Artificial Intelligence

nCino Reports Fourth Quarter and Fiscal Year 2022 Financial Results

Published

2 years ago

March 31, 2022

Fiscal Year 2022 Total Revenues of $273.9M, up 34% year-over-year; Q4 Total Revenues of $75.0M, up 32% year-over-year
Fiscal Year 2022 Subscription Revenues of $224.9M, up 38% year-over-year; Q4 Subscription Revenues of $62.8M, up 40% year-over-year
Fiscal Year 2023 Total Revenue Guidance of $398M to $400M

WILMINGTON, N.C., March 31, 2022 (GLOBE NEWSWIRE) — nCino, Inc. (NASDAQ: NCNO), a pioneer in cloud banking and digital transformation solutions for the global financial services industry, today announced financial results for the fourth quarter and fiscal year 2022, ended January 31, 2022.

“With new logos, significant expansion deals, continued traction internationally and the completion of the SimpleNexus acquisition, the fourth quarter was a strong finish to a tremendous year for nCino,” said Pierre Naudé, CEO of nCino. “As we look to fiscal year 2023, the strength of our combined businesses positions us extremely well for continued growth. We are pursuing a large, global opportunity to help lenders and financial institutions of all sizes digitally transform their operations, and 10 years in, we are just getting started.”

Fourth Quarter Fiscal 2022 Financial Highlights

Revenues: Total revenues for the fourth quarter were $75.0 million, a 32% increase from $56.6 million in the fourth quarter of fiscal 2021. Subscription revenues for the fourth quarter were $62.8 million, up from $45.0 million one year ago, an increase of 40%. Total revenues and subscription revenues from SimpleNexus included in these fourth quarter results were $3.9 million and $3.7 million, respectively, from January 7, 2022, the close date of the acquisition.
Loss from Operations: GAAP loss from operations in the fourth quarter was ($30.0) million compared to ($13.9) million in the same quarter of fiscal 2021. Non-GAAP operating loss in the fourth quarter was ($8.3) million compared to ($7.5) million in the fourth quarter of fiscal 2021.
Net Loss Attributable to nCino: GAAP net loss attributable to nCino in the fourth quarter was ($7.1) million compared to ($12.1) million in the fourth quarter of fiscal 2021. Non-GAAP net loss attributable to nCino in the fourth quarter was ($9.3) million compared to ($5.6) million in the fourth quarter of fiscal 2021.
Net Loss Attributable to nCino per Share: GAAP net loss attributable to nCino in the fourth quarter was ($0.07) per share compared to ($0.13) per share in the fourth quarter of fiscal 2021. Non-GAAP net loss attributable to nCino in the fourth quarter was ($0.09) per share compared to ($0.06) per share in the fourth quarter of fiscal 2021.
Remaining Performance Obligation: Total Remaining Performance Obligation as of January 31, 2022, was $912 million, an increase of 52% compared to January 31, 2021.
Cash: Cash and cash equivalents were $88.0 million as of January 31, 2022.

Full Year Fiscal 2022 Financial Highlights

Revenues: Total revenues for fiscal year 2022 were $273.9 million, a 34% increase from $204.3 million in fiscal year 2021. Subscription revenues for fiscal year 2022 were $224.9 million, up from $162.4 million one year ago, an increase of 38%.
Loss from Operations: GAAP loss from operations for fiscal year 2022 was ($71.4) million compared to ($42.6) million in fiscal year 2021. Non-GAAP operating loss for fiscal year 2022 was ($17.6) million compared to ($14.2) million last fiscal year.
Net Loss Attributable to nCino: GAAP net loss attributable to nCino for fiscal year 2022 was ($49.4) million compared to ($40.5) million in fiscal year 2021. Non-GAAP net loss attributable to nCino for fiscal year 2022 was ($19.5) million compared to ($11.7) million last fiscal year.
Net Loss Attributable to nCino per Share: GAAP net loss attributable to nCino for fiscal year 2022 was ($0.51) per share compared to ($0.46) per share in fiscal year 2021. Non-GAAP net loss attributable to nCino for fiscal year 2022 was ($0.20) per share compared to ($0.13) per share last fiscal year.

Recent Business Highlights

Signed Expansion Deal with Wells Fargo: In the fourth quarter, Wells Fargo & Company expanded its adoption of the nCino Bank Operating System® to accelerate digital transformation within its Consumer and Small Business Banking division to deliver a premier, cutting-edge technology experience. Earlier in fiscal year 2022, Wells Fargo selected nCino as the technological foundation to transform its commercial lending operations.
Signed Expansion and Renewal Deals with Strategic Customers: During the fourth quarter, nCino signed several strategic renewal and expansion deals with existing customers, including a U.S. enterprise customer with over $150 billion in assets that nearly doubled their financial commitment, and a Top-10 U.S. bank that completed a multi-year renewal, which included their purchase of our newest Automated Spreading functionality. Additionally, a U.S. enterprise bank with over $100 billion in assets that was using nCino for Commercial Banking also purchased nCino’s Deposit Account Opening solution during the fourth quarter.
Completed Acquisition: nCino closed its acquisition of SimpleNexus, a leading cloud-based, mobile-first homeownership software company, on January 7, 2022.
Increased Customer Count and Size: The Company ended fiscal 2022 with over 1,750 customers, including over 400 SimpleNexus customers, up from over 1,260 at the end of fiscal 2021. Of our Bank Operating System customers, 271 contributed greater than $100,000 to fiscal 2022 subscription revenues, an increase from 224 in fiscal 2021. Of these 271 customers, 47 contributed more than $1 million to fiscal 2022 subscription revenues, compared to 36 at the end of the prior year.
Expanded International Footprint: In the fourth quarter, nCino added new logos in multiple geographies, including Japan and South Africa. In Canada, the Company added CIBC in the fourth quarter along with another Top 5 Canadian bank. The Company also recently launched new entities in Spain and France in addition to its German entity and hub office in London.
Announced New International Go-Live: Subsequent to the quarter, nCino announced that Natixis Corporate & Investment Banking (Natixis CIB) is using nCino to speed up its credit journeys, improve efficiency and deliver intelligence into the financial analysis process with Automated Spreading, powered by nCino’s artificial intelligence application suite, nCino IQ (nIQ®). Natixis CIB will also use nCino’s Corporate Banking Solution to eliminate manual processes and automate repeatable tasks for seamless collaboration across deal teams and faster credit decisioning to deliver an enhanced client experience with embedded regulatory compliance and procedures.

Financial Outlook
nCino is providing guidance for its first quarter ending April 30, 2022, as follows:

Total revenues between $91 million and $92 million.
Subscription revenues between $77 million and $78 million.
Non-GAAP operating loss between ($7.5) million and ($8.5) million.
Non-GAAP net loss attributable to nCino per share of ($0.07) to ($0.08).

nCino is providing guidance for its fiscal year 2023 ending January 31, 2023, as follows:

Total revenues between $398 million and $400 million.
Subscription revenues between $340 million and $342 million.
Non-GAAP operating loss between ($33.5) million and ($35.5) million.
Non-GAAP net loss attributable to nCino per share of ($0.31) to ($0.32).

Conference Call
nCino will host a conference call at 4:30 p.m. ET today to discuss its financial results and outlook. The conference call will be available via live webcast and replay at the Investor Relations section of nCino’s website: https://investor.ncino.com/news-events/events-and-presentations.

About nCino
nCino (NASDAQ: NCNO) is the worldwide leader in cloud banking. The nCino Bank Operating System^® empowers financial institutions with scalable technology to help them achieve revenue growth, greater efficiency, cost savings and regulatory compliance. In a digital-first world, nCino’s single cloud-based platform enhances the employee and client experience to enable financial institutions to more effectively onboard clients, make loans and manage the entire loan life cycle, and open deposit and other accounts across lines of business and channels. Transforming how financial institutions operate through innovation, reputation and speed, nCino is partnered with more than 1,750 financial institutions of all types and sizes on a global basis. For more information, visit https://www.ncino.com/.

Forward-Looking Statements:
This press release contains forward-looking statements about nCino’s financial and operating results, which include statements regarding nCino’s future performance, outlook, guidance, the assumptions underlying those statements, the benefits from the use of nCino’s solutions, our strategies, and general business conditions. Forward-looking statements generally include actions, events, results, strategies and expectations and are often identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans,” “seeks,” “estimates,” “projects,” “may,” “will,” “could,” “might,” or “continues” or similar expressions and the negatives thereof. Any forward-looking statements contained in this press release are based upon nCino’s historical performance and its current plans, estimates, and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent nCino’s expectations as of the date of this press release. Subsequent events may cause these expectations to change and, except as may be required by law, nCino does not undertake any obligation to update or revise these forward-looking statements. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially including, but not limited to risks associated with (i) the impact of the COVID-19 pandemic, including the impact to the financial services industry, the impact on general economic conditions and the impact of government responses, restrictions, and actions; (ii) risks associated with the acquisition of SimpleNexus, (iii) breaches in our security measures or unauthorized access to our customers’ or their clients’ data; (iv) the accuracy of management’s assumptions and estimates; (v) our ability to attract new customers and succeed in having current customers expand their use of our solution; (vi) competitive factors, including pricing pressures, consolidation among competitors, entry of new competitors, the launch of new products and marketing initiatives by our competitors, and difficulty securing rights to access or integrate with third party products or data used by our customers; (vii) the rate of adoption of our newer solutions and the results of our efforts to sustain or expand the use and adoption of our more established solutions; (viii) fluctuation of our results of operations, which may make period-to-period comparisons less meaningful; (ix) our ability to manage our growth effectively including expanding outside of the United States; (x) adverse changes in our relationship with Salesforce; (xi) our ability to successfully acquire new companies and/or integrate acquisitions into our existing organization, including SimpleNexus; (xii) the loss of one or more customers, particularly any of our larger customers, or a reduction in the number of users our customers purchase access and use rights for; (xiii) system unavailability, system performance problems, or loss of data due to disruptions or other problems with our computing infrastructure or the infrastructure we rely on that is operated by third parties; (xiv) our ability to maintain our corporate culture and attract and retain highly skilled employees; (xv) adverse changes in the financial services industry, including as a result of customer consolidation; (xvi) adverse changes in economic, regulatory, or market conditions, including as a direct or indirect consequence of the outbreak of hostilities in Ukraine; and (xvii) the outcome and impact of legal proceedings and related fees and expenses.

Additional risks and uncertainties that could affect nCino’s business and financial results are included in our reports filed with the U.S. Securities and Exchange Commission (available on our web site at www.ncino.com or the SEC’s web site at www.sec.gov). Further information on potential risks that could affect actual results will be included in other filings nCino makes with the SEC from time to time.

nCino, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	January 31, 2021			January 31, 2022
Assets
Current assets
Cash and cash equivalents	$	371,425		$	88,014
Accounts receivable, net		55,517			74,528
Costs capitalized to obtain revenue contracts, current portion, net		4,864			7,583
Prepaid expenses and other current assets		10,425			13,384
Total current assets		442,231			183,509
Property and equipment, net		29,943			60,677
Operating lease right-of-use assets, net		—			13,170
Costs capitalized to obtain revenue contracts, noncurrent, net		10,191			16,403
Goodwill		57,149			841,487
Intangible assets, net		23,137			180,122
Investment		—			4,031
Other long-term assets		750			1,615
Total assets	$	563,401		$	1,301,014
Liabilities, redeemable non-controlling interest, and stockholders’ equity
Current liabilities
Accounts payable	$	1,634		$	11,366
Accounts payable, related party		4,363			—
Accrued compensation and benefits		15,885			21,454
Accrued expenses and other current liabilities		4,142			14,744
Deferred rent, current portion		203			—
Deferred revenue, current portion		89,141			122,643
Financing obligations, current portion		324			621
Operating lease liabilities, current portion		—			3,548
Total current liabilities		115,692			174,376
Operating lease liabilities, noncurrent		—			11,198
Deferred income taxes, noncurrent		368			1,675
Deferred rent, noncurrent		1,486			—
Deferred revenue, noncurrent		946			44
Financing obligations, noncurrent		15,939			33,478
Construction liability, noncurrent		—			9,736
Total liabilities		134,431			230,507
Commitments and contingencies
Redeemable non-controlling interest		3,791			2,882
Stockholders’ equity
Common stock		47			55
Additional paid-in capital		585,956			1,277,258
Accumulated other comprehensive income (loss)		240			(72	)
Accumulated deficit		(161,064	)		(209,616	)
Total stockholders’ equity		425,179			1,067,625
Total liabilities, redeemable non-controlling interest, and stockholders’ equity	$	563,401		$	1,301,014

nCino, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)

	Three Months Ended January 31,						Fiscal Year Ended January 31,
	2021			2022			2021			2022
Revenues
Subscription	$	44,978		$	62,802		$	162,439		$	224,854
Professional services and other		11,609			12,153			41,854			49,011
Total revenues		56,587			74,955			204,293			273,865
Cost of revenues
Subscription		13,570			18,501			47,969			64,508
Professional services and other		10,598			12,784			40,166			46,905
Total cost of revenues		24,168			31,285			88,135			111,413
Gross profit		32,419			43,670			116,158			162,452
Gross margin %		57	%		58	%		57	%		59	%
Operating expenses
Sales and marketing		17,704			24,674			59,731			82,901
Research and development		16,929			23,373			58,263			79,363
General and administrative		11,642			25,614			40,772			71,545
Total operating expenses		46,275			73,661			158,766			233,809
Loss from operations		(13,856	)		(29,991	)		(42,608	)		(71,357	)
Non-operating income (expense)
Interest income		72			21			361			194
Interest expense		(130	)		(537	)		(130	)		(1,514	)
Other income (expense), net		1,356			(952	)		1,693			(1,277	)
Loss before income taxes		(12,558	)		(31,459	)		(40,684	)		(73,954	)
Income tax provision (benefit)		(123	)		(24,863	)		586			(23,833	)
Net loss		(12,435	)		(6,596	)		(41,270	)		(50,121	)
Net loss attributable to redeemable non-controlling interest		(430	)		(310	)		(1,130	)		(1,569	)
Adjustment attributable to redeemable non-controlling interest		53			833			396			894
Net loss attributable to nCino, Inc.	$	(12,058	)	$	(7,119	)	$	(40,536	)	$	(49,446	)
Net loss per share attributable to nCino, Inc.:
Basic and diluted	$	(0.13	)	$	(0.07	)	$	(0.46	)	$	(0.51	)
Weighted average number of common shares outstanding:
Basic and diluted		92,789,559			100,319,094			87,678,323			96,722,464

nCino, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	Fiscal Year Ended January 31,
	2021			2022
Cash flows from operating activities
Net loss attributable to nCino, Inc.	$	(40,536	)	$	(49,446	)
Net loss and adjustment attributable to redeemable non-controlling interest		(734	)		(675	)
Net loss		(41,270	)		(50,121	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		7,431			10,006
Non-cash operating lease costs		—			2,534
Amortization of costs capitalized to obtain revenue contracts		4,682			5,779
Stock-based compensation		25,208			28,477
Deferred income taxes		168			(24,280	)
Provision for (recovery of) bad debt		100			90
Net foreign currency (gains) losses		(1,691	)		1,860
Change in operating assets and liabilities:
Accounts receivable		(20,614	)		(13,507	)
Accounts receivable, related parties		9,201			—
Costs capitalized to obtain revenue contracts		(8,967	)		(11,045	)
Prepaid expenses and other assets		(3,342	)		(2,503	)
Accounts payable		346			8,796
Accounts payable, related parties		956			(4,363	)
Accrued expenses and other current liabilities		6,740			7,311
Deferred rent		(52	)		—
Deferred revenue		38,339			24,317
Deferred revenue, related parties		(8,013	)		—
Operating lease liabilities		—			(2,580	)
Net cash provided by (used in) operating activities		9,222			(19,229	)
Cash flows from investing activities
Acquisition of business, net of cash acquired		—			(268,994	)
Purchases of property and equipment		(4,338	)		(5,463	)
Purchase of cost method investment		—			(4,031	)
Net cash used in investing activities		(4,338	)		(278,488	)
Cash flows from financing activities
Proceeds from initial public offering, net of underwriting discounts and commissions		268,375			—
Payments of costs related to initial public offering		(2,765	)		—
Stock issuance costs		—			(210	)
Exercise of stock options		8,745			13,907
Proceeds from stock issuance under the employee stock purchase plan		—			2,543
Contingent consideration payments		(197	)		—
Principal payments on financing obligations		(37	)		(318	)
Net cash provided by financing activities		274,121			15,922
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash		1,236			(1,231	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		280,241			(283,026	)
Cash and cash equivalents, beginning of period		91,184			371,425
Cash, cash equivalents, and restricted cash, end of period	$	371,425		$	88,399

Reconciliation of cash, cash equivalents, and restricted cash, end of period:
Cash and cash equivalents	$	371,425		$	88,014
Restricted cash included in other long-term assets		—			385
Total cash, cash equivalents, and restricted cash, end of period	$	371,425		$	88,399

Non-GAAP Financial Measures
In nCino’s public disclosures, nCino has provided non-GAAP measures, which are measurements of financial performance that have not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. In addition to its GAAP measures, nCino uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing our financial results. For the reasons set forth below, nCino believes that excluding the following items provides information that is helpful in understanding our operating results, evaluating our future prospects, comparing our financial results across accounting periods, and comparing our financial results to our peers, many of which provide similar non-GAAP financial measures.

Stock-Based Compensation Expenses. nCino excludes stock-based compensation expenses primarily because they are non-cash expenses that nCino excludes from our internal management reporting processes. nCino’s management also finds it useful to exclude these expenses when they assess the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use, nCino believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.
Amortization of Purchased Intangibles. nCino incurs amortization expense for purchased intangible assets in connection with certain mergers and acquisitions. Because these costs have already been incurred, cannot be recovered, are non-cash, and are affected by the inherent subjective nature of purchase price allocations, nCino excludes these expenses for our internal management reporting processes. nCino’s management also finds it useful to exclude these charges when assessing the appropriate level of various operating expenses and resource allocations when budgeting, planning and forecasting future periods. Although nCino excludes amortization expense for purchased intangibles from these non-GAAP measures, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.
Acquisition-Related Expenses. nCino excludes expenses related to acquisitions as they limit comparability of operating results with prior periods. We believe these costs are non-recurring in nature and outside the ordinary course of business.
Fees and Expenses Related to the Antitrust Matters. nCino excludes fees and expenses related to the government antitrust investigation and related civil action disclosed in our SEC filings as we do not believe these matters relate to the operating business and their exclusion from non-GAAP operating expenses will facilitate a more meaningful explanation of operating results and comparisons with prior period results.
Tax Benefit Related to the SimpleNexus Acquisition. Upon the acquisition of SimpleNexus, nCino reduced the valuation allowance against U.S. deferred tax assets, resulting in a one-time tax benefit recorded in Income tax provision (benefit). We believe that the exclusion of this benefit from our non-GAAP net loss attributable to nCino and non-GAAP net loss attributable to nCino per share provides a more direct comparison to all periods presented.
Adjustment to Redeemable Non-Controlling Interest. nCino adjusts the value of redeemable non-controlling interest of its joint venture nCino K.K. in accordance with the operating agreement for that entity. nCino believes investors benefit from an understanding of the company’s operating results absent the effect of this adjustment, and for comparability, has reconciled this adjustment for previously reported non-GAAP results.

There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures provided by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by nCino’s management about which items are adjusted to calculate its non-GAAP financial measures. nCino compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in its public disclosures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. nCino encourages investors and others to review our financial information in its entirety, not to rely on any single financial measure to evaluate our business, and to view our non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.

nCino, Inc.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In thousands, except share and per share data)
(Unaudited)

	Three Months Ended January 31,						Fiscal Year Ended January 31,
	2021			2022			2021			2022
GAAP total revenues	$	56,587		$	74,955		$	204,293		$	273,865

GAAP cost of subscription revenues	$	13,570		$	18,501		$	47,969		$	64,508
Amortization expense – developed technology		(392	)		(1,427	)		(1,525	)		(2,604	)
Stock-based compensation		(138	)		(239	)		(576	)		(960	)
Non-GAAP cost of subscription revenues	$	13,040		$	16,835		$	45,868		$	60,944

GAAP cost of professional services and other revenues	$	10,598		$	12,784		$	40,166		$	46,905
Stock-based compensation		(874	)		(1,314	)		(4,232	)		(5,195	)
Non-GAAP cost of professional services and other revenues	$	9,724		$	11,470		$	35,934		$	41,710

GAAP gross profit	$	32,419		$	43,670		$	116,158		$	162,452
Amortization expense – developed technology		392			1,427			1,525			2,604
Stock-based compensation		1,012			1,553			4,808			6,155
Non-GAAP gross profit	$	33,823		$	46,650		$	122,491		$	171,211
Non-GAAP gross margin %		60	%		62	%		60	%		63	%

GAAP sales & marketing expense	$	17,704		$	24,674		$	59,731		$	82,901
Amortization expense – customer relationships		(418	)		(888	)		(1,670	)		(2,141	)
Amortization expense – trade name		—			(162	)		—			(162	)
Stock-based compensation		(1,372	)		(2,105	)		(6,190	)		(7,520	)
Non-GAAP sales & marketing expense	$	15,914		$	21,519		$	51,871		$	73,078

GAAP research & development expense	$	16,929		$	23,373		$	58,263		$	79,363
Stock-based compensation		(1,057	)		(1,606	)		(5,463	)		(6,186	)
Non-GAAP research & development expense	$	15,872		$	21,767		$	52,800		$	73,177

GAAP general & administrative expense	$	11,642		$	25,614		$	40,772		$	71,545
Amortization expense – trademarks		—			—			(10	)		—
Stock-based compensation		(2,154	)		(2,664	)		(8,747	)		(8,616	)
Acquisition-related expenses		—			(9,104	)		—			(10,006	)
Fees and expenses related to the Antitrust Matters		—			(2,158	)		—			(10,326	)
Non-GAAP general & administrative expense	$	9,488		$	11,688		$	32,015		$	42,597

GAAP loss from operations	$	(13,856	)	$	(29,991	)	$	(42,608	)	$	(71,357	)
Amortization expense – developed technology		392			1,427			1,525			2,604
Amortization expense – customer relationships		418			888			1,670			2,141
Amortization expense – trademarks		—			—			10			—
Amortization expense – trade name		—			162			—			162
Stock-based compensation		5,595			7,928			25,208			28,477
Acquisition-related expenses		—			9,104			—			10,006
Fees and expenses related to the Antitrust Matters		—			2,158			—			10,326
Non-GAAP operating loss	$	(7,451	)	$	(8,324	)	$	(14,195	)	$	(17,641	)
Non-GAAP operating margin		(13	)%		(11	)%		(7	)%		(6	)%
GAAP net loss attributable to nCino	$	(12,058	)	$	(7,119	)	$	(40,536	)	$	(49,446	)
Amortization expense – developed technology		392			1,427			1,525			2,604
Amortization expense – customer relationships		418			888			1,670			2,141
Amortization expense – trademarks		—			—			10			—
Amortization expense – trade name		—			162			—			162
Stock-based compensation		5,595			7,928			25,208			28,477
Acquisition-related expenses		—			9,104			—			10,006
Fees and expenses related to the Antitrust Matters		—			2,158			—			10,326
Tax benefit related to the SimpleNexus acquisition		—			(24,646	)		—			(24,646	)
Adjustment attributable to redeemable non-controlling interest		53			833			396			894
Non-GAAP net loss attributable to nCino	$	(5,600	)	$	(9,265	)	$	(11,727	)	$	(19,482	)

Weighted-average shares used to compute net loss per share, basic and diluted		92,789,559			100,319,094			87,678,323			96,722,464

GAAP net loss attributable to nCino per share	$	(0.13	)	$	(0.07	)	$	(0.46	)	$	(0.51	)
Non-GAAP net loss attributable to nCino per share	$	(0.06	)	$	(0.09	)	$	(0.13	)	$	(0.20	)

Free cash flow
Net cash provided by (used in) operating activities	$	(11,925	)	$	(21,052	)	$	9,222		$	(19,229	)
Purchases of property and equipment		(583	)		(1,823	)		(4,338	)		(5,463	)
Free cash flow	$	(12,508	)	$	(22,875	)	$	4,884		$	(24,692	)
Principal payments on financing obligations¹		(37	)		(137	)		(37	)		(318	)
Free cash flow less principal payments on financing	$	(12,545	)	$	(23,012	)	$	4,847		$	(25,010	)

¹These amounts represent the non-interest component of payments towards financing obligations for facilities.

CONTACTS

INVESTOR CONTACT
JoAnn Horne
Market Street Partners
+1 415.445.3240
[email protected]

MEDIA CONTACT
Kathryn Cook
nCino
+1 919.691.4206
[email protected]

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Artificial Intelligence

Heimdal Welcomes Jesper Frederiksen as its new Chief Executive Officer

Published

4 hours ago

May 8, 2024

CISION (PR Newswire)

Frederiksen joins Heimdal to accelerate its rapid revenue growth and enhance the delivery of its unified cybersecurity platform
COPENHAGEN, Denmark, May 8, 2024 /PRNewswire/ — Heimdal®, a global leader in cybersecurity solutions, is excited to announce the appointment of Jesper Frederiksen as its new Chief Executive Officer.

Bringing a wealth of experience from the SaaS and cloud security sectors, Frederiksen is renowned for his expertise in scaling IT technology organizations and enhancing their global presence through innovative Go-to-Market strategies.
His leadership is characterized by a relentless focus on partner and customer centricity alongside technological excellence.
Frederiksen joins Heimdal with over 25 years of experience in spearheading IT technology organizations toward exponential growth. Prior to his new role, he successfully led the EMEA operations at Lacework as General Manager, served as EMEA VP and General Manager at DocuSign and Okta, and holds ongoing roles as a non-executive board member for Keepit, Siteimprove, Signaturit and LearnUpon.
Under Frederiksen’s leadership, Heimdal aims to build on the significant growth and global expansion achieved over the past decade.
As CEO, Frederiksen will focus on accelerating the company’s rapid revenue growth, expanding its customer and partner base, and enhancing the delivery of Heimdal’s unified cybersecurity platform.
Heimdal offers partners substantial cost efficiencies through consolidation and automation, while enriching their service offerings with advanced SOC services. Furthermore, it supports end customers in significantly elevating their security postures through the widest attack surface coverage.
Jesper Frederiksen expressed his enthusiasm about his new role, stating:
“As the digital landscape evolves and automation becomes increasingly integral, the need for robust cybersecurity measures has never been greater. I am thrilled to join Heimdal at this pivotal moment. My commitment is to ensure that we meet and exceed the cybersecurity needs of our customers by safeguarding their operational integrity with cutting-edge solutions, and to enable our partners to enrich their offerings and maximize growth potential. All the while, we will continue to make Heimdal a great place to work.”
Morten Kjaersgaard, the founder of Heimdal who has driven the company’s transformative journey over the last decade, will pass the leadership torch to Jesper Frederiksen and assume the role of Chairman.
With this transition, Kjaersgaard will shift his focus to strategic partnerships and brand evangelism. Leveraging his unique understanding of Heimdal’s customers and partners, he will collaborate closely with Frederiksen to elevate the organization to the next level of growth.
“Jesper Frederiksen is the leader Heimdal needs to propel the legacy that has been built so far and to take our unique platform to the next phase of growth.” said Kjaersgaard. “With Jesper at the helm, I am confident that our thought leadership, innovative culture and global growth momentum will continue to strengthen in his capable hands. Meanwhile, I will dedicate my efforts to helping land new business and ensuring that our product strategy and offerings continue to outpace the market.”
With these changes, Heimdal is poised to continue its trajectory of growth and innovation in the cybersecurity industry. The company looks forward to achieving new milestones under Jesper Frederiksen’s leadership while benefitting from Morten Kjaersgaard’s continued support and guidance.
About Heimdal
Heimdal is an industry-leading unified and AI-powered cybersecurity solutions provider established in Copenhagen in 2014. With an integrated approach to cybersecurity, Heimdal has dramatically boosted operational efficiency and security effectiveness for over 15k+ customers globally. Heimdal empowers CISOs, Security Teams, and IT admins to enhance their SecOps, reduce alert fatigue, and be proactive using one seamless XDR security platform.
Our award-winning line-up of 12 fully integrated cybersecurity solutions span the entire IT estate, allowing organizations to be proactive, whether remote or onsite. That’s why Heimdal’s XDR platform and managed services offer solutions for every attack surface, whether at the Endpoint or Network, in Vulnerability Management, Privileged Access, implementing Zero Trust, thwarting Ransomware, preventing Business Email Compromises, and much more.
For further press information
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Artificial Intelligence

Secureworks Brings AI-Powered Threat Prevention and Detection To The Network With Taegis NDR

Published

6 hours ago

May 8, 2024

CISION (PR Newswire)

New solution empowers organizations to integrate their network with all security controls to mitigate risk
ATLANTA, May 8, 2024 /PRNewswire/ — Secureworks® (NASDAQ: SCWX), a global leader in cybersecurity, today announced the release of Secureworks Taegis™ NDR, to stop nefarious threat actors from traversing the network. The dominance of cloud applications and remote working has created an explosion in network traffic, up over 20% from 2023 to 20241. Adversaries are taking advantage of these increased volumes to lurk unseen and slip past defenses. Taegis NDR leverages AI to uncover hidden threats, integrating threat prevention, detection and response to halt malicious activity on the network.

Secureworks data, as measured across the company’s global customer base, shows that Taegis NDR can block 99% of malicious activity identified on the network. With threat actors obfuscating their behavior, legacy network controls such as IDPs and firewalls are no longer able to keep pace or offer sufficient protection against evolving adversarial tactics. Organizations need a multi-layered cybersecurity strategy. Taegis NDR provides a complete picture of all internal traffic moving between endpoints as well as traffic entering and exiting the network at the edge. This visibility is crucial to identifying the presence of threat actors and how they are moving within the network. When integrated with the Taegis XDR platform, NDR correlates telemetry across different threat vectors to detect adversarial behavior that would otherwise be analyzed in silos and potentially missed.
“Taegis NDR empowers us to proactively mitigate cyber risks to our business,” said Steve Hey, Senior Vice President of Information Technology, Infrastructure, and Operations, National 9/11 Memorial & Museum. “It adds an extra layer of intelligence that fortifies our cyber defenses. When Taegis NDR sends us an alert, I know there’s an issue so I can quickly assign my resources to tackle it and protect our business.”
Managed centrally in the Taegis Platform, Taegis NDR is updated continuously with curated countermeasures based on global real-world threat intelligence to protect customer networks from the latest attack vectors. Its AI engine analyzes network traffic for anomalous application and port usage, identifying potential internal and external threats before they can cause harm, such as data exfiltration or ransomware attacks. Automated response actions fuel faster and more accurate response times. Lastly, customers don’t have the burden of managing endless rules and signatures, saving them time and resources that can be deployed elsewhere.
“Network connected devices represent an opportunity for cyber criminals, as few organizations have the central governance, and strong policies, to ensure 100% up-to-date coverage at the endpoint. Threat actors continue to develop stealthy and evasive techniques to enter networks, that if not detected, inflict serious operational and financial damage on an organization,” said Kyle Falkenhagen, Chief Product Officer, Secureworks. “Companies need a layered cybersecurity defense, but many lack the resources and expertise to execute on this strategy. Taegis NDR solves this challenge, optimally delivering reliable network protection. By integrating into the Taegis platform, we can provide partners and customers with a more streamlined and cost-effective, yet holistic, solution for reducing their cyber risk.”
Generally available today, and fully integrated with the Taegis platform, key features of Taegis NDR include:
The flexibility to inspect all network traffic and choose to block immediately or be alerted to malicious traffic.The ability to continuously analyze network telemetry with deep packet inspection (DPI), without impacting network performance.24/7 protection leveraging global real-world threat intelligence and expertly tuned countermeasures from Secureworks Counter Threat Unit™ (CTU™).Anomalous application and port usage detection powered by AI engine.Full device management, eliminating the burden on in-house teams as it includes all updates, patches, as well as hardware and software refreshes.Detailed change reporting reflecting daily management of countermeasures applied to secure the network helps organizations comply with audit requirements.A daily audit of NDR detections and emergency detection updates for urgent situations.The capability to be deployed both physically and virtually based on customer needs and budget.About Secureworks
Secureworks (NASDAQ: SCWX) is a global cybersecurity leader that secures human progress with Secureworks® Taegis™, a SaaS-based, open XDR platform built on 20+ years of real-world detection data, security operations expertise, and threat intelligence and research. Taegis is embedded in the security operations of thousands of organizations around the world who use its advanced, AI-driven capabilities to detect advanced threats, streamline and collaborate on investigations, and automate the right actions.
Connect with Secureworks via X, LinkedIn and Facebook and Read the Secureworks Blog.
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Artificial Intelligence

Operational Technology (OT) Security Market worth $44.9 billion by 2029- Exclusive Report by MarketsandMarkets™

Published

6 hours ago

May 8, 2024

CISION (PR Newswire)

CHICAGO, May 8, 2024 /PRNewswire/ — Operational technology (OT) security is expected to grow in the future due to factors like digitalization driving adoption, convergence with IT security, and a focus on threat detection and response. Anticipate a concentration on adhering to regulations, incorporating IT security operations, and consistently innovating to tackle changing cyber threats and guarantee operational durability in over-the-horizon settings.

The Operational Technology Security Market is expected to grow from USD 20.7 billion in 2024, to USD 44.9 billion by 2029, at a compound annual growth rate (CAGR) of 16.8% during the forecast period, according to a new report by MarketsandMarkets™. The escalating reliance on Operational Technology (OT) in vital infrastructure underscores the urgency for robust security measures. Unlike Information Technology (IT), OT systems oversee real-time physical processes, rendering them vulnerable to disruptions and attacks. This overview primes a thorough examination of OT security, encompassing its definition, significance, and evolving threat landscape. It delves into critical concepts like attack vectors, threat actors, and security controls while tackling challenges such as system heterogeneity and limited security expertise. Moreover, it delineates prevailing and emerging OT security solutions, encompassing frameworks, products, services, and best practices. SIEM for OT, asset discovery and management, network security, vulnerability management, IAM, and data security are vital components tailored to address OT environments’ evolving cyber threats, enhancing overall security posture.
Browse in-depth TOC on “Operational Technology Security Market”509 – Tables 64 – Figures437 – Pages
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=18524133
Scope of the Report
Report Metrics
Details
Market size available for years
2018–2029
Base year considered
2023
Forecast period
2024–2029
Forecast units
Value (USD Billion)
Segments Covered
By Offering, By Organization Size, By Deployment mode, By Vertical, and By Region
Geographies covered
North America, Europe, Asia Pacific, Middle East Africa, and Latin America
Major companies covered
Major vendors in the global Operational Technology Security Market include Fortinet (US), Forcepoint (US), Cisco (US), Tenable (US), Forescout (US), Checkpoint (Israel), Broadcom (US), Trellix (US), Microsoft (US), OKTA (US), Palo Alto Networks (US), Qualys (US), Zscaler (US), BeyondTrust (US), CyberArk (US), Rapid7 (US), Sophos (US), Tripwire (US), Radiflow (Israel), Kaspersky (Russia), SentinelOne (US), Thales (France), Armis (US), Darktrace(US), Nozomi networks (US), Honeywell (US), Schneider Electric (France), Siemens (Germany), ABB (Switzerland), Forcepoint (US)
By offering the services segment to grow with the highest CAGR during the forecast period.
The global OT security market, by service, has been segregated into consulting & integration, support & maintenance, training & development, incident response services, and managed security services. Various industries and business models are at risk of disruption due to rapid technological advancements, which introduce new business models and alter distribution channels and interactions. OT security services are crucial for integrating and managing solutions across business operations, offering comprehensive support to protect critical infrastructure from cyber threats. Increased virtualization and cloud computing adoption drive demand for these solutions globally. They also aid organizations in real-time analysis of dynamic network communication and managing relationships with suppliers, partners, and vendors.
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By Deployment mode, the cloud segment will grow at a higher CAGR during the forecast period.
Cloud-based OT security solutions provide businesses with a cost-effective means to bolster their security measures, irrespective of industry. Offering easy access and implementation without extensive on-site setups, cloud deployment’s flexibility, and scalability are desirable as more enterprises embrace virtualization and cloud computing. This shift reduces infrastructure costs and eliminates constant IT maintenance, making it especially appealing for small to medium-sized enterprises (SMEs) with limited budgets. Streamlining access control management in physical and virtual environments, these solutions ensure robust protection against cyber threats. As businesses increasingly migrate their IT operations to the cloud, the demand for cloud-based security solutions continues to surge, enabling companies to focus on core activities while entrusting IT security complexities to specialized cloud services, driving market expansion.
By region, Asia Pacific will grow at the highest CAGR during the forecast period.
The Operational Technology (OT) Security Market in the Asia Pacific region is rapidly expanding. Companies operating in the market focus on providing comprehensive solutions and services to protect critical infrastructure, industrial processes, and essential services. The region is undergoing rapid digital transformation, with increased IT and OT systems integration. While digitalization enhances operational efficiency, it also introduces new security risks. OT security solutions must cater to the challenges of securing converged networks and effectively manage the associated risks. Governments in the Asia Pacific region have implemented various initiatives and regulations to enhance OT security. For instance, countries like Singapore have established cybersecurity frameworks, while Australia has specific guidelines for securing critical infrastructure. Compliance with these regulations is essential for organizations operating in the region. Attacks on critical infrastructure have a ripple effect on the economy.
Top Key Companies in Operational Technology (OT) Security Market:
Fortinet (US), Forcepoint(US), Cisco(US), Tenable (US), Forescout (US), Checkpoint (Israel), Broadcom (US), Trellix (US), Microsoft (US), OKTA(US), Palo Alto Networks(US), Qualys (US), Zscaler (US), BeyondTrust (US), CyberArk (US), Rapid7 (US), Sophos (US), Tripwire (US), Radiflow (Israel), Kaspersky (Russia), SentinelOne (US), Thales (France), Armis (US), Darktrace(US), Nozomi networks (US), Honeywell (US), Schneider Electric(France), Siemens (Germany), ABB(Switzerland), Forcepoint(US) are the key players and other players in the Operational Technology Security Market.
Recent Development
In December 2023, Fortinet, a global cybersecurity leader, announced new integrated operational technology (OT) security solutions and services, setting them apart in the market. Recognizing the rising risks across OT environments, Fortinet offers purpose-built solutions that consolidate security measures, reduce operational overhead, and enforce policies. These include the FortiSwitch Rugged 424F, FortiAP 432F access point, and FortiExtender Vehicle 211F wireless gateway, along with updates to FortiOS, FortiAnalyzer, FortiNDR, FortiDeceptor, and FortiGuard OT Security Service.In April 2023, The FortiGate 7080F represents a cutting-edge lineup of next-generation firewalls (NGFWs) designed specifically for businesses. These innovative firewalls go beyond traditional point products, streamlining operations and simplifying security infrastructure.In May 2021, Forcepoint acquired Cyberinc IT Services and IT Consulting company based in the US. Forcepoint has intelligent remote browser isolation (RBI) technology that gives administrators granular control. It also has Smart Isolation capabilities to help Forcepoint enhance user productivity, lower operational burdens, and eliminate traditional monolithic products through a best-in-class SASE cloud service.In January 2021, Francisco Partners, a leading global investment firm that specializes in partnering with technology and technology-enabled businesses, acquired Forcepoint, a leading provider of cybersecurity solutions.Inquire Before Buying@ https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=18524133
Operational Technology (OT) Security Market Advantages:
OT security solutions provide continuous operations and minimise possible disruptions by defending vital infrastructure from cyber threats, including industrial plants, transportation networks, and power plants.By helping businesses conform to industry-specific standards and regulations like NERC CIP, IEC 62443, and NIST, OT security solutions help them maintain cybersecurity compliance and prevent fines and legal repercussions.Advanced threat detection and response capabilities catered to the particularities of OT settings are made possible by OT security solutions. These solutions provide prompt incident response and mitigation in addition to providing fast identification of anomalies, incidents, and security breaches.Organisations can identify and track OT assets, keep an eye on their settings and vulnerabilities, and enforce security policies to prevent unauthorised changes or access by using OT security solutions, which also provide inventory management and asset visibility tools.In order to ensure comprehensive and well-coordinated cybersecurity defence throughout the entire organisation, OT security solutions integrate with IT security systems and tools, facilitating easy collaboration between IT and OT teams, sharing of threat intelligence, and coordination of security activities.By detecting and fixing vulnerabilities, enhancing system dependability, and putting proactive steps in place to stop and lessen cyber incidents, OT security solutions improve operational resilience by reducing the impact of interruptions on business operations and continuity.Report Objectives
To define, describe, and forecast the Operational Technology Security Market based on offering, organization size, deployment mode, vertical, and region.To forecast the market size of five central regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and Latin America.To analyze the subsegments of the market concerning individual growth trends, prospects, and contributions to the overall market.To provide detailed information related to the primary factors (drivers, restraints, opportunities, and challenges) influencing the growth of the Operational Technology Security Market.To analyze opportunities in the market for stakeholders by identifying high-growth segments of the Operational Technology Security Market.To profile the key players of the Operational Technology Security Market and comprehensively analyze their market size and core competencies.Track and analyze competitive developments, such as new product launches, mergers and acquisitions, partnerships, agreements, and collaborations in the global Operational Technology Security Market.Browse Adjacent Market: Information Security Market Research Reports & Consulting
Browse Other Reports:
Perimeter Security Market – Global Forecast to 2029
Self-Sovereign Identity Market- Global Forecast to 2029
Attack Surface Management Market- Global Forecast to 2029
DDoS Protection and Mitigation Security Market- Global Forecast to 2027
Threat Intelligence Market- Global Forecast to 2026
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
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