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Ncino (NCNO) Operating Income : $-39.5 Mil (TTM As of Jan. 2024)


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What is Ncino Operating Income?

Ncino's Operating Income for the three months ended in Jan. 2024 was $-3.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $-39.5 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ncino's Operating Income for the three months ended in Jan. 2024 was $-3.2 Mil. Ncino's Revenue for the three months ended in Jan. 2024 was $123.7 Mil. Therefore, Ncino's Operating Margin % for the quarter that ended in Jan. 2024 was -2.57%.

Good Sign:

Ncino Inc operating margin is expanding. Margin expansion is usually a good sign.

Ncino's 5-Year average Growth Rate for Operating Margin % was 13.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ncino's annualized ROC % for the quarter that ended in Jan. 2024 was 0.80%. Ncino's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was -3.82%.


Ncino Operating Income Historical Data

The historical data trend for Ncino's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ncino Operating Income Chart

Ncino Annual Data
Trend Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Operating Income
Get a 7-Day Free Trial -28.17 -42.61 -71.36 -94.01 -39.51

Ncino Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -23.33 -8.63 -14.79 -12.91 -3.19

Ncino Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-39.5 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Ncino  (NAS:NCNO) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Ncino's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=-12.74 * ( 1 - 178.25% )/( (1225.68 + 1282.002)/ 2 )
=9.96905/1253.841
=0.80 %

where

Invested Capital(Q: Oct. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1267.544 - 23.965 - ( 100.475 - max(0, 172.973 - 190.872+100.475))
=1225.68

Invested Capital(Q: Jan. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1340.43 - 22.689 - ( 112.085 - max(0, 215.036 - 250.775+112.085))
=1282.002

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Ncino's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2023  Q: Jan. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-3.592/( ( (89.412 + max(-82.524, 0)) + (98.406 + max(-78.028, 0)) )/ 2 )
=-3.592/( ( 89.412 + 98.406 )/ 2 )
=-3.592/93.909
=-3.82 %

where Working Capital is:

Working Capital(Q: Oct. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(57.112 + 0 + 28.385) - (23.965 + 130.308 + 13.748)
=-82.524

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(106.17 + 0 + 25.715) - (22.689 + 170.941 + 16.283)
=-78.028

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Ncino's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2024 )/Revenue (Q: Jan. 2024 )
=-3.185/123.693
=-2.57 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Ncino Operating Income Related Terms

Thank you for viewing the detailed overview of Ncino's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Ncino (NCNO) Business Description

Traded in Other Exchanges
Address
6770 Parker Farm Drive, Wilmington, NC, USA, 28405
Ncino Inc is a provider of cloud-based software for financial institutions. Its software solution digitizes, automates, and streamlines inefficient and complex processes & workflow and utilizes data analytics & artificial intelligence that enables financial institutions to more effectively onboard new clients, make loans and manage the entire loan life cycle, open deposit, and other accounts and manage regulatory compliance. It also offers professional services, including configuration & implementation, training, and advisory services. Ncino generates the majority of its revenue from subscription services. The company caters to global financial institutions, enterprise banks, regional banks, community banks, and credit unions. The vast majority of its revenue comes from the United States.
Executives
April Rieger officer: Chief Lgl. & Compl. Ofc., Sec. 6770 PARKER FARM DRIVE, SUITE 200, WILMINGTON NC 28405
Sean Desmond officer: Chief Customer Success Officer 6770 PARKER FARM DRIVE, SUITE 300, WILMINGTON NC 28405
Pierre Naude director, officer: CEO 6770 PARKER FARM DRIVE, SUITE 200, WILMINGTON NC 28405
Steven A Collins director 20 N. MERIDIAN STREET, SUITE 200, INDIANAPOLIS IN 46204
Matthew Royce Hansen officer: Chief Product Officer C/O SOUTHPORT ACQUISITION CORPORATION, 1745 GRAND AVENUE, DEL MAR CA 92014
Jeanette Sellers officer: VP of Accounting 6770 PARKER FARM DRIVE, SUITE 300, WILMINGTON NC 28405
Joshua L Glover officer: President & Chief Rev Officer 6770 PARKER FARM DRIVE, SUITE 300, WILMINGTON NC 28405
Gregory Orenstein officer: Chief Corp Dev & Strat Officer 6770 PARKER FARM DRIVE, SUITE 300, WILMINGTON NC 28405
Jeff Horing director, 10 percent owner INSIGHT PARTNERS, 680 5TH AVENUE 8TH FLOOR, NEW YORK NY 10019
William R Spruill director 6770 PARKER FARM DRIVE, SUITE 200, WILMINGTON NC 28405
David Rudow officer: CFO & Treasurer 6770 PARKER FARM DRIVE, SUITE 300, WILMINGTON NC 28405
Jeffrey W Lunsford director C/O WEBSIDESTORY, INC., 10182 TELESIS COURT, 6TH FLOOR, SAN DIEGO CA 92121
Pamela Kilday director 6770 PARKER FARM DRIVE, SUITE 300, WILMINGTON, NC NC 28405
William J Ruh director PO BOX 1329, RANCHO SANTA FE CA 92067
Insight Sn Holdings 2, Llc director, 10 percent owner 1114 AVENUE OF THE AMERICAS, 36TH FLOOR, NEW YORK NY 10036