Summary
nCino opened fiscal 2024 with total revenue of $113.7 million in the first quarter, up 20.7% from $94.2 million a year earlier. Subscription revenue did the heavy lifting at $97.3 million, up 23% from $79.2 million, and now makes up 85.6% of the total, up from 84.1% a year earlier. The quarter brought a top-15 U.K. mortgage lender onto the platform for property lending, plus a renewal and expansion with a top-4 U.K. bank. One of the largest U.S. banks went live on Small Business lending after earlier commercial deployments. Two Top-25 U.S. banks expanded their relationships. The annual nSight user conference drew more than 1,700 attendees from 15 countries, over 320 financial institutions, and 29 sponsoring partners.
Profitability improved sharply. Gross profit rose 25.2% to $67.5 million, and gross margin climbed to 59.4% from 57.2%. Operating loss narrowed to $8.6 million from $27.2 million, lifting operating margin to -7.6% from -28.9%. Net loss attributable to nCino narrowed to $11.2 million from $30.7 million, and diluted loss per share narrowed to $0.10 from $0.28. On a non-GAAP basis, operating income was $10.9 million, a swing from a $3.7 million loss a year earlier, and non-GAAP net income attributable to nCino was $8.0 million versus a $6.1 million loss. Non-GAAP diluted earnings per share came in at $0.07 against a loss of $0.06.
Cash generation was the standout. Operating cash flow was $31.3 million for the quarter, up from $1.2 million a year earlier. Capital expenditures fell to $1.6 million from $4.7 million. Free cash flow, a non-GAAP measure, was a record $29.7 million compared with negative $3.4 million. Cash, cash equivalents, and restricted cash stood at $103.5 million on April 30, 2023, and $15.0 million was outstanding under the credit facility. Deferred revenue, current portion, rose 19.2% to $171.7 million. Total RPO was $914.0 million, up 0.9%, while the portion expected to be recognized in the next 24 months was $622.6 million, up 10%.
Management guided for the second quarter ending July 31, 2023, to a total revenue range of $114.0 million to $115.5 million and a subscription revenue range of $97.5 million to $98.5 million. Second quarter non-GAAP operating income is expected between $8.0 million and $9.5 million, with non-GAAP net income per diluted share of $0.06 to $0.08. For the full fiscal year 2024 ending January 31, 2024, the company guided to a total revenue range of $474.0 million to $478.5 million and a subscription revenue range of $405.0 million to $409.0 million. Full-year non-GAAP operating income is guided to between $48.0 million and $52.5 million, with non-GAAP net income per diluted share of $0.37 to $0.40.
Risks stay concentrated in the macro backdrop. Rising interest rates have hurt U.S. mortgage demand and weighed on the SimpleNexus business. Silicon Valley Bank, Signature Bank, and First Republic Bank are customers and together represented less than 3% of total revenue for the year ended January 31, 2023, though no single customer topped 10% of revenue in the first quarter of fiscal 2024. Sales cycles run six to nine months for smaller institutions and 12 to 18 months or more for larger ones. Professional services gross margin turned negative on weaker billing and utilization rates. Headcount fell by 76 year over year after the restructuring announced in the fourth quarter of fiscal 2023. International revenue was 16.9% of the total for the quarter. The company also flagged the Salesforce relationship, security breaches, and the Antitrust Matters as risks, and may contribute up to $5.0 million more to nCino K.K. during fiscal 2024.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $113.7M | $109.2M | +4.1% | $94.2M | +20.7% |
| Gross profit | $67.5M | $64.3M | +5.0% | $53.9M | +25.2% |
| Gross margin | 59.4% | 58.9% | +0.5 pp | 57.2% | +2.1 pp |
| Research & development | $28.2M | $33.3M | -15.3% | $29.1M | -3.2% |
| Sales & marketing | $29.9M | $33.4M | -10.3% | $29.3M | +2.1% |
| General & administrative | $18.0M | $20.9M | -14.0% | $22.7M | -20.8% |
| Total operating expenses | $76.1M | $87.6M | -13.1% | $81.1M | -6.2% |
| Operating income (loss) | -$8.6M | -$23.3M | +63.0% | -$27.2M | +68.3% |
| Operating margin | -7.6% | -21.4% | +13.8 pp | -28.9% | +21.3 pp |
| Net income (loss) | -$11.6M | -$21.8M | +46.5% | -$30.0M | +61.2% |
| Net margin | -10.2% | -19.9% | +9.7 pp | -31.9% | +21.6 pp |
| Diluted EPS | -$0.10 | -$0.20 | +$0.10 | -$0.28 | +$0.18 |
Risks
Rising interest rates and Federal Reserve rate increases have negatively affected the U.S. real estate market and demand for mortgages and mortgage-related products, which has had a negative impact on the SimpleNexus business.
Liquidity issues at certain financial institutions, including Silicon Valley Bank, Signature Bank and First Republic Bank, created turmoil in the financial services industry; these Impacted FIs are customers and collectively represented less than 3% of total revenues for the year ended January 31, 2023.
New customer sales cycles are lengthy, generally ranging from six to nine months for smaller FIs to 12 to 18 months or more for larger FIs, and growth requires international expansion, which accounted for 16.9% of total revenues for the three months ended April 30, 2023.
Professional services and other gross margin decreased to (4.3)% for the three months ended April 30, 2023 from 1.5% for the three months ended April 30, 2022, primarily due to a decline in realized effective billing and utilization rates in the professional services teams.
The company faces government antitrust investigation and related civil action, plus a shareholder derivative lawsuit, with litigation expenses of $1.145 million for the three months ended April 30, 2023.
Employee headcount decreased by 76 as of April 30, 2023 compared to April 30, 2022 primarily due to the workforce reduction announced in the fourth quarter of fiscal 2023, and restructuring and related charges were $0.239 million for the three months ended April 30, 2023.
As of April 30, 2023, the company had an accumulated deficit of $321.7 million and expects to continue to incur operating losses on a GAAP basis for the foreseeable future, and may need additional capital that could be dilutive or subject to debt covenants.
Adoption of Code Section 174 may reduce operating cash flows in future periods through cash remittances of U.S. federal and state income tax.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Non-GAAP Operating Income
Non-GAAP Gross Margin
Remaining Performance Obligation (RPO)
Summary, forecast, risks and KPIs are extracted from nCino, Inc.'s SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.