Maker of operating system for banks nCino (NASDAQ:NCNO) will be reporting earnings tomorrow after market close. Here's what you need to know.
Last quarter nCino reported revenues of $117.2 million, up 17.7% year on year, beating analyst revenue expectations by 2%. It was a mixed quarter for the company, with revenue and adjusted EPS exceeding Wall Street's expectations. That really stood out as a positive in these results. On the other hand, its revenue and non-GAAP operating profit guidance for next quarter underwhelmed. Full year guidance was slightly raised and roughly in line with 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 14.6% year on year to $120.6 million, slowing down from the 50.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.11 per share.
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 3.5%.
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 7.1% year on year, missing analyst estimates by 0.4% and Agilysys reported revenues up 22.8% year on year, exceeding estimates by 3.1%. Q2 Holdings traded up 2.1% on the results, Agilysys was up 21.7%.
There has been positive sentiment among investors in the vertical software segment, with the stocks up on average 11.9% over the last month. nCino is up 9.6% during the same time, and is heading into the earnings with analyst price target of $34.6, compared to share price of $30.24.
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The author has no position in any of the stocks mentioned.