nCino (NCNO, Financial) anticipates its revenue for the second quarter to range between $142 million and $144 million, aligning closely with analysts' average prediction of $143.36 million. Additionally, the company expects its operating income to be between $23.5 million and $24.5 million for the same period.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for Ncino Inc (NCNO, Financial) is $27.57 with a high estimate of $33.00 and a low estimate of $21.00. The average target implies an upside of 2.96% from the current price of $26.78. More detailed estimate data can be found on the Ncino Inc (NCNO) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Ncino Inc's (NCNO, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ncino Inc (NCNO, Financial) in one year is $39.76, suggesting a upside of 48.47% from the current price of $26.78. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ncino Inc (NCNO) Summary page.
NCNO Key Business Developments
Release Date: April 01, 2025
- Total Revenue: $141.4 million in Q4, up 14% year-over-year; $540.7 million for fiscal '25, up 13% year-over-year.
- Subscription Revenue: $125 million in Q4, up 16% year-over-year; $469.2 million for fiscal '25, up 15% year-over-year.
- Organic Subscription Revenue: $118.3 million in Q4, up 10%; $456.9 million for fiscal '25, up 12% year-over-year.
- Professional Services Revenue: $16.4 million in Q4, up 1% year-over-year; $71.5 million for fiscal '25, up 7% year-over-year.
- Non-US Total Revenue: $33.3 million in Q4, up 34% year-over-year; $116.2 million for fiscal '25, up 30% year-over-year.
- Non-GAAP Operating Income: $24.4 million in Q4, 17% of total revenues; $96.2 million for fiscal '25, 18% of total revenues.
- Non-GAAP Net Income: $13.9 million in Q4, $0.12 per diluted share; $76.1 million for fiscal '25, $0.66 per diluted share.
- Free Cash Flow: Negative $10.4 million in Q4; $53.4 million for fiscal '25.
- Remaining Performance Obligation (RPO): $1.2 billion as of January 31, 2025, up 15% year-over-year.
- Annual Contract Value (ACV): $516.4 million as of January 31, 2025, up 13% year-over-year.
- ACV Net Retention Rate: 106% in fiscal '25, up from 102% in the prior year.
- Subscription Revenue Net Retention Rate: 110% in fiscal '25, down from 116% in fiscal '24.
- Total Churn: $26 million in fiscal '25, down from $31 million in fiscal '24.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ncino Inc (NCNO, Financial) reported a 14% year-over-year increase in total revenues for the fourth quarter, reaching $141.4 million.
- Subscription revenues grew by 16% year-over-year in the fourth quarter, indicating strong demand for Ncino's offerings.
- The company has made strategic acquisitions, such as Sandbox Banking, which are expected to deliver accretive subscription revenue growth and reduce implementation timelines.
- Ncino Inc (NCNO) is focusing on AI-driven solutions, which have already shown significant efficiency gains for customers, such as reducing complex banking processes from days to seconds.
- The company has a broad and diverse customer base across more than 20 countries, providing a competitive moat that is difficult for competitors to match.
Negative Points
- Ncino Inc (NCNO) faced challenges with sales execution and sense of urgency in certain international markets, particularly Europe.
- The company's fiscal '26 revenue outlook is below expectations due to compounding headwinds and challenges in new bookings momentum.
- There were delays in the integration of acquired technologies, such as the DocFox acquisition, which impacted customer onboarding decisions.
- The company experienced higher churn in fiscal '25, with total churn amounting to $26 million of annualized subscription revenues.
- Ncino Inc (NCNO) has faced macroeconomic headwinds, such as the rapid rise in interest rates and liquidity crises, which have dampened sales momentum and new bookings growth.
