Summary
nCino reported FY2024 Q3 total revenues of $121.94 million, up 15.8% from $105.30 million in FY2023 Q3. Gross profit was $73.92 million, up 19.0% from $62.14 million, and gross margin improved to 60.6% from 59.0%. The company still recorded a GAAP operating loss of $12.91 million, but that loss narrowed from $18.44 million. GAAP net loss attributable to nCino was $16.38 million, or -$0.15 per diluted share, compared with a net loss of $23.58 million, or -$0.21 per diluted share, in the prior-year quarter. The quarter included accelerated amortization from rebranding the SimpleNexus solution to nCino Mortgage. Year-to-date revenue was $352.85 million, up 18.0% from $299.13 million, while year-to-date net loss attributable to nCino was $43.51 million, compared with $81.51 million.
Non-GAAP results showed much stronger profitability. Non-GAAP operating income was $20.4 million, compared with $2.5 million a year earlier. Non-GAAP operating margin was 17%, up 1,400 basis points. Non-GAAP gross margin was 67%, compared with 65% a year earlier. Non-GAAP net income attributable to nCino was $16.2 million, compared with a $1.4 million net loss a year earlier. Non-GAAP diluted net income per share was $0.14, compared with a $0.01 net loss per share. The gap between GAAP and non-GAAP results reflects stock-based compensation, amortization of intangibles, acquisition-related expenses, litigation expenses, and restructuring charges.
Cash generation improved sharply. Current-quarter operating cash flow was $5.87 million, up from -$4.08 million in FY2023 Q3. Year-to-date operating cash flow was $49.14 million, up from $6.64 million. Free cash flow was $5.25 million, compared with -$8.67 million. Capital expenditures fell to $0.62 million from $4.59 million in the quarter. Deferred revenue, current portion, rose to $130.31 million from $117.28 million. Remaining performance obligations were $917.10 million, essentially flat from $919.20 million. Operating margin was -10.6%, an improvement from -17.5% in the prior-year quarter.
Operational wins spanned lending products and geographies. nCino signed its first enterprise Consumer lending deal with a $200 billion U.S. bank. It added Yamaguchi Financial Group, an over $150 billion USD asset bank, as its largest customer in Japan. A regional bank with over $35 billion in assets expanded its relationship and became the largest cross-sell customer to adopt the nCino Mortgage Suite. The company also completed an expansion deal with a top Irish bank for corporate and institutional banking, small and medium enterprise banking, commercial pricing profitability, ESG, and end-to-end mortgage origination. nCino says it serves more than 1,850 financial institutions. As of October 31, 2023, nCino had 232 sales and sales support personnel in the U.S. and 70 outside the U.S.
For FY2024 Q4, nCino guides non-GAAP operating income to $15.0 million to $16.0 million and non-GAAP net income per share to $0.11 to $0.13. For the full fiscal year 2024, guidance is non-GAAP operating income of $57.5 million to $58.5 million and non-GAAP net income per share of $0.40 to $0.42. The company also provided revenue guidance for both periods. Risks include higher interest rates and their pressure on U.S. mortgage demand, which has hurt the nCino Mortgage business. Other risks include customer consolidation or bank failures, dependence on Salesforce, security breaches, competition and pricing pressure, lengthy sales cycles, international expansion challenges, integration of SimpleNexus, and legal proceedings including the Antitrust Matters. The company also notes that Code Section 174 may reduce operating cash flows in future periods through cash remittances of U.S. federal and state income taxes. Management expects to continue to incur operating losses on a GAAP basis for the foreseeable future.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $121.9M | $117.2M | +4.0% | $105.3M | +15.8% |
| Gross profit | $73.9M | $69.2M | +6.8% | $62.1M | +19.0% |
| Gross margin | 60.6% | 59.0% | +1.6 pp | 59.0% | +1.6 pp |
| Research & development | $29.0M | $29.9M | -2.8% | $29.5M | -1.5% |
| Sales & marketing | $38.4M | $32.2M | +19.5% | $32.4M | +18.6% |
| General & administrative | $19.3M | $21.9M | -11.8% | $18.7M | +3.4% |
| Total operating expenses | $86.8M | $84.0M | +3.4% | $80.6M | +7.7% |
| Operating income (loss) | -$12.9M | -$14.8M | +12.8% | -$18.4M | +30.0% |
| Operating margin | -10.6% | -12.6% | +2.0 pp | -17.5% | +6.9 pp |
| Net income (loss) | -$17.2M | -$16.1M | -6.8% | -$22.6M | +24.1% |
| Net margin | -14.1% | -13.7% | -0.4 pp | -21.5% | +7.4 pp |
| Diluted EPS | -$0.15 | -$0.14 | -$0.01 | -$0.21 | +$0.06 |
Risks
Higher U.S. interest rates and Federal Reserve rate increases have reduced demand for mortgages and mortgage-related products, which the company states has had a negative impact on its nCino Mortgage business.
New customer sales cycles are lengthy, generally six to nine months for smaller financial institutions and 12 to 18 months or more for larger FIs, and growth depends on replacing legacy point solutions and expanding adoption within and across lines of business.
Professional services and other gross margin declined to (1.4)% for the three months ended October 31, 2023 from 4.1% in the prior-year quarter, and to (3.8)% for the nine months ended October 31, 2023 from 2.2%, primarily due to a decline in realized effective billing and utilization rates.
Growing the customer base increasingly requires penetrating markets outside the U.S., which accounted for 19.2% of total revenues for the three months ended October 31, 2023 and 18.3% for the nine months ended October 31, 2023.
The company continues to incur legal expenses related to the government antitrust investigation and related civil action, known as the Antitrust Matters, and a shareholder derivative lawsuit, and recorded an accrual for a proposed settlement agreement of approximately $2.2 million in the nine months ended October 31, 2023.
Adoption of Code Section 174 may reduce operating cash flows in future periods through cash remittances of U.S. federal and state income tax.
Sales and marketing headcount decreased by 61, research and development headcount decreased by 86, and general and administrative headcount decreased by 8 from October 31, 2022 to October 31, 2023, primarily due to attrition and a workforce reduction.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Non-GAAP Gross Margin
Total Remaining Performance Obligation (RPO)
Summary, forecast, risks and KPIs are extracted from nCino, Inc.'s SEC filings for Q3 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.