WILMINGTON, N.C., Dec. 09, 2020 (GLOBE NEWSWIRE) -- nCino, Inc. (NASDAQ: NCNO), a pioneer in cloud banking and digital transformation solutions for the global financial services industry, today announced financial results for the third quarter of fiscal year 2021, ended October 31, 2020.

“We are very pleased with nCino’s third quarter performance as we again exceeded expectations while successfully rolling out numerous product updates across the nCino Bank Operating System®,” said Pierre Naudé, CEO of nCino. “We continue to see strong global demand for our platform from financial institutions of all sizes, with several significant deal signings in the third quarter, along with numerous go-lives in the U.S. and international markets. With the pandemic further accelerating the demand for digital transformation of financial institutions, our pipeline continues to grow and we are raising our full year guidance. We are excited about the increasing adoption of our cloud-based software across the global financial services industry to meet this demand.”

Financial Highlights

Revenues: Total revenues for the third quarter were $54.2 million, a 43% increase from $37.9 million in the third quarter of fiscal 2020. Subscription revenues for the third quarter were $43.3 million, up from $27.7 million one year ago, an increase of 56% year- over- year.
Loss from Operations: GAAP loss from operations was ($8.8) million compared to ($6.7) million in the third quarter of fiscal 2020. Non-GAAP operating loss was ($2.7) million compared to ($4.9) million in the third quarter of fiscal 2020.
Net Loss Attributable to nCino: GAAP net loss attributable to nCino was ($9.1) million compared to ($6.0) million in the third quarter of fiscal 2020. Non-GAAP net loss attributable to nCino was ($3.0) million compared to ($4.2) million in the third quarter of fiscal 2020.
Net Loss Attributable to nCino per Share: GAAP net loss attributable to nCino was ($0.10) per share compared to ($0.08) per share in the third quarter of fiscal 2020. Non-GAAP net loss attributable to nCino was ($0.03) per share compared to ($0.05) per share in the third quarter of fiscal 2020.
Cash: Cash and cash equivalents were $378.6 million as of October 31, 2020.

Business Highlights

Signed the $398 billion U.K. subsidiary of a global bank and a challenger bank in APAC for our nCino IQ, or nIQ, Automated Spreading solution.
Added an over $50 billion bank in the U.S. for our Online Lending solution to improve their client experience.
Signed a new customer in the agricultural lending space, a niche market in the U.S. with $365 billion in assets, and announced that another agricultural lender, Texas Farm Credit (TFC), went live on our Commercial Banking, Customer Portal and Online Application solutions.
Took a top ten Canadian credit union and a top-six Canadian bank live on our Commercial Banking solution.
Sold additional seats to 15 U.S. financial institutions to manage the Forgiveness portion of the Paycheck Protection Program (PPP).
Launched the Fall 2020 product release with updates and enhancements across the nCino Bank Operating System, including the integration of nIQ.

Financial Outlook
nCino is providing guidance for its fiscal fourth quarter ending January 31, 2021 as follows:

Total revenues between $53 million and $53.5 million.
Non-GAAP operating loss between ($8.0) million and ($8.5) million.
Non-GAAP net loss attributable to nCino per share of ($0.08) to ($0.09).

nCino is providing guidance for its fiscal year 2021 ending January 31, 2021 as follows:

Total revenues between $200.7 million and $201.2 million.
Non-GAAP operating loss between ($14.7) million and ($15.2) million.
Non-GAAP net loss attributable to nCino per share of ($0.16) to ($0.17).

Conference Call
nCino will host a conference call at 4:30 p.m. ET today to discuss its financial results and outlook with the investment community. 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.

About nCino
nCino (NASDAQ: NCNO) is the worldwide leader in cloud banking. The nCino Bank Operating System® empowers financial institutions with scalable technology to help them achieve revenue growth, greater efficiency, cost savings and regulatory compliance. In a digital-first world, nCino's single digital platform enhances the employee and client experience to enable financial institutions to more effectively onboard new clients, make loans and manage the entire loan life cycle, and open deposit and other accounts across lines of business and channels. Transforming how financial institutions operate through innovation, reputation and speed, nCino works with more than 1,200 financial institutions globally, whose assets range in size from $30 million to more than $2 trillion. For more information, visit: www.ncino.com.

Forward-Looking Statements
This press release contains forward-looking statements about nCino's financial and operating results, which include statements regarding nCino’s future performance, outlook, and guidance, the assumptions underlying those statements, the benefits from the use of nCino’s solutions, our strategies, and general business conditions. Forward-looking statements generally include actions, events, results, strategies and expectations and are often identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,” “could,” “might,” or “continues” or similar expressions and the negatives thereof. Any forward-looking statements contained in this press release are based upon nCino’s historical performance and its current plans, estimates, and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent nCino’s expectations as of the date of this press release. Subsequent events may cause these expectations to change and, except as may be required by law, nCino does not undertake any obligation to update or revise these forward-looking statements. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially including, but not limited to: (i) risks associated with the impact of the COVID-19 pandemic, including the impact to the financial services industry, the impact on general economic conditions and the impact of government responses, restrictions, and actions; (ii) breaches in our security measures or unauthorized access to our customers’ or their clients' data; (iii) the accuracy of management’s assumptions and estimates; (iv) our ability to attract new customers and succeed in having current customers expand their use of our solutions; (v) competitive factors, including pricing pressures, consolidation among competitors, entry of new competitors, the launch of new products and marketing initiatives by our competitors, and difficulty securing rights to access or integrate with third party products or data used by our customers; (vi) the rate of adoption of our newer solutions and the results of our efforts to sustain or expand the use and adoption of our more established solutions; (vii) fluctuation of our results of operations, which may make period-to-period comparisons less meaningful; (viii) our ability to manage our growth effectively including expanding outside of the United States; (ix) adverse changes in our relationship with Salesforce; (x) our ability to successfully acquire new companies and/or integrate acquisitions into our existing organization; (xi) the loss of one or more customers, particularly any of our larger customers, or a reduction in the number of users our customers purchase access and use rights for; (xii) system unavailability, system performance problems, or loss of data due to disruptions or other problems with our computing infrastructure or the infrastructure we rely on that is operated by third parties; (xiii) our ability to maintain our corporate culture and attract and retain highly skilled employees; (xiv) adverse changes in the financial services industry, including as a result of customer consolidation; (xv) adverse changes in economic, regulatory, or market conditions; and (xvi) threatened or future legal proceedings and related expenses.

Additional risks and uncertainties that could affect nCino’s business and financial results are included in our reports filed with the U.S. Securities and Exchange Commission (available on our web site at www.ncino.com or the SEC's web site at www.sec.gov). Further information on potential risks that could affect actual results will be included in other filings nCino makes with the SEC from time to time.


nCino, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	January 31, 2020			October 31, 2020
Assets
Current Assets
Cash and cash equivalents	$	91,184		$	378,584
Accounts receivable, net	34,205			25,350
Accounts receivable, related parties	9,201			—
Costs capitalized to obtain revenue contracts, current portion, net	3,608			4,019
Prepaid expenses and other current assets	7,079			9,571
Total current assets	145,277			417,524
Property and equipment, net	13,477			14,307
Costs capitalized to obtain revenue contracts, noncurrent, net	7,000			7,608
Goodwill	55,840			56,298
Intangible assets, net	26,093			23,790
Other long-term assets	2,464			869
Total assets	$	250,151		$	520,396
Liabilities, Redeemable Non-Controlling Interest, and Stockholders’ Equity
Current Liabilities
Accounts payable	$	1,258		$	2,354
Accounts payable, related parties	3,408			4,100
Accrued commissions	7,862			5,237
Other accrued expenses	4,922			5,527
Deferred rent, current portion	183			204
Deferred revenue, current portion	50,929			68,634
Deferred revenue, current portion, related parties	8,013			—
Total current liabilities	76,575			86,056
Deferred income taxes, noncurrent	194			290
Deferred rent, noncurrent	1,558			1,426
Deferred revenue, noncurrent	—			1,741
Other long-term liabilities	195			—
Total liabilities	78,522			89,513
Commitments and Contingencies
Redeemable non-controlling interest	4,356			4,166
Stockholders’ Equity
Common stock	41			46
Additional paid-in capital	288,564			575,529
Accumulated other comprehensive (loss) income	(408		)	201
Accumulated deficit	(120,924		)	(149,059		)
Total stockholders’ equity	167,273			426,717
Total liabilities, redeemable non-controlling interest, and stockholders’ equity	$	250,151		$	520,396

nCino, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited)

	Three Months Ended October 31,						Nine Months Ended October 31,
	2019			2020			2019			2020
Revenues
Subscription	$	27,673		$	43,279		$	71,815		$	117,461
Professional services	10,189			10,950			27,861			30,245
Total revenues	37,862			54,229			99,676			147,706
Cost of Revenues
Subscription¹	8,243			12,380			21,828			34,399
Professional services¹	8,646			10,134			23,869			29,568
Total cost of revenues	16,889			22,514			45,697			63,967
Gross profit	20,973			31,715			53,979			83,739
Gross Margin %	55		%	58		%	54		%	57		%
Operating Expenses
Sales and marketing¹	12,602			14,175			31,070			42,027
Research and development¹	9,534			15,077			25,172			41,334
General and administrative¹	5,557			11,251			15,896			29,130
Total operating expenses	27,693			40,503			72,138			112,491
Loss from operations	(6,720		)	(8,788		)	(18,159		)	(28,752		)
Non-operating Income (Expense)
Interest income	99			78			682			289
Other	690			(260		)	(37		)	337
Loss before income tax expense	(5,931		)	(8,970		)	(17,514		)	(28,126		)
Income tax expense	158			309			496			709
Net loss	(6,089		)	(9,279		)	(18,010		)	(28,835		)
Net loss attributable to redeemable non-controlling interest	(60		)	(292		)	(60		)	(700		)
Adjustment attributable to redeemable non-controlling interest	—			76			—			343