nCino Reports Second Quarter Fiscal Year 2023 Financial Results
September 01, 2022
• Total Revenues of $99.6M, up 50% year-over-year
• Subscription Revenues of $84.4M, up 57% year-over-year
• Organic Subscription Revenues of $69.4M, up 29% year-over-year
WILMINGTON, N.C., Sept. 01, 2022 (GLOBE NEWSWIRE) -- nCino, Inc. (NASDAQ: NCNO), a pioneer in cloud banking and digital transformation solutions for the global financial services industry, today announced financial results for its second quarter of fiscal year 2023, ended July 31, 2022.
“We had a solid second quarter, and I am extremely proud of how well our team executed,” said Pierre Naudé, Chairman and Chief Executive Officer of nCino. “Our results this quarter demonstrate the strength of our business model and growing demand for our full suite of product solutions. For example, the number of nCino Bank Operating System customers using our nCino IQ (nIQ) solutions increased 119% year-over-year, and in the mortgage space, SimpleNexus grew subscription revenues 73% year-over-year. With discipline and focus, we are continuing to grow market share across the business and invest responsibly to extend our market leadership while remaining committed to achieving non-GAAP profitability next year.”
Financial Highlights
- Revenues: Total revenues for the second quarter of fiscal 2023 were $99.6 million, a 50% increase from $66.5 million in the second quarter of fiscal 2022. Subscription revenues for the second quarter were $84.4 million, up from $53.9 million one year ago, an increase of 57%. These revenues include the results of SimpleNexus. Organic subscription revenues, which exclude the revenues of SimpleNexus, were $69.4 million, a 29% increase from the second quarter of fiscal 2022.
- Loss from Operations: GAAP loss from operations in the second quarter of fiscal 2023 was ($25.0) million compared to ($13.2) million in the same quarter of fiscal 2022. Non-GAAP operating loss in the second quarter was ($2.8) million compared to ($1.8) million in the second quarter of fiscal 2022.
- Net Loss Attributable to nCino: GAAP net loss attributable to nCino in the second quarter of fiscal 2023 was ($27.2) million compared to ($13.7) million in the second quarter of fiscal 2022. Non-GAAP net loss attributable to nCino in the second quarter was ($4.9) million compared to ($2.5) million in the second quarter of fiscal 2022.
- Net Loss Attributable to nCino per Share: GAAP net loss attributable to nCino in the second quarter of fiscal 2023 was ($0.25) per share compared to ($0.14) per share in the second quarter of fiscal 2022. Non-GAAP net loss attributable to nCino in the second quarter was ($0.04) per share compared to ($0.03) per share in the second quarter of fiscal 2022.
- Remaining Performance Obligation: Total Remaining Performance Obligation (RPO) as of July 31, 2022, was $907.4 million, an increase of 28% compared to the second quarter of fiscal 2022. Organic RPO, which excludes RPO for SimpleNexus, was $839.8 million, an increase of 19% compared to the second quarter of fiscal 2022.
- Cash: Cash, cash equivalents, and restricted cash were $91.5 million as of July 31, 2022.
Recent Business Highlights
- Inked Deal with Rabobank: Signed Rabobank Australia and New Zealand to implement nCino’s Automated Spreading solution, powered by nCino IQ (nIQ). This partnership will benefit Australian and New Zealand bank employees and customers, representing a multi-currency, cross-country commitment to provide a premier banking experience.
- Grew International Footprint: Added new logos across multiple markets, including Japan, South Africa and the Netherlands.
- Took First New Zealand Customer Live: ASB, one of New Zealand’s leading commercial banks, went live on the nCino Bank Operating System during the second quarter. ASB deployed nCino’s Commercial Banking Solution as part of their journey to create a single, cloud-based platform to better serve their business customers.
- Took nbkc Live across the Full Platform: Kansas-based nbkc went live on nCino’s Commercial Pricing and Profitability and Automated Spreading solutions. The $1.1 billion-asset community bank is also live on nCino’s Commercial, Small Business and Retail Banking Solutions.
- Accelerated SimpleNexus Cross-sells: During the second quarter, SimpleNexus signed 26 new customers, including community and regional banks, credit unions, and independent mortgage banks. Of these, four were nCino cross-sells and six were competitive replacements.
- Expanded Executive Leadership Team: Announced several appointments across the executive leadership team to drive further growth and scale, including appointing Matt Hansen as Chief Product Officer, Jaime Punishill as Chief Market Officer, Chris Ainsworth as Chief People Officer and Ben Miller as CEO of SimpleNexus, an nCino company.
Financial Outlook
nCino is providing guidance for its third quarter ending October 31, 2022 as follows:
- Total revenues between $103 million and $104 million.
- Subscription revenues between $87 million and $88 million.
- Non-GAAP operating loss between ($0.75) million and ($1.75) million.
- Non-GAAP net loss attributable to nCino per share of ($0.02) and ($0.03).
nCino is providing guidance for its fiscal year 2023 ending January 31, 2023 as follows:
- Total revenues between $401.5 million and $403.5 million.
- Subscription revenues between $341.5 million and $343.5 million.
- Non-GAAP operating loss between ($12) million and ($14) million.
- Non-GAAP net loss attributable to nCino per share of ($0.17) to ($0.19).
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 (NASDAQ: NCNO) is the worldwide leader in cloud banking. The nCino Bank Operating System® empowers financial institutions with scalable technology to help them achieve revenue growth, greater efficiency, cost savings and regulatory compliance. In a digital-first world, nCino's single cloud-based platform enhances the employee and client experience to enable financial institutions to more effectively onboard clients, make loans and manage the entire loan life cycle, and open deposit and other accounts across lines of business and channels. Transforming how financial institutions operate through innovation, reputation and speed, nCino is partnered with more than 1,750 financial institutions of all types and sizes on a global basis. 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) the impact of the COVID-19 pandemic, including the impact to the financial services industry, the impact on general economic conditions and the impact of government responses, restrictions, and actions; (ii) risks associated with the acquisition of SimpleNexus, (iii) breaches in our security measures or unauthorized access to our customers’ or their clients' data; (iv) the accuracy of management’s assumptions and estimates; (v) our ability to attract new customers and succeed in having current customers expand their use of our solution; (vi) 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; (vii) 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; (viii) fluctuation of our results of operations, which may make period-to-period comparisons less meaningful; (ix) our ability to manage our growth effectively including expanding outside of the United States; (x) adverse changes in our relationship with Salesforce; (xi) our ability to successfully acquire new companies and/or integrate acquisitions into our existing organization, including SimpleNexus; (xii) 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; (xiii) 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; (xiv) our ability to maintain our corporate culture and attract and retain highly skilled employees; (xv) adverse changes in the financial services industry, including as a result of customer consolidation; (xvi) adverse changes in economic, regulatory, or market conditions, including as a direct or indirect consequence of the outbreak of hostilities in Ukraine and higher interest rates; and (xvii) 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, 2022 | July 31, 2022 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 88,014 | $ | 86,148 | |||
| Accounts receivable, net | 74,528 | 68,347 | |||||
| Costs capitalized to obtain revenue contracts, current portion, net | 7,583 | 8,149 | |||||
| Prepaid expenses and other current assets | 13,384 | 14,127 | |||||
| Total current assets | 183,509 | 176,771 | |||||
| Property and equipment, net | 60,677 | 73,114 | |||||
| Operating lease right-of-use assets, net | 13,170 | 11,770 | |||||
| Costs capitalized to obtain revenue contracts, noncurrent, net | 16,403 | 16,172 | |||||
| Goodwill | 841,487 | 840,726 | |||||
| Intangible assets, net | 180,122 | 166,056 | |||||
| Investment | 4,031 | 4,031 | |||||
| Other long-term assets | 1,615 | 7,719 | |||||
| Total assets | $ | 1,301,014 | $ | 1,296,359 | |||
| Liabilities, redeemable non-controlling interest, and stockholders’ equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 11,366 | $ | 9,456 | |||
| Accrued compensation and benefits | 21,454 | 12,576 | |||||
| Accrued expenses and other current liabilities | 14,744 | 13,095 | |||||
| Deferred revenue, current portion | 122,643 | 151,541 | |||||
| Financing obligations, current portion | 621 | 671 | |||||
| Operating lease liabilities, current portion | 3,548 | 3,806 | |||||
| Total current liabilities | 174,376 | 191,145 | |||||
| Operating lease liabilities, noncurrent | 11,198 | 9,468 | |||||
| Deferred income taxes, noncurrent | 1,675 | 2,163 | |||||
| Deferred revenue, noncurrent | 44 | 14 | |||||
| Financing obligations, noncurrent | 33,478 | 33,125 | |||||
| Construction liability, noncurrent | 9,736 | 16,004 | |||||
| Total liabilities | 230,507 | 251,919 | |||||
| Commitments and contingencies | |||||||
| Redeemable non-controlling interest | 2,882 | 3,219 | |||||
| Stockholders’ equity | |||||||
| Common stock | 55 | 55 | |||||
| Additional paid-in capital | 1,277,258 | 1,306,339 | |||||
| Accumulated other comprehensive income (loss) | (72 | ) | 1,219 | ||||
| Accumulated deficit | (209,616 | ) | (266,392 | ) | |||
| Total stockholders’ equity | 1,067,625 | 1,041,221 | |||||
| Total liabilities, redeemable non-controlling interest, and stockholders’ equity | $ | 1,301,014 | $ | 1,296,359 | |||