Summary
nCino reported fourth-quarter total revenues of $109.2 million, up 46% year over year. GAAP gross profit rose 47.1% to $64.25 million, and gross margin was 58.9%, up 0.6 percentage points. The GAAP operating loss narrowed to $23.33 million, while GAAP net loss attributable to nCino widened to $21.21 million. Non-GAAP operating income was $1.8 million, compared with a non-GAAP operating loss of $8.3 million in the prior-year quarter. Non-GAAP net income attributable to nCino was $4.4 million, compared with a non-GAAP net loss of $9.3 million. The company said this was its second consecutive quarter of positive non-GAAP operating income. Organic subscription revenues, which exclude SimpleNexus, were $77.0 million, up 30%.
For the full fiscal year, total revenues were $408.3 million, up 49%. GAAP gross profit rose 46.9% to $238.71 million, while gross margin slipped to 58.5%, down 0.9 percentage points. Operating margin was negative 21.4% for the quarter, up 18.6 percentage points, and negative 23.0% for the fiscal year, up 3.0 percentage points. The GAAP operating loss widened to $94.01 million, and GAAP net loss attributable to nCino widened to $102.72 million. Diluted GAAP net loss per share widened to $0.93. Operating cash flow was negative $15.38 million for the fiscal year, up 20.0% from the prior year. Capital expenditures were $18.34 million, up 235.7%. Deferred revenue, current portion, was $154.87 million, up 26.3%. Remaining performance obligations were $944.10 million, up 3.5%. Non-GAAP operating loss for the fiscal year was $2.1 million, compared with a non-GAAP operating loss of $17.6 million. Non-GAAP net loss attributable to nCino was $8.0 million, compared with a non-GAAP net loss of $19.5 million. Non-GAAP net loss per diluted share was $0.07, compared with $0.20.
Operational momentum included several large customer wins. Johnson Financial Group selected the nCino platform for commercial, retail, and small business lending and deposit account opening. nCino added one of the largest banks in Ireland and the U.K. division of a $75 billion global bank for commercial lending. A top-50 U.S. bank selected nCino's Commercial Pricing and Profitability solution, the largest sale of that offering to date. SimpleNexus signed its three largest initial contracts ever in the fourth quarter, two of which were cross-sells into the nCino customer base. The company also completed a record go-live year with a top-10 U.S. bank. Subscription revenue retention rate was 148% for fiscal 2023, or 125% excluding SimpleNexus. In January 2023, nCino announced a workforce reduction of approximately 7% and office space reductions in certain markets. Management said the restructuring is intended to improve operating margins and advance profitable growth.
Guidance for the first quarter ending April 30, 2023, includes non-GAAP operating income between $7 million and $9 million and non-GAAP net income per diluted share of $0.04 to $0.05. For fiscal year 2024 ending January 31, 2024, nCino guided non-GAAP operating income between $45 million and $50 million and non-GAAP net income per diluted share of $0.36 to $0.40. The company faces risks from uncertainty in the banking industry, including bank failures and customer consolidation. Higher interest rates have hurt demand for mortgages and mortgage-related products, which has negatively affected the SimpleNexus business. Other risks include the company's relationship with Salesforce, competition and pricing pressure, security breaches, and legal proceedings. Management expects to continue incurring operating losses on a GAAP basis for the foreseeable future. The company also noted that beginning in fiscal 2023, Code Section 174 requires capitalization and amortization of research and development expenditures, which may reduce operating cash flows in future periods through cash remittances of U.S. federal and state income tax.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2023 | Q3 FY2023 | QoQ | Q4 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $109.2M | $105.3M | +3.7% | — | — |
| Gross profit | $64.3M | $62.1M | +3.4% | — | — |
| Gross margin | 58.9% | 59.0% | -0.2 pp | — | — |
| Research & development | $33.3M | $29.5M | +13.0% | — | — |
| Sales & marketing | $33.4M | $32.4M | +3.0% | — | — |
| General & administrative | $20.9M | $18.7M | +11.8% | — | — |
| Total operating expenses | $87.6M | $80.6M | +8.7% | — | — |
| Operating income (loss) | -$23.3M | -$18.4M | -26.5% | — | — |
| Operating margin | -21.4% | -17.5% | -3.9 pp | — | — |
| Net income (loss) | -$21.8M | -$22.6M | +3.9% | — | — |
| Net margin | -19.9% | -21.5% | +1.6 pp | — | — |
| Diluted EPS | -$0.20 | -$0.21 | +$0.01 | — | — |
| Customers | 470 | — | — | — | — |
Risks
All revenues come from financial institutions, and the filing cites the March 2023 FDIC takeovers of Silicon Valley Bank and Signature Bank amid liquidity concerns. Downturns, consolidation, or reduced technology spend among FIs could reduce customer spending or cause contract renegotiation.
MD&A states the rising interest rate environment has negatively impacted the SimpleNexus business by affecting U.S. real estate demand for mortgages and mortgage-related products. Continued rate increases may further pressure that business.
Fundamental elements of the nCino Bank Operating System are built on the Salesforce Platform, and the Salesforce Agreement expires June 19, 2027. Termination or non-renewal would materially adversely impact the business model and could force customers to obtain separate Salesforce subscriptions.
Net loss attributable to nCino was $102.7 million for FY2023 year to date, and the loss widened versus the prior year. The company expects GAAP losses for the foreseeable future and may not achieve or sustain profitability.
The filing notes sales cycles typically range from six to nine months for smaller FIs to 12 to 18 months or more for larger FIs. Failure to attract new customers or broaden existing customer use would adversely affect revenue growth.
Customers have no obligation to renew, and the subscription revenue retention rate was 148% for fiscal 2023 but 125% excluding SimpleNexus. Customers may renew for fewer users or on less favorable pricing terms.
Customers are highly regulated FIs, and nCino is examined periodically by regulatory agencies and must comply with requirements such as Gramm-Leach-Bliley privacy provisions. Failure to satisfy examinations or compliance could impair customer acquisition and retention.
The company faces a putative antitrust class action regarding hiring and wage practices and a stockholder derivative lawsuit regarding prior mergers. These matters could be costly, damage reputation, and divert management attention.
SimpleNexus was the largest acquisition to date, and nCino has limited experience acquiring businesses. Integration failures or impairment of acquired goodwill and intangible assets could hurt operating results.
Entities affiliated with Insight Partners held approximately 35% of total outstanding common stock as of January 31, 2023. This concentration limits public stockholders' influence over corporate actions and sales by Insight Partners could adversely affect the stock price.
The revolving Credit Facility contains restrictive covenants and is secured by substantially all personal property. Covenant violations could limit operating flexibility and liquidity.
The company expects continued GAAP losses and may require additional capital. Future equity issuance could dilute stockholders, and debt could impose restrictive covenants.
Gross margin for FY2023 year to date was 58.5%, down 0.9 percentage points from the prior year. MD&A attributes pressure partly to lower professional services billing and utilization rates and higher amortization.
Customer implementations typically range from three to 18 months and often rely on SI partners such as Accenture, Deloitte, PwC, and West Monroe Partners. Delays or partner failures could delay revenue recognition and harm customer references.
Total employees increased from 436 as of January 31, 2018 to 1,791 as of January 31, 2023. Managing the growing workforce and customer base may strain operations and service quality.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Non-GAAP Operating Income
Remaining Performance Obligation (RPO)
Summary, forecast, risks and KPIs are extracted from nCino, Inc.'s SEC filings for Q4 FY2023 (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 2, 2026.