On Thursday, Ncino Inc. (NCNO, Financial), a provider of cloud-based software for financial institutions, released strong financial results for the fourth quarter of its fiscal year 2022, which ended Jan. 31, 2022, in the wake of two major deals.
The Wilmington, North Carolina-based company, which styles its operations under the nCino brand name, announced revenues and losses per share that were better than Wall Street's estimates. Revenue of $274 million topped projections by a healthy 2.1%. Statutory losses came in under analysts' estimates at 51 cents per share.
“The earnings results came in pretty solid, and revenue guidance for fiscal 2023 is excellent,” noted The Motley Fool. “The banking sector as a whole has a long way to go for digital transformation, providing plenty of growth opportunities for nCino, which has continued to develop a strong reputation in the sector.”
Shortly after noon on Monday, shares were trading at $46.22, down 0.78% for the day,
The company made some impressive strides in the fourth quarter, signing a deal with Wells Fargo & Co (WFC, Financial), which expanded its adoption of the nCino Bank Operating System to accelerate digital transformation within its Consumer and Small Business Banking division to deliver a premier, cutting-edge technology experience. Earlier in fiscal year 2022, Wells Fargo selected nCino as the technological foundation to transform its commercial lending operations.
The company also completed its acquisition of the homeownership software company SimpleNexus.
For the fourth quarter, total revenues were $75.0 million, a 32% increase from $56.6 million in the fourth quarter of fiscal 2021. Subscription revenues for the fourth quarter were $62.8 million, up from $45.0 million one year ago, an increase of 40%. Total revenues and subscription revenues from SimpleNexus included in these fourth quarter results were $3.9 million and $3.7 million, respectively, from Jan. 7, 2022, the close date of the acquisition.
GAAP loss from operations in the fourth quarter was $30.0 million compared to $13.9 million in the same quarter of fiscal 2021. Non-GAAP operating loss in the fourth quarter was $8.3 million compared to $7.5 million in the fourth quarter of fiscal 2021.
“With new logos, significant expansion deals, continued traction internationally and the completion of the SimpleNexus acquisition, the fourth quarter was a strong finish to a tremendous year for nCino,” said Pierre Naude, CEO of nCino, in a statement. “As we look to fiscal year 2023, the strength of our combined businesses positions us extremely well for continued growth. We are pursuing a large, global opportunity to help lenders and financial institutions of all sizes digitally transform their operations, and 10 years in, we are just getting started.”
For the full fiscal year of 2022, total revenues were $273.9 million, a 34% increase from $204.3 million in fiscal year 2021. Subscription revenues for fiscal year 2022 were $224.9 million, up from $162.4 million one year ago, an increase of 38%.
For fiscal year 2023, which will end Jan. 31, 2023, the company has issued guidance calling for total revenues between $398 million and $400 million and subscription revenues between $340 million and $342 million. Non-GAAP operating loss is estimated to be between $33.5 million and $35.5 million, which translates to $0.31 to $0.32 on a per-share basis.
