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nCino (NCNO) Set to Report Q1 Earnings: What's in the Cards?

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nCino (NCNO - Free Report) is expected to release first-quarter fiscal 2025 results on May 29.

NCNO expects revenues between $126 million and $127 million. The Zacks Consensus Estimate is currently pegged at $126.59 million, indicating an increase of 11.36% from the year-ago quarter’s levels.

NCNO expects earnings in the range of 13-14 cents for first-quarter fiscal 2025. The consensus mark for first-quarter earnings is currently pegged at 13 cents per share, constant in the past 30 days. NCNO reported earnings of 7 cents in the year-ago quarter.

nCino’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 42.71%.

nCino Inc. Price and EPS Surprise

 

nCino Inc. Price and EPS Surprise

nCino Inc. price-eps-surprise | nCino Inc. Quote

 

Let’s see how things have shaped up for NCNO prior to this announcement.

Factors Likely to Influence Q1 Results

nCino’s performance in the to-be-reported quarter is expected to have benefited from strong growth in subscription revenues, driven by an expanding customer base and increasing adoption of its platform, particularly in international markets.

For first-quarter fiscal 2025, subscription revenues are expected to be between $108.75 million and $109.75 million, indicating year-over-year growth of 12-13%. The Zacks Consensus Estimate is currently pegged at $110 million, suggesting year-over-year growth of 13.4%.

Robust growth across the international market is noteworthy. In the fourth quarter of fiscal 2024, NCNO secured multi-year extensions and expanded agreements with eleven customers, each paying more than $1 million annually in subscription fees, including U.S. Enterprise banks, U.S. Community & Regional banks, a New Zealand bank, a German Bank and Canadian banks. This is likely to have acted as a tailwind.

nCino is expected to have expanded its customer base by acquiring new clients, particularly in the mortgage and commercial segment. This is likely to have enhanced its product portfolio.

The acquisition of DocFox in March, is expected to have enhanced nCino's capabilities in commercial account opening and onboarding, including robust Know Your Customer (KYC) and Anti-Money Laundering (AML) functionality, expanding nCino's product offerings and providing opportunities to capture greater wallet share within its installed base in the first quarter.

The adoption of nCino's NIC AI solutions is gaining traction, with 39% of the platform base adopting at least one NIC solution in fourth-quarter fiscal 2024. With increasing demand for AI in the banking sector, NCNO is expected to have registered revenue growth in the quarter to be reported.

nCino’s expanding product portfolio — which includes recent launches such as a banking advisor — and an omnichannel experience for consumer lending are expected to meet evolving customer needs, improve operational efficiency and boost platform adoption.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

NCNO has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases: 

Dell Technologies (DELL - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here

Dell Technologies’ shares have increased 109.4% year to date. DELL is set to report first-quarter fiscal 2025 results on May 30.

Broadcom (AVGO - Free Report) has an Earnings ESP of +3.66% and a Zacks Rank #3 at present.

Broadcom shares have rallied 26.1% year to date. AVGO is scheduled to release second-quarter fiscal 2024 results on Jun 12.  

HP (HPQ - Free Report) has an Earnings ESP of +0.92% and a Zacks Rank #3.  

The stock has increased 8.8% year to date. HPQ is set to report its second-quarter fiscal 2024 results on May 29.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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