WILMINGTON, N.C. – nCino, Inc. (NASDAQ:NCNO), a cloud banking software provider, saw its stock slump more than 15% despite beating expectations for top and bottom lines in the second quarter.
The company reported adjusted earnings per share of $0.14 for the second quarter, just ahead 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 came in soft. 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.
Remaining Performance Obligations (RPOs) grew 12% year-over-year but dipped 2.6% on a quarterly basis. Analysts at Needham believe this “is the main driver” behind the share price pullback.
“We note that 1Q25 was a record sales quarter for NCNO and bookings can be lumpy on a Q/Q basis,” they added. “We believe execution remains strong as reflected in the solid outlook and pace of deal wins and recommend investors buy on the weakness.”
nCino’s 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.
Commenting on the report, Stephens analysts acknowledge that while the anticipated continuation of strong bookings momentum from Q1 did not materialize, they still identify several catalysts that could drive acceleration in subscription revenue and improve operating leverage over the medium term.
However, they “continue to view elongated sales cycles, the uncertain rate environment, and the lumpiness of international markets as risks to our outlook.”
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