nCino Earnings: What To Look For From NCNO

Anthony Lee /
2023/05/30 3:26 am EDT

Maker of operating system for banks nCino (NASDAQ:NCNO) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter nCino reported revenues of $109.2 million, up 45.7% year on year, beating analyst revenue expectations by 4.5%. It was a solid quarter for the company, with a decent beat of key top-line metrics, including total revenue, and subscription revenue. On the other hand, free cash flow missed expectations.

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 19.5% year on year to $112.6 million, slowing down from the 51.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 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 4.29%.

Looking at nCino's peers in the vertical software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Q2 Holdings delivered top-line growth of 14.1% year on year, beating analyst estimates by 1.95% and Procore Technologies reported revenues up 33.9% year on year, exceeding estimates by 5.07%. Q2 Holdings traded up 4.26% on the results, Procore Technologies was up 5.53%. Read our full analysis of Q2 Holdings's results here and Procore Technologies's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 9.73% over the last month. nCino is up 12.4% during the same time, and is heading into the earnings with analyst price target of $30.20, compared to share price of $27.55.

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.