |
|
(211 |
) |
|
|
(3,423 |
) |
|
|
(634 |
) |
|
|
(9,410 |
) |
Litigation expenses |
|
(153 |
) |
|
|
(115 |
) |
|
|
(4,502 |
) |
|
|
(365 |
) |
Restructuring charges |
|
(1 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
— |
|
Non-GAAP general &
administrative expense |
$ |
14,771 |
|
|
$ |
13,874 |
|
|
$ |
42,961 |
|
|
$ |
40,297 |
|
|
|
|
|
|
|
|
|
GAAP loss from
operations |
$ |
(12,906 |
) |
|
$ |
(824 |
) |
|
$ |
(36,327 |
) |
|
$ |
(12,393 |
) |
Amortization of intangible assets |
|
16,952 |
|
|
|
7,357 |
|
|
|
31,101 |
|
|
|
21,388 |
|
Stock-based compensation |
|
15,823 |
|
|
|
17,971 |
|
|
|
41,969 |
|
|
|
53,015 |
|
Acquisition-related expenses |
|
211 |
|
|
|
3,423 |
|
|
|
634 |
|
|
|
9,410 |
|
Litigation expenses |
|
153 |
|
|
|
115 |
|
|
|
4,502 |
|
|
|
365 |
|
Restructuring charges |
|
150 |
|
|
|
— |
|
|
|
627 |
|
|
|
— |
|
Non-GAAP operating
income |
$ |
20,383 |
|
|
$ |
28,042 |
|
|
$ |
42,506 |
|
|
$ |
71,785 |
|
|
|
|
|
|
|
|
|
The following
table sets forth reconciling items as a percentage of total revenue
for the periods presented.1 |
GAAP operating margin
% |
(11 |
)% |
|
(1 |
)% |
|
(10 |
)% |
|
(3 |
)% |
Amortization of intangible assets |
|
14 |
|
|
|
5 |
|
|
|
9 |
|
|
|
5 |
|
Stock-based compensation |
|
13 |
|
|
|
13 |
|
|
|
12 |
|
|
|
13 |
|
Acquisition-related expenses |
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
Litigation expenses |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-GAAP operating
margin % |
|
17 |
% |
|
|
20 |
% |
|
|
12 |
% |
|
|
18 |
% |
|
|
|
|
|
|
|
|
GAAP net loss
attributable to nCino, Inc. |
$ |
(16,379 |
) |
|
$ |
(5,252 |
) |
|
$ |
(43,506 |
) |
|
$ |
(19,268 |
) |
Amortization of intangible assets |
|
16,952 |
|
|
|
7,357 |
|
|
|
31,101 |
|
|
|
21,388 |
|
Stock-based compensation |
|
15,823 |
|
|
|
17,971 |
|
|
|
41,969 |
|
|
|
53,015 |
|
Acquisition-related expenses |
|
211 |
|
|
|
3,423 |
|
|
|
634 |
|
|
|
9,410 |
|
Litigation expenses |
|
153 |
|
|
|
115 |
|
|
|
4,502 |
|
|
|
365 |
|
Restructuring charges |
|
150 |
|
|
|
— |
|
|
|
627 |
|
|
|
— |
|
Tax benefit related to acquisition |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,609 |
) |
Income tax effect on non-GAAP adjustments |
|
(237 |
) |
|
|
(451 |
) |
|
|
(616 |
) |
|
|
(1,244 |
) |
Adjustment attributable to redeemable non-controlling interest |
|
(478 |
) |
|
|
1,286 |
|
|
|
(526 |
) |
|
|
2,205 |
|
Non-GAAP net income
attributable to nCino, Inc. |
$ |
16,195 |
|
|
$ |
24,449 |
|
|
$ |
34,185 |
|
|
$ |
62,262 |
|
|
|
|
|
|
|
|
|
Basic and diluted GAAP
net loss attributable to nCino, Inc. per share |
$ |
(0.15 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.17 |
) |
Weighted-average
shares used to compute basic and diluted GAAP net loss attributable
to nCino, Inc. per share |
|
112,951,553 |
|
|
|
115,611,833 |
|
|
|
112,484,017 |
|
|
|
114,970,622 |
|
|
|
|
|
|
|
|
|
Basic non-GAAP net
income attributable to nCino, Inc. per share |
$ |
0.14 |
|
|
$ |
0.21 |
|
|
$ |
0.30 |
|
|
$ |
0.54 |
|
Weighted-average
shares used to compute basic non-GAAP net income attributable to
nCino, Inc. per share |
|
112,951,553 |
|
|
|
115,611,833 |
|
|
|
112,484,017 |
|
|
|
114,970,622 |
|
|
|
|
|
|
|
|
|
Diluted non-GAAP net
income attributable to nCino, Inc. per share |
$ |
0.14 |
|
|
$ |
0.21 |
|
|
$ |
0.30 |
|
|
$ |
0.53 |
|
Weighted-average
shares used to compute diluted non-GAAP net income attributable to
nCino, Inc. per share |
|
115,261,169 |
|
|
|
117,416,473 |
|
|
|
114,636,396 |
|
|
|
116,913,806 |
|
|
|
|
|
|
|
|
|
Free cash
flow |
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
5,870 |
|
|
$ |
5,777 |
|
|
$ |
49,137 |
|
|
$ |
65,218 |
|
Purchases of property and equipment |
|
(619 |
) |
|
|
(680 |
) |
|
|
(3,083 |
) |
|
|
(1,466 |
) |
Free cash
flow |
$ |
5,251 |
|
|
$ |
5,097 |
|
|
$ |
46,054 |
|
|
$ |
63,752 |
|
Principal payments on financing obligations2 |
|
(324 |
) |
|
|
(194 |
) |
|
|
(888 |
) |
|
|
(916 |
) |
Free cash flow less
principal payments on financing obligations |
$ |
4,927 |
|
|
$ |
4,903 |
|
|
$ |
45,166 |
|
|
$ |
62,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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