Banking & Finance

NCino Reports Increased Revenues, New Agreement With Wells Fargo

By Jenny Callison, posted Sep 2, 2021
Wilmington-headquartered nCino shared its second-quarter (for fiscal year 2022) earnings this week. (File photo)
Strong sales both in the U.S. and abroad drove higher earnings for nCino’s second quarter, according to the Wilmington banking software’s Sept. 1 earnings report. The quarter ended July 31 of this year.

Total revenues for the second quarter of nCino’s 2022 fiscal year were $66.5 million, a 36% increase from $48.8 million in the second quarter of fiscal 2021. Revenues from subscriptions, reflecting recurring income, were $53.9 million for the quarter, up from $39.4 million one year ago, an increase of 37% year-over-year.

Revenues from international sales were $10.8 million in the second quarter. That amount represents 16% of total revenues and is a year-over-year increase.

Significant new clients added in the second quarter included a financial services company in France, the company's first client in that country, nCino CEO Pierre Naudé said during the company’s earnings call Wednesday afternoon. Naudé mentioned that a German bank adopted nCino’s software earlier in the quarter and that U.S. Bank has expanded its relationship with nCino by adopting the system for its commercial lending operations.
“We are extremely pleased with the results of our second quarter,” Naudé said in a news release Wednesday afternoon. “In addition, today we announced that Wells Fargo, one of the top four banks in the U.S., has selected nCino to digitally transform its commercial lending operations. This growth across the U.S. and our non-U.S. markets illustrates that financial institutions of all sizes, all around the world, continue to embrace the nCino platform as part of their transition to a digital, client-first strategy.”

The enlistment of Wells Fargo as a customer is significant because the bank serves one in three U.S. households and more than 10% of all middle-market and small businesses in the country, nCino officials pointed out in a separate news release Wednesday.

By adopting the nCino Bank Operating System for its commercial lending operations, Wells Fargo “gains a flexible and agile, digital solution that manages all aspects of the commercial banking lending process,” the release stated. “nCino’s single platform spans business lines, connects employees, clients, and third parties, and eliminates silos within financial institutions to provide a more holistic view of clients, enhance collaboration, generate more loans, and reduce costs.”

Wells Fargo officials anticipate that the cloud-based system will streamline its processes.

“Wells Fargo is investing in digital capabilities to improve our clients’ experience and enable our teams to more quickly and effectively serve clients,” Kyle Hranicky, executive vice president and head of Middle Market Banking at Wells Fargo, said in the release. “nCino offers a best-in-class platform that will help us to continue to meet the evolving needs of our clients.”

Naudé said he views nCino's second quarter as a "textbook example of success" for the company.

“We exceeded our financial guidance, posted strong sales to support future growth and took steps scaling the organization to effectively address a massive global market opportunity while recognizing key leaders who have made invaluable contributions to the company,” Naudé said in the earnings call.   

Looking ahead, nCino officials predict total revenues of between $66 million and $67 million for the company’s third-quarter ending Oct. 31, of which between $54 and $55 million would be subscription revenues.

They anticipate total revenues for the entire FY 22, ending Jan. 31, 2022, will be between $263 million and $264 million.

In comparison, nCino’s total revenues for FY 21 were $204 million; for FY 20, they were $138 million.   

As of press time Thursday, nCino stock was trading at $72.70, up more than 15% from the previous close.
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