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TICKERS: NCNO

nCino Shares Rise 11% on Record Q2 Revenues

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Shares of nCino Inc. traded higher after the company reported Q2/21 financial results that included a 52% increase in year-over-year revenue.

Cloud-based banking software company nCino Inc. (NCNO:NASDAQ) yesterday announced financial results for its fiscal second quarter 2021 ended July 31, 2020.

The company highlighted that total revenues in Q2/21 increased 52% to $48.8 million, compared to $32.0 million in Q2/20. During the same corresponding period, subscription revenues increased 70% to $39.4 million, up from $23.1 million in Q2/20.

The company's CEO Pierre Naudé commented, "I am very pleased nCino posted record results for our first quarter as a public company...Since day one, nCino's mission has been to transform the financial services industry through innovation, reputation and speed. The global pandemic has only accelerated the need for digital transformation, and we see increasing momentum and appetite for cloud-based solutions. The nCino Bank Operating System has allowed our customers to seamlessly shift to a remote work environment, with bank employees remaining productive and efficient, while also serving their clients digitally no matter where they are. We believe the digital transformation of banking has become an imperative, and we are proud to partner with financial institutions of all sizes and complexities around the globe to help them grow and serve their clients and communities in today's evolving landscape."

The firm reported a GAAP loss from operations of $15.7 million in Q2/21, compared to a GAAP loss from operations of $7.9 million in Q2/20 and a non-GAAP operating loss of $1.6 million, compared to a non-GAAP operating loss of $5.3 million Q2/20.

The company posted a GAAP net loss attributable to nCino of $14.6 million in Q2/21, compared to a GAAP net loss attributable to nCino of $8.5 million in Q2/20. The GAAP net loss attributable to nCino in Q2/21 was $0.17 per share compared to a GAAP net loss attributable to nCino of $0.11 per share in Q2/20.

The firm discussed a few of the business and operating highlights in Q2/21 including the company's listing of its shares on Nasdaq in July 2020.

The company stated that in Q2/21 it "signed an expansion for its Onboarding solution with a $1.9 trillion global bank and supported this bank's lending initiatives pursuant to the Coronavirus Business Interruption Loan Scheme in the UK." The firm also noted that "it signed a $450 billion global bank for its Collateral Management solution and took a $145 billion U.S. agriculture lender live with its Commercial Lending solution."

The company provided some forward guidance and stated that for Q3/21 it expects total revenues will be in the range of $49-50 million. The firm also stated that in Q3/21 it expects a non-GAAP operating loss of $8-9 million and a non-GAAP net loss attributable to nCino per share of $0.09-0.10.

The firm also stated that for FY/21 it expects total revenues will be between $193-194 million. Additionally, for FY/21, nCino expects a non-GAAP operating loss of between $22-23 million and a non-GAAP net loss attributable to nCino per share of $0.25-0.26.

nCino Inc. is a cloud banking solutions company based in Wilmington, N.C. The firm stated, "its nCino Bank Operating System® empowers financial institutions with scalable technology to help them achieve revenue growth, greater efficiency, cost savings and regulatory compliance." The company's digital platform allows financial institutions to efficiently onboard new customers, make loans, manage the full loan life cycle and open deposit accounts across numerous lines of business. nCino indicated that it has greater than 1,100 financial institution clients globally ranging in size from $30 million to more than $2 trillion in total assets.

nCino has a market capitalization of around $7.1 billion with approximately 89.6 million shares outstanding. NCNO shares opened nearly 9% higher today at $85.95 (+$6.88, +8.70%) over yesterday's $79.07 closing price. The stock has traded today between $81.05 and $92.00 per share and is currently trading at $88.05 (+$8.98, +11.36%).

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