What happened
Shares of the cloud-banking technology company nCino (NCNO 3.31%) traded roughly 10.7% lower as of 10:44 a.m. ET today after the company reported earnings results for its first fiscal quarter of 2024 ended April 30.
So what
In its first fiscal quarter, nCino reported a loss of $0.10 per share on total revenue of $113.7 million, with adjusted earnings coming in at $0.07 per share. Both adjusted earnings and revenue beat consensus estimates for the quarter.
"We are pleased to begin the year reporting a strong quarter with record operating income and free cash flow," nCino CEO Pierre Naudé said in an earnings statement. "We remain confident in our future trajectory while navigating current market conditions and believe we are well positioned for long-term profitable growth."
During the quarter, nCino inked deals for different products with a top 15 mortgage lender in the United Kingdom and a top-four U.S. bank, while expanding existing deals with two top-25 U.S. banks.
For the full fiscal year 2024, nCino expects to deliver $478.5 million of revenue and adjusted earnings of $0.40 at the high end of its range, which would be up from total revenue of $408 million and an adjusted loss of $0.07 in the fiscal year 2023.
Now what
I think investors were likely expecting more from nCino's guidance and also might have concerns about deals taking longer to go through, given everything that's happened recently in the banking sector. The stock also went on a big run in May, so it may need a breather.
Ultimately, I still think the technology nCino is providing banks is going to be critical as banks work to further digitize and automate their operations, so I still think the company still has a bright future.
