nCino shares plunge on earnings miss, weak guidance

Published 01/04/2025, 21:24
© Reuters.

Investing.com -- nCino (NASDAQ:NCNO) shares tumbled 17.1% after the banking software provider reported fourth-quarter earnings that fell short of expectations and issued guidance below analyst estimates for the upcoming quarter and fiscal year.

The company posted adjusted earnings per share of $0.12 for the fourth quarter, missing the analyst consensus of $0.19. Revenue came in at $141.4 million, slightly above the $140.85 million estimate and up 14% YoY.

For the first quarter of fiscal 2026, nCino forecasts adjusted EPS of $0.15-$0.16, below the $0.21 consensus. Revenue is projected at $138.75-$140.75 million, also lower than the $145.5 million analysts expected.

Full-year fiscal 2026 guidance was similarly disappointing, with adjusted EPS outlook of $0.66-$0.69 versus $0.88 consensus and revenue of $574.5-$578.5 million compared to $613.4 million expected.

"We ended the year strong, with meaningful YoY subscription revenues and ACV growth, while continuing to realize efficiencies across our operations," said Sean Desmond, Chief Executive Officer at nCino.

Despite the positive tone from management, investors appeared focused on the earnings miss and weak guidance, sending shares sharply lower.

The company reported fourth-quarter subscription revenue of $125.0 million, up 16% YoY. For the full fiscal year 2025, total revenue increased 13% to $540.7 million.

nCino also announced its Board of Directors has authorized a $100 million stock repurchase program.

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