Shares of nCino (NCNO 0.96%) traded roughly 13.5% higher as of 2:40 p.m. ET today after the cloud banking technology company reported earnings results for the fourth quarter of its fiscal year 2022, which began in November and ended in January.
The company reported a non-GAAP (adjusted) earnings-per-share loss of $0.09, which came in line with what analysts had been projecting for the quarter. Revenue of nearly $75 million beat analyst estimates.
"As we look to fiscal year 2023, the strength of our combined businesses positions us extremely well for continued growth," nCino's CEO, Pierre Naudé, said in a statement. "We are pursuing a large, global opportunity to help lenders and financial institutions of all sizes digitally transform their operations, and 10 years in, we are just getting started."
During the quarter, nCino also closed its acquisition of the homeownership software company SimpleNexus and announced that its partnership with Wells Fargo had grown to help the bank digitally enhance its small business and consumer banking operations.
For fiscal year 2023, nCino is guiding for revenue to come in close to $400 million and to generate a net loss of as much as $0.32 earnings per share. That represents a significant increase from the $273 million in revenue nCino generated in fiscal year 2022, although it's a larger loss than the company's $0.20 earnings-per-share net loss in fiscal 2022.
The earnings results came in pretty solid, and revenue guidance for fiscal 2023 is excellent, so I am overall feeling optimistic about the stock. The banking sector as a whole has a long way to go for digital transformation, providing plenty of growth opportunities for nCino, which has continued to develop a strong reputation in the sector.