nCino Stock Surges After Earnings Beat as Subscriptions Jump—Key Levels to Watch

Cloud-based banking company nCino (NCNO) posted a quarterly earnings that sailed past analysts’ forecasts, sending its shares sharply higher ahead of the opening bell Wednesday morning.

The company, which primarily makes money by charging customers a subscription fee to access its cloud banking platform, reported fiscal 2024 fourth-quarter earnings of a penny a share, surprising analysts, who expected the financial services provider to disclose a loss of 12 cents per share. Revenue in the period of $123.7 million grew 13% year-over-year (YOY), but fell slightly short of the $124.62 million consensus view. Meanwhile, subscription revenues in the quarter tallied $107.5 million, representing a 16% jump from a year earlier.

For the current quarter ending in April, the company guided revenue of between $126 million and $127 million, a bit under Wall Street expectations. The company projects subscription revenue in the period of between $108.75 million and $109.75 million. For fiscal 2025, the company anticipates revenue of $538.5 million to $544.5 million, up from $476.5 million in fiscal 2024.

“The team’s solid execution and continued focus on product innovation and experience improvements, coupled with more normal buying cycles and positive tone from customers, fuels our optimism for the year ahead and beyond.” CEO and Chairman Pierre Naudé said in the company’s earnings statement.

The company also announced that Executive Vice President Paul Clarkson will replace President and Chief Revenue Officer Josh Glover who is leaving the firm to pursue an opportunity outside the financial services industry, adding that Glover will remain as a consultant with nCino through June, helping to ensure a smooth transition.

After bottoming out in March last year, the nCino share price promptly moved back above the 200-day moving average but has remained rangebound since, with neither the bulls nor bears able to gain the ascendency. Amid the stock’s anticipated post-earnings pop, keep a close eye on the $35.50 level, an area where the price may find resistance from the trading range’s top trendline. A breakout above this closely-watched location could see the price make a move up towards the next key resistance level around $47 near the March 2022 countertrend swing high.

Shares of nCino were up 12.7% at $34.01 about three hours before Wednesday’s opening bell. Through Tuesday’s close, the stock had lost 11.4% of its value so far in 2024.

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As of the date this article was written, the author does not own any of the above securities.