ncno-20211031
00015668951/312022Q3FALSE24.024.017.717.700015668952021-02-012021-10-3100015668952021-11-26xbrli:shares0001566895us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-01-31iso4217:USD0001566895us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-10-3100015668952021-01-3100015668952021-10-31iso4217:USDxbrli:shares0001566895us-gaap:LicenseAndServiceMember2020-08-012020-10-310001566895us-gaap:LicenseAndServiceMember2021-08-012021-10-310001566895us-gaap:LicenseAndServiceMember2020-02-012020-10-310001566895us-gaap:LicenseAndServiceMember2021-02-012021-10-310001566895ncno:ProfessionalServicesMember2020-08-012020-10-310001566895ncno:ProfessionalServicesMember2021-08-012021-10-310001566895ncno:ProfessionalServicesMember2020-02-012020-10-310001566895ncno:ProfessionalServicesMember2021-02-012021-10-3100015668952020-08-012020-10-3100015668952021-08-012021-10-3100015668952020-02-012020-10-310001566895us-gaap:LicenseAndServiceMemberus-gaap:CostOfSalesMember2020-08-012020-10-310001566895us-gaap:LicenseAndServiceMemberus-gaap:CostOfSalesMember2021-08-012021-10-310001566895us-gaap:LicenseAndServiceMemberus-gaap:CostOfSalesMember2020-02-012020-10-310001566895us-gaap:LicenseAndServiceMemberus-gaap:CostOfSalesMember2021-02-012021-10-310001566895ncno:ProfessionalServicesMemberus-gaap:CostOfSalesMember2020-08-012020-10-310001566895ncno:ProfessionalServicesMemberus-gaap:CostOfSalesMember2021-08-012021-10-310001566895ncno:ProfessionalServicesMemberus-gaap:CostOfSalesMember2020-02-012020-10-310001566895ncno:ProfessionalServicesMemberus-gaap:CostOfSalesMember2021-02-012021-10-310001566895us-gaap:SellingAndMarketingExpenseMember2020-08-012020-10-310001566895us-gaap:SellingAndMarketingExpenseMember2021-08-012021-10-310001566895us-gaap:SellingAndMarketingExpenseMember2020-02-012020-10-310001566895us-gaap:SellingAndMarketingExpenseMember2021-02-012021-10-310001566895us-gaap:ResearchAndDevelopmentExpenseMember2020-08-012020-10-310001566895us-gaap:ResearchAndDevelopmentExpenseMember2021-08-012021-10-310001566895us-gaap:ResearchAndDevelopmentExpenseMember2020-02-012020-10-310001566895us-gaap:ResearchAndDevelopmentExpenseMember2021-02-012021-10-310001566895us-gaap:GeneralAndAdministrativeExpenseMember2020-08-012020-10-310001566895us-gaap:GeneralAndAdministrativeExpenseMember2021-08-012021-10-310001566895us-gaap:GeneralAndAdministrativeExpenseMember2020-02-012020-10-310001566895us-gaap:GeneralAndAdministrativeExpenseMember2021-02-012021-10-310001566895us-gaap:CommonStockMember2020-07-310001566895us-gaap:CommonStockMemberncno:VotingCommonStockMember2020-07-310001566895us-gaap:CommonStockMemberus-gaap:NonvotingCommonStockMember2020-07-310001566895us-gaap:AdditionalPaidInCapitalMember2020-07-310001566895us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-07-310001566895us-gaap:RetainedEarningsMember2020-07-3100015668952020-07-310001566895us-gaap:CommonStockMember2020-08-012020-10-310001566895us-gaap:CommonStockMemberncno:VotingCommonStockMember2020-08-012020-10-310001566895us-gaap:AdditionalPaidInCapitalMember2020-08-012020-10-310001566895us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-08-012020-10-310001566895us-gaap:RetainedEarningsMember2020-08-012020-10-310001566895us-gaap:CommonStockMember2020-10-310001566895us-gaap:CommonStockMemberncno:VotingCommonStockMember2020-10-310001566895us-gaap:CommonStockMemberus-gaap:NonvotingCommonStockMember2020-10-310001566895us-gaap:AdditionalPaidInCapitalMember2020-10-310001566895us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-10-310001566895us-gaap:RetainedEarningsMember2020-10-3100015668952020-10-310001566895us-gaap:CommonStockMember2021-07-310001566895us-gaap:AdditionalPaidInCapitalMember2021-07-310001566895us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-07-310001566895us-gaap:RetainedEarningsMember2021-07-3100015668952021-07-310001566895us-gaap:CommonStockMember2021-08-012021-10-310001566895us-gaap:AdditionalPaidInCapitalMember2021-08-012021-10-310001566895us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-08-012021-10-310001566895us-gaap:RetainedEarningsMember2021-08-012021-10-310001566895us-gaap:CommonStockMember2021-10-310001566895us-gaap:AdditionalPaidInCapitalMember2021-10-310001566895us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-10-310001566895us-gaap:RetainedEarningsMember2021-10-310001566895us-gaap:CommonStockMember2020-01-310001566895us-gaap:CommonStockMemberncno:VotingCommonStockMember2020-01-310001566895us-gaap:CommonStockMemberus-gaap:NonvotingCommonStockMember2020-01-310001566895us-gaap:AdditionalPaidInCapitalMember2020-01-310001566895us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-01-310001566895us-gaap:RetainedEarningsMember2020-01-3100015668952020-01-310001566895us-gaap:CommonStockMember2020-02-012020-10-310001566895us-gaap:AdditionalPaidInCapitalMember2020-02-012020-10-310001566895us-gaap:CommonStockMemberncno:VotingCommonStockMember2020-02-012020-10-310001566895us-gaap:CommonStockMemberus-gaap:NonvotingCommonStockMember2020-02-012020-10-310001566895us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-02-012020-10-310001566895us-gaap:RetainedEarningsMember2020-02-012020-10-310001566895us-gaap:CommonStockMember2021-01-310001566895us-gaap:AdditionalPaidInCapitalMember2021-01-310001566895us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-01-310001566895us-gaap:RetainedEarningsMember2021-01-310001566895us-gaap:CommonStockMember2021-02-012021-10-310001566895us-gaap:AdditionalPaidInCapitalMember2021-02-012021-10-310001566895us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2021-02-012021-10-310001566895us-gaap:RetainedEarningsMember2021-02-012021-10-310001566895ncno:SimpleNexusMemberus-gaap:SubsequentEventMember2021-11-160001566895us-gaap:CustomerConcentrationRiskMemberncno:NoCustomerMemberus-gaap:AccountsReceivableMember2020-02-012021-01-31xbrli:pure0001566895ncno:CustomerOneMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-02-012021-10-310001566895us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberncno:NoCustomerMember2020-08-012020-10-310001566895us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberncno:NoCustomerMember2020-02-012020-10-310001566895us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberncno:NoCustomerMember2021-02-012021-10-310001566895us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberncno:NoCustomerMember2021-08-012021-10-310001566895srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-02-010001566895ncno:NCinoKKMember2019-10-312019-10-310001566895ncno:NCinoKKMemberncno:NCinoKKMember2019-10-310001566895ncno:NCinoKKMember2021-10-310001566895us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-01-310001566895us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-01-310001566895us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2021-01-310001566895us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-01-310001566895us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-01-310001566895us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-01-310001566895us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-10-310001566895us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-10-310001566895us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2021-10-310001566895us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-10-310001566895us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-10-310001566895us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-10-310001566895country:US2020-08-012020-10-310001566895country:US2021-08-012021-10-310001566895country:US2020-02-012020-10-310001566895country:US2021-02-012021-10-310001566895us-gaap:NonUsMember2020-08-012020-10-310001566895us-gaap:NonUsMember2021-08-012021-10-310001566895us-gaap:NonUsMember2020-02-012020-10-310001566895us-gaap:NonUsMember2021-02-012021-10-3100015668952020-08-012021-10-3100015668952023-08-012021-10-310001566895srt:MinimumMember2023-08-012021-10-3100015668952025-08-01srt:MaximumMember2021-10-310001566895us-gaap:FurnitureAndFixturesMember2021-01-310001566895us-gaap:FurnitureAndFixturesMember2021-10-310001566895us-gaap:ComputerEquipmentMember2021-01-310001566895us-gaap:ComputerEquipmentMember2021-10-310001566895us-gaap:BuildingMember2021-01-310001566895us-gaap:BuildingMember2021-10-310001566895us-gaap:LeaseholdImprovementsMember2021-01-310001566895us-gaap:LeaseholdImprovementsMember2021-10-310001566895us-gaap:ConstructionInProgressMember2021-01-310001566895us-gaap:ConstructionInProgressMember2021-10-310001566895us-gaap:DevelopedTechnologyRightsMember2021-01-310001566895us-gaap:DevelopedTechnologyRightsMember2021-10-310001566895us-gaap:CustomerRelationshipsMember2021-01-310001566895us-gaap:CustomerRelationshipsMember2021-10-310001566895us-gaap:TrademarksMember2021-01-310001566895us-gaap:TrademarksMember2021-10-310001566895us-gaap:CostOfSalesMember2020-08-012020-10-310001566895us-gaap:CostOfSalesMember2021-08-012021-10-310001566895us-gaap:CostOfSalesMember2020-02-012020-10-310001566895us-gaap:CostOfSalesMember2021-02-012021-10-310001566895ncno:ResellerAgreementMembersrt:AffiliatedEntityMember2020-08-012020-10-310001566895ncno:ResellerAgreementMembersrt:AffiliatedEntityMember2021-08-012021-10-310001566895ncno:ResellerAgreementMembersrt:AffiliatedEntityMember2020-02-012020-10-310001566895ncno:ResellerAgreementMembersrt:AffiliatedEntityMember2021-02-012021-10-310001566895us-gaap:CommonStockMember2021-10-310001566895us-gaap:EmployeeStockOptionMember2021-10-310001566895us-gaap:RestrictedStockUnitsRSUMember2021-10-310001566895us-gaap:EmployeeStockOptionMember2021-02-012021-10-310001566895us-gaap:RestrictedStockUnitsRSUMember2021-01-310001566895us-gaap:RestrictedStockUnitsRSUMember2021-02-012021-10-310001566895us-gaap:EmployeeStockMember2021-02-012021-10-310001566895us-gaap:EmployeeStockMember2021-10-3100015668952020-11-3000015668952021-04-300001566895ncno:LiveOakBancsharesIncMemberus-gaap:SubsequentEventMember2021-11-230001566895us-gaap:SubsequentEventMemberncno:ApitureIncMember2021-11-230001566895srt:AffiliatedEntityMemberncno:AgreementForPurchaseOfServiceMember2020-08-012020-10-310001566895srt:AffiliatedEntityMemberncno:AgreementForPurchaseOfServiceMember2021-08-012021-10-310001566895srt:AffiliatedEntityMemberncno:AgreementForPurchaseOfServiceMember2020-02-012020-10-310001566895srt:AffiliatedEntityMemberncno:AgreementForPurchaseOfServiceMember2021-02-012021-10-310001566895srt:AffiliatedEntityMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberncno:AgreementForPurchaseOfServiceMember2020-02-012021-01-310001566895srt:AffiliatedEntityMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberncno:AgreementForPurchaseOfServiceMember2021-02-012021-10-310001566895us-gaap:AccountsPayableMembersrt:AffiliatedEntityMemberncno:AgreementForPurchaseOfServiceMember2021-01-310001566895us-gaap:AccountsPayableMembersrt:AffiliatedEntityMemberncno:AgreementForPurchaseOfServiceMember2021-10-310001566895ncno:TransactionsWithCertainEquityHoldersMembersrt:AffiliatedEntityMember2020-10-31ncno:equityHolder0001566895ncno:TransactionsWithCertainEquityHoldersMembersrt:AffiliatedEntityMember2020-08-012020-10-310001566895ncno:TransactionsWithCertainEquityHoldersMembersrt:AffiliatedEntityMember2020-02-012020-10-310001566895ncno:BankingRelationshipMembersrt:AffiliatedEntityMember2020-10-310001566895ncno:BankingRelationshipMembersrt:AffiliatedEntityMember2020-08-012020-10-310001566895ncno:BankingRelationshipMembersrt:AffiliatedEntityMember2020-02-012020-10-310001566895ncno:FundSpendingAgreementMembersrt:AffiliatedEntityMember2021-10-310001566895ncno:FundSpendingAgreementMember2021-02-012021-10-310001566895ncno:FundSpendingAgreementMembersrt:AffiliatedEntityMember2021-02-012021-10-310001566895ncno:FundSpendingAgreementMembersrt:AffiliatedEntityMember2020-02-012020-10-310001566895us-gaap:EmployeeStockOptionMember2020-02-012020-10-310001566895us-gaap:EmployeeStockOptionMember2021-02-012021-10-310001566895us-gaap:RestrictedStockUnitsRSUMember2020-02-012020-10-310001566895us-gaap:RestrictedStockUnitsRSUMember2021-02-012021-10-310001566895us-gaap:EmployeeStockMember2020-02-012020-10-310001566895us-gaap:EmployeeStockMember2021-02-012021-10-310001566895ncno:SimpleNexusMemberus-gaap:SubsequentEventMember2021-11-162021-11-16
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 2021
OR
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __to __
Commission File Number: 001-39380

nCino, Inc.
(Exact name of Registrant as specified in its charter)
Delaware46-4353148
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
6770 Parker Farm Drive
Wilmington, North Carolina 28405
(Address of principal executive offices including zip code)

(888) 676-2466
(Registrant’s telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.0005 per shareNCNOThe NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
Accelerated filer
Non-accelerated filerSmaller reporting company
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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 96,749,427 shares of common stock, $0.0005 par value per share, as of November 26, 2021.



Table of Contents
TABLE OF CONTENTS
Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.


Table of Contents
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies and plans, trends, market sizing, competitive position, industry environment, potential growth opportunities and product capabilities, among other things. Forward-looking statements include all statements that are not historical facts and, in some cases, can be identified by terms such as “aim,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “goal,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “strive,” “will,” “would,” or similar expressions and the negatives of those terms.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including those described in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this report. Given these uncertainties, you should not place undue reliance on these forward-looking statements.
Any forward-looking statement made by us in this report speaks only as of the date on which it is made. Except as required by law, we disclaim any obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
As used in this report, the terms “nCino,” the “Company,” “Registrant,” “we,” “us,” and “our” mean nCino, Inc. and its subsidiaries unless the context indicates otherwise.
i

Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
nCino, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
January 31, 2021October 31, 2021
(Unaudited)
Assets
Current assets
Cash and cash equivalents (VIE: $7,425 and $4,722 at January 31, 2021 and October 31, 2021, respectively)
$371,425 $381,080 
Accounts receivable, less allowance for doubtful accounts of $88 and $151 at January 31, 2021 and October 31, 2021, respectively
55,517 33,776 
Costs capitalized to obtain revenue contracts, current portion, net4,864 5,524 
Prepaid expenses and other current assets10,425 11,898 
Total current assets442,231 432,278 
Property and equipment, net29,943 53,916 
Operating lease right-of-use assets, net 10,420 
Costs capitalized to obtain revenue contracts, noncurrent, net10,191 11,230 
Goodwill57,149 56,977 
Intangible assets, net23,137 20,678 
Other long-term assets750 1,044 
Total assets$563,401 $586,543 
Liabilities, redeemable non-controlling interest, and stockholders’ equity
Current liabilities
Accounts payable$1,634 $5,790 
Accounts payable, related parties4,363 5,236 
Accrued commissions12,500 7,021 
Other accrued expenses7,527 11,191 
Deferred rent, current portion203  
Deferred revenue, current portion89,141 86,825 
Financing obligations, current portion324 570 
Operating lease liabilities, current portion 2,717 
Total current liabilities115,692 119,350 
Operating lease liabilities, noncurrent  9,323 
Deferred income taxes, noncurrent368 582 
Deferred rent, noncurrent1,486  
Deferred revenue, noncurrent946 72 
Financing obligations, noncurrent15,939 33,190 
Construction liability, noncurrent 5,899 
Total liabilities134,431 168,416 
Commitments and contingencies (Notes 8, 12, and 13)
Redeemable non-controlling interest (Note 3)3,791 2,360 
Stockholders’ equity
Preferred stock, $0.001 par value; 10,000,000 shares authorized, and none issued and outstanding as of January 31, 2021 and October 31, 2021
  
Common stock, $0.0005 par value; 500,000,000 shares authorized as of January 31, 2021 and October 31, 2021; 93,643,759 and 96,691,631 shares issued and outstanding as of January 31, 2021 and October 31, 2021, respectively
47 48 
Additional paid-in capital585,956 619,063 
Accumulated other comprehensive income (loss)240 (14)
Accumulated deficit(161,064)(203,330)
Total stockholders’ equity425,179 415,767 
Total liabilities, redeemable non-controlling interest, and stockholders’ equity$563,401 $586,543 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

1

Table of Contents
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,
2020202120202021
Revenues
Subscription (related parties $0, $0, $2,439, and $0, respectively)
$43,279 $57,085 $117,461 $162,052 
Professional services10,950 12,951 30,245 36,858 
Total revenues54,229 70,036 147,706 198,910 
Cost of revenues
Subscription1 (related party $9,067, $11,638, $25,277, and $33,358, respectively)
12,380 15,753 34,399 46,007 
Professional services1
10,134 11,501 29,568 34,121 
Total cost of revenues22,514 27,254 63,967 80,128 
Gross profit31,715 42,782 83,739 118,782 
Operating expenses
Sales and marketing1
14,175 20,586 42,027 58,227 
Research and development1
15,077 19,956 41,334 55,990 
General and administrative1
11,251 14,964 29,130 45,931 
Total operating expenses40,503 55,506 112,491 160,148 
Loss from operations(8,788)(12,724)(28,752)(41,366)
Non-operating income (expense)
Interest income78 57 289 173 
Interest expense (379) (977)
Other income (expense), net(260)(255)337 (325)
Loss before income tax expense(8,970)(13,301)(28,126)(42,495)
Income tax expense309 356 709 1,030 
Net loss(9,279)(13,657)(28,835)(43,525)
Net loss attributable to redeemable non-controlling interest (Note 3)(292)(389)(700)(1,259)
Adjustment attributable to redeemable non-controlling interest (Note 3)76 368 343 61 
Net loss attributable to nCino, Inc.$(9,063)$(13,636)$(28,478)$(42,327)
Net loss per share attributable to nCino, Inc.:
Basic and diluted$(0.10)$(0.14)$(0.33)$(0.44)
Weighted average number of common shares outstanding:
Basic and diluted91,600,203 96,431,082 85,962,141 95,510,413 
1Includes stock-based compensation expense as follows:
Three Months Ended October 31,Nine Months Ended October 31,
2020202120202021
Cost of subscription revenues$135 $179 $438 $721 
Cost of professional services revenues810 1,209 3,358 3,881 
Sales and marketing1,157 1,685 4,818 5,415 
Research and development1,066 1,351 4,406 4,580 
General and administrative2,125 1,421 6,593 5,952 
Total stock-based compensation expense$5,293 $5,845 $19,613 $20,549 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

Table of Contents
nCino, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)
Three Months Ended October 31,Nine Months Ended October 31,
2020202120202021
Net loss$(9,279)$(13,657)$(28,835)$(43,525)
Other comprehensive income (loss):
Foreign currency translation(3)163 776 (487)
Other comprehensive income (loss)(3)163 776 (487)
Comprehensive loss(9,282)(13,494)(28,059)(44,012)
Less comprehensive loss attributable to redeemable non-controlling interest:
Net loss attributable to redeemable non-controlling interest(292)(389)(700)(1,259)
Foreign currency translation attributable to redeemable non-controlling interest(2)(82)167 (233)
Comprehensive loss attributable to redeemable non-controlling interest(294)(471)(533)(1,492)
Comprehensive loss attributable to nCino, Inc.$(8,988)$(13,023)$(27,526)$(42,520)
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

Table of Contents
nCino, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands, except share data)
(Unaudited)
Three Months Ended October 31, 2020
Common StockVoting
Common Stock
Non-voting
Common Stock
Additional
Paid-in
Capital
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
SharesAmountSharesAmountSharesAmount
Balance, July 31, 202091,122,356 $46  $  $ $567,314 $202 $(140,072)$427,490 
Exercise of stock options836,920 —  — — — 2,998 — — 2,998 
Stock-based compensation— — — — — — 5,293 — — 5,293 
Other comprehensive loss— — — — — — — (1)— (1)
Net loss attributable to nCino, Inc., including adjustment to redeemable non-controlling interest
— — — — — — (76)— (8,987)(9,063)
Balance, October 31, 202091,959,276 $46  $  $ $575,529 $201 $(149,059)$426,717 
Three Months Ended October 31, 2021
Common StockAdditional
Paid-in
Capital
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
SharesAmount
Balance, July 31, 202195,927,741 $48 $610,166 $(259)$(190,062)$419,893 
Exercise of stock options559,703 — 3,420 — — 3,420 
Stock issuance upon vesting of restricted stock units204,187 — — — — — 
Stock-based compensation— — 5,845 — — 5,845 
Other comprehensive income— — — 245 — 245 
Net loss attributable to nCino, Inc., including adjustment to redeemable non-controlling interest
— — (368)— (13,268)(13,636)
Balance, October 31, 202196,691,631 $48 $619,063 $(14)$(203,330)$415,767 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

Table of Contents
nCino, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands, except share data)
(Unaudited)
Nine Months Ended October 31, 2020
Common StockVoting
Common Stock
Non-voting
Common Stock
Additional
Paid-in
Capital
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
SharesAmountSharesAmountSharesAmount
Balance, January 31, 2020 $ 75,596,007 $38 5,931,319 $3 $288,564 $(408)$(120,924)$167,273 
Issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions
9,269,000 5 — — — — 268,370 — — 268,375 
Costs in connection with initial public offering
— — — — — — (4,534)— — (4,534)
Exercise of stock options837,420 — 325,530 — — — 3,859 — — 3,859 
Reclassification of voting and non-voting common stock
81,852,856 41 (75,921,537)(38)(5,931,319)(3)— — —  
Stock-based compensation— — — — — — 19,613 — — 19,613 
Other comprehensive income— — — — — — — 609 — 609 
Net loss attributable to nCino, Inc., including adjustment to redeemable non-controlling interest
— — — — — — (343)— (28,135)(28,478)
Balance, October 31, 202091,959,276 $46  $  $ $575,529 $201 $(149,059)$426,717 
Nine Months Ended October 31, 2021
Common StockAdditional
Paid-in
Capital
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
SharesAmount
Balance, January 31, 202193,643,759 $47 $585,956 $240 $(161,064)$425,179 
Exercise of stock options2,527,287 1 12,619 — — 12,620 
Stock issuance upon vesting of restricted stock units520,585 — — — — — 
Stock-based compensation— — 20,549 — — 20,549 
Other comprehensive loss— — — (254)— (254)
Net loss attributable to nCino, Inc., including adjustment to redeemable non-controlling interest
— — (61)— (42,266)(42,327)
Balance, October 31, 202196,691,631 $48 $619,063 $(14)$(203,330)$415,767 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

Table of Contents
nCino, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended October 31,
20202021
Cash flows from operating activities
Net loss attributable to nCino, Inc.$(28,478)$(42,327)
Net loss and adjustment attributable to redeemable non-controlling interest(357)(1,198)
Net loss(28,835)(43,525)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization5,425 6,139 
Non-cash operating lease costs 1,847 
Amortization of costs capitalized to obtain revenue contracts3,521 4,157 
Stock-based compensation19,613 20,549 
Deferred income taxes96 192 
Provision for bad debt342 84 
Net foreign currency losses 393 
Change in operating assets and liabilities:
Accounts receivable8,535 21,614 
Accounts receivable, related parties9,201  
Costs capitalized to obtain revenue contracts(4,531)(5,848)
Prepaid expenses and other assets(2,652)(1,430)
Accounts payable and accrued expenses and other liabilities(1,551)1,887 
Accounts payable, related parties692 873 
Deferred rent(109) 
Deferred revenue19,413 (3,192)
Deferred revenue, related parties(8,013) 
Operating lease liabilities (1,917)
Net cash provided by operating activities21,147 1,823 
Cash flows from investing activities
Purchases of property and equipment(3,755)(3,640)
Net cash used in investing activities(3,755)(3,640)
Cash flows from financing activities
Proceeds from initial public offering, net of underwriting discounts and commissions268,375  
Payments of costs related to initial public offering(2,524) 
Exercise of stock options3,859 12,620 
Principal payments on financing obligations (181)
Net cash provided by financing activities269,710 12,439 
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash298 (632)
Net increase in cash, cash equivalents, and restricted cash287,400 9,990 
Cash and cash equivalents, beginning of period91,184 371,425 
Cash, cash equivalents, and restricted cash, end of period$378,584 $381,415 
Cash, cash equivalents, and restricted cash, end of period:
Cash and cash equivalents$378,584 $381,080 
Restricted cash included in other long-term assets 335 
Total cash, cash equivalents, and restricted cash, end of period$378,584 $381,415 
Supplemental disclosure of cash flow information
Cash paid during the year for taxes, net of refunds$587 $335 
Cash paid during the year for interest on financing obligations$ $977 
Supplemental disclosure of noncash investing and financing activities
Purchase of property and equipment, accrued but not paid$116 $6,370 
Building-leased facility acquired through financing obligation$ $17,678 
Costs related to initial public offering, accrued but not paid$241 $ 
Costs related to initial public offering, reclassified from other long term assets to equity$1,769 $ 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

Table of Contents
nCino, Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts and unless otherwise indicated)

Note 1. Organization and Description of Business
Description of Business: nCino, Inc. is a software-as-a-service ("SaaS") company that provides software applications to financial institutions to streamline employee and client interactions. The Company is headquartered in Wilmington, North Carolina and has offices in Salt Lake City, Utah; London, United Kingdom; Sydney, Australia; Melbourne, Australia; Toronto, Canada; and Tokyo, Japan.
On November 16, 2021, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Penny HoldCo, Inc., a Delaware corporation and wholly-owned subsidiary of the Company ("Parent"), SimpleNexus, LLC, a Utah limited liability company ("SimpleNexus"), and certain other parties thereto providing for a merger transaction with the Company and SimpleNexus surviving as wholly-owned subsidiaries of Parent and the holders of shares of the Company's common stock, par value $0.0005 ("Company Common Stock") immediately prior to the effectuation of the merger transaction receiving a commensurate number of shares of Parent common stock, par value $0.0005 ("Parent Common Stock"). See Note 15 "Subsequent Event" for additional information regarding the Merger Agreement.
Fiscal Year End: The Company’s fiscal year ends on January 31.
Note 2. Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) as set forth in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC") and applicable rules and regulations of the Securities Exchange Commission ("SEC") regarding interim financial reporting. Certain information and disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2021 filed with the SEC on March 31, 2021. The unaudited condensed consolidated financial statements include accounts of the Company’s wholly-owned subsidiaries, as well as a variable interest entity in which the Company is the primary beneficiary. All intercompany accounts and transactions are eliminated. See the variable interest entity section below and Note 3 "Variable Interest Entity and Redeemable Non-Controlling Interest" for additional information regarding the Company’s variable interest entity.
The Company is subject to the normal risks associated with technology companies that have not demonstrated sustainable income from operations, including product development, the risk of customer acceptance and market penetration of its products and services and, ultimately, the need to attain profitability to generate positive cash resources.
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal 2022 or any future period.
In March 2021, a Certificate of Amendment was filed with the state of Delaware for Visible Equity, LLC ("Visible Equity"), a wholly-owned subsidiary of the Company, to change its name to nCino Portfolio Analytics, LLC. The state of Delaware effected the name change in April 2021.
Effective February 1, 2021, the Company adopted the requirement of Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) using the alternative transition method. Under this method, the Company is not required to restate or disclose the effects of applying this ASU for comparative periods. See the Recently Adopted Accounting Guidance section for the adoption of ASU 2016-02, Leases (Topic 842).
Variable Interest Entity: The Company holds an interest in a Japanese company (“nCino K.K.”) that is considered a variable interest entity ("VIE"). nCino K.K. is considered a VIE as it has insufficient equity capital to finance its

7

Table of Contents
nCino, Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts and unless otherwise indicated)
activities without additional financial support. The Company is the primary beneficiary of nCino K.K. as it has the power over the activities that most significantly impact the economic performance of nCino K.K. and has the obligation to absorb expected losses and the right to receive expected benefits that could be significant to nCino K.K., in accordance with accounting guidance. As a result, the Company consolidated nCino K.K. and all significant intercompany accounts have been eliminated. The Company will continue to assess whether it has a controlling financial interest and whether it is the primary beneficiary at each reporting period. Other than the Company’s equity investment, the Company has not provided financial or other support to nCino K.K. that it was not contractually obligated to provide. The assets of the VIE can only be used to settle the obligations of the VIE and the creditors of the VIE do not have recourse to the Company. The assets and liabilities of the VIE were not significant to the Company’s consolidated financial statements except for cash which is reflected on the unaudited condensed consolidated balance sheets. See Note 3 "Variable Interest Entity and Redeemable Non-Controlling Interest" for additional information regarding the Company’s variable interest.
Redeemable Non-Controlling Interest: Redeemable non-controlling interest relates to minority investors of nCino K.K. An agreement with the minority investors of nCino K.K. contains redemption features whereby the interest held by the minority investors are redeemable either at the option of the (i) minority investors or (ii) the Company, both beginning on the eighth anniversary of the initial capital contribution. If the interest of the minority investors were to be redeemed under this agreement, the Company would be required to redeem the interest based on a prescribed formula derived from the relative revenues of nCino K.K. and the Company. The balance of the redeemable non-controlling interest is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings or losses and other comprehensive income or loss, or its estimated redemption value. The resulting changes in the estimated redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. These interests are presented on the unaudited condensed consolidated balance sheets outside of equity under the caption “Redeemable non-controlling interest.”
Use of Estimates: The preparation of unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions made by the Company’s management are used for, but not limited to, revenue recognition including determining the nature and timing of satisfaction of performance obligations, variable consideration, stand-alone selling price, and other revenue items requiring significant judgement; the average period of benefit associated with costs capitalized to obtain revenue contracts; fair value of assets acquired and liabilities assumed for business combinations; the useful lives of intangible assets; the valuation allowance on deferred tax assets; redemption value of redeemable non-controlling interest and stock-based compensation. The Company assesses these estimates on a regular basis using historical experience and other factors. Actual results could differ from these estimates.
Concentration of Credit Risk and Significant Customers: The Company’s financial instruments that are exposed to concentration of credit risk consist primarily of cash, cash equivalents and restricted cash. The Company’s cash and cash equivalents exceeded the Federal deposit insurance limit at January 31, 2021 and October 31, 2021. The Company maintains its cash, cash equivalents and restricted cash with high-credit-quality financial institutions.
As of January 31, 2021, no individual customer represented more than 10% of accounts receivable and, as of October 31, 2021, one customer represented 34% of accounts receivable. For the three and nine months ended October 31, 2020 and 2021, no individual customer represented more than 10% of the Company’s total revenues.
Restricted Cash: Restricted cash consists of deposits held as collateral for the Company's bank guarantees issued in place of security deposits for certain property leases.
Accounts Receivable and Allowances: A receivable is recorded when an unconditional right to invoice and receive payment exists, such that only the passage of time is required before payment of consideration is due. Timing of revenue recognition may differ from the timing of invoicing to customers. Certain performance obligations may require payment before delivery of the service to the customer. We recognize a contract asset in the form of accounts receivable when we have an unconditional right to payment, and we record a contract asset in the form of unbilled accounts receivable when revenues earned on a contract exceeds the billings. The Company’s standard billing terms are annual in advance. An unbilled

8

Table of Contents
nCino, Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts and unless otherwise indicated)
accounts receivable is a contract asset related to the delivery of the Company’s subscription services and professional services for which the related billings will occur in a future period. Unbilled accounts receivable consists of (i) revenues recognized for professional services performed but not yet billed and (ii) revenues recognized from non-cancelable, multi-year orders in which fees increase annually but for which we are not contractually able to invoice until a future period. Accounts receivable are reported at their gross outstanding balance reduced by an allowance for estimated receivable losses, which includes allowances for doubtful accounts and a reserve for expected credit losses.
The Company records allowances for doubtful accounts based upon the credit worthiness of customers, historical experience, the age of the accounts receivable, current market and economic conditions, and supportable forecasts about the future. Relevant risk characteristics include customer size and historical loss patterns. See the Recently Adopted Accounting Guidance section for the adoption of ASU 2016-13, Financial Instruments–Credit Losses: Measurement of Credit Losses on Financial Instruments.
A summary of activity in the allowance for doubtful accounts is as follows:
Three Months Ended October 31,Nine Months Ended October 31,
2020202120202021
Balance, beginning of period$622 $59 $ $88 
Charged to (recovery of) bad debt expense(277)89 342 84 
Other   (24)
Translation adjustments(3)3  3 
Balance, end of period$342 $151 $342 $151 
Leases: The Company determines if an arrangement is or contains a lease at inception date based on whether there is an identified asset and whether the Company controls the use of the identified asset throughout the period of use. The Company determines the classification of the lease, whether operating or financing, at the lease commencement date, which is the date the leased assets are made available for use. The Company accounts for lease and non-lease components as a single lease component for its facilities and equipment leases. The Company did not have any finance leases as of October 31, 2021.
Operating lease right-of-use ("ROU") assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The lease term reflects the noncancelable period of the lease together with options to extend or terminate the lease when it is reasonably certain the Company will exercise such option. Variable costs, such as common area maintenance costs, are not included in the measurement of the ROU assets and lease liabilities, but are expensed as incurred. The Company's leases do not generally provide an implicit rate; therefore, the Company uses its incremental borrowing rate in determining the present value of the lease payments. Lease expense is recognized on a straight-line basis over the lease term.
The Company does not recognize ROU assets or lease liabilities for leases with a term of 12 months or less. Lease expense for such leases is recognized on a straight-line basis over the lease term.
Recently Adopted Accounting Guidance: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard will affect all entities that lease assets and will require lessees to recognize a lease liability and a right-of-use asset for all leases (except for short-term leases that have a duration of less than one year) as of the date on which the lessor makes the underlying asset available to the lessee. For lessors, accounting for leases is substantially the same as in prior periods. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, to clarify how to apply certain aspects of the new leases standard. ASU 2016-02, as subsequently amended for various technical issues, is effective for emerging growth companies following private company adoption dates in fiscal years beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022, and early adoption is permitted. If the Company were to cease meeting the emerging growth company criteria during the fiscal year ending January 31, 2022, this ASU would be effective for the Company for its Annual Report on Form 10-K for the fiscal year ended January 31, 2022. Since the Company will cease to qualify as an emerging growth company as of January 31, 2022, the Company adopted this ASU effective February 1, 2021.

9

Table of Contents
nCino, Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts and unless otherwise indicated)
The Company used the alternative transition method in which the Company is not required to restate or disclose the effects of applying this ASU for comparative periods. The Company elected the package of practical expedients which permits the Company to not reassess prior conclusions pertaining to lease identification, lease classification, and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements. In addition, the Company elected ongoing practical expedients including the option to not recognize right-of-use assets and lease liabilities for short term leases (leases with an original term of twelve months or less). The Company also elected the practical expedient to not separate lease and non-lease components for our facilities and equipment leases.
The adoption of this ASU resulted in the recognition of operating right-of-use assets of $10.5 million and lease liabilities of $12.2 million, and the derecognition of deferred rent on the Company's unaudited condensed consolidated balance sheet on February 1, 2021. The adoption of this ASU did not impact the Company's unaudited condensed consolidated statements of operations, comprehensive loss or the unaudited condensed consolidated statements of cash flows. Upon the adoption of this ASU there was no change to the accounting for the Company's financing obligation.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13, as subsequently amended for various technical issues, is effective for emerging growth companies following private company adoption dates for fiscal years beginning after December 15, 2022 and for interim periods within those fiscal years. If the Company were to cease meeting the emerging growth company criteria during the fiscal year ending January 31, 2022, this ASU would be effective for the Company for its Annual Report on Form 10-K for the fiscal year ended January 31, 2022. Since the Company will cease to qualify as an emerging growth company as of January 31, 2022, the Company adopted this ASU effective February 1, 2021. The adoption of this ASU, which impacted the Company's allowance for doubtful accounts, did not have a material impact on the Company's unaudited condensed consolidated financial statements.
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 is effective for emerging growth companies following private company adoption dates in fiscal years beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022, with early adoption permitted, including adoption in an interim period. If the Company were to cease meeting the emerging growth company criteria during the fiscal year ending January 31, 2022, this ASU would be effective for the Company for its Annual Report on Form 10-K for the fiscal year ended January 31, 2022. Since the Company will cease to qualify as an emerging growth company as of January 31, 2022, the Company adopted this ASU effective February 1, 2021. The adoption of this ASU did not have a material impact on the Company’s unaudited condensed consolidated financial statements.
In October 2020, the FASB issued ASU 2020-10, Codification Improvements. The guidance includes amendments to improve the codification by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to the financial statements is codified in the disclosure section of the codification and to clarify guidance so that entities can apply guidance more consistently on codifications that are varied in nature where the original guidance may have been unclear. ASU 2020-10 is effective for emerging growth companies following private company adoption dates in fiscal years beginning after December 15, 2021, and interim periods within annual periods beginning after December 15, 2022, and early adoption is permitted. If the Company were to cease meeting the emerging growth company criteria during the fiscal year ending January 31, 2022, this ASU would be effective for the Company for its Annual Report on Form 10-K for the fiscal year ended January 31, 2022. Since the Company will cease to qualify as an emerging growth company as of January 31, 2022, the Company adopted this ASU effective February 1, 2021. The adoption of this ASU did not have a material impact on the Company’s unaudited condensed consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted: In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The standard addresses diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination. ASU 2021-08 requires an acquirer to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. ASU 2021-08 is effective for emerging growth companies following private company adoption dates in fiscal years beginning

10

Table of Contents
nCino, Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts and unless otherwise indicated)
after December 15, 2023, and for interim periods within those fiscal years, and early adoption is permitted. Since the Company will cease to qualify as an emerging growth company as of January 31, 2022, this ASU would be effective for the Company for its Annual Report on Form 10-K for the fiscal year ended January 31, 2024, with early adoption permitted. The Company is currently evaluating the impact of this standard to the Company's financial statements.
Note 3. Variable Interest Entity and Redeemable Non-Controlling Interest
In October 2019, the Company entered into an agreement with Japan Cloud Computing, L.P. and M30 LLC (collectively, the “Investors”) to engage in the investment, organization, management, and operation of nCino K.K. that is focused on the distribution of the Company’s products in Japan. In October 2019, the Company initially contributed $4.7 million in cash in exchange for 51% of the outstanding common stock of nCino K.K. As of October 31, 2021, the Company controls a majority of the outstanding common stock in nCino K.K.
All of the common stock held by the Investors is callable by the Company or puttable by the Investors at the option of the Investors or at the option of the Company beginning on the eighth anniversary of the agreement with the Investors. Should the call or put option be exercised, the redemption value would be determined based on a prescribed formula derived from the discrete revenues of nCino K.K. and the Company and may be settled, at the Company’s discretion, with Company stock or cash or a combination of the foregoing. As a result of the put right available to the Investors, the redeemable non-controlling interests in nCino K.K. are classified outside of permanent equity in the Company’s unaudited condensed consolidated balance sheets. The estimated redemption value of the call/put option embedded in the redeemable non-controlling interest was $0.5 million at October 31, 2021.
The following table summarizes the activity in the redeemable non-controlling interests for the period indicated below:
Three Months Ended October 31,Nine Months Ended October 31,
2020202120202021
Balance, beginning of period$4,384 $2,463 $4,356 $3,791 
Net loss attributable to redeemable non-controlling interest (excluding adjustment to non-controlling interest)(292)(389)(700)(1,259)
Foreign currency translation(2)(82)167 (233)
Adjustment to redeemable non-controlling interest76 368 343 61 
Balance, end of period$4,166 $2,360 $4,166 $2,360 
Note 4. Fair Value of Financial Instruments
The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2. Significant other inputs that are directly or indirectly observable in the marketplace.
Level 3. Significant unobservable inputs which are supported by little or no market activity.
The carrying amounts of cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value as of January 31, 2021 and October 31, 2021 because of the relatively short duration of these instruments.

11

Table of Contents
nCino, Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts and unless otherwise indicated)
The Company evaluated its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. The following table summarizes the Company’s financial assets measured at fair value as of January 31, 2021 and October 31, 2021 and indicates the fair value hierarchy of the valuation:
Fair value measurements on a recurring basis as of January 31, 2021
Level 1Level 2Level 3
Assets:
Money market accounts (included in cash and cash equivalents)
$332,541 $ $ 
Total assets$332,541 $ $ 
Fair value measurements on a recurring basis as of October 31, 2021
Level 1Level 2Level 3
Assets:
Money market accounts (included in cash and cash equivalents)
$329,501 $ $ 
Time deposits (included in other long-term assets)335   
Total assets$329,836 $ $ 
All of the Company’s money market accounts are classified within Level 1 because the Company’s money market accounts are valued using quoted market prices in active exchange markets including identical assets.
Note 5. Revenues
Revenues by Geographic Area
Revenues by geographic region were as follows:
Three Months Ended October 31,Nine Months Ended October 31,
2020202120202021
United States$47,635 $58,357 $132,155 $167,389 
International6,594 11,679 15,551 31,521 
$54,229 $70,036 $147,706 $198,910 
The Company disaggregates its revenues from contracts with customers by geographic location. Revenues by geography are determined based on the region of the Company’s contracting entity, which may be different than the region of the customer. No country outside the United States represented 10% or more of total revenues.

12

Table of Contents
nCino, Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts and unless otherwise indicated)
Contract Amounts
Accounts Receivable
Accounts receivable, less allowance for doubtful accounts, is as follows as of January 31, 2021 and October 31, 2021:
As of January 31, 2021As of October 31, 2021
Trade accounts receivable$53,272 $31,027 
Unbilled accounts receivable1,814 1,873 
Allowance for doubtful accounts(88)(151)
Other accounts receivable519 1,027 
Total accounts receivable, net$55,517 $33,776 
Deferred Revenue and Remaining Performance Obligations
Significant movements in the deferred revenue balance during the period consisted of increases due to payments received or due in advance prior to the transfer of control of the underlying performance obligations to the customer, which were offset by decreases due to revenues recognized in the period. During the nine months ended October 31, 2021, $82.2 million of revenues were recognized out of the deferred revenue balance as of January 31, 2021.
Transaction price allocated to remaining performance obligations represents contracted revenues that have not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenues in future periods. Transaction price allocated to the remaining performance obligation is influenced by several factors, including the timing of renewals, average contract terms, and foreign currency exchange rates. The Company applies practical expedients to exclude amounts related to performance obligations that are billed and recognized as they are delivered, optional purchases that do not represent material rights, and any estimated amounts of variable consideration that are subject to constraint.
Remaining performance obligations were $717.7 million as of October 31, 2021. The Company expects to recognize approximately 59% of its remaining performance obligation as revenues in the next 24 months, approximately 32% more in the following 25 to 48 months, and the remainder thereafter.
Note 6. Property and Equipment
Property and equipment, net consisted of the following:
As of January 31, 2021As of October 31, 2021
Furniture and fixtures$6,706 $7,045 
Computers and equipment5,039 6,181 
Buildings and land1
16,300 33,978 
Leasehold improvements11,581 13,425 
Construction in progress2
277 6,623 
39,903 67,252 
Less accumulated depreciation(9,960)(13,336)
$29,943 $53,916 

13

Table of Contents
nCino, Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except share and per share amounts and unless otherwise indicated)
The Company recognized depreciation expense as follows:
Three Months Ended October 31,Nine Months Ended October 31,
2020202120202021
Cost of revenues$346 $326 $935 $1,063 
Sales and marketing279 275 792 872 
Research and development361 467 941 1,313 
General and administrative136 159 362 461 
Total depreciation expense$1,122 $1,227 $3,030 $3,709 
1The construction of a parking deck, which is an addition to our existing headquarters, began in fiscal 2022 and was completed during September 2021. Since we are considered the owners of the parking deck for accounting purposes, upon completion of the construction of the parking deck, $