Cloud Banking Fintech nCino Reports Steady Business, Revenue Growth

nCino, Inc. (NASDAQ: NCNO), which claims to be a pioneer in cloud banking for the global financial services industry, announced financial results for the second quarter of fiscal year 2024, ended July 31, 2023.

Pierre Naudé, Chairman and CEO of nCino, said:

“We are very pleased with our second quarter results and in particular, the strong rebound in sales activity we saw across the business. Our profitability again exceeded expectations even as we continue to strategically invest in expanding our platform and solutions. With the liquidity crisis in the U.S. banking industry largely behind us, and financial institutions around the world focused on improving their operational efficiency and customer experience, we look for the momentum we saw in the second quarter to continue for the balance of the year and beyond.”

Financial Highlights

  • Revenues: Total revenues for the second quarter of fiscal 2024 were $117.2 million, an 18% increase from $99.6 million in the second quarter of fiscal 2023. Subscription revenues for the second quarter were $99.9 million, up from $84.4 million one year ago, an increase of 18%.
  • Income (Loss) from Operations: GAAP loss from operations in the second quarter of fiscal 2024 was $(14.8) million compared to $(25.0) million in the same quarter of fiscal 2023. Non-GAAP operating income (loss) in the second quarter was $11.2 million compared to $(2.8) million in the second quarter of fiscal 2023.
  • Net Income (Loss) Attributable to nCino: GAAP net loss attributable to nCino in the second quarter of fiscal 2024 was $(15.9) million compared to $(27.2) million in the second quarter of fiscal 2023. Non-GAAP net income attributable to nCino in the second quarter was $9.9 million compared to a $(4.9) million net loss in the second quarter of fiscal 2023.
  • Net Income (Loss) Attributable to nCino per Share: GAAP net loss attributable to nCino in the second quarter of fiscal 2024 was $(0.14) per basic and diluted share compared to $(0.25) per basic and diluted share in the second quarter of fiscal 2023. Non-GAAP net income attributable to nCino in the second quarter was $0.09 per diluted share compared to a net loss of $(0.04) per basic and diluted share in the second quarter of fiscal 2023.
  • Remaining Performance Obligation: Total Remaining Performance Obligation (RPO) as of July 31, 2023, was $928.6 million, an increase of 2% from July 31, 2022. RPO expected to be recognized in the next 24 months was $636.2 million, an increase of 8% from July 31, 2022.
  • Cash: Cash, cash equivalents, and restricted cash were $103.4 million as of July 31, 2023. During the second quarter, the Company repaid $15 million under its revolving credit facility and has no outstanding balance thereunder.

Recent Business Highlights

  • Signed first customer in the Middle East: Working with Accenture, one of the largest banks in the UAE selected nCino for its Corporate, Commercial and Private Banking Services.
  • Signed a top-10 bank in Australia: Added a greenfield, top-10 Australian bank for commercial lending and Commercial Pricing & Profitability.
  • Signed a significant expansion deal with a top-10 U.S. mortgage lender: Expanded our relationship with nCino’s largest mortgage point-of-sale customer.
  • Renewed and expanded agreement with an enterprise bank in the Netherlands: Signed a 5-year renewal with an enterprise bank in the Netherlands, expanding their adoption of nCino for commercial lending.

Financial Outlook

  • nCino is providing guidance for its third quarter ending October 31, 2023, as follows:
  • Total revenues between $120.0 million and $121.0 million.
  • Subscription revenues between $102.5 million and $103.5 million.
  • Non-GAAP operating income between $13.0 million and $15.0 million.
  • Non-GAAP net income attributable to nCino per share of $0.10 and $0.12.
  • nCino is providing guidance for its fiscal year 2024 ending January 31, 2024, as follows:
  • Total revenues between $475.0 million and $478.5 million.
  • Subscription revenues between $406.0 million and $409.0 million.
  • Non-GAAP operating income between $51.0 million and $54.0 million.
  • Non-GAAP net income attributable to nCino per share of $0.38 to $0.41.

As noted in the update, nCino is claims it 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 1,850 financial services providers globally.”



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