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nCino Reports Fourth Quarter and Fiscal Year 2022 Financial Results

March 31, 2022 4:05 PM

Fiscal Year 2022 Total Revenues of $273.9M, up 34% year-over-year; Q4 Total Revenues of $75.0M, up 32% year-over-year
Fiscal Year 2022 Subscription Revenues of $224.9M, up 38% year-over-year; Q4 Subscription Revenues of $62.8M, up 40% year-over-year
Fiscal Year 2023 Total Revenue Guidance of $398M to $400M

WILMINGTON, N.C., March 31, 2022 (GLOBE NEWSWIRE) -- nCino, Inc. (NASDAQ: NCNO), a pioneer in cloud banking and digital transformation solutions for the global financial services industry, today announced financial results for the fourth quarter and fiscal year 2022, ended January 31, 2022.

“With new logos, significant expansion deals, continued traction internationally and the completion of the SimpleNexus acquisition, the fourth quarter was a strong finish to a tremendous year for nCino,” said Pierre Naudé, CEO of nCino. “As we look to fiscal year 2023, the strength of our combined businesses positions us extremely well for continued growth. We are pursuing a large, global opportunity to help lenders and financial institutions of all sizes digitally transform their operations, and 10 years in, we are just getting started.”

Fourth Quarter Fiscal 2022 Financial Highlights

Full Year Fiscal 2022 Financial Highlights

Recent Business Highlights

Financial Outlook
nCino is providing guidance for its first quarter ending April 30, 2022, as follows:

nCino is providing guidance for its fiscal year 2023 ending January 31, 2023, as follows:

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. The nCino Bank Operating System® empowers financial institutions with scalable technology to help them achieve revenue growth, greater efficiency, cost savings and regulatory compliance. In a digital-first world, nCino's single cloud-based platform enhances the employee and client experience to enable financial institutions to more effectively onboard clients, make loans and manage the entire loan life cycle, and open deposit and other accounts across lines of business and channels. Transforming how financial institutions operate through innovation, reputation and speed, nCino is partnered with more than 1,750 financial institutions of all types and sizes on a global basis. For more information, visit https://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) the impact of the COVID-19 pandemic, including the impact to the financial services industry, the impact on general economic conditions and the impact of government responses, restrictions, and actions; (ii) risks associated with the acquisition of SimpleNexus, (iii) breaches in our security measures or unauthorized access to our customers’ or their clients' data; (iv) the accuracy of management’s assumptions and estimates; (v) our ability to attract new customers and succeed in having current customers expand their use of our solution; (vi) 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; (vii) 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; (viii) fluctuation of our results of operations, which may make period-to-period comparisons less meaningful; (ix) our ability to manage our growth effectively including expanding outside of the United States; (x) adverse changes in our relationship with Salesforce; (xi) our ability to successfully acquire new companies and/or integrate acquisitions into our existing organization, including SimpleNexus; (xii) 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; (xiii) 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; (xiv) our ability to maintain our corporate culture and attract and retain highly skilled employees; (xv) adverse changes in the financial services industry, including as a result of customer consolidation; (xvi) adverse changes in economic, regulatory, or market conditions, including as a direct or indirect consequence of the outbreak of hostilities in Ukraine; and (xvii) 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, 2021 January 31, 2022
Assets
Current assets
Cash and cash equivalents$371,425 $88,014
Accounts receivable, net 55,517 74,528
Costs capitalized to obtain revenue contracts, current portion, net 4,864 7,583
Prepaid expenses and other current assets 10,425 13,384
Total current assets 442,231 183,509
Property and equipment, net 29,943 60,677
Operating lease right-of-use assets, net — 13,170
Costs capitalized to obtain revenue contracts, noncurrent, net 10,191 16,403
Goodwill 57,149 841,487
Intangible assets, net 23,137 180,122
Investment — 4,031
Other long-term assets 750 1,615
Total assets$563,401 $1,301,014
Liabilities, redeemable non-controlling interest, and stockholders’ equity
Current liabilities
Accounts payable$1,634 $11,366
Accounts payable, related party 4,363 —
Accrued compensation and benefits 15,885 21,454
Accrued expenses and other current liabilities 4,142 14,744
Deferred rent, current portion 203 —
Deferred revenue, current portion 89,141 122,643
Financing obligations, current portion 324 621
Operating lease liabilities, current portion — 3,548
Total current liabilities 115,692 174,376
Operating lease liabilities, noncurrent — 11,198
Deferred income taxes, noncurrent 368 1,675
Deferred rent, noncurrent 1,486 —
Deferred revenue, noncurrent 946 44
Financing obligations, noncurrent 15,939 33,478
Construction liability, noncurrent — 9,736
Total liabilities 134,431 230,507
Commitments and contingencies
Redeemable non-controlling interest 3,791 2,882
Stockholders’ equity
Common stock 47 55
Additional paid-in capital 585,956 1,277,258
Accumulated other comprehensive income (loss) 240 (72)
Accumulated deficit (161,064) (209,616)
Total stockholders’ equity 425,179 1,067,625
Total liabilities, redeemable non-controlling interest, and stockholders’ equity$563,401 $1,301,014


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,
2021 2022 2021 2022
Revenues
Subscription$44,978 $62,802 $162,439 $224,854
Professional services and other 11,609 12,153 41,854 49,011
Total revenues 56,587 74,955 204,293 273,865
Cost of revenues
Subscription 13,570 18,501 47,969 64,508
Professional services and other 10,598 12,784 40,166 46,905
Total cost of revenues 24,168 31,285 88,135 111,413
Gross profit 32,419 43,670 116,158 162,452
Gross margin % 57% 58% 57% 59%
Operating expenses
Sales and marketing 17,704 24,674 59,731 82,901
Research and development 16,929 23,373 58,263 79,363
General and administrative 11,642 25,614 40,772 71,545
Total operating expenses 46,275 73,661 158,766 233,809
Loss from operations (13,856) (29,991) (42,608) (71,357)
Non-operating income (expense)
Interest income 72 21 361 194
Interest expense (130) (537) (130) (1,514)
Other income (expense), net 1,356 (952) 1,693 (1,277)
Loss before income taxes (12,558) (31,459) (40,684) (73,954)
Income tax provision (benefit) (123) (24,863) 586 (23,833)
Net loss (12,435) (6,596) (41,270) (50,121)
Net loss attributable to redeemable non-controlling interest (430) (310) (1,130) (1,569)
Adjustment attributable to redeemable non-controlling interest 53 833 396 894
Net loss attributable to nCino, Inc.$(12,058) $(7,119) $(40,536) $(49,446)
Net loss per share attributable to nCino, Inc.:
Basic and diluted$(0.13) $(0.07) $(0.46) $(0.51)
Weighted average number of common shares outstanding:
Basic and diluted 92,789,559 100,319,094 87,678,323 96,722,464


nCino, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Fiscal Year Ended January 31,
2021 2022
Cash flows from operating activities
Net loss attributable to nCino, Inc.$(40,536) $(49,446)
Net loss and adjustment attributable to redeemable non-controlling interest (734) (675)
Net loss (41,270) (50,121)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 7,431 10,006
Non-cash operating lease costs — 2,534
Amortization of costs capitalized to obtain revenue contracts 4,682 5,779
Stock-based compensation 25,208 28,477
Deferred income taxes 168 (24,280)
Provision for (recovery of) bad debt 100 90
Net foreign currency (gains) losses (1,691) 1,860
Change in operating assets and liabilities:
Accounts receivable (20,614) (13,507)
Accounts receivable, related parties 9,201 —
Costs capitalized to obtain revenue contracts (8,967) (11,045)
Prepaid expenses and other assets (3,342) (2,503)
Accounts payable 346 8,796
Accounts payable, related parties 956 (4,363)
Accrued expenses and other current liabilities 6,740 7,311
Deferred rent (52) —
Deferred revenue 38,339 24,317
Deferred revenue, related parties (8,013) —
Operating lease liabilities — (2,580)
Net cash provided by (used in) operating activities 9,222 (19,229)
Cash flows from investing activities
Acquisition of business, net of cash acquired — (268,994)
Purchases of property and equipment (4,338) (5,463)
Purchase of cost method investment — (4,031)
Net cash used in investing activities (4,338) (278,488)
Cash flows from financing activities
Proceeds from initial public offering, net of underwriting discounts and commissions 268,375 —
Payments of costs related to initial public offering (2,765) —
Stock issuance costs — (210)
Exercise of stock options 8,745 13,907
Proceeds from stock issuance under the employee stock purchase plan — 2,543
Contingent consideration payments (197) —
Principal payments on financing obligations (37) (318)
Net cash provided by financing activities 274,121 15,922
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash 1,236 (1,231)
Net increase (decrease) in cash, cash equivalents, and restricted cash 280,241 (283,026)
Cash and cash equivalents, beginning of period 91,184 371,425
Cash, cash equivalents, and restricted cash, end of period$371,425 $88,399
Reconciliation of cash, cash equivalents, and restricted cash, end of period:
Cash and cash equivalents$371,425 $88,014
Restricted cash included in other long-term assets — 385
Total cash, cash equivalents, and restricted cash, end of period$371,425 $88,399


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.

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,
2021 2022 2021 2022
GAAP total revenues$56,587 $74,955 $204,293 $273,865
GAAP cost of subscription revenues$13,570 $18,501 $47,969 $64,508
Amortization expense - developed technology (392) (1,427) (1,525) (2,604)
Stock-based compensation (138) (239) (576) (960)
Non-GAAP cost of subscription revenues$13,040 $16,835 $45,868 $60,944
GAAP cost of professional services and other revenues$10,598 $12,784 $40,166 $46,905
Stock-based compensation (874) (1,314) (4,232) (5,195)
Non-GAAP cost of professional services and other revenues$9,724 $11,470 $35,934 $41,710
GAAP gross profit$32,419 $43,670 $116,158 $162,452
Amortization expense - developed technology 392 1,427 1,525 2,604
Stock-based compensation 1,012 1,553 4,808 6,155
Non-GAAP gross profit$33,823 $46,650 $122,491 $171,211
Non-GAAP gross margin % 60% 62% 60% 63%
GAAP sales & marketing expense$17,704 $24,674 $59,731 $82,901
Amortization expense - customer relationships (418) (888) (1,670) (2,141)
Amortization expense - trade name — (162) — (162)
Stock-based compensation (1,372) (2,105) (6,190) (7,520)
Non-GAAP sales & marketing expense$15,914 $21,519 $51,871 $73,078
GAAP research & development expense$16,929 $23,373 $58,263 $79,363
Stock-based compensation (1,057) (1,606) (5,463) (6,186)
Non-GAAP research & development expense$15,872 $21,767 $52,800 $73,177
GAAP general & administrative expense$11,642 $25,614 $40,772 $71,545
Amortization expense - trademarks — — (10) —
Stock-based compensation (2,154) (2,664) (8,747) (8,616)
Acquisition-related expenses — (9,104) — (10,006)
Fees and expenses related to the Antitrust Matters — (2,158) — (10,326)
Non-GAAP general & administrative expense$9,488 $11,688 $32,015 $42,597
GAAP loss from operations$(13,856) $(29,991) $(42,608) $(71,357)
Amortization expense - developed technology 392 1,427 1,525 2,604
Amortization expense - customer relationships 418 888 1,670 2,141
Amortization expense - trademarks — — 10 —
Amortization expense - trade name — 162 — 162
Stock-based compensation 5,595 7,928 25,208 28,477
Acquisition-related expenses — 9,104 — 10,006
Fees and expenses related to the Antitrust Matters — 2,158 — 10,326
Non-GAAP operating loss$(7,451) $(8,324) $(14,195) $(17,641)
Non-GAAP operating margin (13)% (11)% (7)% (6)%
GAAP net loss attributable to nCino$(12,058) $(7,119) $(40,536) $(49,446)
Amortization expense - developed technology 392 1,427 1,525 2,604
Amortization expense - customer relationships 418 888 1,670 2,141
Amortization expense - trademarks — — 10 —
Amortization expense - trade name — 162 — 162
Stock-based compensation 5,595 7,928 25,208 28,477
Acquisition-related expenses — 9,104 — 10,006
Fees and expenses related to the Antitrust Matters — 2,158 — 10,326
Tax benefit related to the SimpleNexus acquisition — (24,646) — (24,646)
Adjustment attributable to redeemable non-controlling interest 53 833 396 894
Non-GAAP net loss attributable to nCino$(5,600) $(9,265) $(11,727) $(19,482)
Weighted-average shares used to compute net loss per share, basic and diluted 92,789,559 100,319,094 87,678,323 96,722,464
GAAP net loss attributable to nCino per share$(0.13) $(0.07) $(0.46) $(0.51)
Non-GAAP net loss attributable to nCino per share$(0.06) $(0.09) $(0.13) $(0.20)
Free cash flow
Net cash provided by (used in) operating activities$(11,925) $(21,052) $9,222 $(19,229)
Purchases of property and equipment (583) (1,823) (4,338) (5,463)
Free cash flow$(12,508) $(22,875) $4,884 $(24,692)
Principal payments on financing obligations1 (37) (137) (37) (318)
Free cash flow less principal payments on financing $(12,545) $(23,012) $4,847 $(25,010)

1These amounts represent the non-interest component of payments towards financing obligations for facilities.

CONTACTS

INVESTOR CONTACT
JoAnn Horne
Market Street Partners
+1 415.445.3240
[email protected]

MEDIA CONTACT
Kathryn Cook
nCino
+1 919.691.4206
[email protected]


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