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NCNO Nasdaq· Ncino Inc
Earnings report Q4 2023

nCino Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

nCino, Inc. reported total revenues of $121.9 million for the three months ended October 31, 2023, representing a 15.8% increase compared to the same period in the previous year. The company's subscription revenues, which accounted for the majority of its revenue, reached $104.8 million, reflecting an 18.7% increase. Additionally, professional services and other revenues amounted to $17.2 million during the quarter.

Strengths

nCino demonstrated strong revenue growth in the latest quarter, with a 15.8% increase in total revenues compared to the previous year. The company's subscription revenues, the main driver of its revenue, experienced a robust growth of 18.7%. This growth can be attributed to nCino's investments in expanding its customer base and increasing adoption of its nCino Bank Operating System. The company's focus on serving enterprise financial institutions is expected to contribute to further revenue growth in the future.

Challenges

Despite the positive revenue growth, nCino recorded net losses of $16.4 million for the three months ended October 31, 2023. These losses can be attributed to the company's investments in growth and expansion. While nCino's revenue growth is promising, it will be important for the company to manage its expenses effectively to achieve profitability in the long term.

Noteworthy

During the third quarter of fiscal 2024, nCino rebranded its SimpleNexus solution to nCino Mortgage, resulting in a change to the trade name useful life. As a result, the company recorded accelerated amortization to fully amortize the remaining trade name intangible asset. This change in estimate had an impact on sales and marketing expenses for the three and nine months ended October 31, 2023.

Summary

nCino, Inc. reported strong revenue growth in the latest quarter, with total revenues increasing by 15.8% compared to the previous year. The company's subscription revenues, the primary driver of its revenue, experienced a robust growth of 18.7%. This growth can be attributed to nCino's investments in expanding its customer base and increasing adoption of its nCino Bank Operating System. However, the company recorded net losses due to its investments in growth and expansion. nCino's rebranding of its SimpleNexus solution to nCino Mortgage also had an impact on its financials. Overall, nCino's revenue performance in the latest quarter reflects its strong market position and growth potential in the financial services industry.

Source documents

Form 10-Q  filed on Nov 29, 2023
6 pages scanned

Reference data

Company financials Q4 revenue 122M
Analyst estimates Q4 EPS beat by 27.96%
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