nCino, Inc. (NASDAQ: NCNO), a pioneer in cloud banking for the
global financial services industry, today announced financial
results for the fourth quarter and fiscal year 2024, ended
January 31, 2024.
“We are very pleased with our fourth quarter
fiscal year 2024 financial results, particularly about closing the
year with our strongest gross sales quarter in the past ten
quarters," said Pierre Naudé, CEO and Chairman of the Board at
nCino. "The team's solid execution and continued focus on product
innovation and experience improvements, coupled with more normal
buying cycles and positive tone from customers, fuels our optimism
for the year ahead and beyond.”
Fourth Quarter Fiscal
2024 Financial Highlights
- Revenues: Total
revenues for the fourth quarter of fiscal 2024 were $123.7 million,
a 13% increase from $109.2 million in the fourth quarter of fiscal
2023. Subscription revenues for the fourth quarter were $107.5
million, up from $92.8 million one year ago, an increase of
16%.
- Income (Loss) from
Operations: GAAP loss from operations in the fourth
quarter of fiscal 2024 was $(3.2) million compared to $(23.3)
million in the same quarter of fiscal 2023. Non-GAAP operating
income in the fourth quarter was $19.3 million compared to $1.8
million in the fourth quarter of fiscal 2023.
- Net Income (Loss)
Attributable to nCino: GAAP net income attributable to
nCino in the fourth quarter of fiscal 2024 was $1.2 million
compared to a $(21.2) million net loss attributable to nCino in the
fourth quarter of fiscal 2023. Non-GAAP net income attributable to
nCino in the fourth quarter was $23.8 million compared to $4.4
million in the fourth quarter of fiscal 2023.
- Net Income (Loss)
Attributable to nCino per Share: GAAP net income
attributable to nCino in the fourth quarter of fiscal 2024 was
$0.01 per diluted share compared to a $(0.19) loss per basic and
diluted share in the fourth quarter of fiscal 2023. Non-GAAP net
income attributable to nCino in the fourth quarter was $0.21 per
diluted share compared to $0.04 per diluted share in the fourth
quarter of fiscal 2023.
- Remaining Performance
Obligation: Total Remaining Performance Obligation (RPO)
as of January 31, 2024, was $1.0 billion compared with $944.1
million as of January 31, 2023, an increase of 9%. RPO
expected to be recognized in the next 24 months was $675.4 million,
an increase of 6% from January 31, 2023.
- Cash: Cash, cash
equivalents, and restricted cash were $117.4 million as of
January 31, 2024.
Full Year Fiscal
2024 Financial Highlights
- Revenues: Total
revenues for fiscal year 2024 were $476.5 million, a 17% increase
from $408.3 million in fiscal year 2023. Subscription revenues for
fiscal year 2024 were $409.5 million, up from $344.8 million one
year ago, an increase of 19%.
- Income (Loss) from
Operations: GAAP loss from operations for fiscal year 2024
was $(39.5) million compared to $(94.0) million in fiscal year
2023. Non-GAAP operating income for fiscal year 2024 was $61.8
million compared to a $(2.1) million operating loss last fiscal
year.
- Net Income (Loss)
Attributable to nCino: GAAP net loss attributable to nCino
for fiscal year 2024 was $(42.3) million compared to $(102.7)
million in fiscal year 2023. Non-GAAP net income attributable to
nCino for fiscal year 2024 was $58.0 million compared to an $(8.0)
million net loss attributable to nCino last fiscal year.
- Net Income (Loss)
Attributable to nCino per Share: GAAP net loss
attributable to nCino for fiscal year 2024 was $(0.38) per basic
and diluted share compared to $(0.93) per basic and diluted share
in fiscal year 2023. Non-GAAP net income attributable to nCino for
fiscal year 2024 was $0.50 per diluted share compared to a net loss
attributable to nCino of $(0.07) per basic and diluted share last
fiscal year.
Recent Business Highlights
- Expanded relationship with
a top IMB to include Mortgage Point-of-Sale: Signed one of
the nation's largest and fastest growing independent mortgage banks
for nCino Mortgage, expanding on our existing relationship for
Incentive Compensation.
- Expanded relationship with
Desjardins Group: Expanded relationship with Desjardins
Group, the largest cooperative financial group in North America, to
include Automated Spreading.
- Signed a top UK non-bank
lender for Mortgage and additional lines of business: A
top UK non-bank lender selected nCino as the digital lending
platform across all of their core products: residential and
buy-to-let mortgages, commercial loans, bridging finance and
development funding.
- Signed a $4 billion bank in
Texas for Commercial, Small Business, and Retail Lending, plus
nIQ: The deployment across multiple lines of business will
include all of our lending solutions for U.S. customers plus
Commercial Pricing & Profitability, Automated Spreading, and
Portfolio Analytics.
- Signed Expansions and
Extensions: Signed multi-year extensions with expanded
agreements for eleven customers paying us more than $1 million in
annual subscription fees, including two U.S. Enterprise banks, five
U.S. Community & Regional banks, a New Zealand bank, a German
Bank, and two Canadian banks.
- Subsequent to the Fourth
Quarter, Acquired DocFox: On March 20, 2024, nCino closed
the acquisition of DocFox, a leading solution provider automating
onboarding experiences for commercial and business banking.
Chief Revenue Officer
Transition Josh Glover, President and Chief Revenue
Officer, is leaving nCino and joining a late-stage private company
outside of the financial services industry as President and Chief
Revenue Officer. Paul Clarkson, who has been working alongside Josh
managing nCino’s Global Revenue organization, has been promoted to
Executive Vice President Global Revenue. Josh will remain as a
consultant with nCino through June, helping to ensure a smooth
transition.
“I am grateful to Josh for his service to nCino
for the last 12 years,” said Pierre Naudé. “While we are sorry to
see him leave, we are excited for him and wish him success as he
moves on to a new professional challenge.”
Naudé added, “Paul Clarkson is a proven and
respected leader at nCino, having helped build and manage our
Global Revenue organization for over eight years. We are confident
this will be a seamless transition and that we have the right team
in place to carry forward our exciting trajectory and maintain the
year-end momentum.”
Financial Outlook nCino
is providing guidance for its first quarter ending April 30, 2024,
as follows:
- Total revenues between $126.0 million and $127.0 million.
- Subscription revenues between $108.75 million and $109.75
million.
- Non-GAAP operating income between $18.0 million and $19.0
million.
- Non-GAAP net income attributable to nCino per diluted share of
$0.13 to $0.14.
nCino is providing guidance for its
fiscal year 2025 ending January 31, 2025, as follows:
- Total revenues between $538.5 million and $544.5 million.
- Subscription revenues between $463.0 million and $469.0
million.
- Non-GAAP operating income between $84.0 million and $86.0
million.
- Non-GAAP net income attributable to nCino per diluted share of
$0.60 to $0.64.
Conference CallnCino 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 nCinonCino (NASDAQ: 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
1,800 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 DocFox, (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.
|
January 31, 2023 |
|
January 31, 2024 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
82,036 |
|
|
$ |
112,085 |
|
Accounts receivable, net |
|
99,497 |
|
|
|
112,975 |
|
Costs capitalized to obtain revenue contracts, current portion,
net |
|
9,386 |
|
|
|
10,544 |
|
Prepaid expenses and other current assets |
|
16,274 |
|
|
|
15,171 |
|
Total current assets |
|
207,193 |
|
|
|
250,775 |
|
Property and equipment,
net |
|
84,442 |
|
|
|
79,145 |
|
Operating lease right-of-use
assets, net |
|
10,508 |
|
|
|
19,261 |
|
Costs capitalized to obtain
revenue contracts, noncurrent, net |
|
18,229 |
|
|
|
17,425 |
|
Goodwill |
|
839,440 |
|
|
|
838,869 |
|
Intangible assets, net |
|
152,825 |
|
|
|
115,572 |
|
Investments |
|
6,531 |
|
|
|
9,294 |
|
Long-term prepaid expenses and
other assets |
|
8,101 |
|
|
|
10,089 |
|
Total assets |
$ |
1,327,269 |
|
|
$ |
1,340,430 |
|
Liabilities,
redeemable non-controlling interest, and stockholders’
equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
11,878 |
|
|
$ |
11,842 |
|
Accrued compensation and benefits |
|
22,623 |
|
|
|
16,283 |
|
Accrued expenses and other current liabilities |
|
10,897 |
|
|
|
10,847 |
|
Deferred revenue |
|
154,871 |
|
|
|
170,941 |
|
Financing obligations, current portion |
|
1,015 |
|
|
|
1,474 |
|
Operating lease liabilities, current portion |
|
3,874 |
|
|
|
3,649 |
|
Total current liabilities |
|
205,158 |
|
|
|
215,036 |
|
Operating lease liabilities,
noncurrent |
|
7,282 |
|
|
|
16,423 |
|
Deferred income taxes,
noncurrent |
|
2,797 |
|
|
|
3,687 |
|
Revolving credit facility,
noncurrent |
|
30,000 |
|
|
|
— |
|
Financing obligations,
noncurrent |
|
54,365 |
|
|
|
52,680 |
|
Total liabilities |
|
299,602 |
|
|
|
287,826 |
|
Commitments and
contingencies |
|
|
|
Redeemable non-controlling
interest |
|
3,589 |
|
|
|
3,428 |
|
Stockholders’ equity |
|
|
|
Common stock |
|
56 |
|
|
|
57 |
|
Additional paid-in capital |
|
1,333,669 |
|
|
|
1,400,881 |
|
Accumulated other comprehensive income |
|
694 |
|
|
|
996 |
|
Accumulated deficit |
|
(310,341 |
) |
|
|
(352,758 |
) |
Total stockholders’ equity |
|
1,024,078 |
|
|
|
1,049,176 |
|
Total liabilities, redeemable non-controlling interest, and
stockholders’ equity |
$ |
1,327,269 |
|
|
$ |
1,340,430 |
|
|
Three Months Ended January 31, |
|
Fiscal Year Ended January 31, |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
Revenues |
|
|
|
|
|
|
|
Subscription |
$ |
92,828 |
|
|
$ |
107,483 |
|
|
$ |
344,752 |
|
|
$ |
409,479 |
|
Professional services and other |
|
16,353 |
|
|
|
16,210 |
|
|
|
63,563 |
|
|
|
67,064 |
|
Total revenues |
|
109,181 |
|
|
|
123,693 |
|
|
|
408,315 |
|
|
|
476,543 |
|
Cost of
revenues |
|
|
|
|
|
|
|
Subscription |
|
27,766 |
|
|
|
31,380 |
|
|
|
106,265 |
|
|
|
120,861 |
|
Professional services and other |
|
17,161 |
|
|
|
17,830 |
|
|
|
63,341 |
|
|
|
70,609 |
|
Total cost of revenues |
|
44,927 |
|
|
|
49,210 |
|
|
|
169,606 |
|
|
|
191,470 |
|
Gross profit |
|
64,254 |
|
|
|
74,483 |
|
|
|
238,709 |
|
|
|
285,073 |
|
Gross margin % |
|
59 |
% |
|
|
60 |
% |
|
|
58 |
% |
|
|
60 |
% |
Operating
expenses |
|
|
|
|
|
|
|
Sales and marketing |
|
33,395 |
|
|
|
29,996 |
|
|
|
127,669 |
|
|
|
130,547 |
|
Research and development |
|
33,289 |
|
|
|
30,184 |
|
|
|
121,576 |
|
|
|
117,311 |
|
General and administrative |
|
20,902 |
|
|
|
17,488 |
|
|
|
83,477 |
|
|
|
76,727 |
|
Total operating expenses |
|
87,586 |
|
|
|
77,668 |
|
|
|
332,722 |
|
|
|
324,585 |
|
Loss from operations |
|
(23,332 |
) |
|
|
(3,185 |
) |
|
|
(94,013 |
) |
|
|
(39,512 |
) |
Non-operating income
(expense) |
|
|
|
|
|
|
|
Interest income |
|
288 |
|
|
|
510 |
|
|
|
403 |
|
|
|
2,567 |
|
Interest expense |
|
(958 |
) |
|
|
(858 |
) |
|
|
(2,807 |
) |
|
|
(4,135 |
) |
Other income (expense), net |
|
4,142 |
|
|
|
1,777 |
|
|
|
(1,356 |
) |
|
|
(856 |
) |
Loss before income taxes |
|
(19,860 |
) |
|
|
(1,756 |
) |
|
|
(97,773 |
) |
|
|
(41,936 |
) |
Income tax provision (benefit) |
|
1,912 |
|
|
|
(3,130 |
) |
|
|
4,071 |
|
|
|
1,590 |
|
Net income (loss) |
|
(21,772 |
) |
|
|
1,374 |
|
|
|
(101,844 |
) |
|
|
(43,526 |
) |
Net loss attributable to redeemable non-controlling interest |
|
(211 |
) |
|
|
(241 |
) |
|
|
(1,119 |
) |
|
|
(1,109 |
) |
Adjustment attributable to redeemable non-controlling interest |
|
(353 |
) |
|
|
455 |
|
|
|
1,995 |
|
|
|
(71 |
) |
Net income (loss) attributable to nCino, Inc. |
$ |
(21,208 |
) |
|
$ |
1,160 |
|
|
$ |
(102,720 |
) |
|
$ |
(42,346 |
) |
Net income (loss) per
share attributable to nCino, Inc.: |
|
|
|
|
|
|
|
Basic |
$ |
(0.19 |
) |
|
$ |
0.01 |
|
|
$ |
(0.93 |
) |
|
$ |
(0.38 |
) |
Diluted |
$ |
(0.19 |
) |
|
$ |
0.01 |
|
|
$ |
(0.93 |
) |
|
$ |
(0.38 |
) |
Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
111,161,074 |
|
|
|
113,263,176 |
|
|
|
110,615,734 |
|
|
|
112,672,397 |
|
Diluted |
|
111,161,074 |
|
|
|
115,782,532 |
|
|
|
110,615,734 |
|
|
|
112,672,397 |
|
|
|
Fiscal Year Ended January 31, |
|
2023 |
|
2024 |
Cash flows from operating
activities |
|
|
|
Net loss attributable to nCino, Inc. |
$ |
(102,720 |
) |
|
$ |
(42,346 |
) |
Net loss and adjustment attributable to redeemable non-controlling
interest |
|
876 |
|
|
|
(1,180 |
) |
Net loss |
|
(101,844 |
) |
|
|
(43,526 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
Depreciation and amortization |
|
34,652 |
|
|
|
45,264 |
|
Non-cash operating lease costs |
|
3,840 |
|
|
|
4,534 |
|
Amortization of costs capitalized to obtain revenue contracts |
|
8,459 |
|
|
|
9,934 |
|
Amortization of debt issuance costs |
|
177 |
|
|
|
184 |
|
Stock-based compensation |
|
50,232 |
|
|
|
58,035 |
|
Deferred income taxes |
|
1,627 |
|
|
|
(2,340 |
) |
Provision for bad debt |
|
806 |
|
|
|
1,081 |
|
Net foreign currency losses |
|
1,548 |
|
|
|
670 |
|
Unrealized gain on investment |
|
— |
|
|
|
(263 |
) |
Loss on disposal of long-lived assets |
|
— |
|
|
|
150 |
|
Change in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
(26,795 |
) |
|
|
(14,325 |
) |
Costs capitalized to obtain revenue contracts |
|
(12,235 |
) |
|
|
(10,348 |
) |
Prepaid expenses and other assets |
|
(3,433 |
) |
|
|
1,872 |
|
Accounts payable |
|
35 |
|
|
|
525 |
|
Accrued expenses and other current liabilities |
|
(1,210 |
) |
|
|
(5,981 |
) |
Deferred revenue |
|
33,527 |
|
|
|
15,902 |
|
Operating lease liabilities |
|
(4,767 |
) |
|
|
(4,083 |
) |
Net cash provided by (used in) operating
activities |
|
(15,381 |
) |
|
|
57,285 |
|
Cash flows from investing activities |
|
|
|
Acquisition of business, net of cash acquired |
|
676 |
|
|
|
— |
|
Acquisition of assets |
|
(563 |
) |
|
|
(356 |
) |
Purchases of property and equipment |
|
(18,338 |
) |
|
|
(3,515 |
) |
Proceeds from sale of property and equipment |
|
— |
|
|
|
43 |
|
Purchase of investments |
|
(2,500 |
) |
|
|
(2,500 |
) |
Net cash used in investing activities |
|
(20,725 |
) |
|
|
(6,328 |
) |
Cash flows from financing activities |
|
|
|
Investment from redeemable non-controlling interest |
|
— |
|
|
|
983 |
|
Proceeds from borrowings on revolving credit facility |
|
50,000 |
|
|
|
— |
|
Payments on revolving credit facility |
|
(20,000 |
) |
|
|
(30,000 |
) |
Payments of debt issuance costs |
|
(367 |
) |
|
|
— |
|
Exercise of stock options |
|
3,750 |
|
|
|
4,469 |
|
Stock issuance under the employee stock purchase plan |
|
4,450 |
|
|
|
4,661 |
|
Principal payments on financing obligations |
|
(1,121 |
) |
|
|
(1,226 |
) |
Net cash provided by (used in) financing
activities |
|
36,712 |
|
|
|
(21,113 |
) |
Effect of foreign currency exchange rate changes on cash, cash
equivalents, and restricted cash |
|
(1,587 |
) |
|
|
182 |
|
Net increase (decrease) in cash, cash equivalents, and
restricted cash |
|
(981 |
) |
|
|
30,026 |
|
Cash, cash equivalents, and restricted cash, beginning of
period |
|
88,399 |
|
|
|
87,418 |
|
Cash, cash equivalents, and restricted cash, end of
period |
$ |
87,418 |
|
|
$ |
117,444 |
|
|
|
|
|
Reconciliation of cash, cash equivalents, and restricted
cash, end of period: |
|
|
|
Cash and cash equivalents |
$ |
82,036 |
|
|
$ |
112,085 |
|
Restricted cash included in long-term prepaid expenses and other
assets |
|
5,382 |
|
|
|
5,359 |
|
Total cash, cash equivalents, and restricted cash, end of
period |
$ |
87,418 |
|
|
$ |
117,444 |
|
Non-GAAP Financial MeasuresIn
nCino’s public disclosures, nCino has provided non-GAAP measures,
which are measurements of financial performance that have not been
prepared in accordance with generally accepted accounting
principles in the United States, or GAAP. In addition to its GAAP
measures, nCino uses these non-GAAP financial measures internally
for budgeting and resource allocation purposes and in analyzing our
financial results. For the reasons set forth below, nCino believes
that excluding the following items provides information that is
helpful in understanding our operating results, evaluating our
future prospects, comparing our financial results across accounting
periods, and comparing our financial results to our peers, many of
which provide similar non-GAAP financial measures.
- Amortization of Purchased
Intangibles. nCino incurs amortization expense for purchased
intangible assets in connection with certain mergers and
acquisitions. Because these costs have already been incurred,
cannot be recovered, are non-cash, and are affected by the inherent
subjective nature of purchase price allocations, nCino excludes
these expenses for our internal management reporting processes.
nCino’s management also finds it useful to exclude these charges
when assessing the appropriate level of various operating expenses
and resource allocations when budgeting, planning and forecasting
future periods. Although nCino excludes amortization expense for
purchased intangibles from these non-GAAP measures, management
believes it is important for investors to understand that such
intangible assets were recorded as part of purchase accounting and
contribute to revenue generation.
- Stock-Based Compensation Expenses.
nCino excludes stock-based compensation expenses primarily because
they are non-cash expenses that nCino excludes from our internal
management reporting processes. nCino’s management also finds it
useful to exclude these expenses when they assess the appropriate
level of various operating expenses and resource allocations when
budgeting, planning and forecasting future periods. Moreover,
because of varying available valuation methodologies, subjective
assumptions and the variety of award types that companies can use,
nCino believes excluding stock-based compensation expenses allows
investors to make meaningful comparisons between our recurring core
business operating results and those of other companies.
- Acquisition-Related Expenses. nCino
excludes expenses related to acquisitions as they limit
comparability of operating results with prior periods. We believe
these costs are non-recurring in nature and outside the ordinary
course of business.
- Litigation Expenses. nCino excludes
fees and expenses related to litigation expenses incurred from
legal matters outside the ordinary course of our business as we
believe their exclusion from non-GAAP operating expenses will
facilitate a more meaningful explanation of operating results and
comparisons with prior period results.
- Restructuring Costs. nCino excludes
costs incurred related to bespoke restructuring plans and other
one-time costs that are fundamentally different in strategic nature
and frequency from ongoing initiatives. We believe excluding these
costs facilitates a more consistent comparison of operating
performance over time. Adjustments to stock-based compensation in
connection with restructuring events are presented in Stock-Based
Compensation Expenses.
- Tax (Benefit) Provision Related to
the SimpleNexus Acquisition. Upon the acquisition of SimpleNexus,
nCino reduced the valuation allowance against U.S. deferred tax
assets, resulting in a one-time tax benefit recorded in Income tax
(benefit) provision. We believe that the exclusion of this benefit
from our non-GAAP net loss attributable to nCino and non-GAAP net
loss attributable to nCino per share provides a more direct
comparison to all periods presented.
- Income Tax Effect on Non-GAAP
Adjustments. The income tax effects are related to the imputed tax
impact on the difference between GAAP and non-GAAP costs and
expenses.
- Adjustment to Redeemable
Non-Controlling Interest. nCino adjusts the value of redeemable
non-controlling interest of its joint venture nCino K.K. in
accordance with the operating agreement for that entity. nCino
believes investors benefit from an understanding of the company’s
operating results absent the effect of this adjustment, and for
comparability, has reconciled this adjustment for previously
reported non-GAAP results.
There are limitations to using non-GAAP
financial measures because non-GAAP financial measures are not
prepared in accordance with GAAP and may be different from non-GAAP
financial measures provided by other companies. The non-GAAP
financial measures are limited in value because they exclude
certain items that may have a material impact upon our reported
financial results. In addition, they are subject to inherent
limitations as they reflect the exercise of judgments by nCino’s
management about which items are adjusted to calculate its non-GAAP
financial measures. nCino compensates for these limitations by
analyzing current and future results on a GAAP basis as well as a
non-GAAP basis and also by providing GAAP measures in its public
disclosures. Non-GAAP financial measures should not be considered
in isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. nCino encourages investors and
others to review our financial information in its entirety, not to
rely on any single financial measure to evaluate our business, and
to view our non-GAAP financial measures in conjunction with the
most directly comparable GAAP financial measures. A reconciliation
of GAAP to the non-GAAP financial measures has been provided in the
tables below.
|
Three Months Ended January 31, |
|
Fiscal Year Ended January 31, |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
GAAP total revenues |
$ |
109,181 |
|
|
$ |
123,693 |
|
|
$ |
408,315 |
|
|
$ |
476,543 |
|
|
|
|
|
|
|
|
|
GAAP cost of
subscription revenues |
$ |
27,766 |
|
|
$ |
31,380 |
|
|
$ |
106,265 |
|
|
$ |
120,861 |
|
Amortization expense - developed technology |
|
(4,252 |
) |
|
|
(3,875 |
) |
|
|
(17,019 |
) |
|
|
(16,306 |
) |
Stock-based compensation |
|
(310 |
) |
|
|
(533 |
) |
|
|
(1,430 |
) |
|
|
(1,847 |
) |
Restructuring charges1 |
|
(4 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
(51 |
) |
Non-GAAP cost of
subscription revenues |
$ |
23,200 |
|
|
$ |
26,972 |
|
|
$ |
87,812 |
|
|
$ |
102,657 |
|
|
|
|
|
|
|
|
|
GAAP cost of
professional services and other revenues |
$ |
17,161 |
|
|
$ |
17,830 |
|
|
$ |
63,341 |
|
|
$ |
70,609 |
|
Amortization expense - other |
|
(47 |
) |
|
|
(83 |
) |
|
|
(94 |
) |
|
|
(330 |
) |
Stock-based compensation |
|
(1,699 |
) |
|
|
(2,709 |
) |
|
|
(7,263 |
) |
|
|
(9,369 |
) |
Restructuring charges1 |
|
(333 |
) |
|
|
— |
|
|
|
(333 |
) |
|
|
(118 |
) |
Non-GAAP cost of
professional services and other revenues |
$ |
15,082 |
|
|
$ |
15,038 |
|
|
$ |
55,651 |
|
|
$ |
60,792 |
|
|
|
|
|
|
|
|
|
GAAP gross
profit |
$ |
64,254 |
|
|
$ |
74,483 |
|
|
$ |
238,709 |
|
|
$ |
285,073 |
|
Amortization expense - developed technology |
|
4,252 |
|
|
|
3,875 |
|
|
|
17,019 |
|
|
|
16,306 |
|
Amortization expense - other |
|
47 |
|
|
|
83 |
|
|
|
94 |
|
|
|
330 |
|
Stock-based compensation |
|
2,009 |
|
|
|
3,242 |
|
|
|
8,693 |
|
|
|
11,216 |
|
Restructuring charges1 |
|
337 |
|
|
|
— |
|
|
|
337 |
|
|
|
169 |
|
Non-GAAP gross
profit |
$ |
70,899 |
|
|
$ |
81,683 |
|
|
$ |
264,852 |
|
|
$ |
313,094 |
|
|
|
|
|
|
|
|
|
The following
table sets forth reconciling items as a percentage of total revenue
for the periods presented.2 |
GAAP gross margin
% |
|
59 |
% |
|
|
60 |
% |
|
|
58 |
% |
|
|
60 |
% |
Amortization expense - developed technology |
|
4 |
|
|
|
3 |
|
|
|
4 |
|
|
|
3 |
|
Amortization expense - other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation |
|
2 |
|
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
Restructuring charges1 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-GAAP gross margin
% |
|
65 |
% |
|
|
66 |
% |
|
|
65 |
% |
|
|
66 |
% |
|
|
|
|
|
|
|
|
GAAP sales &
marketing expense |
$ |
33,395 |
|
|
$ |
29,996 |
|
|
$ |
127,669 |
|
|
$ |
130,547 |
|
Amortization expense - customer relationships |
|
(2,168 |
) |
|
|
(2,167 |
) |
|
|
(8,670 |
) |
|
|
(8,669 |
) |
Amortization expense - trade name |
|
(604 |
) |
|
|
— |
|
|
|
(2,417 |
) |
|
|
(11,921 |
) |
Stock-based compensation |
|
(3,139 |
) |
|
|
(4,223 |
) |
|
|
(13,283 |
) |
|
|
(15,417 |
) |
Restructuring charges1 |
|
(1,333 |
) |
|
|
— |
|
|
|
(1,333 |
) |
|
|
(100 |
) |
Non-GAAP sales &
marketing expense |
$ |
26,151 |
|
|
$ |
23,606 |
|
|
$ |
101,966 |
|
|
$ |
94,440 |
|
|
|
|
|
|
|
|
|
GAAP research &
development expense |
$ |
33,289 |
|
|
$ |
30,184 |
|
|
$ |
121,576 |
|
|
$ |
117,311 |
|
Stock-based compensation |
|
(3,145 |
) |
|
|
(4,277 |
) |
|
|
(11,602 |
) |
|
|
(15,942 |
) |
Restructuring charges1 |
|
(2,135 |
) |
|
|
— |
|
|
|
(2,135 |
) |
|
|
(352 |
) |
Non-GAAP research
& development expense |
$ |
28,009 |
|
|
$ |
25,907 |
|
|
$ |
107,839 |
|
|
$ |
101,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP general &
administrative expense |
$ |
20,902 |
|
|
$ |
17,488 |
|
|
$ |
83,477 |
|
|
$ |
76,727 |
|
Stock-based compensation |
|
(3,463 |
) |
|
|
(4,324 |
) |
|
|
(16,654 |
) |
|
|
(15,460 |
) |
Acquisition-related expenses |
|
(206 |
) |
|
|
(244 |
) |
|
|
(2,276 |
) |
|
|
(878 |
) |
Litigation expenses |
|
(1,054 |
) |
|
|
(23 |
) |
|
|
(6,147 |
) |
|
|
(4,525 |
) |
Restructuring charges1 |
|
(1,212 |
) |
|
|
— |
|
|
|
(1,212 |
) |
|
|
(6 |
) |
Non-GAAP general &
administrative expense |
$ |
14,967 |
|
|
$ |
12,897 |
|
|
$ |
57,188 |
|
|
$ |
55,858 |
|
|
|
|
|
|
|
|
|
GAAP loss from
operations |
$ |
(23,332 |
) |
|
$ |
(3,185 |
) |
|
$ |
(94,013 |
) |
|
$ |
(39,512 |
) |
Amortization of intangible assets |
|
7,071 |
|
|
|
6,125 |
|
|
|
28,200 |
|
|
|
37,226 |
|
Stock-based compensation |
|
11,756 |
|
|
|
16,066 |
|
|
|
50,232 |
|
|
|
58,035 |
|
Acquisition-related expenses |
|
206 |
|
|
|
244 |
|
|
|
2,276 |
|
|
|
878 |
|
Litigation expenses |
|
1,054 |
|
|
|
23 |
|
|
|
6,147 |
|
|
|
4,525 |
|
Restructuring charges1 |
|
5,017 |
|
|
|
— |
|
|
|
5,017 |
|
|
|
627 |
|
Non-GAAP operating
income (loss) |
$ |
1,772 |
|
|
$ |
19,273 |
|
|
$ |
(2,141 |
) |
|
$ |
61,779 |
|
|
|
|
|
|
|
|
|
The following
table sets forth reconciling items as a percentage of total revenue
for the periods presented.2 |
GAAP operating margin
% |
|
(21 |
)% |
|
|
(3 |
)% |
|
|
(23 |
)% |
|
|
(8 |
)% |
Amortization of intangible assets |
|
6 |
|
|
|
5 |
|
|
|
7 |
|
|
|
8 |
|
Stock-based compensation |
|
11 |
|
|
|
13 |
|
|
|
12 |
|
|
|
12 |
|
Acquisition-related expenses |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Litigation expenses |
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
Restructuring charges1 |
|
5 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Non-GAAP operating
margin % |
|
2 |
% |
|
|
16 |
% |
|
(1) % |
|
|
13 |
% |
|
|
|
|
|
|
|
|
GAAP net income (loss)
attributable to nCino, Inc. |
$ |
(21,208 |
) |
|
$ |
1,160 |
|
|
$ |
(102,720 |
) |
|
$ |
(42,346 |
) |
Amortization of intangible assets |
|
7,071 |
|
|
|
6,125 |
|
|
|
28,200 |
|
|
|
37,226 |
|
Stock-based compensation |
|
11,756 |
|
|
|
16,066 |
|
|
|
50,232 |
|
|
|
58,035 |
|
Acquisition-related expenses |
|
206 |
|
|
|
244 |
|
|
|
2,276 |
|
|
|
878 |
|
Litigation expenses |
|
1,054 |
|
|
|
23 |
|
|
|
6,147 |
|
|
|
4,525 |
|
Restructuring charges1 |
|
5,017 |
|
|
|
— |
|
|
|
5,017 |
|
|
|
627 |
|
Tax (benefit) provision related to the SimpleNexus acquisition |
|
860 |
|
|
|
— |
|
|
|
860 |
|
|
|
— |
|
Income tax effect on non-GAAP adjustments |
|
(2 |
) |
|
|
(269 |
) |
|
|
(14 |
) |
|
|
(885 |
) |
Adjustment attributable to redeemable non-controlling interest |
|
(353 |
) |
|
|
455 |
|
|
|
1,995 |
|
|
|
(71 |
) |
Non-GAAP net income
(loss) attributable to nCino, Inc. |
$ |
4,401 |
|
|
$ |
23,804 |
|
|
$ |
(8,007 |
) |
|
$ |
57,989 |
|
|
|
|
|
|
|
|
|
Basic GAAP net income
(loss) attributable to nCino, Inc. per share |
$ |
(0.19 |
) |
|
$ |
0.01 |
|
|
$ |
(0.93 |
) |
|
$ |
(0.38 |
) |
Weighted-average
shares used to compute basic GAAP net income (loss) attributable to
nCino, Inc. per share |
|
111,161,074 |
|
|
|
113,263,176 |
|
|
|
110,615,734 |
|
|
|
112,672,397 |
|
Diluted GAAP net
income (loss) attributable to nCino, Inc. per share |
$ |
(0.19 |
) |
|
$ |
0.01 |
|
|
$ |
(0.93 |
) |
|
$ |
(0.38 |
) |
Weighted-average
shares used to compute diluted GAAP net income (loss) attributable
to nCino, Inc. per share |
|
111,161,074 |
|
|
|
115,782,532 |
|
|
|
110,615,734 |
|
|
|
112,672,397 |
|
|
|
|
|
|
|
|
|
Basic non-GAAP net
income (loss) attributable to nCino, Inc. per share |
$ |
0.04 |
|
|
$ |
0.21 |
|
|
$ |
(0.07 |
) |
|
$ |
0.51 |
|
Weighted-average
shares used to compute basic non-GAAP net income (loss)
attributable to nCino, Inc. per share |
|
111,161,074 |
|
|
|
113,263,176 |
|
|
|
110,615,734 |
|
|
|
112,672,397 |
|
Diluted non-GAAP net
income (loss) attributable to nCino, Inc. per share |
$ |
0.04 |
|
|
$ |
0.21 |
|
|
$ |
(0.07 |
) |
|
$ |
0.50 |
|
Weighted-average
shares used to compute diluted non-GAAP net income (loss)
attributable to nCino, Inc. per share |
|
113,417,769 |
|
|
|
115,782,532 |
|
|
|
110,615,734 |
|
|
|
114,916,521 |
|
|
|
|
|
|
|
|
|
Free cash
flow |
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
$ |
(22,020 |
) |
|
$ |
8,148 |
|
|
$ |
(15,381 |
) |
|
$ |
57,285 |
|
Purchases of property and equipment |
|
(4,449 |
) |
|
|
(432 |
) |
|
|
(18,338 |
) |
|
|
(3,515 |
) |
Free cash
flow |
$ |
(26,469 |
) |
|
$ |
7,716 |
|
|
$ |
(33,719 |
) |
|
$ |
53,770 |
|
Principal payments on financing obligations3 |
|
(663 |
) |
|
|
(338 |
) |
|
|
(1,121 |
) |
|
|
(1,226 |
) |
Free cash flow less
principal payments on financing obligation |
$ |
(27,132 |
) |
|
$ |
7,378 |
|
|
$ |
(34,840 |
) |
|
$ |
52,544 |
|
1 Stock-based compensation benefit related to restructuring
is included in Stock-based compensation.2 Columns may not foot
due to rounding.3 These amounts represent the non-interest
component of payments towards financing obligations for
facilities.
CONTACTS
INVESTOR CONTACTHarrison MastersnCino+1
910.734.7743Harrison.masters@ncino.com
MEDIA CONTACTNatalia
MoosenCinoNatalia.moose@ncino.com
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