Loading...
01/11 11:31
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call indicates strong financial performance with a 13% revenue increase and a positive outlook on subscription growth. The share repurchase program and positive international growth further bolster confidence. Despite some restructuring costs and professional services margin pressures, management's optimistic guidance and strategic focus on AI and efficiency improvements are promising. The Q&A session revealed confidence in demand and growth, with management addressing concerns effectively. Given the company's mid-cap status, these factors suggest a positive stock price movement in the short term.
Total Revenues $144.1 million, rose 13% year-over-year, driven by strength in subscription revenues and seasonal aid from U.S. mortgage revenues.
Subscription Revenues $125.6 million, rose 14% year-over-year on a reported basis and 9% organically, driven by successful execution against the operating plan and seasonal aid from U.S. mortgage revenues.
Professional Services Revenues $18.5 million, increased 5% year-over-year, exceeding expectations due to requisite revenue recognition adjustments.
Non-U.S. Total Revenues $31.6 million, up 22% year-over-year or 23% in constant currency, indicating strong international growth.
Non-U.S. Subscription Revenues $25.9 million, up 31% year-over-year or 32% in constant currency, reflecting strong demand in international markets.
Non-GAAP Operating Income $24.8 million, or 17% of total revenues, over performance in subscription revenues contributed to this, offset by severance expenses of approximately $0.5 million.
Non-GAAP Net Income $18.4 million, or $0.16 per diluted share, reflecting strong operational performance.
Share Repurchase 1.8 million shares repurchased at an average price of $22.17 for a total of $40.6 million, indicating a focus on returning capital to shareholders.
Fiscal '26 Non-GAAP Operating Income Guidance $112 million to $116 million, up from $107 million to $111 million, representing a 19% increase over fiscal '25 at the midpoint.
Fiscal '26 Non-GAAP Net Income Guidance $0.69 to $0.72 per diluted share, up from $0.66 to $0.69, reflecting improved operational efficiency and cost savings.
Restructuring Costs Expected to incur $7.5 million to $9 million in one-time restructuring costs, primarily in Q2, to realize approximately $24 million of gross annualized expense savings.
New Banking Adviser Capabilities: Released 16 new banking adviser capabilities at the nSight conference, designed to save time, lower costs, and improve productivity.
Mortgage and Consumer Lending Solutions: A $25 billion regional bank doubled their annual commitment to nCino by adopting mortgage and consumer lending solutions.
Credit Union Market: Identified a $1 billion SAM opportunity in the credit union market, with an $800 million credit union adopting multiple solutions.
International Expansion: Secured a significant add-on deal at a top Canadian bank and a new logo in Japan, indicating progress in international markets.
Restructuring Event: Restructured approximately 7% of the global workforce to streamline operations and leverage AI tools, expected to save $24 million annually.
Operational Efficiencies: Identified opportunities to reduce bureaucracy and improve efficiency in product delivery through AI.
Focus on AI: AI is central to nCino's long-term differentiation strategy, leveraging a large process-centric data set in fintech.
Growth Initiatives: Incremental growth initiatives available as extensions of core opportunities, focusing on enhancing customer experiences.
Regulatory Issues: Potential deregulation could free up capital, streamline decision-making, and open the door to further adoption of technology platforms.
Restructuring Costs: nCino expects to incur approximately $7.5 million to $9 million in one-time restructuring costs primarily in the second quarter to realize savings.
Workforce Reduction: A restructuring event affected approximately 7% of nCino's global workforce, indicating potential operational challenges.
Economic Factors: The company is sensitive to global economic conditions, with a fluid situation that continues to evolve, impacting customer stability.
Supply Chain Challenges: Legacy infrastructure and fragmented technology stacks among financial institutions create operational roadblocks that nCino aims to eliminate.
Competitive Pressures: The need to maintain a competitive advantage in a rapidly evolving fintech landscape, particularly with AI capabilities.
Core Problem Solving: nCino aims to eliminate inefficiencies caused by legacy infrastructure in financial institutions, enabling better decision-making and growth.
AI Integration: AI is central to nCino's long-term differentiation, leveraging a large process-centric data set in fintech.
Growth Initiatives: nCino is pursuing growth in the mortgage cross-sell opportunity and the credit union market, with significant new contracts.
International Expansion: nCino is focusing on international growth, with recent successes in Canada and Japan.
Restructuring Event: A restructuring event affecting 7% of the workforce aims to streamline operations and enhance efficiency.
Q1 Revenue Results: Total revenues were $144.1 million, up 13% year-over-year, with subscription revenues at $125.6 million, up 14%.
Q2 Revenue Guidance: For Q2 FY26, total revenues are expected to be $142 million to $144 million, with subscription revenues of $124.5 million to $126.5 million.
Fiscal 2026 Revenue Guidance: Total revenues for FY26 are projected at $578.5 million to $582.5 million, up from previous guidance.
Operating Income Guidance: Non-GAAP operating income for FY26 is now expected to be $112 million to $116 million, a 19% increase over FY25.
Net Income Guidance: Non-GAAP net income per diluted share for FY26 is expected to be $0.69 to $0.72.
Share Repurchase Program: In Q1, nCino repurchased approximately 1.8 million shares at an average price of $22.17, totaling $40.6 million.
The company has shown strong financial performance with increased revenue guidance and non-GAAP operating income, indicating robust growth. Product development is promising with AI rollout and strategic expansions in key markets. Market strategy is sound, with significant opportunities in existing and new markets. Shareholder returns are supported by improved guidance. The Q&A section highlights positive analyst sentiment and confidence in the company's growth trajectory, particularly in AI and international markets. Overall, these factors suggest a positive stock price movement, likely in the 2% to 8% range.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
