nCino raises full-year forecast after Q2 beat; brokers lift numbers

nCino (NASDAQ:NCNO) raised its full-year forecast, although its shares still fell about 1% in early Wednesday trade.

The software company now expects adjusted EPS to be in the range of 38 cents to 41 cents, compared to the previous range of 37 cents to 40 cents.

Additionally, nCino anticipates revenue for the full year to be between $475.0 million and $478.5M, slightly higher than the previous range of $474.0M-$478.5M. Analysts were looking for FY EPS of 38 cents on revenue of $476.6M.

For the third quarter, nCino forecasts revenue of $120.0M-$121.0M, slightly below the consensus of $121.3M. The adjusted EPS for the third quarter is expected to be between 10 cents and 12 cents, in line with expectations.

In the second quarter, nCino reported revenue of $117.2M, showing an 18% year-on-year increase and surpassing the estimated revenue of $115.0M. Adjusted EPS for the quarter was 9 cents, an improvement from the loss per share of 4 cents in the same period last year, and higher than the estimated 7 cents.

“We are very pleased with our second quarter results and in particular, the strong rebound in sales activity we saw across the business,” said Pierre Naudé, chairman and CEO of nCino.

“Our profitability again exceeded expectations even as we continue to strategically invest in expanding our platform and solutions. With the liquidity crisis in the U.S. banking industry largely behind us, and financial institutions around the world focused on improving their operational efficiency and customer experience, we look for the momentum we saw in the second quarter to continue for the balance of the year and beyond.”

BofA analysts hiked the price target by $5 to $33 per share on Buy-rated NCNO stock.

“We continue to see favorable risk-reward for nCino,” the analysts said.

“While the macroeconomy and evolving interest rate environment may cause volatility in the near term given nCino’s financial services exposure, we think nCino will continue to gain share of the banking software market.”

Barclays analysts also lifted the PT by $5 and highlighted the upcoming Investor Day as the next catalyst.

“We expect a new LT model, focus on competitive moat, and more on data advantage with tools like nIQ,” they said.