nCino(US:NCNO) ZACKSยท2024-05-30 17:26Core Insights - nCino (NCNO) reported non-GAAP earnings of 19 cents per share for Q1 fiscal 2025, exceeding the Zacks Consensus Estimate by 46.15% and up from 7 cents per share in the same quarter last year [1] - Net revenues reached $128 million, surpassing the consensus mark by 1.18% and reflecting a 13% year-over-year increase, driven by strong demand for its products and services [1][2] Revenue Breakdown - Subscription revenues, accounting for 86.2% of total revenues, increased 13% year over year to $110.4 million, beating the Zacks Consensus Estimate by 1.01% [3] - Professional Services & Other revenues, making up 13.8% of total revenues, rose 8.3% year over year to $17.7 million, exceeding the Zacks Consensus Estimate by 2.31% [3] Profitability Metrics - Non-GAAP gross margin expanded by 100 basis points year over year to 66% [3] - Non-GAAP operating income was $24.4 million, up from $10.9 million in the year-ago quarter, with a non-GAAP operating margin increase of 950 basis points to 19% [4] Expense Management - Research & development expenses increased 2.8% year over year to $25.8 million [4] - Sales and marketing expenses decreased by 9.7% to $21.6 million, while general and administrative expenses fell by 9.1% to $12.6 million [4] Client Expansion - nCino partnered with M&T Bank for continuous credit monitoring, utilizing Rich Data Co's explainable AI platform for insights into cash flow health and credit risk [5] - The company was selected by a high-growth specialist lender in the U.K. SME market to enhance data consistency through the consolidation of systems onto a single platform [6] Financial Position - As of April 30, 2024, cash and cash equivalents totaled $134.8 million, up from $117.4 million as of January 31, 2024 [7] - Cash flow from operations was $54.4 million in Q1, compared to $57.2 million in the previous quarter, while free cash flow increased significantly to $54.1 million from $7.7 million [7] Future Guidance - For Q2 fiscal 2025, nCino expects revenues between $130.5 million and $131.5 million, with subscription revenues projected between $112.5 million and $113.5 million [8] - Operating income is anticipated to be between $17 million and $18 million, with earnings expected to be 12-13 cents per share [9] Market Position - nCino currently holds a Zacks Rank 1 (Strong Buy), although its shares have declined 10.4% year to date, contrasting with an 18.3% increase in the Zacks Computer & Technology sector [9]