NCino reported Wednesday (May 29) that demand for its single-platform cloud banking solution and artificial intelligence (AI) features drove record gross sales in the most recent quarter.
The company reported that its total revenues of $128.1 million for the first quarter of fiscal 2025, which ended April 30, were up 13% from the same quarter a year earlier, according to a Wednesday earnings release.
This reflected demand for its cloud banking solution delivered to financial institutions via a single software-as-a-service (SaaS) platform, according to the release.
Pierre Naudé, chairman and CEO at nCino, said in the release that the first-quarter sales record highlighted “the effectiveness of our single platform strategy” and customers’ demand for products that “embed intelligence into essential business processes.”
The stabilization of interest rates after almost two years of instability also contributed to the company’s growth, as it improved the tone of customer conversations and normalized buying behavior, Naudé said Wednesday during the company’s quarterly earnings call.
“With more visibility into their own financial performance, more and more financial institutions have been able to refocus on strategic initiatives to improve their operations, create additional operating efficiencies, provide better user experiences for their clients and improve their competitive positioning,” Naudé said. “This is translating to more technology spend.”
The company’s earnings release highlighted four recent business highlights. During the quarter, nCino signed an expansion agreement with M&T Bank for Continuous Credit Monitoring; grew its relationship with an unnamed existing customer that is an over $15 billion-asset bank; expanded its partnership with an unnamed district bank in the Farm Credit System; and gained a new customer that is an unnamed specialist lender in the United Kingdom.
“Obviously, there are nuances by market, but we see priorities generally aligned across all of the markets we serve,” Naudé said during the call. “The liquidity crisis a year ago and the ensuring difficult business cycle imparted some lasting lessons for our customers and prospects. Operational efficiency matters, and quality digital experiences are table stakes for their clients.”
Looking ahead, nCino expects to earn total revenues between $130.5 million and $131.5 million in the current quarter and between $538.5 million and $544.5 million in the fiscal year ending Jan. 31, 2025, according to the earnings release.
“Just as nCino led financial institutions to the cloud, we are uniquely positioned to lead them on the path to greater efficiency through the use of data, analytics and AI,” Naudé said in the release.
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