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Banking & Finance

NCino Reports Increased Revenue, Expansion With Wells Fargo

By Jenny Callison, posted Apr 1, 2022
In an earnings call this week, nCino CEO Pierre Naudé said the company expects continued growth. (File photo)
Officials at nCino had plenty of positive news to report Thursday when the company unveiled financial results of its fourth quarter and fiscal year 2022, which ended Jan. 31, 2022. 

“With new logos [additional customers], 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,” CEO Pierre Naudé stated in the company’s earnings news release.

During the earnings call Thursday afternoon, Naudé said further that the company’s strong performance and its addition of mortgage software provider SimpleNexus provide a good foundation for continued growth into FY 23 and beyond.

Naudé also announced a “key win” for the Wilmington-based banking software company: an expanded relationship with Wells Fargo. Last September, nCino inked an agreement with Wells Fargo – one of the nation’s “big four” banks – to provide the operating system for its commercial banking activities. With the success of that relationship, Naudé continued, Wells Fargo has committed to deploying the Bank Operating System for its consumer and small business banking.

In his recap of the year’s achievements, Naudé pointed to the growth of nCino’s international footprint, with announced new offices in Germany, France and Spain and the “maturing” nature of its business in Canada and the United Kingdom as sales increase there.

Officials said that nCino has just signed its first agreement with a bank in South Africa, and added that roughly 16% of nCino’s revenues in FY22 came from its international operations.

In the earnings call, nCino Chief Finance Officer David Rudow led a discussion of the Q4 and FY22 financial statements.

Total revenues for the fourth quarter were $75.0 million, a 32% increase from $56.6 million in the fourth quarter of fiscal 2021. Subscription revenues – the ongoing payments for clients’ use of the system -  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 January 7, 2022, the close date of the acquisition.

Despite the growth of its revenues, nCino continues to operate at a loss, due in part to expenditures for growth and acquisitions.

GAAP loss from operations in the fourth quarter was $30.0 million, compared to a $13.9 million loss in the same quarter of fiscal 2021. Non-GAAP operating loss in the fourth quarter was $8.3 million, compared to a loss of $7.5 million in the fourth quarter of fiscal 2021.

The company’s cash and cash equivalents as of Jan. 31, 2022 totaled $88 million.

In addition to the completion of the SimpleNexus acquisition and the expansion of nCino’s agreement with Wells Fargo, highlights for the fiscal year just ended include the expansion of several other agreements with existing customers, including a bank with more than $150 billion in assets. nCino closed its fiscal year with a portfolio of more than 1,750 customers, including more than 400 SimpleNexus customers.

Looking ahead, nCino anticipates total revenues for its 2023 fiscal year of between $398 million and $400 million, of which subscription revenues will account for between $340 million and $342 million. It estimates a non-GAAP operating loss of between $33.5 million and $35.5 million.
 
About half of that loss will be related to investment in and hiring for the growth of SimpleNexus, Rudow said, adding that nCino will make “salary adjustments” for that unit to align better with the market.

Rudow also said that nCino is committed to being operating income and cash flow positive in FY24.
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