Bank software company nCino (NASDAQ:NCNO) will be reporting results tomorrow after market close. Here’s what to expect.
nCino beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $132.4 million, up 12.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ billings estimates.
Is nCino a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting nCino’s revenue to grow 12.7% year on year to $137.4 million, slowing from the 15.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. nCino has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.
Looking at nCino’s peers in the vertical software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Q2 Holdings delivered year-on-year revenue growth of 12.9%, beating analysts’ expectations by 0.9%, and Upstart reported revenues up 20.5%, topping estimates by 7.9%. Q2 Holdings traded up 13.1% following the results while Upstart was also up 45.9%.
Read our full analysis of Q2 Holdings’s results here and Upstart’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 17.6% on average over the last month. nCino is up 13.3% during the same time and is heading into earnings with an average analyst price target of $41.21 (compared to the current share price of $41.70).
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