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Shares in cloud banking solutions provider nCino Inc. briefly fell to an all-time low Wednesday after the company reported its fourth quarter net loss widened to $18.6 million despite having grown revenue by 14 percent from a year ago.
Tuesday’s earnings report — and the company’s guidance that revenue from its main business is expected to decline by as much as 7 percent this year — sent nCino’s share price plummeting 33 percent when markets opened Wednesday.
Shares in nCino, which in the past 12 months had changed hands for as much as $43.20 and as little as $27.29, bottomed out at $18.75 Wednesday morning before rebounding above $23 in the afternoon — but not before surpassing the previous all-time intraday low of $19.58 seen in March 2023.
The $37.9 million net loss for the year ending Jan. 31 was an improvement from $42.3 million and $102.7 million losses in 2023 and 2022. But NCino — whose clients include independent mortgage banks Synergy One Lending and Fairway Independent Mortgage Corp. — has racked up $385.3 million in cumulative losses since launching in 2011.
NCino, which raised $268.4 million in a July 2020 initial public offering, attempted to reassure shareholders in a separate announcement Tuesday that it plans to repurchase up to $100 million of the company’s outstanding common stock.
On his first earnings call since succeeding Pierre Naudé as CEO in February, nCino President and CEO Sean Desmond said he’s excited about the potential for the company’s investment in AI to drive future growth but acknowledged that the company’s bottom line has suffered as its customers were “significantly impacted by macroeconomic headwinds” beyond the company’s control.
“This is an extraordinary time for nCino and with the vertical AI opportunity, there has never been more excitement in this intersection of technology and banking,” Desmond said.
But Desmond said nCino took longer than it had hoped to bring a consumer lending product to market and to integrate intellectual property acquired from DocFox last year into its platform.
Sean Desmond
“Since our IPO in 2020, we have delivered strong revenue growth, significantly increased our operating margin, expanded our customer base, extended our…
