nCino(US:NCNO)2024-08-27 21:15Revenue Growth - Total revenues for the three months ended July 31, 2024, increased to $132.4 million, up from $117.2 million for the same period in 2023, representing a growth of 12.5%[9] - Subscription revenues for the six months ended July 31, 2024, reached $224.3 million, compared to $197.2 million for the same period in 2023, reflecting an increase of 13.8%[9] - Total revenues for the three months ended July 31, 2024, were $132.4 million, representing a 12.9% increase from $117.2 million in the same period of 2023[98] - Subscription revenues for the three months ended July 31, 2024, were $113.9 million, a 14.0% increase from $99.9 million in the same period of 2023[98] - For the six months ended July 31, 2024, total revenues were $260.5 million, a 12.8% increase from $230.9 million in the same period of 2023[98] - Subscription revenues for the six months ended July 31, 2024, were $224.3 million, representing a 13.7% increase from $197.2 million in the same period of 2023[98] Profitability and Losses - Gross profit for the three months ended July 31, 2024, was $78.5 million, compared to $69.2 million for the same period in 2023, indicating a gross margin improvement[9] - Net loss attributable to nCino, Inc. for the three months ended July 31, 2024, was $11.0 million, compared to a net loss of $15.9 million for the same period in 2023, showing a reduction in losses[11] - The company reported a comprehensive loss of $10.5 million for the three months ended July 31, 2024, down from a comprehensive loss of $16.1 million for the same period in 2023[11] - Net loss attributable to nCino, Inc. for the six months ended July 31, 2024, was $14,016 thousand, compared to a net loss of $27,723 thousand for the same period in 2023, representing a 49% improvement[19] - The company recorded basic and diluted loss per share of $(0.10) for the three months ended July 31, 2024, compared to $(0.14) for the same period in 2023[87] Operating Expenses - Operating expenses for the three months ended July 31, 2024, totaled $86.4 million, slightly up from $84.0 million in the same period of 2023, with research and development expenses increasing to $34.3 million[9] - Sales and marketing expenses decreased by $2.3 million for the six months ended July 31, 2024, compared to the same period in 2023, primarily due to a $1.4 million decrease in personnel costs and a $0.6 million decrease in sales-related travel costs[130] - Research and development expenses increased by $6.2 million for the six months ended July 31, 2024, compared to the same period in 2023, mainly due to a $5.3 million increase in personnel costs[132] - General and administrative expenses increased by $3.0 million for the six months ended July 31, 2024, compared to the same period in 2023, primarily due to a $3.7 million increase in personnel costs[135] Cash Flow and Liquidity - Cash provided by operating activities for the six months ended July 31, 2024, was $59,441 thousand, an increase from $43,267 thousand in the same period of 2023, reflecting a 37% increase[19] - Total cash, cash equivalents, and restricted cash at the end of the period on July 31, 2024, was $126,765 thousand, up from $103,369 thousand at the end of the previous period, indicating a 22.6% increase[20] - As of July 31, 2024, the company had $121.4 million in cash and cash equivalents and an accumulated deficit of $365.9 million[146] - Cash used in investing activities for the six months ended July 31, 2024, was $91.9 million, primarily for the acquisitions of DocFox and ILT[155] - Cash provided by financing activities for the six months ended July 31, 2024, was $43.2 million, mainly from $75.0 million in borrowings on the Credit Facility[156] Acquisitions - The company acquired DocFox for a total cash consideration of $74.3 million, including $6.2 million for common stock options, with an estimated fair value of consideration transferred at $72.4 million[49] - The Company acquired Integrated Lending Technologies (ILT) for $19.9 million in cash, with transaction costs of approximately $0.9 million recorded in general and administrative expenses[55][56] - The financial results of DocFox and ILT since their respective acquisition dates are included in the Company's consolidated financial statements but are not material to the overall results[54][60] Market Presence and Future Plans - The company continues to focus on expanding its market presence and investing in new product development to drive future growth[9] - The company plans to continue investing in product development and sales and marketing to drive growth and maintain market leadership[102] Stock and Shareholder Information - The weighted average number of common shares outstanding for the three months ended July 31, 2024, was 115.2 million, compared to 112.4 million for the same period in 2023[9] - The company’s total common shares outstanding increased from 113,684,299 on January 31, 2024, to 115,387,309 on July 31, 2024[17] - The total unrecognized compensation expense related to non-vested RSUs is $178.6 million, expected to be recognized over a weighted average period of 2.93 years[66] Foreign Currency and Interest - Interest income for the three months ended July 31, 2024, was $321, down from $835 in the same period of 2023, while interest expense increased to $1.8 million[9] - A hypothetical 10% increase or decrease in foreign currency exchange rates would have impacted cash, cash equivalents, and restricted cash by approximately $7.0 million as of July 31, 2024[164]