nCino Reports Fiscal Q2 2025 Financial Results
Intellectia.AI Updated: 2024-08-27
nCino Reports Fiscal Q2 2025 Financial Results
WILMINGTON, N.C., Aug. 27, 2024 - nCino, Inc. (NASDAQ:NCNO), a pioneering cloud banking firm for the global financial services industry, has reported its financial results for the second quarter of fiscal year 2025, which ended on July 31, 2024.
Key Financial Metrics
| Financial Metric | Q2 FY 2025 | Q2 FY 2024 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $132.4M | $117.2M | +13% | $131.04M |
| Subscription Revenue | $113.9M | $99.9M | +14% | n/a |
| GAAP Operating Margin | (6)% | (12.5)% | +650 bps | n/a |
| Non-GAAP Operating Margin | 15% | 10% | +500 bps | n/a |
| GAAP Net Loss | $(11.0)M | $(15.9)M | n/a | n/a |
| Non-GAAP Net Income | $15.8M | $9.9M | n/a | n/a |
| GAAP EPS | $(0.10) | $(0.14) | n/a | n/a |
| Non-GAAP EPS | $0.14 | $0.09 | n/a | $0.13 |
Interpretation: nCino's financial performance in Q2 FY 2025 demonstrates a solid growth trajectory with a 13% year-over-year increase in total revenue, beating the consensus estimates. Although the GAAP operating margin remains negative, an improvement of 650 basis points year-over-year indicates progress towards profitability. Non-GAAP metrics also show significant improvements in both operating margin and net income.
Revenue Performance by Segment
| Revenue Segment | Q2 FY 2025 | Q2 FY 2024 | YoY Change | Previous Guidance |
|---|---|---|---|---|
| Total Revenue | $132.4M | $117.2M | +13% | Exceeded |
| Subscription Revenue | $113.9M | $99.9M | +14% | Exceeded |
Interpretation: nCino continues to perform strongly in its core subscription revenue stream, contributing to the overall 13% increase in total revenue. The company has exceeded both total and subscription revenue guidance, highlighting its sustained growth momentum.
Operational Highlights
- Extended Partnership with ABN AMRO, enhancing collateral management and unifying its end-to-end lending process.
- Completed Banking Advisor Add-on : A $45 billion-asset bank expanded its use of nCino’s platform.
- Signed Largest Bank Customer : An over $20B asset institution adopted Portfolio Analytics for CRE stress testing.
- Extended Relationship with a Top 5 European bank in the UK.
Comments from Company Officers
Pierre Naudé, Chairman and CEO at nCino stated, "We are pleased to report that we again exceeded quarterly guidance for total and subscription revenues as well as non-GAAP operating income. In the second quarter, we saw particular strength in the U.S. across both the enterprise and community & regional segments, with increased demand for solutions that span the breadth of the nCino platform including consumer lending and deposit account opening, as well as our Generative AI offering, Banking Advisor. While some macro-economic challenges persist, particularly in the U.S. mortgage market and international markets, we have a positive outlook on the second half of the year."
Dividends and Share Repurchase Program
No dividends or share repurchase programs have been announced in the earnings release.
Forward Guidance
For Q3 FY 2025, nCino expects: - Total Revenues: $136.0M to $138.0M - Subscription Revenues: $117.0M to $119.0M - Non-GAAP Operating Income: $21.0M to $22.0M - Non-GAAP Net Income per Share: $0.15 to $0.16
For FY 2025, nCino projects: - Total Revenues: $538.5M to $544.5M - Subscription Revenues: $463.0M to $469.0M - Non-GAAP Operating Income: $87.0M to $90.0M - Non-GAAP Net Income per Share: $0.66 to $0.69
Stock Price Movement Post Earnings Release
Following the earnings release, nCino’s stock saw a decline of approximately -10.9%.
Summary
nCino reported robust fiscal Q2 2025 results, with significant year-over-year growth in both total and subscription revenues and notable improvements in non-GAAP operating margins. Despite macro-economic challenges, the company's positive outlook and strong demand across various segments indicate promising growth ahead.
