- nCino, Inc (NASDAQ:NCNO) reported Q2 revenues of $99.6 million, up 50% Y/Y, beating the consensus. Adjusted EPS loss of $(0.04) surpassed the consensus.
- KeyBanc analyst Josh Beck maintained an Overweight and lowered the price target from $40 to $35.
- nCino reported solid results similar to the adjusted prior-quarter result driven by a potent mix of go-lives, renewals, upsells, and new logos.
- SimpleNexus results came in strong despite the challenging mortgage market.
- It signed Rabobank, the world's leading specialist food and agribusiness bank.
- Additionally, there was momentum with products like nIQ.
- The price target reflects rising bank IT budget macro-driven growth risks though he remains Overweight on product leadership and LT cloud banking growth opportunities.
- Piper Sandler analyst Brent Bracelin maintained an Overweight and raised the price target from $40 to $42.
- The cross-sell of SimpleNexus (47% Y/Y organic growth) during Q2, and the largest Automated Spreading deal to date at Rabobank contributed to another solid quarter.
- Q2 revenue beat Street estimates on 29% Y/Y organic subscription growth.
- He was encouraged by the 2H organic growth outlook of 25% and internal belt-tightening.
- Tailwinds tied to the inherent automation benefits of implementing an end-to-end Bank OS platform streamlining banking operations appear to partially offset some of the FX and macro headwinds.
- He raised estimates slightly, increasing the price target on higher estimates and new product wins.
- Needham analyst Mayank Tandon reiterated a Buy with a price target of $42.
- NCNO continued its strong momentum in Q2, beating expectations across the board.
- RPO rose a healthy 28% Y/Y (19% Y/Y organically) on the back of strength in renewals, cross-selling success, and new customer additions, which included signing Rabobank Australia and New Zealand to implement NCNO's automated spreading solution.
- Management also guided Q3 above consensus and raised its guidance for FY23 despite the macro uncertainty.
- In addition, NCNO reiterated its plan to be profitable and FCF positive in FY24.
- Following another impressive beat and raise performance, he remains positive on the shares given the strength in demand for NCNO's market-leading digital banking solutions.
- Raymond James analyst Alexander Sklar maintained Market Perform following Q2 beat, with an increased outlook for FY23 despite challenging macro and high FX headwinds.
- While the more challenging macro management adversely impacted net new business measures like RPO/billings, it was still able to deliver some impressive recent wins, including an nIQ entry at a large FI.
- Management also delivered significant improvements in the margin profile for FY23, with productivity improvements expected to help mitigate the potential impact on growth.
- Price Action: NCNO shares traded higher by 6.13% at $31.16 on the last check Friday.
