nCino (NCNO) soars 14% on Q4 report, analyst says buying behavior is normalizing

Shares of nCino (NASDAQ: NCNO) jumped nearly 14% in premarket trading Wednesday after the financial technology provider reported better-than-expected earnings for the fiscal fourth quarter.

The company posted earnings per share (EPS) of $0.21, topping the consensus estimates of $0.12. Revenue came in at $123.7 million, missing the estimated $124.7 million.

Looking ahead to the first quarter, nCino forecasts its adjusted EPS to range from 13 cents to 14 cents, ahead of the analyst estimate of 12 cents. Revenue is estimated to be between $126.0 million and $127.0 million, which falls short of the expected $128.8 million.

For the full year of FY2025, nCino has set its sights on an EPS of between $0.60 and $0.64, also above the consensus estimate of $0.56. However, revenue is anticipated to range from $538.5 million to $544.5 million for the year, slightly below the expected $545.7 million

“We believe shares are trading up 12% after hours on the back of positive management commentary on forward pipeline visibility, with buying behavior returning to more normalized levels after a few challenging quarters driven by the banking liquidity crisis last year,” Goldman Sachs analysts said.

“With churn likely beginning to normalize, lighter implementation products gaining momentum, an increasingly diverse pipeline driving cross-sell, and more visibility into an improving macro, we think guidance, despite being modestly below consensus, will likely prove conservative.”

The analysts slightly raised the target price on NCNO from $37 to $38, while maintaining a Neutral rating.

nCino also announced that Josh Glover, the President and Chief Revenue Officer, is leaving to take up the same roles at a late-stage private company outside the finance sector.

Paul Clarkson, who has been co-managing nCino's global sales with Glover, is stepping up as the new Executive Vice President Global Revenue. Glover will stay on as a consultant until June to help with a smooth handover.

By Vahid Karaahmetovic

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