nCino, Inc. has recently released its 10-Q report, providing a detailed insight into its financial condition and operations. The company, founded in 2011 and headquartered in Wilmington, North Carolina, offers cloud-based software applications to financial institutions globally. Its nCino Bank Operating System connects financial institution employees, clients, and third parties on a single cloud-based platform, offering services such as client onboarding, deposit account opening, loan origination, end-to-end mortgage suite, and ecosystem tools for analyzing, measuring, and managing credit risk, as well as compliance with regulatory requirements.
In the 10-Q report, nCino reported total revenues of $138.8 million for the three months ended October 31, 2024, representing a 13.8% increase from the same period in the previous year. Subscription revenues for the same period were $119.9 million, reflecting a 14.4% increase. For the nine months ended October 31, 2024, total revenues were $399.3 million, with subscription revenues at $344.2 million, representing a 13.2% and 14.0% increase, respectively, from the same period in the previous year. The company recorded net losses of $5.3 million for the three months ended October 31, 2024, and $19.3 million for the nine months ended October 31, 2024, due to its investments in growth.
The report also highlighted nCino's focus on market adoption of its solutions, stating that the company's future growth depends on expanding its reach to new financial institution customers and increasing adoption with existing customers. Additionally, the company emphasized its "land and expand" business model, with a focus on scaling its solutions with customers and expanding adoption within and across lines of business.
nCino also detailed its revenue streams, with subscription revenues recognized ratably over the term of the contract beginning upon activation. The company's professional services and other revenues consist of fees for implementation and configuration assistance, training, and advisory services, generally recognized on a proportional performance basis.
The 10-Q report also mentioned the company's continued investment in innovation and growth, with substantial investments in product development, sales and marketing, and strategic acquisitions. nCino stated its intention to increase investment in product development to maintain and build on its advantage, as well as to invest in sales and marketing both in the U.S. and internationally to further grow its business.
As a result of these announcements, the company's shares have moved -8.9% on the market, and are now trading at a price of $38.71. For the full picture, make sure to review nCino's 10-Q report.
