Shares of cloud banking software provider Ncino (NASDAQ:NCNO) jumped 5% post-market after the company posted stronger-than-expected fiscal second-quarter results and lifted its full-year guidance. The Wilmington, N.C.-based company reported adjusted earnings per share of $0.22, topping analyst estimates by $0.08, while revenue rose 12% year-over-year to $148.8 million, exceeding the $143.18 million consensus.
Subscription revenue, a key metric for recurring business, climbed 15% to $130.8 million, driven by growing demand across lending and compliance products. Adjusted operating income reached $30 million, marking a 56% increase from the prior year and pointing to improved efficiency across operations.
“We are pleased to report financial results that again exceeded quarterly guidance for total and subscription revenues, as well as non-GAAP operating income,” said nCino CEO Sean Desmond. “We saw customer demand continue to strengthen in the second quarter, including for newer solutions and across our target markets, reinforcing our confidence in our strategy and in our improved financial outlook.”
The company’s net loss widened on a GAAP basis, with a second-quarter loss of $15.3 million compared to $11 million a year earlier, reflecting higher investments in product innovation and marketing. However, on an adjusted basis, net income surged 64% to $25.7 million, highlighting the company’s expanding customer base and subscription model.
nCino raised its full-year outlook following the upbeat quarter, now projecting total revenues between $585 million and $589 million and adjusted EPS of $0.77 to $0.80. The guidance compares favorably against consensus estimates of $581.5 million in revenue and $0.71 in EPS, suggesting sustained growth despite macroeconomic uncertainty.
Third-quarter forecasts were also above Street expectations, with revenue projected between $146 million and $148 million and adjusted EPS of $0.20 to $0.21, compared to estimates of $145.1 million and $0.19, respectively. Non-GAAP operating income is expected to rise to as much as $33.5 million in the current quarter, underscoring ongoing margin improvement.
Recent wins included expanded relationships with two top-50 U.S. banks and a major Canadian institution, as well as the signing of its first Spanish customer. nCino also onboarded the lending division of a top-25 U.S. homebuilder, continuing to diversify its offerings beyond traditional financial institutions.
“Our vision of being the leader in AI-banking is rapidly coming into focus through continuous innovation and relentless pursuit of the substantial opportunity we are uniquely positioned for,” Desmond added. Backed by $123.2 million in cash and a robust deal pipeline, nCino remains well-positioned to capitalize on digital transformation trends sweeping through the financial services sector.
Source :
https://www.investing.com/news/earnings/ncino-shares-up-beats-the-street-and-lifts-fullyear-guidance-amid-strong-demand-4211627
