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• Total Revenue: $141.4 million in Q4, up 14% year-over-year; $540.7 million for fiscal '25, up 13% year-over-year.

• Subscription Revenue: $125 million in Q4, up 16% year-over-year; $469.2 million for fiscal '25, up 15% year-over-year.

• Organic Subscription Revenue: $118.3 million in Q4, up 10%; $456.9 million for fiscal '25, up 12% year-over-year.

• Professional Services Revenue: $16.4 million in Q4, up 1% year-over-year; $71.5 million for fiscal '25, up 7% year-over-year.

• Non-US Total Revenue: $33.3 million in Q4, up 34% year-over-year; $116.2 million for fiscal '25, up 30% year-over-year.

• Non-GAAP Operating Income: $24.4 million in Q4, 17% of total revenues; $96.2 million for fiscal '25, 18% of total revenues.

• Non-GAAP Net Income: $13.9 million in Q4, $0.12 per diluted share; $76.1 million for fiscal '25, $0.66 per diluted share.

• Free Cash Flow: Negative $10.4 million in Q4; $53.4 million for fiscal '25.

• Remaining Performance Obligation (RPO): $1.2 billion as of January 31, 2025, up 15% year-over-year.

• Annual Contract Value (ACV): $516.4 million as of January 31, 2025, up 13% year-over-year.

• ACV Net Retention Rate: 106% in fiscal '25, up from 102% in the prior year.

• Subscription Revenue Net Retention Rate: 110% in fiscal '25, down from 116% in fiscal '24.

• Total Churn: $26 million in fiscal '25, down from $31 million in fiscal '24.

• Warning! GuruFocus has detected 3 Warning Sign with NCNO.

Release Date: April 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ncino Inc (NASDAQ:NCNO) reported a 14% year-over-year increase in total revenues for the fourth quarter, reaching $141.4 million.

• Subscription revenues grew by 16% year-over-year in the fourth quarter, indicating strong demand for Ncino's offerings.

• The company has made strategic acquisitions, such as Sandbox Banking, which are expected to deliver accretive subscription revenue growth and reduce implementation timelines.

• Ncino Inc (NASDAQ:NCNO) is focusing on AI-driven solutions, which have already shown significant efficiency gains for customers, such as reducing complex banking processes from days to seconds.

• The company has a broad and diverse customer base across more than 20 countries, providing a competitive moat that is difficult for competitors to match.

Negative Points

• Ncino Inc (NASDAQ:NCNO) faced challenges with sales execution and sense of urgency in certain international markets, particularly Europe.

• The company's fiscal '26 revenue outlook is below expectations due to compounding headwinds and challenges in new bookings momentum.

• There were delays in the integration of acquired technologies, such as the DocFox acquisition, which impacted customer onboarding decisions.

• The company experienced higher churn in fiscal '25, with total churn amounting to $26 million of annualized subscription revenues.

• Ncino Inc (NASDAQ:NCNO) has faced macroeconomic headwinds, such as the rapid rise in interest rates and liquidity crises, which have dampened sales momentum and new bookings growth.