Stocks

nCino Boosts Forecast After Strong Revenue Growth

Cloud banking firm sees shares rise after subscription revenue jumps 15% and international sales surge.

nCino Inc. (NCNO), a provider of cloud-based banking software, raised its full-year financial outlook after reporting a strong second quarter, fueled by a 15% surge in subscription revenue and significant international expansion. The company posted total revenues of $148.8 million for the quarter ending July 31, a 12% increase from the same period last year, exceeding analyst expectations.\n\nThe Wilmington, North Carolina-based company saw its non-GAAP operating income climb 56% year-over-year to $30.0 million, expanding its operating margin to 20% from 15% a year prior. This improved profitability comes as financial institutions globally continue to invest in digital transformation.\n\n"We saw customer demand continue to strengthen in the second quarter, including for newer solutions and across our target markets, reinforcing our confidence in our strategy," said Sean Desmond, CEO of nCino. He noted that the company's vision of leading in 'AI-banking is rapidly coming into focus.'\n\nThe growth was driven by a 30% increase in international subscription revenues and a 22% recovery in its U.S. mortgage business. nCino highlighted expanded relationships with two top-50 U.S. banks and a top-5 Canadian bank, alongside securing its first customer in Spain, marking its entry into a new European market.\n\nDuring the quarter, the company also repurchased approximately 750,000 shares for $20 million.\n\nBuoyed by the strong performance, nCino lifted its full-year revenue guidance to a range of $585.0 million to $589.0 million. Following the announcement, the company's stock, which had closed the regular session up 1.13% at $28.37, saw modest movement in after-hours trading.