Summary
nCino closed fiscal 2024 with fourth quarter revenue of $123.7 million, up 13% from $109.2 million a year earlier. Full year revenue reached $476.5 million, up 17% from $408.3 million. Gross profit was $74.5 million in the quarter, up 15.9% from $64.3 million, and $285.1 million for the full year, up 19.4% from $238.7 million. Gross margin improved to 60.2% in the quarter from 58.9%, and to 59.8% for the full year from 58.5%. The company reported an operating loss of $3.2 million in the quarter, narrower than the $23.3 million loss a year earlier. The full year operating loss was $39.5 million, narrower than $94.0 million. Net income was $1.2 million in the quarter, compared with a net loss of $21.2 million a year earlier. The full year net loss was $42.3 million, narrower than $102.7 million. Diluted EPS for the full year was -$0.38, compared with -$0.93.
Cash generation improved sharply. Operating cash flow was $8.1 million in the quarter, up from -$22.0 million a year earlier. For the full year, operating cash flow was $57.3 million, up from -$15.4 million. Capital expenditures fell to $0.4 million in the quarter from $4.4 million, and to $3.5 million for the full year from $18.3 million. Deferred revenue, current portion, was $170.9 million, up 10.4% from $154.9 million. Remaining performance obligations were $1.0 billion, up 5.9% from $944.1 million. On a non-GAAP basis, free cash flow was $7.7 million in the quarter and $53.8 million for the full year. Non-GAAP operating income was $19.3 million in the quarter, compared with $1.8 million a year earlier, and $61.8 million for the full year, compared with a loss of $2.1 million. Non-GAAP net income was $23.8 million in the quarter, compared with $4.4 million, and $58.0 million for the full year, compared with a loss of $8.0 million. Non-GAAP diluted EPS was $0.21 in the quarter, compared with $0.04, and $0.50 for the full year, compared with a loss of $0.07.
Management highlighted the strongest gross sales quarter in the past ten quarters. nCino signed a top independent mortgage bank for Mortgage Point-of-Sale, expanded its relationship with Desjardins Group for Automated Spreading, and won a top UK non-bank lender for Mortgage and additional lines of business. A $4 billion bank in Texas selected nCino for Commercial, Small Business, and Retail Lending, plus nIQ. The company also signed multi-year extensions with expanded agreements for eleven customers paying more than $1 million in annual subscription fees. nCino now serves more than 1,800 customers globally. The subscription revenue retention rate moderated to 117% for fiscal 2024 from 148% for fiscal 2023. Management attributed the decline to customers hurt by higher mortgage interest rates, the expiration of licenses used for Paycheck Protection Program loan forgiveness monitoring, and customer acquisitions by non-customers. The company also announced a chief revenue officer transition. Josh Glover is leaving, and Paul Clarkson was promoted to Executive Vice President Global Revenue. Subsequent to the quarter, nCino closed the acquisition of DocFox on March 20, 2024, for an aggregate purchase price of $75.0 million.
Guidance points to continued growth. For the first quarter ending April 30, 2024, nCino guided to ranges for total revenues, subscription revenues, non-GAAP operating income, and non-GAAP net income per diluted share. Non-GAAP operating income is guided to $18.0 million to $19.0 million for the first quarter and $84.0 million to $86.0 million for the full fiscal year 2025 ending January 31, 2025. Non-GAAP net income per diluted share is guided to $0.13 to $0.14 for the first quarter and $0.60 to $0.64 for the full fiscal year. Risks include higher interest rates and their pressure on mortgage demand, customer consolidation or bank failures, integration of DocFox, security breaches, competitive pricing pressures, dependence on Salesforce, loss of large customers, system availability problems, and legal proceedings. Capital expenditures are expected to be higher in fiscal 2025, approximately $8.5 million for planned office build-outs. In March 2024, nCino borrowed $75.0 million under its credit facility to fund the DocFox acquisition at an interest rate of 7.36%, leaving borrowing availability of $25.0 million.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $123.7M | $121.9M | +1.4% | $109.2M | +13.3% |
| Gross profit | $74.5M | $73.9M | +0.8% | $64.3M | +15.9% |
| Gross margin | 60.2% | 60.6% | -0.4 pp | 58.9% | +1.4 pp |
| Research & development | $30.2M | $29.0M | +3.9% | $33.3M | -9.3% |
| Sales & marketing | $30.0M | $38.4M | -22.0% | $33.4M | -10.2% |
| General & administrative | $17.5M | $19.3M | -9.5% | $20.9M | -16.3% |
| Total operating expenses | $77.7M | $86.8M | -10.5% | $87.6M | -11.3% |
| Operating income (loss) | -$3.2M | -$12.9M | +75.3% | -$23.3M | +86.3% |
| Operating margin | -2.6% | -10.6% | +8.0 pp | -21.4% | +18.8 pp |
| Net income (loss) | $1.4M | -$17.2M | +108.0% | -$21.8M | +106.3% |
| Net margin | 1.1% | -14.1% | +15.2 pp | -19.9% | +21.1 pp |
| Diluted EPS | $0.01 | -$0.15 | +$0.16 | -$0.20 | +$0.21 |
| Customers | 1,800 | — | — | 470 | +283.0% |
Risks
Higher U.S. interest rates have negatively impacted the nCino Mortgage business by reducing demand for mortgages and mortgage-related products and services, and the company continues to monitor the macroeconomic environment.
All revenues are derived from financial institutions, an industry that has faced consolidation, distress, and failure, including the March 2023 FDIC takeovers of Silicon Valley Bank and Signature Bank; customer mergers or reduced technology spend could cause lost business or pricing pressure.
Fundamental elements of the nCino Bank Operating System are built on the Salesforce Platform, and the agreement expires January 31, 2031; termination or non-renewal would materially adversely impact the business model, and Salesforce has no exclusivity preventing it from competing.
Evolving privacy, data protection, and cybersecurity regulations, including the CCPA/CPRA, GDPR, NISD2 (full effect by October 17, 2024), DORA (applies from January 17, 2025), and the EU AI Act, impose compliance costs and potential fines, with DORA and NISD2 allowing personal liability for senior staff.
Subscription revenue retention rate declined to 117% in fiscal 2024 from 148% in fiscal 2023, driven by lower revenues from customers affected by higher mortgage rates, expiration of PPP-related licenses, and customer acquisitions by non-customers; customers have no obligation to renew.
The company is increasing focus on AI/ML in its solutions, but failure to implement, use, or market these technologies effectively may cause reputational harm or liability, and competitors may incorporate AI/ML more quickly; the EU adopted its AI Act on March 13, 2024.
Sales cycles are lengthy, generally six to nine months for smaller FIs and 12 to 18 months or more for larger FIs, and failure to attract new customers or broaden existing customers' use of solutions would adversely affect revenue growth.
In March 2024 the company acquired DocFox for $75.0 million and borrowed $75.0 million under its Credit Facility to fund it; nCino has limited experience acquiring businesses, and integration or failure to achieve expected benefits could harm results.
The Credit Facility contains restrictive covenants limiting dispositions, mergers, indebtedness, liens, and new businesses, and requires maintenance of senior secured leverage and interest coverage ratios; after the DocFox acquisition, borrowing availability was $25.0 million.
A purported stockholder derivative lawsuit alleging fiduciary duty violations in the mergers that made nCino parent of nCino OpCo and SimpleNexus was dismissed, but that decision is under appeal, and the matter could be costly and time-consuming.
Professional services and other gross margin was (5.3)% for fiscal 2024 compared to 0.3% for fiscal 2023, primarily due to a decline in realized effective billing and utilization rates in professional services teams.
The market is intensely competitive and highly fragmented, with point solution vendors and internally developed FI systems; competitors may have more resources and new entrants may bundle cloud-based banking applications at little or no additional cost.
Solutions are primarily hosted in data centers operated by or on behalf of Salesforce, AWS, and other third parties, and disruptions or operational problems at these facilities could materially interrupt services and subject the company to liability.
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 Q4 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.