nCino Reports Second Quarter Fiscal Year 2024 Financial Results

• Total Revenues of $117.2M, up 18% year-over-year

• Subscription Revenues of $99.9M, up 18% year-over-year

WILMINGTON, N.C., Aug. 29, 2023 (GLOBE NEWSWIRE) -- nCino, Inc. ( NCNO), a pioneer in cloud banking for the global financial services industry, today announced financial results for the second quarter of fiscal year 2024, ended July 31, 2023.

“We are very pleased with our second quarter results and in particular, the strong rebound in sales activity we saw across the business,” said Pierre Naudé, Chairman and CEO of nCino. “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.

Conference Call
nCino will host a conference call at 4:30 p.m. ET today to discuss its financial results and outlook. The conference call will be available via live webcast and replay at the Investor Relations section of nCino’s website: https://investor.ncino.com/news-events/events-and-presentations.

About nCino
nCino ( 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 1,850 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.

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