UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): March 22, 2024
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (Commission file number) | (IRS Employer | ||||||||||||||||||
| incorporation) | Identification No.) | |||||||||||||||||||
(Address of Principal Executive Offices, Including Zip Code)
Registrant’s Telephone Number, Including Area Code: (888 ) 676-2466
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On March 26, 2024, nCino, Inc. (the “Company”) issued a press release announcing its financial results for its fourth quarter and fiscal year ended January 31, 2024. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K and the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by reference in such filing.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On March 22, 2024, Josh Glover, the Company’s President and Chief Revenue Officer, notified the Company that he is leaving the Company effective April 12, 2024 to pursue an opportunity outside of the financial services industry. To facilitate the transition, the Company expects Mr. Glover to continue to work with the Company in a consulting capacity through June 30, 2024. Paul Clarkson, who has previously worked closely with Mr. Glover during Mr. Clarkson’s tenure as Executive Vice President Global Banking, has been named Executive Vice President Global Revenue, effective immediately, and will assume certain of Mr. Glover’s responsibilities. The Company does not plan to appoint a new President to succeed Mr. Glover as it anticipates those responsibilities to be assumed by other executive officers.
Item 7.01 Regulation FD Disclosure.
On March 26, 2024, the Company posted an investor presentation to its website at www.ncino.com (the “Investor Presentation”). A copy of the Investor Presentation is furnished herewith as Exhibits 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in Item 7.01 of this Current Report on Form 8-K and the accompanying Exhibit 99.2 shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by reference in such filing. By furnishing the information contained in the Investor Presentation, the Company makes no admission as to the materiality of any information in the Investor Presentation that is required to be disclosed solely by reason of Regulation FD.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Description | ||||
| 99.1 | |||||
| 99.2 | |||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| nCino, Inc. | |||||||||||
| Date: March 26, 2024 | By: | /s/ Gregory D. Orenstein | |||||||||
| Gregory D. Orenstein | |||||||||||
| Chief Financial Officer & Treasurer | |||||||||||
Exhibit 99.1
nCino Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Q4 Total Revenues of $123.7M, up 13% year-over-year
Fiscal Year 2024 Total Revenues of $476.5M, up 17% year-over-year
Q4 Subscription Revenues of $107.5M, up 16% year-over-year
Fiscal Year 2024 Subscription Revenues of $409.5M, up 19% year-over-year
Company Announces Chief Revenue Officer Transition
WILMINGTON, N.C., March 26, 2024 -- nCino, Inc. (NASDAQ: NCNO), a pioneer in cloud banking for the global financial services industry, today announced financial results for the fourth quarter and fiscal year 2024, ended January 31, 2024.
“We are very pleased with our fourth quarter fiscal year 2024 financial results, particularly about closing the year with our strongest gross sales quarter in the past ten quarters," said Pierre Naudé, CEO and Chairman of the Board at nCino. "The team's solid execution and continued focus on product innovation and experience improvements, coupled with more normal buying cycles and positive tone from customers, fuels our optimism for the year ahead and beyond.”
Fourth Quarter Fiscal 2024 Financial Highlights
•Revenues: Total revenues for the fourth quarter of fiscal 2024 were $123.7 million, a 13% increase from $109.2 million in the fourth quarter of fiscal 2023. Subscription revenues for the fourth quarter were $107.5 million, up from $92.8 million one year ago, an increase of 16%.
•Income (Loss) from Operations: GAAP loss from operations in the fourth quarter of fiscal 2024 was $(3.2) million compared to $(23.3) million in the same quarter of fiscal 2023. Non-GAAP operating income in the fourth quarter was $19.3 million compared to $1.8 million in the fourth quarter of fiscal 2023.
•Net Income (Loss) Attributable to nCino: GAAP net income attributable to nCino in the fourth quarter of fiscal 2024 was $1.2 million compared to a $(21.2) million net loss attributable to nCino in the fourth quarter of fiscal 2023. Non-GAAP net income attributable to nCino in the fourth quarter was $23.8 million compared to $4.4 million in the fourth quarter of fiscal 2023.
•Net Income (Loss) Attributable to nCino per Share: GAAP net income attributable to nCino in the fourth quarter of fiscal 2024 was $0.01 per diluted share compared to a $(0.19) loss per basic and diluted share in the fourth quarter of fiscal 2023. Non-GAAP net income attributable to nCino in the fourth quarter was $0.21 per diluted share compared to $0.04 per diluted share in the fourth quarter of fiscal 2023.
•Remaining Performance Obligation: Total Remaining Performance Obligation (RPO) as of January 31, 2024, was $1.0 billion compared with $944.1 million as of January 31, 2023, an increase of 9%. RPO expected to be recognized in the next 24 months was $675.4 million, an increase of 6% from January 31, 2023.
•Cash: Cash, cash equivalents, and restricted cash were $117.4 million as of January 31, 2024.
Full Year Fiscal 2024 Financial Highlights
•Revenues: Total revenues for fiscal year 2024 were $476.5 million, a 17% increase from $408.3 million in fiscal year 2023. Subscription revenues for fiscal year 2024 were $409.5 million, up from $344.8 million one year ago, an increase of 19%.
•Income (Loss) from Operations: GAAP loss from operations for fiscal year 2024 was $(39.5) million compared to $(94.0) million in fiscal year 2023. Non-GAAP operating income for fiscal year 2024 was $61.8 million compared to a $(2.1) million operating loss last fiscal year.
•Net Income (Loss) Attributable to nCino: GAAP net loss attributable to nCino for fiscal year 2024 was $(42.3) million compared to $(102.7) million in fiscal year 2023. Non-GAAP net income attributable to nCino for fiscal year 2024 was $58.0 million compared to an $(8.0) million net loss attributable to nCino last fiscal year.
•Net Income (Loss) Attributable to nCino per Share: GAAP net loss attributable to nCino for fiscal year 2024 was $(0.38) per basic and diluted share compared to $(0.93) per basic and diluted share in fiscal year 2023. Non-GAAP net income attributable to nCino for fiscal year 2024 was $0.50 per diluted share compared to a net loss attributable to nCino of $(0.07) per basic and diluted share last fiscal year.
Recent Business Highlights
•Expanded relationship with a top IMB to include Mortgage Point-of-Sale: Signed one of the nation's largest and fastest growing independent mortgage banks for nCino Mortgage, expanding on our existing relationship for Incentive Compensation.
•Expanded relationship with Desjardins Group: Expanded relationship with Desjardins Group, the largest cooperative financial group in North America, to include Automated Spreading.
•Signed a top UK non-bank lender for Mortgage and additional lines of business: A top UK non-bank lender selected nCino as the digital lending platform across all of their core products: residential and buy-to-let mortgages, commercial loans, bridging finance and development funding.
•Signed a $4 billion bank in Texas for Commercial, Small Business, and Retail Lending, plus nIQ: The deployment across multiple lines of business will include all of our lending solutions for U.S. customers plus Commercial Pricing & Profitability, Automated Spreading, and Portfolio Analytics.
•Signed Expansions and Extensions: Signed multi-year extensions with expanded agreements for eleven customers paying us more than $1 million in annual subscription fees, including two U.S. Enterprise banks, five U.S. Community & Regional banks, a New Zealand bank, a German Bank, and two Canadian banks.
•Subsequent to the Fourth Quarter, Acquired DocFox: On March 20, 2024, nCino closed the acquisition of DocFox, a leading solution provider automating onboarding experiences for commercial and business banking.
Chief Revenue Officer Transition
Josh Glover, President and Chief Revenue Officer, is leaving nCino and joining a late-stage private company outside of the financial services industry as President and Chief Revenue Officer. Paul
Clarkson, who has been working alongside Josh managing nCino’s Global Revenue organization, has been promoted to Executive Vice President Global Revenue. Josh will remain as a consultant with nCino through June, helping to ensure a smooth transition.
“I am grateful to Josh for his service to nCino for the last 12 years,” said Pierre Naudé. “While we are sorry to see him leave, we are excited for him and wish him success as he moves on to a new professional challenge.”
Naudé added, “Paul Clarkson is a proven and respected leader at nCino, having helped build and manage our Global Revenue organization for over eight years. We are confident this will be a seamless transition and that we have the right team in place to carry forward our exciting trajectory and maintain the year-end momentum.”
Financial Outlook
nCino is providing guidance for its first quarter ending April 30, 2024, as follows:
•Total revenues between $126.0 million and $127.0 million.
•Subscription revenues between $108.75 million and $109.75 million.
•Non-GAAP operating income between $18.0 million and $19.0 million.
•Non-GAAP net income attributable to nCino per diluted share of $0.13 to $0.14.
nCino is providing guidance for its fiscal year 2025 ending January 31, 2025, as follows:
•Total revenues between $538.5 million and $544.5 million.
•Subscription revenues between $463.0 million and $469.0 million.
•Non-GAAP operating income between $84.0 million and $86.0 million.
•Non-GAAP net income attributable to nCino per diluted share of $0.60 to $0.64.
Conference Call
nCino will host a conference call at 4:30 p.m. ET today to discuss its financial results and outlook. 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. Through its single software-as-a-service (SaaS) platform, nCino helps financial institutions serving corporate and commercial, small business, consumer, and mortgage customers modernize and more effectively onboard clients, make loans, manage the loan lifecycle, and open accounts. Transforming how financial institutions operate through innovation, reputation and speed, nCino is partnered with more than 1,800 financial services providers globally. 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, 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 risks associated with (i) adverse changes in the financial services industry, including as a result of customer consolidation or bank failures; (ii) adverse changes in economic, regulatory, or market conditions, including as a direct or indirect consequence of higher interest rates; (iii) risks associated with the acquisition of DocFox, (iv) breaches in our security measures or unauthorized access to our customers’ or their clients' data; (v) the accuracy of management’s assumptions and estimates; (vi) our ability to attract new customers and succeed in having current customers expand their use of our solution; (vii) 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; (viii) 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; (ix) fluctuation of our results of operations, which may make period-to-period comparisons less meaningful; (x) our ability to manage our growth effectively including expanding outside of the United States; (xi) adverse changes in our relationship with Salesforce; (xii) our ability to successfully acquire new companies and/or integrate acquisitions into our existing organization, including SimpleNexus; (xiii) 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; (xiv) 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; (xv) our ability to maintain our corporate culture and attract and retain highly skilled employees; and (xvi) the outcome and impact of legal proceedings and related fees and 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, 2023 | January 31, 2024 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 82,036 | $ | 112,085 | |||||||
Accounts receivable, net | 99,497 | 112,975 | |||||||||
| Costs capitalized to obtain revenue contracts, current portion, net | 9,386 | 10,544 | |||||||||
| Prepaid expenses and other current assets | 16,274 | 15,171 | |||||||||
| Total current assets | 207,193 | 250,775 | |||||||||
| Property and equipment, net | 84,442 | 79,145 | |||||||||
| Operating lease right-of-use assets, net | 10,508 | 19,261 | |||||||||
| Costs capitalized to obtain revenue contracts, noncurrent, net | 18,229 | 17,425 | |||||||||
| Goodwill | 839,440 | 838,869 | |||||||||
| Intangible assets, net | 152,825 | 115,572 | |||||||||
| Investments | 6,531 | 9,294 | |||||||||
| Long-term prepaid expenses and other assets | 8,101 | 10,089 | |||||||||
| Total assets | $ | 1,327,269 | $ | 1,340,430 | |||||||
| Liabilities, redeemable non-controlling interest, and stockholders’ equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 11,878 | $ | 11,842 | |||||||
| Accrued compensation and benefits | 22,623 | 16,283 | |||||||||
| Accrued expenses and other current liabilities | 10,897 | 10,847 | |||||||||
| Deferred revenue | 154,871 | 170,941 | |||||||||
| Financing obligations, current portion | 1,015 | 1,474 | |||||||||
| Operating lease liabilities, current portion | 3,874 | 3,649 | |||||||||
| Total current liabilities | 205,158 | 215,036 | |||||||||
| Operating lease liabilities, noncurrent | 7,282 | 16,423 | |||||||||
| Deferred income taxes, noncurrent | 2,797 | 3,687 | |||||||||
| Revolving credit facility, noncurrent | 30,000 | — | |||||||||
| Financing obligations, noncurrent | 54,365 | 52,680 | |||||||||
| Total liabilities | 299,602 | 287,826 | |||||||||
| Commitments and contingencies | |||||||||||
| Redeemable non-controlling interest | 3,589 | 3,428 | |||||||||
| Stockholders’ equity | |||||||||||
| Common stock | 56 | 57 | |||||||||
| Additional paid-in capital | 1,333,669 | 1,400,881 | |||||||||
| Accumulated other comprehensive income | 694 | 996 | |||||||||
| Accumulated deficit | (310,341) | (352,758) | |||||||||
| Total stockholders’ equity | 1,024,078 | 1,049,176 | |||||||||
| Total liabilities, redeemable non-controlling interest, and stockholders’ equity | $ | 1,327,269 | $ | 1,340,430 | |||||||
nCino, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended January 31, | Fiscal Year Ended January 31, | ||||||||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Subscription | $ | 92,828 | $ | 107,483 | $ | 344,752 | $ | 409,479 | |||||||||||||||
| Professional services and other | 16,353 | 16,210 | 63,563 | 67,064 | |||||||||||||||||||
| Total revenues | 109,181 | 123,693 | 408,315 | 476,543 | |||||||||||||||||||
| Cost of revenues | |||||||||||||||||||||||
| Subscription | 27,766 | 31,380 | 106,265 | 120,861 | |||||||||||||||||||
| Professional services and other | 17,161 | 17,830 | 63,341 | 70,609 | |||||||||||||||||||
| Total cost of revenues | 44,927 | 49,210 | 169,606 | 191,470 | |||||||||||||||||||
| Gross profit | 64,254 | 74,483 | 238,709 | 285,073 | |||||||||||||||||||
| Gross margin % | 59 | % | 60 | % | 58 | % | 60 | % | |||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Sales and marketing | 33,395 | 29,996 | 127,669 | 130,547 | |||||||||||||||||||
| Research and development | 33,289 | 30,184 | 121,576 | 117,311 | |||||||||||||||||||
| General and administrative | 20,902 | 17,488 | 83,477 | 76,727 | |||||||||||||||||||
| Total operating expenses | 87,586 | 77,668 | 332,722 | 324,585 | |||||||||||||||||||
| Loss from operations | (23,332) | (3,185) | (94,013) | (39,512) | |||||||||||||||||||
| Non-operating income (expense) | |||||||||||||||||||||||
| Interest income | 288 | 510 | 403 | 2,567 | |||||||||||||||||||
| Interest expense | (958) | (858) | (2,807) | (4,135) | |||||||||||||||||||
| Other income (expense), net | 4,142 | 1,777 | (1,356) | (856) | |||||||||||||||||||
| Loss before income taxes | (19,860) | (1,756) | (97,773) | (41,936) | |||||||||||||||||||
| Income tax provision (benefit) | 1,912 | (3,130) | 4,071 | 1,590 | |||||||||||||||||||
| Net income (loss) | (21,772) | 1,374 | (101,844) | (43,526) | |||||||||||||||||||
| Net loss attributable to redeemable non-controlling interest | (211) | (241) | (1,119) | (1,109) | |||||||||||||||||||
| Adjustment attributable to redeemable non-controlling interest | (353) | 455 | 1,995 | (71) | |||||||||||||||||||
| Net income (loss) attributable to nCino, Inc. | $ | (21,208) | $ | 1,160 | $ | (102,720) | $ | (42,346) | |||||||||||||||
| Net income (loss) per share attributable to nCino, Inc.: | |||||||||||||||||||||||
| Basic | $ | (0.19) | $ | 0.01 | $ | (0.93) | $ | (0.38) | |||||||||||||||
| Diluted | $ | (0.19) | $ | 0.01 | $ | (0.93) | $ | (0.38) | |||||||||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||||||||||
| Basic | 111,161,074 | 113,263,176 | 110,615,734 | 112,672,397 | |||||||||||||||||||
| Diluted | 111,161,074 | 115,782,532 | 110,615,734 | 112,672,397 | |||||||||||||||||||
nCino, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Fiscal Year Ended January 31, | |||||||||||
| 2023 | 2024 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net loss attributable to nCino, Inc. | $ | (102,720) | $ | (42,346) | |||||||
| Net loss and adjustment attributable to redeemable non-controlling interest | 876 | (1,180) | |||||||||
| Net loss | (101,844) | (43,526) | |||||||||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation and amortization | 34,652 | 45,264 | |||||||||
| Non-cash operating lease costs | 3,840 | 4,534 | |||||||||
| Amortization of costs capitalized to obtain revenue contracts | 8,459 | 9,934 | |||||||||
| Amortization of debt issuance costs | 177 | 184 | |||||||||
| Stock-based compensation | 50,232 | 58,035 | |||||||||
| Deferred income taxes | 1,627 | (2,340) | |||||||||
| Provision for bad debt | 806 | 1,081 | |||||||||
| Net foreign currency losses | 1,548 | 670 | |||||||||
| Unrealized gain on investment | — | (263) | |||||||||
| Loss on disposal of long-lived assets | — | 150 | |||||||||
| Change in operating assets and liabilities: | |||||||||||
| Accounts receivable | (26,795) | (14,325) | |||||||||
| Costs capitalized to obtain revenue contracts | (12,235) | (10,348) | |||||||||
| Prepaid expenses and other assets | (3,433) | 1,872 | |||||||||
| Accounts payable | 35 | 525 | |||||||||
| Accrued expenses and other current liabilities | (1,210) | (5,981) | |||||||||
| Deferred revenue | 33,527 | 15,902 | |||||||||
| Operating lease liabilities | (4,767) | (4,083) | |||||||||
| Net cash provided by (used in) operating activities | (15,381) | 57,285 | |||||||||
| Cash flows from investing activities | |||||||||||
| Acquisition of business, net of cash acquired | 676 | — | |||||||||
| Acquisition of assets | (563) | (356) | |||||||||
| Purchases of property and equipment | (18,338) | (3,515) | |||||||||
| Proceeds from sale of property and equipment | — | 43 | |||||||||
| Purchase of investments | (2,500) | (2,500) | |||||||||
| Net cash used in investing activities | (20,725) | (6,328) | |||||||||
| Cash flows from financing activities | |||||||||||
| Investment from redeemable non-controlling interest | — | 983 | |||||||||
| Proceeds from borrowings on revolving credit facility | 50,000 | — | |||||||||
| Payments on revolving credit facility | (20,000) | (30,000) | |||||||||
| Payments of debt issuance costs | (367) | — | |||||||||
| Exercise of stock options | 3,750 | 4,469 | |||||||||
| Stock issuance under the employee stock purchase plan | 4,450 | 4,661 | |||||||||
| Principal payments on financing obligations | (1,121) | (1,226) | |||||||||
| Net cash provided by (used in) financing activities | 36,712 | (21,113) | |||||||||
| Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash | (1,587) | 182 | |||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | (981) | 30,026 | |||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 88,399 | 87,418 | |||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 87,418 | $ | 117,444 | |||||||
| Reconciliation of cash, cash equivalents, and restricted cash, end of period: | |||||||||||
| Cash and cash equivalents | $ | 82,036 | $ | 112,085 | |||||||
| Restricted cash included in long-term prepaid expenses and other assets | 5,382 | 5,359 | |||||||||
| Total cash, cash equivalents, and restricted cash, end of period | $ | 87,418 | $ | 117,444 | |||||||
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.
•Amortization of Purchased Intangibles. nCino incurs amortization expense for purchased intangible assets in connection with certain mergers and acquisitions. 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.
•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.
•Acquisition-Related Expenses. nCino excludes expenses related to acquisitions as they limit comparability of operating results with prior periods. We believe these costs are non-recurring in nature and outside the ordinary course of business.
•Litigation Expenses. nCino excludes fees and expenses related to litigation expenses incurred from legal matters outside the ordinary course of our business as we believe their exclusion from non-GAAP operating expenses will facilitate a more meaningful explanation of operating results and comparisons with prior period results.
•Restructuring Costs. nCino excludes costs incurred related to bespoke restructuring plans and other one-time costs that are fundamentally different in strategic nature and frequency from ongoing initiatives. We believe excluding these costs facilitates a more consistent comparison of operating performance over time. Adjustments to stock-based compensation in connection with restructuring events are presented in Stock-Based Compensation Expenses.
•Tax (Benefit) Provision Related to the SimpleNexus Acquisition. Upon the acquisition of SimpleNexus, nCino reduced the valuation allowance against U.S. deferred tax assets, resulting in a one-time tax benefit recorded in Income tax (benefit) provision. We believe that the exclusion of this benefit from our non-GAAP net loss attributable to nCino and non-GAAP net loss attributable to nCino per share provides a more direct comparison to all periods presented.
•Income Tax Effect on Non-GAAP Adjustments. The income tax effects are related to the imputed tax impact on the difference between GAAP and non-GAAP costs and expenses.
•Adjustment to Redeemable Non-Controlling Interest. nCino adjusts the value of redeemable non-controlling interest of its joint venture nCino K.K. in accordance with the operating agreement for that entity. nCino believes investors benefit from an understanding of the company’s operating results absent the effect of this adjustment, and for comparability, has reconciled this adjustment for previously reported non-GAAP results.
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.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended January 31, | Fiscal Year Ended January 31, | ||||||||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | ||||||||||||||||||||
| GAAP total revenues | $ | 109,181 | $ | 123,693 | $ | 408,315 | $ | 476,543 | |||||||||||||||
| GAAP cost of subscription revenues | $ | 27,766 | $ | 31,380 | $ | 106,265 | $ | 120,861 | |||||||||||||||
| Amortization expense - developed technology | (4,252) | (3,875) | (17,019) | (16,306) | |||||||||||||||||||
| Stock-based compensation | (310) | (533) | (1,430) | (1,847) | |||||||||||||||||||
Restructuring charges1 | (4) | — | (4) | (51) | |||||||||||||||||||
| Non-GAAP cost of subscription revenues | $ | 23,200 | $ | 26,972 | $ | 87,812 | $ | 102,657 | |||||||||||||||
| GAAP cost of professional services and other revenues | $ | 17,161 | $ | 17,830 | $ | 63,341 | $ | 70,609 | |||||||||||||||
| Amortization expense - other | (47) | (83) | (94) | (330) | |||||||||||||||||||
| Stock-based compensation | (1,699) | (2,709) | (7,263) | (9,369) | |||||||||||||||||||
Restructuring charges1 | (333) | — | (333) | (118) | |||||||||||||||||||
| Non-GAAP cost of professional services and other revenues | $ | 15,082 | $ | 15,038 | $ | 55,651 | $ | 60,792 | |||||||||||||||
| GAAP gross profit | $ | 64,254 | $ | 74,483 | $ | 238,709 | $ | 285,073 | |||||||||||||||
| Amortization expense - developed technology | 4,252 | 3,875 | 17,019 | 16,306 | |||||||||||||||||||
| Amortization expense - other | 47 | 83 | 94 | 330 | |||||||||||||||||||
| Stock-based compensation | 2,009 | 3,242 | 8,693 | 11,216 | |||||||||||||||||||
Restructuring charges1 | 337 | — | 337 | 169 | |||||||||||||||||||
| Non-GAAP gross profit | $ | 70,899 | $ | 81,683 | $ | 264,852 | $ | 313,094 | |||||||||||||||
The following table sets forth reconciling items as a percentage of total revenue for the periods presented.2 | |||||||||||||||||||||||
| GAAP gross margin % | 59 | % | 60 | % | 58 | % | 60 | % | |||||||||||||||
| Amortization expense - developed technology | 4 | 3 | 4 | 3 | |||||||||||||||||||
| Amortization expense - other | — | — | — | — | |||||||||||||||||||
| Stock-based compensation | 2 | 3 | 2 | 2 | |||||||||||||||||||
Restructuring charges1 | — | — | — | — | |||||||||||||||||||
| Non-GAAP gross margin % | 65 | % | 66 | % | 65 | % | 66 | % | |||||||||||||||
| GAAP sales & marketing expense | $ | 33,395 | $ | 29,996 | $ | 127,669 | $ | 130,547 | |||||||||||||||
| Amortization expense - customer relationships | (2,168) | (2,167) | (8,670) | (8,669) | |||||||||||||||||||
| Amortization expense - trade name | (604) | — | (2,417) | (11,921) | |||||||||||||||||||
| Stock-based compensation | (3,139) | (4,223) | (13,283) | (15,417) | |||||||||||||||||||
Restructuring charges1 | (1,333) | — | (1,333) | (100) | |||||||||||||||||||
| Non-GAAP sales & marketing expense | $ | 26,151 | $ | 23,606 | $ | 101,966 | $ | 94,440 | |||||||||||||||
| GAAP research & development expense | $ | 33,289 | $ | 30,184 | $ | 121,576 | $ | 117,311 | |||||||||||||||
| Stock-based compensation | (3,145) | (4,277) | (11,602) | (15,942) | |||||||||||||||||||
Restructuring charges1 | (2,135) | — | (2,135) | (352) | |||||||||||||||||||
| Non-GAAP research & development expense | $ | 28,009 | $ | 25,907 | $ | 107,839 | $ | 101,017 | |||||||||||||||
nCino, Inc.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended January 31, | Fiscal Year Ended January 31, | ||||||||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | ||||||||||||||||||||
| GAAP general & administrative expense | $ | 20,902 | $ | 17,488 | $ | 83,477 | $ | 76,727 | |||||||||||||||
| Stock-based compensation | (3,463) | (4,324) | (16,654) | (15,460) | |||||||||||||||||||
| Acquisition-related expenses | (206) | (244) | (2,276) | (878) | |||||||||||||||||||
| Litigation expenses | (1,054) | (23) | (6,147) | (4,525) | |||||||||||||||||||
Restructuring charges1 | (1,212) | — | (1,212) | (6) | |||||||||||||||||||
| Non-GAAP general & administrative expense | $ | 14,967 | $ | 12,897 | $ | 57,188 | $ | 55,858 | |||||||||||||||
| GAAP loss from operations | $ | (23,332) | $ | (3,185) | $ | (94,013) | $ | (39,512) | |||||||||||||||
| Amortization of intangible assets | 7,071 | 6,125 | 28,200 | 37,226 | |||||||||||||||||||
| Stock-based compensation | 11,756 | 16,066 | 50,232 | 58,035 | |||||||||||||||||||
| Acquisition-related expenses | 206 | 244 | 2,276 | 878 | |||||||||||||||||||
| Litigation expenses | 1,054 | 23 | 6,147 | 4,525 | |||||||||||||||||||
Restructuring charges1 | 5,017 | — | 5,017 | 627 | |||||||||||||||||||
| Non-GAAP operating income (loss) | $ | 1,772 | $ | 19,273 | $ | (2,141) | $ | 61,779 | |||||||||||||||
The following table sets forth reconciling items as a percentage of total revenue for the periods presented.2 | |||||||||||||||||||||||
| GAAP operating margin % | (21) | % | (3) | % | (23) | % | (8) | % | |||||||||||||||
| Amortization of intangible assets | 6 | 5 | 7 | 8 | |||||||||||||||||||
| Stock-based compensation | 11 | 13 | 12 | 12 | |||||||||||||||||||
| Acquisition-related expenses | — | — | 1 | — | |||||||||||||||||||
| Litigation expenses | 1 | — | 2 | 1 | |||||||||||||||||||
Restructuring charges1 | 5 | — | 1 | — | |||||||||||||||||||
| Non-GAAP operating margin % | 2 | % | 16 | % | (1) | % | 13 | % | |||||||||||||||
| GAAP net income (loss) attributable to nCino, Inc. | $ | (21,208) | $ | 1,160 | $ | (102,720) | $ | (42,346) | |||||||||||||||
| Amortization of intangible assets | 7,071 | 6,125 | 28,200 | 37,226 | |||||||||||||||||||
| Stock-based compensation | 11,756 | 16,066 | 50,232 | 58,035 | |||||||||||||||||||
| Acquisition-related expenses | 206 | 244 | 2,276 | 878 | |||||||||||||||||||
| Litigation expenses | 1,054 | 23 | 6,147 | 4,525 | |||||||||||||||||||
Restructuring charges1 | 5,017 | — | 5,017 | 627 | |||||||||||||||||||
| Tax (benefit) provision related to the SimpleNexus acquisition | 860 | — | 860 | — | |||||||||||||||||||
| Income tax effect on non-GAAP adjustments | (2) | (269) | (14) | (885) | |||||||||||||||||||
| Adjustment attributable to redeemable non-controlling interest | (353) | 455 | 1,995 | (71) | |||||||||||||||||||
| Non-GAAP net income (loss) attributable to nCino, Inc. | $ | 4,401 | $ | 23,804 | $ | (8,007) | $ | 57,989 | |||||||||||||||
| Basic GAAP net income (loss) attributable to nCino, Inc. per share | $ | (0.19) | $ | 0.01 | $ | (0.93) | $ | (0.38) | |||||||||||||||
| Weighted-average shares used to compute basic GAAP net income (loss) attributable to nCino, Inc. per share | 111,161,074 | 113,263,176 | 110,615,734 | 112,672,397 | |||||||||||||||||||
| Diluted GAAP net income (loss) attributable to nCino, Inc. per share | $ | (0.19) | $ | 0.01 | $ | (0.93) | $ | (0.38) | |||||||||||||||
| Weighted-average shares used to compute diluted GAAP net income (loss) attributable to nCino, Inc. per share | 111,161,074 | 115,782,532 | 110,615,734 | 112,672,397 | |||||||||||||||||||
nCino, Inc.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended January 31, | Fiscal Year Ended January 31, | ||||||||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | ||||||||||||||||||||
| Basic non-GAAP net income (loss) attributable to nCino, Inc. per share | $ | 0.04 | $ | 0.21 | $ | (0.07) | $ | 0.51 | |||||||||||||||
| Weighted-average shares used to compute basic non-GAAP net income (loss) attributable to nCino, Inc. per share | 111,161,074 | 113,263,176 | 110,615,734 | 112,672,397 | |||||||||||||||||||
| Diluted non-GAAP net income (loss) attributable to nCino, Inc. per share | $ | 0.04 | $ | 0.21 | $ | (0.07) | $ | 0.50 | |||||||||||||||
| Weighted-average shares used to compute diluted non-GAAP net income (loss) attributable to nCino, Inc. per share | 113,417,769 | 115,782,532 | 110,615,734 | 114,916,521 | |||||||||||||||||||
| Free cash flow | |||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | (22,020) | $ | 8,148 | $ | (15,381) | $ | 57,285 | |||||||||||||||
| Purchases of property and equipment | (4,449) | (432) | (18,338) | (3,515) | |||||||||||||||||||
| Free cash flow | $ | (26,469) | $ | 7,716 | $ | (33,719) | $ | 53,770 | |||||||||||||||
Principal payments on financing obligations3 | (663) | (338) | (1,121) | (1,226) | |||||||||||||||||||
| Free cash flow less principal payments on financing obligation | $ | (27,132) | $ | 7,378 | $ | (34,840) | $ | 52,544 | |||||||||||||||
1Stock-based compensation benefit related to restructuring is included in Stock-based compensation.
2Columns may not foot due to rounding.
3These amounts represent the non-interest component of payments towards financing obligations for facilities.
CONTACTS
INVESTOR CONTACT
Harrison Masters
nCino
+1 910.734.7743
Harrison.masters@ncino.com
MEDIA CONTACT
Natalia Moose
nCino
Natalia.moose@ncino.com
March 26, 2024 Fourth Quarter Fiscal Year 2024
This presentation contains forward-looking statements about nCino's financial and operating results, which include statements regarding nCino’s future performance, outlook, 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 presentation 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 presentation. 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 risks associated with (i) adverse changes in the financial services industry, including as a result of customer consolidation or bank failures; (ii) adverse changes in economic, regulatory, or market conditions, including as a direct or indirect consequence of higher interest rates; (iii) risks associated with the acquisitions, (iv) breaches in our security measures or unauthorized access to our customers’ or their clients' data; (v) the accuracy of management’s assumptions and estimates; (vi) our ability to attract new customers and succeed in having current customers expand their use of our solution; (vii) 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; (viii) 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; (ix) fluctuation of our results of operations, which may make period-to-period comparisons less meaningful; (x) our ability to manage our growth effectively including expanding outside of the United States; (xi) adverse changes in our relationship with Salesforce; (xii) our ability to successfully acquire new companies and/or integrate acquisitions into our existing organization; (xiii) 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; (xiv) 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; (xv) our ability to maintain our corporate culture and attract and retain highly skilled employees; and (xvi) the outcome and impact of legal proceedings and related fees and 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. In addition to financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes certain non-GAAP financial measures, including Non-GAAP Operating Loss. Any non-GAAP measure is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of other GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included at the end of this presentation. This presentation also contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to such information. We have not independently verified the accuracy or completeness of the information contained in the industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that information nor do we undertake to update such information after the date of this presentation. Cautionary Note Regarding Forward-Looking Statements, Disclaimers and Financial Measures
4Q FY24 Subscription Revenues Fourth Quarter FY 2024 Financial Highlights 4Q FY24 Total Revenues Revenue: $123.7M Growth Rate: 13% Note: Fiscal 2024 Fourth Quarter ended January 31, 2024 Revenue: $107.5M Growth Rate: 16% 4Q FY24 Non-GAAP Operating Margin % Margin %: 16% FCF: $7.7M January 31, 2024 Remaining Performance Obligations RPO: $1.0B OCF: $8.1M < 24 Mos RPO: $675.4M Y/Y: +$30.2M Y/Y: +1,400 bps Y/Y: +$34.2M 4Q FY24 Free Cash Flow 4Q FY24 Cash from Operations
65% 66% 75% 75% 4Q'23 4Q'24 Fourth Quarter FY 2024 Financial Results Quarterly Revenues ($ in millions) $93 $107 $16 $16 4Q'23 4Q'24 Subscription % of Total 87%85% Overall & Subscription Non-GAAP Gross Margins Overall Subscription Professional Services Subscription Y/Y Growth: 16% Note: Non-GAAP Financials adjusted to exclude stock-based compensation, amortization, and restructuring charges. See Appendix for GAAP reconciliation. $109 $124
$225 $345 $409 $49 $64 $67 $274 $4081 $4771 FY 2022 FY 2023 FY 2024 $45 $51 $54 $57 $63 $79 $84 $88 $93 $97 $100 $105 $107 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Revenue Growth at Scale Annual Revenues ($ in millions) Quarterly Subscription Revenues ($ in millions) Subscription Professional Services Subscription % of Total 82% 84% YoY % Growth86% Notes: 1) Column does not foot due to rounding. 43% 47% 37% 32% 40% 55% 57% 55% 48% 23% 18% 19% 16%
63% 65% 66% 65% 66% FY 2022 FY 2023 FY 2024 4Q 2023 4Q 2024 73% 75% 75% 75% 75% FY 2022 FY 2023 FY 2024 4Q 2023 4Q 2024 Gross Margins Overall Non-GAAP Gross Margin Non-GAAP Subscription Gross Margin Note: Non-GAAP gross margins adjusted to exclude stock-based compensation, amortization, and restructuring charges. See Appendix for GAAP reconciliation.
14% 10% $73 $108 $101 $28 $26 FY 2022 FY 2023 FY 2024 4Q 2023 4Q 2024 27% 25% 20% 27% 26% 21% $43 $57 $56 $15 $13 FY 2022 FY 2023 FY 2024 4Q 2023 4Q 2024 26% 21% 24% 19% $73 $102 $94 $26 $24 FY 2022 FY 2023 FY 2024 4Q 2023 4Q 2024 16% 14% 12% Responsibly Investing in Growth Note: Non-GAAP financials adjusted to exclude stock-based compensation, amortization, restructuring charges, litigation expenses, and acquisition-related expenses. See Appendix for GAAP reconciliation. ($ in millions) S&M % of revenues R&D % of revenues G&A % of revenues Non-GAAP General & Administrative Non-GAAP Sales & Marketing Non-GAAP Research & Development
Operating & Cash Flow Margins (6%) (1%) 13% 2% 16% FY 2022 FY 2023 FY 2024 4Q 2023 4Q 2024 Non-GAAP Operating Margin Free Cash Flow Margin (9%) (8%) 11% (24%) 6% 4Q 20244Q 2023FY 2024FY 2023FY 2022 Note: Non-GAAP financials adjusted to exclude stock-based compensation, amortization, restructuring charges, litigation expenses, and acquisition-related expenses. See Appendix for GAAP reconciliation. ($17.6) ($2.1) Non-GAAP Operating Income/(Loss) ($mm) $61.8 $1.8 $19.3 ($24.7) ($33.7) Free Cash Flow ($mm) $53.8 ($26.5) $7.7
Growing Customer Base 394 428 460 1,079 1,135 1,149 428 475 434 1,775 1,858 1,801 FY 2022 FY 2023 FY 2024 nCino Platform nIQ Mortgage (5) (6) (1) Total Customers Customers with Subscription Revenues Over: > $1M > $100K 271 47 FY 2022 Note: (1) Of the 1,079 nIQ customers, 85 were also nCino Platform customers. (2) f the 428 Mortgage Customers, 41 are also nCino Platform and/or Portfolio Analytics Customers. (3) Of the 1,135 nIQ customers, 129 were also nCino Platform customers. (4) Of the 475 Mortgage Customers, 51 are also nCino Platform and/or Portfolio Analytics customers. (5) Of the 1,149 nIQ customers, 179 are also nCino Platform customers. (6) Of the 434 Mortgage Customers, 63 are also nCino Platform and/or Portfolio Analytics customers. FY 2023 73 465 (3) FY 2024 86 501 (4) (2)
Financial Outlook nCino Is Providing Guidance For Its First Quarter Ending April 30, 2024 As Follows: nCino Is Providing Guidance For Its Fiscal Year 2025 Ending January 31, 2025 As Follows: TOTAL REVENUES NON-GAAP OPERATING INCOME NON-GAAP NET INCOME ATTRIBUTABLE TO NCINO BETWEEN BETWEEN BETWEEN PER DILUTED SHARE OF $126.0M $127.0M A N D $108.75M $109.75M A N D $18.0M $19.0M A N D $0.13 $0.14 T O TOTAL REVENUES SUBSCRIPTION REVENUES NON-GAAP OPERATING INCOME NON-GAAP NET INCOME ATTRIBUTABLE TO NCINO BETWEEN BETWEEN BETWEEN PER DILUTED SHARE OF $538.5M $544.5M A N D $463.0M $469.0M A N D $84.0M $86.0M A N D $0.60 $0.64 T O Note: Non-GAAP financials adjusted to exclude stock-based compensation, amortization, litigation expenses, acquisition-related expenses, restructuring charges, tax benefit related to SimpleNexus acquisition, income tax effect on non-GAAP adjustments, and adjustments to redeemable non-controlling interest. See Appendix for GAAP reconciliation. SUBSCRIPTION REVENUES
Appendix
FY 2013FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 4.3X 2.0X 1.9X 2.7X 2.1X 1.5X 2.0X 1.4X 1.3X 1.2X 1.0X N/A FY 2023 FY 2024 Land and Expand Model: ACV Expansion by Cohort Total ACV Expansion Note: As of January 31, 2024. In any given period, ACV for a customer represents the annualized subscription fees from the fully activated subscription contracts in effect for such customers at the end of the applicable period. Customers who signed with SimpleNexus prior to January 31, 2022, are included in the fiscal 2022 cohort and customers who signed with Portfolio Analytics prior to January 31, 2020, are represented in the fiscal 2020 cohort.
GAAP to Non-GAAP Reconciliation ($ in thousands) Subscription Gross Margin FY 2022 FY 2023 FY 2024 4Q'23 4Q'24 Subscription Revenues $224,854 $344,752 $409,479 $92,828 $107,483 GAAP Subscription Gross Profit 160,346 238,487 288,618 65,062 76,103 (+) Amortization 2,604 17,019 16,306 4,252 3,875 (+) Stock Based Compensation 960 1,430 1,847 310 533 (+) Restructuring Charges -- 4 51 4 -- Non-GAAP Subscription Gross Profit $163,910 $256,940 $306,822 $69,628 $80,511 Non-GAAP Subscription Gross Margin 73% 75% 75% 75% 75% Professional Services & Other Gross Margin FY 2022 FY 2023 FY 2024 4Q'23 4Q'24 Professional Services & Other Revenues $49,011 $63,563 $67,064 $16,353 $16,210 GAAP Professional Services Gross Profit 2,106 222 (3,545) (808) (1,620) (+) Amortization -- 94 330 47 83 (+) Stock Based Compensation 5,195 7,263 9,369 1,699 2,709 (+) Restructuring Charges -- 333 118 333 -- Non-GAAP Professional Services Gross Profit $7,301 $7,912 $6,272 $1,271 $1,172 Non-GAAP Professional Services Gross Margin 15% 12% 9% 8% 7% Overall Gross Margin FY 2022 FY 2023 FY 2024 4Q'23 4Q'24 Total Revenues $273,865 $408,315 $476,543 $109,181 $123,693 GAAP Gross Profit 162,452 238,709 285,073 64,254 74,483 (+) Amortization 2,604 17,113 16,636 4,299 3,958 (+) Stock Based Compensation 6,155 8,693 11,216 2,009 3,242 (+) Restructuring Charges -- 337 169 337 -- Non-GAAP Gross Profit $171,211 $264,852 $313,094 $70,899 $81,683 Non-GAAP Gross Margin 63% 65% 66% 65% 66%
GAAP to Non-GAAP Reconciliation ($ in thousands) S&M Expense FY 2022 FY 2023 FY 2024 4Q'23 4Q'24 GAAP S&M $82,901 $127,669 $130,547 $33,395 $29,996 (-) Amortization 2,303 11,087 20,590 2,772 2,167 (-) Stock Based Compensation 7,520 13,283 15,417 3,139 4,223 (-) Restructuring Charges -- 1,333 100 1,333 -- Non-GAAP S&M $73,078 $101,966 $94,440 $26,151 $23,606 % of Revenues 27% 25% 20% 24% 19% R&D Expense FY 2022 FY 2023 FY 2024 4Q'23 4Q'24 GAAP R&D $79,363 $121,576 $117,311 $33,289 $30,184 (-) Stock Based Compensation 6,186 11,602 15,942 3,145 4,277 (-) Restructuring Charges -- 2,135 352 2,135 -- Non-GAAP R&D $73,177 $107,839 $101,017 $28,009 $25,907 % of Revenues 27% 26% 21% 26% 21% G&A Expense FY 2022 FY 2023 FY 2024 4Q'23 4Q'24 GAAP G&A $71,545 $83,477 $76,727 $20,902 $17,488 (-) Stock Based Compensation 8,616 16,654 15,460 3,463 4,324 (-) Acquisition-Related Expenses 10,006 2,276 878 206 244 (-) Litigation Expenses 10,326 6,147 4,525 1,054 23 (-) Restructuring Charges -- 1,212 6 1,212 -- Non-GAAP G&A $42,597 $57,188 $55,858 $14,967 $12,897 % of Revenues 16% 14% 12% 14% 10% Non-GAAP Operating Income/(Loss) FY 2022 FY 2023 FY 2024 4Q'23 4Q'24 GAAP Operating Income/(Loss) ($71,357) ($94,013) (39,512) ($23,332) ($3,185) (+) Amortization of Acquired Intangibles 4,907 28,200 37,226 7,071 6,125 (+) Stock Based Compensation 28,477 50,232 58,035 11,756 16,066 (+) Acquisition-Related Expenses 10,006 2,276 878 206 244 (+) Litigation Expenses 10,326 6,147 4,525 1,054 23 (+) Restructuring Charges -- 5,017 627 5,017 -- Non-GAAP Operating Income/(Loss) ($17,641) ($2,141) $61,779 $1,772 $19,273 Non-GAAP Operating Margin % (6%) (1%) 13% 2% 16%
GAAP to Non-GAAP Reconciliation ($ in thousands) Non-GAAP Net Income/(Loss) Attributable to nCino FY 2022 FY 2023 FY 2024 4Q'23 4Q'24 GAAP Net Income/(Loss) Attributable to nCino ($49,446) ($102,720) ($42,346) ($21,208) $1,160 (+) Amortization of Acquired Intangibles 4,907 28,200 37,226 7,071 6,125 (+) Stock Based Compensation 28,477 50,232 58,035 11,756 16,066 (+) Acquisition-Related Expenses 10,006 2,276 878 206 244 (+) Litigation Expenses 10,326 6,147 4,525 1,054 23 (+) Restructuring Charges -- 5,017 627 5,017 -- (-/+) Tax (Benefit) Provision Related to SimpleNexus Acquisition (24,646) 860 -- 860 -- (-) Income Tax Effect on non-GAAP Adjustments (12) (14) (885) (2) (269) (+) Adjustment Attributable to Redeemable Non-Controlling Interest 894 1,995 (71) (353) 455 Non-GAAP Net Income/(Loss) Attributable to nCino ($19,494) ($8,007) $57,989 $4,401 $23,804 96,722,464 110,615,734 112,672,397 111,161,074 113,263,176 Non-GAAP Net Income/(Loss) Attributable to nCino per Share, basic ($0.20) ($0.07) $0.51 $0.04 $0.21 96,722,464 110,615,734 114,916,521 113,417,769 115,782,532 Non-GAAP Net Income/(Loss) Attributable to nCino per Share, diluted ($0.20) ($0.07) $0.50 $0.04 $0.21 Free Cash Flow FY 2022 FY 2023 FY 2024 4Q'23 4Q'24 GAAP Cash Flow From Operations ($19,229) ($15,381) $57,285 ($22,020) $8,148 (-) Purchases of Property and Equipment (5,463) (18,338) (3,515) (4,449) (432) Free Cash Flow ($24,692) ($33,719) $53,770 ($26,469) $7,716 (-) Principal Payments on Financing Obligation1 (318) (1,121) (1,226) (663) (338) Free Cash Flow less Principal Payments on Financing Obligations ($25,010) ($34,840) $52,544 ($27,132) $7,378 1These amounts represent the non-interest component of payments towards financing obligations for facilities. Weighted-average shares used to compute non-GAAP Net Income/(Loss) per share, basic Weighted-average shares used to compute non-GAAP Net Income/(Loss) per share, diluted