nCino stock tumbles on profit miss and soft guidance

WILMINGTON, N.C. - nCino, Inc. (NASDAQ:NCNO), a cloud banking software provider, saw its stock drop 9% after reporting second quarter earnings that missed analyst expectations and provided weaker-than-anticipated guidance.

The company reported adjusted earnings per share of $0.09 for the second quarter, falling short of the $0.13 consensus estimate. Revenue came in at $132.4 million, slightly above the $131.06 million analysts expected and up 13% YoY.

nCino's third quarter guidance also disappointed investors. The company forecasts revenue of $136-138 million, below the $138.6 million consensus. For adjusted EPS, nCino projects $0.15-$0.16, compared to analysts' $0.16 estimate.

Despite the earnings miss, nCino highlighted some positive developments. Subscription revenue grew 14% YoY to $113.9 million. The company also noted strength in its U.S. business across enterprise and community banking segments.

"We are pleased to report that we again exceeded quarterly guidance for total and subscription revenues as well as non-GAAP operating income," said Pierre Naudé, Chairman and CEO of nCino. "While some macro-economic challenges persist, particularly in the U.S. mortgage market and international markets, we have a positive outlook on the second half of the year."

nCino maintained its full fiscal year 2025 revenue guidance of $538.5-544.5 million. The company ended the quarter with $126.8 million in cash and equivalents after repaying $15 million on its revolving credit facility.

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Source: Investing.com