Press Release

nCino Reports Record Second Quarter Fiscal 2021 Financial Results

Total Revenues Increased 52% Year-over-Year
Subscription Revenues Increased 70% Year-over-Year

WILMINGTON, N.C., Sept. 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 its fiscal second quarter ended July 31, 2020.

“I am very pleased nCino posted record results for our first quarter as a public company,” said Pierre Naudé, CEO of nCino. “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.”

Financial Highlights

  • Revenues: Total revenues for the second quarter were $48.8 million, a 52% increase from $32.0 million in the second quarter of fiscal 2020.  Subscription revenues for the second quarter were $39.4 million, up from $23.1 million one year ago, an increase of 70% year-over-year.
  • Loss from Operations: GAAP loss from operations was ($15.7) million compared to ($7.9) million in the second quarter of fiscal 2020. Non-GAAP operating loss was ($1.6) million compared to ($5.3) million in the second quarter of fiscal 2020.
  • Net Loss Attributable to nCino: GAAP net loss attributable to nCino was ($14.6) million compared to ($8.5) million in the second quarter of fiscal 2020. Non-GAAP net loss attributable to nCino was ($581) thousand compared to ($5.8) million in the second quarter of fiscal 2020.
  • Net Loss Attributable to nCino per Share: GAAP net loss attributable to nCino was ($0.17) per share compared to ($0.11) per share in the second quarter of fiscal 2020. Non-GAAP net loss attributable to nCino was ($0.01) per share compared to ($0.08) per share in the second quarter of fiscal 2020.
  • Cash: Cash and cash equivalents were $388.2 million as of July 31, 2020.

Business Highlights

  • Listed its shares on Nasdaq on July 14, 2020 and closed its initial public offering on July 16, 2020.
  • 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 (CBILS) in the UK.
  • Signed a $450 billion global bank for its Collateral Management solution.
  • Took a $145 billion U.S. agriculture lender live with its Commercial Lending solution.
  • Went live in three countries with a $67 billion global bank with its Commercial Lending solution.
  • 32 financial institutions purchased seats to manage the loan Forgiveness portion of the Paycheck Protection Program (PPP) under the CARES Act, including 10 new customers, two with over $25 billion in assets, and an expansion within a top 10 U.S. Bank.  In total, 87 institutions contracted with nCino for PPP and Forgiveness in the first half of fiscal 2021, including 45 banks with over $5 billion in assets.
  • Aite Group named the nCino Bank Operating System® a Best-in-Class Retail Loan Origination System in the analyst firm’s Aite Matrix in August.

Financial Outlook
nCino is providing guidance for its fiscal third quarter ending October 31, 2020 as follows:

  • Total revenues between $49 and $50 million.
  • Non-GAAP operating loss between ($8) and ($9) million.
  • Non-GAAP net loss attributable to nCino per share of ($0.09) to ($0.10).

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

  • Total revenues between $193 and $194 million.
  • Non-GAAP operating loss between ($22) and ($23) million.
  • Non-GAAP net loss attributable to nCino per share of ($0.25) to ($0.26).

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:

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 1,100 financial institutions globally, whose assets range in size from $30 million to more than $2 trillion. For more information, visit:

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 solution; (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 or the SEC's web site at 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.
(In thousands)

 January 31,
 July 31,
Current Assets   
Cash and cash equivalents$91,184  $388,191 
Accounts receivable, net34,205  30,228 
Accounts receivable, related parties9,201   
Costs capitalized to obtain revenue contracts, current portion, net3,608  4,007 
Prepaid expenses and other current assets7,079  7,152 
Total current assets145,277  429,578 
Property and equipment, net13,477  14,591 
Costs capitalized to obtain revenue contracts, noncurrent, net7,000  7,817 
Goodwill55,840  56,527 
Intangible assets, net26,093  24,636 
Other long-term assets2,464  650 
Total assets$250,151  $533,799 
Liabilities, Redeemable Non-Controlling Interest, and Stockholders’ Equity   
Current Liabilities   
Accounts payable$1,258  $2,188 
Accounts payable, related parties3,408  4,018 
Accrued commissions7,862  4,701 
Other accrued expenses4,922  4,820 
Deferred rent, current portion183  208 
Deferred revenue, current portion50,929  84,288 
Deferred revenue, current portion, related parties8,013   
Total current liabilities76,575  100,223 
Deferred income taxes, noncurrent194  234 
Deferred rent, noncurrent1,558  1,468 
Other long-term liabilities195   
Total liabilities78,522  101,925 
Commitments and Contingencies   
Redeemable non-controlling interest4,356  4,384 
Stockholders’ Equity   
Common stock41  46 
Additional paid-in capital288,564  567,314 
Accumulated other comprehensive (loss) income(408) 202 
Accumulated deficit(120,924) (140,072)
Total stockholders’ equity167,273  427,490 
Total liabilities, redeemable non-controlling interest, and stockholders’ equity$250,151  $533,799 

nCino, Inc.
(In thousands, except share and per share data)

 Three Months Ended July 31, Six Months Ended July 31,
 2019 2020 2019 2020
Subscription$23,110  $39,351  $44,142  $74,182 
Professional services8,868  9,414  17,672  19,295 
Total revenues31,978  48,765  61,814  93,477 
Cost of Revenues1       
Subscription7,083  11,920  13,585  22,019 
Professional services7,687  10,667  15,223  19,434 
Total cost of revenues14,770  22,587  28,808  41,453 
Gross profit17,208  26,178  33,006  52,024 
Gross Margin %54% 54% 53% 56%
Operating Expenses       
Sales and marketing110,453  15,626  18,468  27,852 
Research and development18,272  15,292  15,638  26,257 
General and administrative16,430  10,953  10,339  17,879 
Total operating expenses25,155  41,871  44,445  71,988 
Loss from operations(7,947) (15,693) (11,439) (19,964)
Non-operating Income (Expense)       
Interest income265  55  583  211 
Other(618) 1,117  (727) 597 
Loss before income tax expense(8,300) (14,521) (11,583) (19,156)
Income tax expense202  203  338  400 
Net loss(8,502) (14,724) (11,921) (19,556)
Net loss attributable to redeemable non-controlling interest  (232)   (408)
Adjustment attributable to redeemable non-controlling interest  154    267 
Net loss attributable to nCino, Inc.$(8,502) $(14,646) $(11,921) $(19,415)
Net loss per share attributable to nCino, Inc.:       
Basic and diluted$(0.11) $(0.17) $(0.16) $(0.23)
Weighted average number of common shares outstanding:       
Basic and diluted76,420,098  84,629,777  76,206,900  83,112,132 

1Includes stock-based compensation expense as follows:

 Three Months Ended
July 31,
 Six Months Ended
July 31,
 2019 2020 2019 2020
Cost of revenues$371  $2,524  $760  $2,851 
Sales and marketing315  3,346  607  3,661 
Research and development305  3,031  611  3,340 
General and administrative1,501  4,368  1,623  4,468 
Total stock-based compensation expense$2,492  $13,269  $3,601  $14,320 

nCino, Inc.
(In thousands)

 Six Months Ended
July 31,
 2019 2020
Cash Flows from Operating Activities   
Net loss attributable to nCino, Inc.$(11,921) $(19,415)
Net loss and adjustment attributable to redeemable non-controlling interest  (141)
Net loss(11,921) (19,556)
Adjustments to reconcile net loss to net cash provided by operating activities:   
Depreciation and amortization1,451  3,500 
Amortization of costs capitalized to obtain revenue contracts1,532  2,430 
Stock-based compensation3,601  14,320 
Deferred income taxes76  40 
Provision for (recovery of) bad debt(105) 619 
Change in operating assets and liabilities:   
Accounts receivable38  3,365 
Accounts receivable, related parties4,178  9,201 
Costs capitalized to obtain revenue contracts(1,836) (3,615)
Prepaid expenses and other assets(131) (13)
Accounts payable and accrued expenses and other liabilities(2,085) (4,115)
Accounts payable, related parties453  620 
Deferred rent1,066  (65)
Deferred revenues18,173  33,188 
Deferred revenues, related parties(3,783) (8,013)
Net cash provided by operating activities10,707  31,906 
Cash Flows from Investing Activities   
Acquisition of business, net of cash acquired(48,219)  
Purchases of property and equipment(2,624) (2,936)
Net cash used in investing activities(50,843) (2,936)
Cash Flows from Financing Activities   
Proceeds from initial public offering, net of underwriting discounts and commissions  268,375 
Payments of costs related to initial public offering  (1,345)
Exercise of stock options537  861 
Net cash provided by financing activities537  267,891 
Effect of foreign currency exchange rate changes on cash and cash equivalents534  146 
Net (decrease) increase in cash and cash equivalents(39,065) 297,007 
Cash and Cash Equivalents, beginning of period74,347  91,184 
Cash and Cash Equivalents, end of period$35,282  $388,191 

Non-GAAP Financial Measures

In nCino’s public disclosures, nCino has provided non-GAAP measures, which are measurements of financial performance that have not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, nCino uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing our financial results. For the reasons set forth below, nCino believes that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures.

  • Stock-Based Compensation Expenses. nCino excludes stock-based compensation expenses primarily because they are non-cash expenses that nCino excludes from our internal management reporting processes. nCino’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, nCino believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.

  • Amortization of Purchased Intangibles. nCino incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Because these costs have already been incurred, cannot be recovered, are non-cash, and are affected by the inherent subjective nature of purchase price allocations, nCino excludes these expenses for our internal management reporting processes. nCino’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Although nCino excludes amortization expense for purchased intangibles from these non-GAAP measures, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by nCino’s management about which items are adjusted to calculate its non-GAAP financial measures. nCino compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. nCino encourages investors and others to review our financial information in its entirety, not to rely on any single financial measure to evaluate our business, and to view our non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.

nCino, Inc.
(In thousands, except share and per share data)

 Three Months Ended July 31, Six Months Ended July 31,
 2019 2020 2019 2020
GAAP gross profit$17,208  $26,178  $33,006  $52,024 
Amortization expense - developed technology60  378  60  747 
Stock-based compensation371  2,524  760  2,851 
Non-GAAP gross profit$17,639  $29,080  $33,826  $55,622 
Non-GAAP gross margin %55% 60% 55% 60%
GAAP sales & marketing expense$10,453  $15,626  $18,468  $27,852 
Amortization expense - customer relationships(105) (418) (105) (835)
Stock-based compensation(315) (3,346) (607) (3,661)
Non-GAAP sales & marketing expense$10,033  $11,862  $17,756  $23,356 
GAAP research & development expense$8,272  $15,292  $15,638  $26,257 
Stock-based compensation(305) (3,031) (611) (3,340)
Non-GAAP research & development expense$7,967  $12,261  $15,027  $22,917 
GAAP general & administrative expense$6,430  $10,953  $10,339  $17,879 
Amortization expense - trademarks(12)   (12) (10)
Stock-based compensation(1,501) (4,368) (1,623) (4,468)
Non-GAAP general & administrative expense$4,917  $6,585  $8,704  $13,401 
GAAP loss from operations$(7,947) $(15,693) $(11,439) $(19,964)
Amortization expense - developed technology60  378  60  747 
Amortization expense - customer relationships105  418  105  835 
Amortization expense - trademarks12    12  10 
Stock-based compensation$2,492  $13,269  $3,601  $14,320 
Non-GAAP operating loss$(5,278) $(1,628) $(7,661) $(4,052)
Non-GAAP operating margin(17)% (3)% (12)% (4)%
GAAP net loss attributable to nCino$(8,502) $(14,646) $(11,921) $(19,415)
Amortization expense - developed technology60  378  60  747 
Amortization expense - customer relationships105  418  105  835 
Amortization expense - trademarks12    12  10 
Stock-based compensation$2,492  $13,269  $3,601  $14,320 
Non-GAAP net loss attributable to nCino$(5,833) $(581) $(8,143) $(3,503)
Weighted-average shares used to compute net loss per share, basic and diluted76,420,098  84,629,777  76,206,900  83,112,132 
GAAP net loss attributable to nCino per share$(0.11) $(0.17) $(0.16) $(0.23)
Non-GAAP net loss attributable to nCino per share$(0.08) $(0.01) $(0.11) $(0.04)
Free Cash Flow       
Net cash provided by operating activities$5,838  $23,477  $10,707  $31,906 
Purchases of property and equipment(2,072) (1,861) (2,624) (2,936)
Free cash flow$3,766  $21,616  $8,083  $28,970 


JoAnn Horne 
Market Street Partners 
+1 415.445.3240 
Claire SandstromNatalia Moose, nCino
+1 646.520.0710+1 910.248.4602