Domo signs strategic collaboration agreement with AWS for AI solutions
On Thursday, JMP Securities reaffirmed its positive stance on nCino Inc. (NASDAQ:NCNO), maintaining a Market Outperform rating with a steady price target of $32.00. According to InvestingPro data, the cloud banking company currently trades at $26.78, with analysts’ targets ranging from $21 to $33, suggesting potential upside from current levels. The endorsement follows nCino’s reporting of robust financial results for the first quarter of fiscal year 2026, which included a revenue increase of 13% year-over-year to $144.1 million, surpassing the consensus estimate of $140.9 million. The company maintains a healthy gross profit margin of 60% and operates with a moderate debt level, as revealed by InvestingPro analysis, which offers 8 additional key insights about nCino’s financial position.
nCino’s subscription revenue also exceeded expectations, reaching $125.6 million against a forecasted $122.6 million, marking a 14% rise. This growth, however, represented a slight deceleration from the previous quarter’s 16% increase. The company’s non-GAAP operating margin stood at 17.2%, slightly above the consensus of 16.8%, while non-GAAP earnings per share matched the anticipated $0.16. While not currently profitable over the last twelve months, InvestingPro analysts expect the company to achieve profitability this fiscal year.
Billings for the cloud banking company showed a 14% year-over-year increase to $156.6 million, outperforming the consensus estimate of $139.5 million. This growth rate demonstrated a slowdown from the 22% increase reported in the previous quarter. Additionally, the 24-month Remaining Performance Obligation (RPO), a measure of future revenue, was reported at $828.0 million, an 18% year-over-year increase, maintaining the same level as the last quarter.
nCino’s solid start to the fiscal year is set to be followed by investor meetings hosted by the company’s management team in Boston next week, offering an opportunity for direct engagement with the investment community.
In other recent news, Ncino reported impressive first-quarter earnings for 2025, exceeding Wall Street expectations. The company posted earnings per share of $0.16, surpassing the anticipated $0.1553, while revenues reached $144.1 million, beating the forecasted $139.82 million. This performance highlights a 13% year-over-year revenue growth, driven by robust subscription revenue growth and innovations in AI capabilities. Despite facing operational challenges, including a global workforce reduction, Ncino continues to streamline operations and enhance efficiency. The company has reiterated its FY26 annual contract value target and updated its total revenue guidance, projecting 7% growth. Analysts from Barclays (LON:BARC) and Truist have shown interest in Ncino’s strategic focus on AI and innovation, which positions the company competitively in the market. Additionally, Ncino’s strategic growth areas include momentum in credit union and international markets. While the company anticipates potential challenges in subscription revenue growth in Q4, it remains committed to innovation and cost-saving measures.
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