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Banking & Finance

NCino Reports Positive Q3 Growth, Announces Addition To Board Of Directors

By Jenny Callison, posted Dec 1, 2022
nCino touted its growing revenues during the company’s third-quarter earnings call Wednesday afternoon.

Company Chairman and CEO Pierre Naudé noted that nCino, the cloud-based digital systems provider for the financial industry, generated $105.3 million in total revenues for the third quarter of FY 23, which ended Oct. 31. This amount represented a 50% increase over total revenues in the third quarter of fiscal ’22 and about a 5% increase over total revenues of $99.6 million in Q2.

Third-quarter subscription revenues – renewals from existing clients – were $88.3 million, up from $57.1 million one year ago, an increase of 55%, officials stated. These revenues include the results of SimpleNexus, the digital mortgage platform nCino purchased early in 2022. FY 23 Q3 revenues show an increase of nearly $4 million from those of the previous quarter, growth of slightly over 4%.

Organic subscription revenues, which exclude the revenues of SimpleNexus, were $72.9 million, a 28% increase from the third quarter of fiscal 2022 and up $3.5 million from those of the previous quarter, a 5% increase.  

In a news release earlier Wednesday, the company noted a generally accepted accounting principles (GAAP) loss from operations in the third quarter of fiscal 2023 was $18.4 million compared to $12.7 million in the same quarter of fiscal 2022. Using non-GAAP measures, the operating income loss in the third quarter was $2.5 million compared to $3.2 million for Q3 of FY 22.

“I am extremely proud of our team’s execution in the third quarter as we once again exceeded top- and bottom-line expectations,” Naudé said during Wednesday’s call. “For the past two earnings calls, we have emphasized our commitment to profitability in fiscal ’24 and I’m very happy with the progress we have made to-date. We plan to significantly increase our non-GAAP operating income next year.”

Naudé pointed to several recent international achievements. One was winning the Bank of New Zealand, one of that country’s largest financial institutions, as a new customer for nCino’s Bank Operating System (BOS). Another was the installation of the system for Japan’s Kiraboshi Bank, with two other Japanese banks soon to follow. A third was the go-live of the BOS for nCino’s first customer in Germany, Hamburg Commercial Bank.

SimpleNexus had a “strong quarter” despite a turbulent mortgage market, Naudé added, noting that the digital mortgage platform provider increased its total revenues 38% organically year-over-year, competing successfully against other providers and cross-selling to five nCino customers.

“Despite the current headwinds in the U.S. mortgage market, we believe the quality of this business, including its people, technology and recurring-subscription-based revenue model, positions us to continue to take market share and emerge on the other side of this rising interest rate environment as the clear leader in this space,” Naudé said.

Tech entrepreneur joins nCino board

On Tuesday, nCino announced the addition of Willliam “Bill” Spruill to its board of directors.
Spruill is the co-founder and former CEO of Global Data Consortium (GDC), a leading provider and industry expert in global electronic identity verification, nCino’s news release stated. “During his tenure as CEO, he oversaw the formation of more than 50 enterprise-channel relationships and established a cohort of more than 120 data suppliers creating a unique and successful consortium business model to deliver high-quality identity data in near real-time for over 70 countries,” the release continued. 

Earlier this year, GDC was acquired by the London Stock Exchange Group (LSEG) for $300 million, making it one of the largest minority-founder exits in the enterprise technology sector in U.S. history, according to the release.

“As one of North Carolina’s most prominent tech founders with deep data expertise and a strong background in enterprise software, Bill’s experience and perspective will be invaluable to nCino as we continue to scale globally,” Naudé said in the release.
 
Other nCino directors are Pam Kilday, former head of operations of Truist Financial; Steven Collins, former EVP & CFO of ExactTarget; Jon Doyle, member of the board of directors of, and current vice chairman, senior managing principal and head of the financial services group at Piper Sandler; Jeffrey Horing, managing director at Insight Partners; William Ruh, president of Cairn Capital Management; Spencer Lake, former vice chairman of global banking and markets at HSBC; and Naudé.
 
 
 
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