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Cloud banking solutions provider nCino Inc. trimmed its third quarter losses by 67 percent from a year ago, growing revenue by adding new customers and selling additional services to existing customers.
Revenue for the quarter ending Oct. 31 was up 14 percent from a year ago, to $138.8 million, helping the Wilmington, North Carolina-based company cut its net loss for the quarter to $5.3 million, down from $16.4 million a year ago.
In reporting Q3 earnings Wednesday, Chairman and CEO Pierre Naudé said nCino executives were “very pleased with our third quarter results,” which exceeded expectations for revenue and operating income.
Pierre Naudé
“The team delivered solid execution globally, with over 30 multi-solution deals and more gross bookings from net new customers than the previous two quarters combined,” Naudé said in a statement.
NCino’s guidance may have disappointed investors, with Q4 revenue projected to flatten to between $139.5 million and $141.5 million.
Shares in nCino, which in the last 12 months have traded for as much as $43.20 and as little as $28.09, fell 12 percent in after-hours trading from Wednesday’s close of $42.50.
NCino expanded its presence in the mortgage business in 2022 by spending nearly $1 billion to acquire mortgage technology provider SimpleNexus, which it rebranded as nCino Mortgage the following year.
During Q3, nCino said the affiliate mortgage company of “a large, national home builder completed its rollout” of the nCino Mortgage solution.
The company also did more business with existing clients, with 64 percent of a $15 million increase in subscription revenues coming from customers activating additional seats and expanding adoption of nCino’s services.
NCino’s mortgage clients include Synergy One Lending and Fairway Independent Mortgage Corporation, but most of its revenue comes from providing a range of technology services to global banks like Bank of America, Barclays, Santander, and TD Bank; enterprise banks including Truist Bank and U.S. Bank; regional community banks like WaFd Bank and M&F Bank; and credit unions like Navy Federal Credit Union, SAFE Credit Union and Marine Credit Union.
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