Earnings To Watch: nCino (NCNO) Reports Q3 Results Tomorrow

Radek Strnad /
2022/11/29 4:08 am EST

Maker of operating system for banks nCino (NASDAQ:NCNO) will be reporting results tomorrow after market hours. Here's what to expect.

Last quarter nCino reported revenues of $99.6 million, up 49.7% year on year, beating analyst revenue expectations by 2.17%. It was a strong quarter for the company, with exceptional revenue growth and a meaningful improvement in gross margin.

Is nCino buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting nCino's revenue to grow 47.7% year on year to $103.4 million, improving on the 29.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.

nCino Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.45%.

Looking at nCino's peers in the vertical software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Q2 Holdings delivered top-line growth of 14.2% year on year, missing analyst estimates by 1.37% and Autodesk reported revenues up 13.6% year on year, missing analyst estimates by 0.09%. Q2 Holdings traded down 5.64% on the results, and Autodesk was down 2.81%. Read our full analysis of Q2 Holdings's results here and Autodesk's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share price declining 7.22% over the last month. nCino is down 14.2% during the same time, and is heading into the earnings with analyst price target of $41.20, compared to share price of $26.98.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.