nCino lands Wells Fargo as client, cuts its losses and promotes numerous execs

WILMINGTON – In a trifecta of news announcements Wednesday, cloud banking services provider nCino disclosed a new business deal with Wells Fargo, reported a cut in its losses, and promoted a host of managers across its executive team.

First, Wells Fargo.

One of the nation’s biggest banks has signed on to utilize nCino technolgy to help accelerate digital transformation in commercial banking and corporate as well as investment banking businesses.

“Wells Fargo is investing in digital capabilities to improve our clients’ experience and enable our teams to more quickly and effectively serve clients,” said Kyle Hranicky, EVP and Head of Middle Market Banking at Wells Fargo. “nCino offers a best-in-class platform that will help us to continue to meet the evolving needs of our clients.”

Financial terms were not disclosed.

Financial results

nCino (Nasdaq; NCNO) reported a big jump in revenues for its most recent quarter, helping the company cut its losses.

“We are extremely pleased with the results of our second quarter, which include 37% year-over year growth in subscription revenues, 129% year-over-year growth in international revenues, and record second quarter sales,” said Pierre Naudé, CEO of nCino, in a statement. “In addition, today we announced that Wells Fargo, one of the top four banks in the U.S., has selected nCino to digitally transform its commercial lending operations. This growth across the U.S. and our non-U.S. markets illustrates that financial institutions of all sizes, all around the world, continue to embrace the nCino platform as part of their transition to a digital, client-first strategy.”

Highlights as cited by nCino:

Revenues: Total revenues for the second quarter were $66.5 million, a 36% increase from $48.8 million in the second quarter of fiscal 2021. Subscription revenues for the second quarter were $53.9 million, up from $39.4 million one year ago, an increase of 37%. Non-U.S. revenues were $10.8 million or 16% of total revenues in the second quarter, up 129% year over year.
Loss from Operations: GAAP loss from operations in the second quarter was ($13.2) million compared to ($15.7) million in the same quarter of fiscal 2021. Non-GAAP operating loss in the second quarter was ($1.8) million compared to ($1.6) million in the second quarter of fiscal 2021.
Net Loss Attributable to nCino: GAAP net loss attributable to nCino in the second quarter was ($13.7) million compared to ($14.6) million in the second quarter of fiscal 2021. Non-GAAP net loss attributable to nCino in the second quarter was ($2.3) million compared to ($0.6) million in the second quarter of fiscal 2021.
Net Loss Attributable to nCino per Share: GAAP net loss attributable to nCino in the second quarter was ($0.14) per share compared to ($0.17) per share in the second quarter of fiscal 2021. Non-GAAP net loss attributable to nCino in the second quarter was ($0.02) per share compared to ($0.01) per share in the second quarter of fiscal 2021.
Remaining Performance Obligation: Total Remaining Performance Obligation as of July 31, 2021 was $707 million, an increase of 55% compared to the second quarter of fiscal 2021.
Cash: Cash and cash equivalents were $399.4 million as of July 31, 2021.

The promotions

Here are the promotions as announced by the bank: