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
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.
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