Why a $125 Million Exit From nCino Matters as Shares Are Down 29% This Past Year

Core Insights - Insight Holdings Group has fully exited its position in nCino, selling approximately 4.5 million shares for an estimated value of $124.7 million [2][3][6] - nCino's stock has underperformed, with a 29% decline over the past year, contrasting with a 12% increase in the S&P 500 during the same period [4][10] Company Overview - nCino is a leading provider of cloud-based banking software, focusing on digitizing and automating banking processes such as client onboarding and loan management [5][8] - The company reported a total revenue of $586.5 million and a net income of -$21.8 million for the trailing twelve months [5] - nCino's revenue grew by 10% year over year to $152.2 million, driven by an 11% increase in subscription revenue [9] Financial Performance - The company's GAAP operating margin turned positive at 8%, while the non-GAAP operating margin expanded to 26%, an increase of approximately 600 basis points from the previous year [9] - nCino generated positive free cash flow and completed a $100 million share repurchase program, indicating improved financial discipline [9] Market Position - nCino's previous position represented 5.2% of Insight Holdings Group's assets under management (AUM) [3][6] - Following the exit, the fund's reportable U.S. equity assets decreased by 32% quarter over quarter, reflecting a broader portfolio downsizing [3]