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nCino(NCNO) - 2025 Q3 - Quarterly Report
NCNOnCino(NCNO)2024-12-04 22:02
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Revenue and Subscription Growth - Total revenues for the three months ended October 31, 2024, were 138.797million,comparedto138.797 million, compared to 121.942 million for the same period in 2023[18] - Subscription revenues increased to 119.894millionforthethreemonthsendedOctober31,2024,from119.894 million for the three months ended October 31, 2024, from 104.759 million in the same period in 2023[18] - Revenues for the three months ended October 31, 2024 were 138,797thousand,withtheUnitedStatescontributing138,797 thousand, with the United States contributing 109,191 thousand and international markets contributing 29,606thousand[70]−RevenuesfortheninemonthsendedOctober31,2024were29,606 thousand[70] - Revenues for the nine months ended October 31, 2024 were 399,287 thousand, with the United States contributing 316,357thousandandinternationalmarketscontributing316,357 thousand and international markets contributing 82,930 thousand[70] - Subscription revenues increased by 15.1million(14.415.1 million (14.4%) for the three months ended October 31, 2024, compared to the same period in 2023, with 64.1% of the increase attributed to existing customers and 35.9% from new customers[186] - Subscription revenues increased by 42.2 million (14.0%) for the nine months ended October 31, 2024, compared to the same period in 2023, with 67.4% of the increase attributed to existing customers and 32.6% from new customers[187] - Professional services and other revenues increased by 1.7million(9.91.7 million (9.9%) for the three months ended October 31, 2024, compared to the same period in 2023, driven by new customers and expanded adoption by existing customers[188] - Professional services and other revenues increased by 4.2 million (8.3%) for the nine months ended October 31, 2024, compared to the same period in 2023, driven by new customers and expanded adoption by existing customers[189] - Total revenues for the three months ended October 31, 2023 and 2024 were 121.9millionand121.9 million and 138.8 million, respectively, representing a 13.8% increase[158] - Subscription revenues for the three months ended October 31, 2023 and 2024 were 104.8millionand104.8 million and 119.9 million, respectively, representing a 14.4% increase[158] - Total revenues for the nine months ended October 31, 2023 and 2024 were 352.9millionand352.9 million and 399.3 million, respectively, representing a 13.2% increase[158] - Subscription revenues for the nine months ended October 31, 2023 and 2024 were 302.0millionand302.0 million and 344.2 million, respectively, representing a 14.0% increase[158] - Subscription revenues increased to 119.9millioninQ32024,upfrom119.9 million in Q3 2024, up from 104.8 million in Q3 2023, representing a 14.4% growth[181] - Professional services and other revenues grew to 18.9millioninQ32024,comparedto18.9 million in Q3 2024, compared to 17.2 million in Q3 2023, a 10% increase[181] - Total revenues for Q3 2024 reached 138.8million,up13.8138.8 million, up 13.8% from 121.9 million in Q3 2023[181] - International markets accounted for 21.3% of total revenues for the three months ended October 31, 2024 and 20.8% for the nine months ended October 31, 2024[159] Profit and Loss - Net loss attributable to nCino, Inc. for the three months ended October 31, 2024, was 5.252million,comparedto5.252 million, compared to 16.379 million for the same period in 2023[18] - Comprehensive loss attributable to nCino, Inc. for the three months ended October 31, 2024, was 3.758million,comparedto3.758 million, compared to 16.795 million for the same period in 2023[21] - Net loss attributable to nCino, Inc. for the nine months ended October 31, 2023, was 43.506million,comparedto43.506 million, compared to 19.268 million for the same period in 2024[31] - Net loss attributable to nCino, Inc. for the nine months ended October 31, 2024 was 19,268,comparedto19,268, compared to 43,506 for the same period in 2023[142] - Basic and diluted loss per share for the nine months ended October 31, 2024 was 0.17,comparedto0.17, compared to 0.39 for the same period in 2023[142] - Net losses attributable to nCino, Inc. for the three months ended October 31, 2023 and 2024 were 16.4millionand16.4 million and 5.3 million, respectively[158] - Net losses attributable to nCino, Inc. for the nine months ended October 31, 2023 and 2024 were 43.5millionand43.5 million and 19.3 million, respectively[158] - Net loss improved significantly to 4.2millioninQ32024,comparedtoanetlossof4.2 million in Q3 2024, compared to a net loss of 17.2 million in Q3 2023[181] Gross Profit and Margins - Gross profit for the three months ended October 31, 2024, was 85.052million,comparedto85.052 million, compared to 73.917 million for the same period in 2023[18] - Gross profit for Q3 2024 was 85.1million,a15.185.1 million, a 15.1% increase from 73.9 million in Q3 2023[181] - Gross profit margin for subscription revenues improved to 71.8% for the three months ended October 31, 2024, compared to 70.8% in the same period in 2023[192] - Gross profit margin for subscription revenues improved to 71.3% for the nine months ended October 31, 2024, compared to 70.4% in the same period in 2023[193] Expenses - Research and development expenses increased to 33.039millionforthethreemonthsendedOctober31,2024,from33.039 million for the three months ended October 31, 2024, from 29.043 million in the same period in 2023[18] - Research and development expenses rose to 33.0millioninQ32024,up13.833.0 million in Q3 2024, up 13.8% from 29.0 million in Q3 2023[181] - Research and development expenses increased by 4.0million(13.84.0 million (13.8%) for the three months ended October 31, 2024, compared to the same period in 2023, driven by higher personnel costs and third-party professional fees[202] - Sales and marketing expenses decreased to 29.7 million in Q3 2024, down from 38.4millioninQ32023,a22.738.4 million in Q3 2023, a 22.7% reduction[181] - Sales and marketing expenses decreased by 8.7 million (22.6%) for the three months ended October 31, 2024, compared to the same period in 2023, primarily due to reduced amortization expenses[197] - General and administrative expenses increased by 3.8million(19.73.8 million (19.7%) for the three months ended October 31, 2024, compared to the same period in 2023, primarily due to higher personnel costs and acquisition-related expenses[205] - Cost of professional services and other revenues increased to 19.0 million in Q3 2024, up 14.7% from 17.4millioninQ32023[181]CashFlowandFinancing−NetcashprovidedbyoperatingactivitiesfortheninemonthsendedOctober31,2023,was17.4 million in Q3 2023[181] Cash Flow and Financing - Net cash provided by operating activities for the nine months ended October 31, 2023, was 49.137 million, rising to 65.218millionin2024[31]−Acquisitionofbusiness,netofcashacquired,in2024amountedto65.218 million in 2024[31] - Acquisition of business, net of cash acquired, in 2024 amounted to 90.839 million, with no such activity in 2023[31] - Total cash, cash equivalents, and restricted cash at the end of October 31, 2023, was 105.823million,increasingto105.823 million, increasing to 258.253 million in 2024[31] - Net cash used in investing activities for the nine months ended October 31, 2023, was 5.939million,comparedto5.939 million, compared to 92.755 million in 2024[31] - Proceeds from borrowings on revolving credit facility in 2024 amounted to 241million,withnosuchactivityin2023[31]−Cashpaidfortaxesincreasedfrom241 million, with no such activity in 2023[31] - Cash paid for taxes increased from 2.244 million in the nine months ended October 31, 2023, to 2.770millioninthesameperiodin2024[33]−Cashpaidforinterestrosefrom2.770 million in the same period in 2024[33] - Cash paid for interest rose from 3.458 million in the nine months ended October 31, 2023, to 4.846millioninthesameperiodin2024[33]−Thecompany′s2024CreditFacilityprovidesaseniorsecuredrevolvingcreditfacilityofupto4.846 million in the same period in 2024[33] - The company's 2024 Credit Facility provides a senior secured revolving credit facility of up to 250.0 million with a maturity date of October 28, 2029[123] - As of October 31, 2024, the company had 166.0millionoutstandingunderthe2024CreditFacilitywithanapplicableinterestrateof6.72166.0 million outstanding under the 2024 Credit Facility with an applicable interest rate of 6.72%[130] Assets and Liabilities - Total assets increased to 1.516606 billion as of October 31, 2024, from 1.340430billionasofJanuary31,2024[16]−Deferredrevenue,currentportion,decreasedto1.340430 billion as of January 31, 2024[16] - Deferred revenue, current portion, decreased to 132.382 million as of October 31, 2024, from 170.941millionasofJanuary31,2024[16]−Totalliabilitiesincreasedto170.941 million as of January 31, 2024[16] - Total liabilities increased to 423.100 million as of October 31, 2024, from 287.826millionasofJanuary31,2024[16]−AccumulateddeficitasofOctober31,2023,was287.826 million as of January 31, 2024[16] - Accumulated deficit as of October 31, 2023, was 354.373 million, compared to 369.821millionin2024[28][29]−Additionalpaid−incapitalasofOctober31,2023,was369.821 million in 2024[28][29] - Additional paid-in capital as of October 31, 2023, was 1.382 billion, increasing to 1.456billionin2024[28][29]−OthercomprehensiveincomefortheninemonthsendedOctober31,2023,was1.456 billion in 2024[28][29] - Other comprehensive income for the nine months ended October 31, 2023, was 212,000, rising to 619,000in2024[28][29]−Thebalanceoftheallowancefordoubtfulaccountsdecreasedfrom619,000 in 2024[28][29] - The balance of the allowance for doubtful accounts decreased from 2.221 million at the end of the period in 2023 to 1.172millionattheendoftheperiodin2024[50]−Theredeemablenon−controllinginterestbalanceincreasedfrom1.172 million at the end of the period in 2024[50] - The redeemable non-controlling interest balance increased from 3.198 million at the end of the period in 2023 to 5.243millionattheendoftheperiodin2024[61]−TotalassetsmeasuredatfairvalueasofJanuary31,2024were5.243 million at the end of the period in 2024[61] - Total assets measured at fair value as of January 31, 2024 were 39,008 thousand, with money market accounts contributing 38,649thousand[65]−TotalassetsmeasuredatfairvalueasofOctober31,2024were38,649 thousand[65] - Total assets measured at fair value as of October 31, 2024 were 33,965 thousand, with money market accounts contributing 33,606thousand[68]AcquisitionsandInvestments−ThecompanyacquiredDocFoxforatotalof33,606 thousand[68] Acquisitions and Investments - The company acquired DocFox for a total of 74.3 million in cash, including 6.2millionforcash−settledstockoptions[80]−ThepreliminaryfairvalueofnetassetsacquiredfromDocFoxwas6.2 million for cash-settled stock options[80] - The preliminary fair value of net assets acquired from DocFox was 72.4 million, including 24.6millioninintangibleassets[84]−Thecompanyissued198,505RSUswithanapproximatefairvalueof24.6 million in intangible assets[84] - The company issued 198,505 RSUs with an approximate fair value of 6.1 million to certain employees of DocFox[81] - The preliminary fair value of identifiable intangible assets from the DocFox acquisition includes 16.4millionforcustomerrelationshipsand16.4 million for customer relationships and 8.0 million for developed technology[86] - Goodwill of approximately 11.1millionisexpectedtobedeductiblefortaxpurposes,primarilyduetoexpandedmarketopportunities,synergiesfromacquisitions,andtheassembledworkforce[99]−ThecompanyacquiredILTfor11.1 million is expected to be deductible for tax purposes, primarily due to expanded market opportunities, synergies from acquisitions, and the assembled workforce[99] - The company acquired ILT for 19.9 million in cash, with an additional 0.1millionadjustmenttogoodwillduetonetworkingcapitaladjustments[93][93]−TransactioncostsassociatedwiththeILTacquisitionwereapproximately0.1 million adjustment to goodwill due to net working capital adjustments[93][93] - Transaction costs associated with the ILT acquisition were approximately 0.9 million, recorded in general and administrative expenses for the three months ended April 30, 2024[92] - The preliminary fair value of identifiable intangible assets acquired from ILT includes 210,000fortradename,210,000 for trade name, 5.87 million for customer relationships, and 2.58millionfordevelopedtechnology[98]−ThecompanyacquiredFullCirclforapproximately2.58 million for developed technology[98] - The company acquired FullCircl for approximately 129.7 million, funded with proceeds from the 2024 Credit Facility[145][154] - The company acquired DocFox for an aggregate preliminary purchase price of 74.3million,fundedwith74.3 million, funded with 75.0 million borrowed under the 2022 Credit Facility[151] - The company acquired ILT for an aggregate purchase price of 20.0millionincash[153]IntangibleAssetsandAmortization−Thecompanywroteoffapproximately20.0 million in cash[153] Intangible Assets and Amortization - The company wrote off approximately 20.6 million of fully amortized intangible assets and corresponding accumulated amortization during the nine months ended October 31, 2024[102] - Total amortization expense for intangible assets was 21.39millionfortheninemonthsendedOctober31,2024,comparedto21.39 million for the nine months ended October 31, 2024, compared to 31.10 million for the same period in 2023[105] - The expected future amortization expense for intangible assets as of October 31, 2024, is 128.34million,with128.34 million, with 7.36 million expected for the remainder of fiscal year 2025[106] - Amortization expense for intangible assets was 7.4millioninQ32024,comparedto7.4 million in Q3 2024, compared to 31.1 million in the nine months ended October 31, 2023[183] Stock-Based Compensation - Stock-based compensation for the nine months ended October 31, 2023, was 41.969million,increasingto41.969 million, increasing to 53.015 million in 2024[31] - Total stock-based compensation expense for the nine months ended October 31, 2024, was 53.02million,comparedto53.02 million, compared to 41.97 million for the same period in 2023[112] - Stock-based compensation expense totaled 18.0millioninQ32024,a13.618.0 million in Q3 2024, a 13.6% increase from 15.8 million in Q3 2023[183] - Total unrecognized compensation expense related to non-vested RSUs was 166.6millionasofOctober31,2024,expectedtoberecognizedoveraweightedaverageperiodof2.85years[110]LeasesandCommitments−Thecompanyleasesfacilitiesandequipmentundernon−cancellableagreementsexpiringthroughDecember2033,withoptionstoextendforuptofiveyears[115]−OperatingleaseexpenseforthethreemonthsendedOctober31,2024was166.6 million as of October 31, 2024, expected to be recognized over a weighted average period of 2.85 years[110] Leases and Commitments - The company leases facilities and equipment under non-cancellable agreements expiring through December 2033, with options to extend for up to five years[115] - Operating lease expense for the three months ended October 31, 2024 was 1,418, compared to 1,225forthesameperiodin2023,representinga15.81,225 for the same period in 2023, representing a 15.8% increase[116] - Total lease expense for the nine months ended October 31, 2024 was 6,028, compared to 5,568forthesameperiodin2023,an8.35,568 for the same period in 2023, an 8.3% increase[116] - Future minimum lease payments as of October 31, 2024 total 20,650, with 1,166duein2025and1,166 due in 2025 and 5,088 in 2026[117] - Purchase commitments as of October 31, 2024 total 261,786,with261,786, with 20,922 due in 2025 and 83,388in2026[133]−FinancingobligationsasofOctober31,2024total83,388 in 2026[133] - Financing obligations as of October 31, 2024 total 53,238, with a weighted-average discount rate of 5.7%[133] Interest and Other Income/Expenses - Interest income decreased by 0.2million(from0.2 million (from 685 thousand to 482thousand)forthethreemonthsendedOctober31,2024comparedtothesameperiodin2023[209]−Interestexpenseincreasedby482 thousand) for the three months ended October 31, 2024 compared to the same period in 2023[209] - Interest expense increased by 0.8 million (from 854thousandto854 thousand to 1.653 million) for the three months ended October 31, 2024 compared to the same period in 2023[209] - Other income (expense), net decreased by 2.8million(from2.8 million (from 2.320 million to 432thousand)forthethreemonthsendedOctober31,2024comparedtothesameperiodin2023[209]−InterestincomefortheninemonthsendedOctober31,2024was432 thousand) for the three months ended October 31, 2024 compared to the same period in 2023[209] - Interest income for the nine months ended October 31, 2024 was 1.408 million, a decrease from 2.057millioninthesameperiodin2023[209]−InterestexpensefortheninemonthsendedOctober31,2024was2.057 million in the same period in 2023[209] - Interest expense for the nine months ended October 31, 2024 was 4.965 million, an increase from 3.277millioninthesameperiodin2023[209]−Otherincome(expense),netfortheninemonthsendedOctober31,2024was3.277 million in the same period in 2023[209] - Other income (expense), net for the nine months ended October 31, 2024 was 162 thousand, compared to 2.633millioninthesameperiodin2023[209]RemainingPerformanceObligations−RemainingperformanceobligationsasofOctober31,2024were2.633 million in the same period in 2023[209] Remaining Performance Obligations - Remaining performance obligations as of October 31, 2024 were 1.10 billion, with 67% expected to be recognized as revenues in the next 24 months[74] - The company recognized 167.9millionofrevenuesfromthedeferredrevenuebalanceduringtheninemonthsendedOctober31,2024[73]InvestmentsandOwnership−Thecompany′sinvestmentinnCinoK.K.totaled167.9 million of revenues from the deferred revenue balance during the nine months ended October 31, 2024[73] Investments and Ownership - The company's investment in nCino K.K. totaled 4.7 million initially, with an additional $1.0 million invested in October 2023, maintaining a 51% ownership stake[57]