nCino(US:NCNO)2024-12-04 22:02Revenue and Subscription Growth - Total revenues for the three months ended October 31, 2024, were $138.797 million, compared to $121.942 million for the same period in 2023[18] - Subscription revenues increased to $119.894 million for the three months ended October 31, 2024, from $104.759 million in the same period in 2023[18] - Revenues for the three months ended October 31, 2024 were $138,797 thousand, with the United States contributing $109,191 thousand and international markets contributing $29,606 thousand[70] - Revenues for the nine months ended October 31, 2024 were $399,287 thousand, with the United States contributing $316,357 thousand and international markets contributing $82,930 thousand[70] - Subscription revenues increased by $15.1 million (14.4%) for the three months ended October 31, 2024, compared to the same period in 2023, with 64.1% of the increase attributed to existing customers and 35.9% from new customers[186] - Subscription revenues increased by $42.2 million (14.0%) for the nine months ended October 31, 2024, compared to the same period in 2023, with 67.4% of the increase attributed to existing customers and 32.6% from new customers[187] - Professional services and other revenues increased by $1.7 million (9.9%) for the three months ended October 31, 2024, compared to the same period in 2023, driven by new customers and expanded adoption by existing customers[188] - Professional services and other revenues increased by $4.2 million (8.3%) for the nine months ended October 31, 2024, compared to the same period in 2023, driven by new customers and expanded adoption by existing customers[189] - Total revenues for the three months ended October 31, 2023 and 2024 were $121.9 million and $138.8 million, respectively, representing a 13.8% increase[158] - Subscription revenues for the three months ended October 31, 2023 and 2024 were $104.8 million and $119.9 million, respectively, representing a 14.4% increase[158] - Total revenues for the nine months ended October 31, 2023 and 2024 were $352.9 million and $399.3 million, respectively, representing a 13.2% increase[158] - Subscription revenues for the nine months ended October 31, 2023 and 2024 were $302.0 million and $344.2 million, respectively, representing a 14.0% increase[158] - Subscription revenues increased to $119.9 million in Q3 2024, up from $104.8 million in Q3 2023, representing a 14.4% growth[181] - Professional services and other revenues grew to $18.9 million in Q3 2024, compared to $17.2 million in Q3 2023, a 10% increase[181] - Total revenues for Q3 2024 reached $138.8 million, up 13.8% from $121.9 million in Q3 2023[181] - International markets accounted for 21.3% of total revenues for the three months ended October 31, 2024 and 20.8% for the nine months ended October 31, 2024[159] Profit and Loss - Net loss attributable to nCino, Inc. for the three months ended October 31, 2024, was $5.252 million, compared to $16.379 million for the same period in 2023[18] - Comprehensive loss attributable to nCino, Inc. for the three months ended October 31, 2024, was $3.758 million, compared to $16.795 million for the same period in 2023[21] - Net loss attributable to nCino, Inc. for the nine months ended October 31, 2023, was $43.506 million, compared to $19.268 million for the same period in 2024[31] - Net loss attributable to nCino, Inc. for the nine months ended October 31, 2024 was $19,268, compared to $43,506 for the same period in 2023[142] - Basic and diluted loss per share for the nine months ended October 31, 2024 was $0.17, compared to $0.39 for the same period in 2023[142] - Net losses attributable to nCino, Inc. for the three months ended October 31, 2023 and 2024 were $16.4 million and $5.3 million, respectively[158] - Net losses attributable to nCino, Inc. for the nine months ended October 31, 2023 and 2024 were $43.5 million and $19.3 million, respectively[158] - Net loss improved significantly to $4.2 million in Q3 2024, compared to a net loss of $17.2 million in Q3 2023[181] Gross Profit and Margins - Gross profit for the three months ended October 31, 2024, was $85.052 million, compared to $73.917 million for the same period in 2023[18] - Gross profit for Q3 2024 was $85.1 million, a 15.1% increase from $73.9 million in Q3 2023[181] - Gross profit margin for subscription revenues improved to 71.8% for the three months ended October 31, 2024, compared to 70.8% in the same period in 2023[192] - Gross profit margin for subscription revenues improved to 71.3% for the nine months ended October 31, 2024, compared to 70.4% in the same period in 2023[193] Expenses - Research and development expenses increased to $33.039 million for the three months ended October 31, 2024, from $29.043 million in the same period in 2023[18] - Research and development expenses rose to $33.0 million in Q3 2024, up 13.8% from $29.0 million in Q3 2023[181] - Research and development expenses increased by $4.0 million (13.8%) for the three months ended October 31, 2024, compared to the same period in 2023, driven by higher personnel costs and third-party professional fees[202] - Sales and marketing expenses decreased to $29.7 million in Q3 2024, down from $38.4 million in Q3 2023, a 22.7% reduction[181] - Sales and marketing expenses decreased by $8.7 million (22.6%) for the three months ended October 31, 2024, compared to the same period in 2023, primarily due to reduced amortization expenses[197] - General and administrative expenses increased by $3.8 million (19.7%) for the three months ended October 31, 2024, compared to the same period in 2023, primarily due to higher personnel costs and acquisition-related expenses[205] - Cost of professional services and other revenues increased to $19.0 million in Q3 2024, up 14.7% from $17.4 million in Q3 2023[181] Cash Flow and Financing - Net cash provided by operating activities for the nine months ended October 31, 2023, was $49.137 million, rising to $65.218 million in 2024[31] - Acquisition of business, net of cash acquired, in 2024 amounted to $90.839 million, with no such activity in 2023[31] - Total cash, cash equivalents, and restricted cash at the end of October 31, 2023, was $105.823 million, increasing to $258.253 million in 2024[31] - Net cash used in investing activities for the nine months ended October 31, 2023, was $5.939 million, compared to $92.755 million in 2024[31] - Proceeds from borrowings on revolving credit facility in 2024 amounted to $241 million, with no such activity in 2023[31] - Cash paid for taxes increased from $2.244 million in the nine months ended October 31, 2023, to $2.770 million in the same period in 2024[33] - Cash paid for interest rose from $3.458 million in the nine months ended October 31, 2023, to $4.846 million in the same period in 2024[33] - The company's 2024 Credit Facility provides a senior secured revolving credit facility of up to $250.0 million with a maturity date of October 28, 2029[123] - As of October 31, 2024, the company had $166.0 million outstanding under the 2024 Credit Facility with an applicable interest rate of 6.72%[130] Assets and Liabilities - Total assets increased to $1.516606 billion as of October 31, 2024, from $1.340430 billion as of January 31, 2024[16] - Deferred revenue, current portion, decreased to $132.382 million as of October 31, 2024, from $170.941 million as of January 31, 2024[16] - Total liabilities increased to $423.100 million as of October 31, 2024, from $287.826 million as of January 31, 2024[16] - Accumulated deficit as of October 31, 2023, was $354.373 million, compared to $369.821 million in 2024[28][29] - Additional paid-in capital as of October 31, 2023, was $1.382 billion, increasing to $1.456 billion in 2024[28][29] - Other comprehensive income for the nine months ended October 31, 2023, was $212,000, rising to $619,000 in 2024[28][29] - The balance of the allowance for doubtful accounts decreased from $2.221 million at the end of the period in 2023 to $1.172 million at the end of the period in 2024[50] - The redeemable non-controlling interest balance increased from $3.198 million at the end of the period in 2023 to $5.243 million at the end of the period in 2024[61] - Total assets measured at fair value as of January 31, 2024 were $39,008 thousand, with money market accounts contributing $38,649 thousand[65] - Total assets measured at fair value as of October 31, 2024 were $33,965 thousand, with money market accounts contributing $33,606 thousand[68] Acquisitions and Investments - The company acquired DocFox for a total of $74.3 million in cash, including $6.2 million for cash-settled stock options[80] - The preliminary fair value of net assets acquired from DocFox was $72.4 million, including $24.6 million in intangible assets[84] - The company issued 198,505 RSUs with an approximate fair value of $6.1 million to certain employees of DocFox[81] - The preliminary fair value of identifiable intangible assets from the DocFox acquisition includes $16.4 million for customer relationships and $8.0 million for developed technology[86] - Goodwill of approximately $11.1 million is expected to be deductible for tax purposes, primarily due to expanded market opportunities, synergies from acquisitions, and the assembled workforce[99] - The company acquired ILT for $19.9 million in cash, with an additional $0.1 million adjustment to goodwill due to net working capital adjustments[93][93] - Transaction costs associated with the ILT acquisition were approximately $0.9 million, recorded in general and administrative expenses for the three months ended April 30, 2024[92] - The preliminary fair value of identifiable intangible assets acquired from ILT includes $210,000 for trade name, $5.87 million for customer relationships, and $2.58 million for developed technology[98] - The company acquired FullCircl for approximately $129.7 million, funded with proceeds from the 2024 Credit Facility[145][154] - The company acquired DocFox for an aggregate preliminary purchase price of $74.3 million, funded with $75.0 million borrowed under the 2022 Credit Facility[151] - The company acquired ILT for an aggregate purchase price of $20.0 million in cash[153] Intangible Assets and Amortization - The company wrote off approximately $20.6 million of fully amortized intangible assets and corresponding accumulated amortization during the nine months ended October 31, 2024[102] - Total amortization expense for intangible assets was $21.39 million for the nine months ended October 31, 2024, compared to $31.10 million for the same period in 2023[105] - The expected future amortization expense for intangible assets as of October 31, 2024, is $128.34 million, with $7.36 million expected for the remainder of fiscal year 2025[106] - Amortization expense for intangible assets was $7.4 million in Q3 2024, compared to $31.1 million in the nine months ended October 31, 2023[183] Stock-Based Compensation - Stock-based compensation for the nine months ended October 31, 2023, was $41.969 million, increasing to $53.015 million in 2024[31] - Total stock-based compensation expense for the nine months ended October 31, 2024, was $53.02 million, compared to $41.97 million for the same period in 2023[112] - Stock-based compensation expense totaled $18.0 million in Q3 2024, a 13.6% increase from $15.8 million in Q3 2023[183] - Total unrecognized compensation expense related to non-vested RSUs was $166.6 million as of October 31, 2024, expected to be recognized over a weighted average period of 2.85 years[110] Leases and Commitments - The company leases facilities and equipment under non-cancellable agreements expiring through December 2033, with options to extend for up to five years[115] - Operating lease expense for the three months ended October 31, 2024 was $1,418, compared to $1,225 for the same period in 2023, representing a 15.8% increase[116] - Total lease expense for the nine months ended October 31, 2024 was $6,028, compared to $5,568 for the same period in 2023, an 8.3% increase[116] - Future minimum lease payments as of October 31, 2024 total $20,650, with $1,166 due in 2025 and $5,088 in 2026[117] - Purchase commitments as of October 31, 2024 total $261,786, with $20,922 due in 2025 and $83,388 in 2026[133] - Financing obligations as of October 31, 2024 total $53,238, with a weighted-average discount rate of 5.7%[133] Interest and Other Income/Expenses - Interest income decreased by $0.2 million (from $685 thousand to $482 thousand) for the three months ended October 31, 2024 compared to the same period in 2023[209] - Interest expense increased by $0.8 million (from $854 thousand to $1.653 million) for the three months ended October 31, 2024 compared to the same period in 2023[209] - Other income (expense), net decreased by $2.8 million (from $2.320 million to $432 thousand) for the three months ended October 31, 2024 compared to the same period in 2023[209] - Interest income for the nine months ended October 31, 2024 was $1.408 million, a decrease from $2.057 million in the same period in 2023[209] - Interest expense for the nine months ended October 31, 2024 was $4.965 million, an increase from $3.277 million in the same period in 2023[209] - Other income (expense), net for the nine months ended October 31, 2024 was $162 thousand, compared to $2.633 million in the same period in 2023[209] Remaining Performance Obligations - Remaining performance obligations as of October 31, 2024 were $1.10 billion, with 67% expected to be recognized as revenues in the next 24 months[74] - The company recognized $167.9 million of revenues from the deferred revenue balance during the nine months ended October 31, 2024[73] Investments and Ownership - The company's investment in nCino K.K. totaled $4.7 million initially, with an additional $1.0 million invested in October 2023, maintaining a 51% ownership stake[57]