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Bank software company nCino (NASDAQ:NCNO) will be reporting results tomorrow afternoon. Here’s what to look for.
nCino met analysts’ revenue expectations last quarter, reporting revenues of $141.4 million, up 14.3% year on year. It was a slower quarter for the company, with full-year guidance of slowing revenue growth and full-year EPS guidance missing analysts’ expectations significantly.
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 9.5% year on year to $140.3 million, slowing from the 12.7% 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 missed Wall Street’s revenue estimates three times over the last two years.
Looking at nCino’s peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Q2 Holdings delivered year-on-year revenue growth of 14.6%, beating analysts’ expectations by 1.7%, and Upstart reported revenues up 67%, topping estimates by 5.2%. Q2 Holdings traded up 13.3% following the results while Upstart was down 9.7%.
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 7.3% on average over the last month. nCino is up 14.6% during the same time and is heading into earnings with an average analyst price target of $27.57 (compared to the current share price of $26.26).
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