Cloud banking and loan automation company nCino last week reported third-quarter revenues of $70 million, a 29% year-over-year increase, credited in part to “catch-up revenues” related to the Payroll Protection Program (PPP) loans.
The company expects to reap $18 million this year from PPP, CFO David Rudow said during the company’s third-quarter fiscal 2022 earnings call.
Subscription revenues clocked in at $57.1 million, up 32% YoY from $43.3 million. By comparison, Q3 2021 net losses were $13.6 million compared with $9.1 million in 2020.
The company touted several wins, including signing on Truist Bank as its “single biggest go-live this quarter,” Josh Glover, president and revenue offer, said during the call.
The $530 billion bank, which referenced nCino during its own October earnings call, uses the automation company’s lending origination system, integrating it with Salesforce client management and the sales pipeline system. Truist was created after the 2019 merger of BB&T and SunTrust, a long-standing nCino client.
“I’m pleased to share that we had a record number of go-lives in the third quarter with over 25 core platform and over 40 portfolio analytics customers beginning to enjoy business value from their nCino investment,” Glover said.
The company also secured its first customer in Japan, signing Kiraboshi Bank, a Tokyo-based regional bank with assets of more than $53 billion that will use the nCino platform for its business financing division.
nCino added “numerous logos in the U.S.” Glover said, including the nearly $3 billion Oklahoma-based Armstrong Bank, which purchased the company’s commercial, small business, retail lending and deposit account opening solutions. An unnamed expansion included “a top 50 U.S. bank above $50 billion in assets,” he noted, which initially started with nCino as a PPP solution.
The company also discussed its $1.2 billion acquisition of SimpleNexus, a cloud-native digital homeownership platform.
“While we weren’t necessarily looking for our first acquisition as a public company to be of this size and scale, there were many unique and attractive aspects about SimpleNexus,” Glover said. “For example, SimpleNexus has an impressive customer base across the U.S. with strong retention and references.”
nCino’s product portfolio also includes treasury management, deposit account opening, onboarding, small business lending and retail lending.
The company’s competition tends to come from point solutions that focus on front-end or point-of-sale, Glover noted.
“We think if you pick a point solution and then you pick another one, you’re going to wake up in several years and from an employee and customer experience, a bank regulatory burden and a bank efficiency perspective, you really won’t have progressed,” Glover said. “So our goal is to build something that stands alone on its own but then ties into that robust platform.”
The Aite-Novarica Group lists nCino’s commercial loan origination automation solution as competing with Finastra’s Fusion CreditQuest, Jack Henry, Q2, Abrigo, Baker Hill and Moody’s Analytics.
Shares of nCino [NASDAQ: NCNO] were trading at $55.29 as of 9:40 a.m., up 3.04% as of market open.
Bank Automation Summit, taking place March 1-2 in Charlotte, is the first and only event to focus solely on automation in banking. The event will feature the brightest minds from across financial services on intelligent automation strategies and deployment. Learn more and register for Bank Automation Summit 2022.
