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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, 2024 2025 2024 2025 GAAP total revenues$123,693 $141,370 $476,543 $540,657 GAAP cost of subscription revenues$31,380 $36,016 $120,861 $134,932 Amortization expense - developed technology (3,875) (4,858) (16,306) (17,784)Stock-based compensation (533) (803) (1,847) (2,891)Restructuring charges1 — — (51) — Non-GAAP cost of subscription revenues$26,972 $30,355 $102,657 $114,257 GAAP cost of professional services and other revenues$17,830 $20,997 $70,609 $80,937 Amortization expense - other (83) (83) (330) (330)Stock-based compensation (2,709) (3,278) (9,369) (11,977)Restructuring charges1 — — (118) — Non-GAAP cost of professional services and other revenues$15,038 $17,636 $60,792 $68,630 GAAP gross profit$74,483 $84,357 $285,073 $324,788 Amortization expense - developed technology 3,875 4,858 16,306 17,784 Amortization expense - other 83 83 330 330 Stock-based compensation 3,242 4,081 11,216 14,868 Restructuring charges1 — — 169 — Non-GAAP gross profit$81,683 $93,379 $313,094 $357,770 The following table sets forth reconciling items as a percentage of total revenue for the periods presented.2GAAP gross margin % 60% 60% 60% 60%Amortization expense - developed technology 3 3 3 3 Amortization expense - other — — — — Stock-based compensation 3 3 2 3 Restructuring charges1 — — — — Non-GAAP gross margin % 66% 66% 66% 66% GAAP sales & marketing expense$29,996 $33,744 $130,547 $123,231 Amortization expense - customer relationships (2,167) (3,367) (8,669) (11,256)Amortization expense - trade name — (369) (11,921) (623)Amortization expense - other — (28) — (100)Acquisition-related expenses — (46) — (46)Stock-based compensation (4,223) (4,482) (15,417) (17,016)Restructuring charges1 — — (100) — Non-GAAP sales & marketing expense$23,606 $25,452 $94,440 $94,190 GAAP research & development expense$30,184 $32,131 $117,311 $129,422 Stock-based compensation (4,277) (3,696) (15,942) (17,416)Acquisition-related expenses — (896) — (896)Restructuring charges1 — — (352) — Non-GAAP research & development expense$25,907 $27,539 $101,017 $111,110 GAAP general & administrative expense$17,488 $24,220 $76,727 $90,266 Stock-based compensation (4,324) (6,318) (15,460) (22,292)Acquisition-related expenses (244) (1,893) (878) (11,303)Litigation expenses (23) (1) (4,525) (366)Restructuring charges1 — — (6) — Non-GAAP general & administrative expense$12,897 $16,008 $55,858 $56,305 GAAP loss from operations$(3,185) $(5,738) $(39,512) $(18,131)Amortization of intangible assets 6,125 8,705 37,226 30,093 Stock-based compensation 16,066 18,577 58,035 71,592 Acquisition-related expenses 244 2,835 878 12,245 Litigation expenses 23 1 4,525 366 Restructuring charges1 — — 627 — Non-GAAP operating income$19,273 $24,380 $61,779 $96,165 The following table sets forth reconciling items as a percentage of total revenue for the periods presented.2GAAP operating margin % (3)% (4)% (8)% (3)%Amortization of intangible assets 5 6 8 6 Stock-based compensation 13 13 12 13 Acquisition-related expenses — 2 — 2 Litigation expenses — — 1 — Restructuring charges1 — — — — Non-GAAP operating margin % 16% 17% 13% 18% GAAP net income (loss) attributable to nCino, Inc.$1,160 $(18,610) $(42,346) $(37,878)Amortization of intangible assets 6,125 8,705 37,226 30,093 Stock-based compensation 16,066 18,577 58,035 71,592 Acquisition-related expenses 244 2,835 878 12,245 Litigation expenses 23 1 4,525 366 Restructuring charges1 — — 627 — Tax (benefit) provision related to acquisitions — 24 — (3,585)Income tax effect on non-GAAP adjustments (269) (770) (885) (2,014)Adjustment attributable to redeemable non-controlling interest 455 3,096 (71) 5,301 Non-GAAP net income attributable to nCino, Inc.$23,804 $13,858 $57,989 $76,120 Basic GAAP net income (loss) attributable to nCino, Inc.per share$0.01 $(0.16) $(0.38) $(0.33)Weighted-average shares used to compute basic GAAP net income (loss) attributable to nCino, Inc.per share 113,263,176 115,826,652 112,672,397 115,162,175 Diluted GAAP net income (loss) attributable to nCino, Inc.per share$0.01 $(0.16) $(0.38) $(0.33)Weighted-average shares used to compute diluted GAAP net income (loss) attributable to nCino, Inc.per share 115,782,532 115,826,652 112,672,397 115,162,175 Basic non-GAAP net income attributable to nCino, Inc.per share$0.21 $0.12 $0.51 $0.66 Weighted-average shares used to compute basic non-GAAP net income attributable to nCino, Inc.per share 113,263,176 115,826,652 112,672,397 115,162,175 Diluted non-GAAP net income attributable to nCino, Inc.per share$0.21 $0.12 $0.50 $0.65 Weighted-average shares used to compute diluted non-GAAP net income attributable to nCino, Inc.per share 115,782,532 118,596,052 114,916,521 117,311,913 Free cash flow Net cash provided by (used in) operating activities$8,148 $(10,019) $57,285 $55,199 Purchases of property and equipment (432) (350) (3,515) (1,816)Free cash flow$7,716 $(10,369) $53,770 $53,383 Principal payments on financing obligations3 (338) (386) (1,226) (1,302)Free cash flow less principal payments on financing obligation$7,378 $(10,755) $52,544 $52,081 1Stock-based compensation benefit related to restructuring is included in Stock-based compensation.2Columns may not foot due to rounding.3These amounts represent the non-interest component of payments towards financing obligations for facilities.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(Unaudited) Fiscal Year Ended January 31, 2024 2025 Cash flows from operating activities Net loss attributable to nCino, Inc.$(42,346) $(37,878)Net loss and adjustment attributable to redeemable non-controlling interest (1,180) 4,829 Net loss (43,526) (33,049)Adjustments to reconcile net loss to net cash provided by activities: Depreciation and amortization 45,264 36,345 Non-cash operating lease costs 4,534 4,960 Amortization of costs capitalized to obtain revenue contracts 9,934 12,003 Amortization of debt issuance costs 184 131 Stock-based compensation 58,035 71,592 Deferred income taxes (2,340) (7,118)Provision for bad debt 1,081 85 Net foreign currency losses 670 8,675 Unrealized gain on investment (263) — Loss on disposal of long-lived assets 150 35 Change in operating assets and liabilities: Accounts receivable (14,325) (31,389)Costs capitalized to obtain revenue contracts (10,348) (21,453)Prepaid expenses and other assets 1,872 (7,060)Accounts payable 525 (190)Accrued expenses and other current liabilities (5,981) 10,165 Deferred revenue 15,902 13,807 Operating lease liabilities (4,083) (3,785)Other long-term liabilities — 1,445 Net cash provided by operating activities 57,285 55,199 Cash flows from investing activities Acquisition of business, net of cash acquired — (216,911)Acquisition of assets (356) (450)Purchases of property and equipment (3,515) (1,816)Proceeds from sale of property and equipment 43 — Purchase of investments (2,500) — Net cash used in investing activities (6,328) (219,177)Cash flows from financing activities Investment from redeemable non-controlling interest 983 — Proceeds from borrowings on revolving credit facility — 241,000 Payments on revolving credit facility (30,000) (75,000)Payments of debt issuance costs — (1,484)Exercise of stock options 4,469 2,796 Stock issuance under the employee stock purchase plan 4,661 4,468 Principal payments on financing obligations (1,226) (1,302)Net cash provided by (used in) financing activities (21,113) 170,478 Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash 182 (2,677)Net increase in cash, cash equivalents, and restricted cash 30,026 3,823 Cash, cash equivalents, and restricted cash, beginning of period 87,418 117,444 Cash, cash equivalents, and restricted cash, end of period$117,444 $121,267 Reconciliation of cash, cash equivalents, and restricted cash, end of period: Cash and cash equivalents$112,085 $120,928 Restricted cash included in long-term prepaid expenses and other assets 5,359 339 Total cash, cash equivalents, and restricted cash, end of period$117,444 $121,267 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share data)(Unaudited) Three Months Ended January 31, Fiscal Year Ended January 31, 2024 2025 2024 2025 Revenues Subscription$107,483 $124,957 $409,479 $469,168 Professional services and other 16,210 16,413 67,064 71,489 Total revenues 123,693 141,370 476,543 540,657 Cost of revenues Subscription 31,380 36,016 120,861 134,932 Professional services and other 17,830 20,997 70,609 80,937 Total cost of revenues 49,210 57,013 191,470 215,869 Gross profit 74,483 84,357 285,073 324,788 Gross margin % 60% 60% 60% 60%Operating expenses Sales and marketing 29,996 33,744 130,547 123,231 Research and development 30,184 32,131 117,311 129,422 General and administrative 17,488 24,220 76,727 90,266 Total operating expenses 77,668 90,095 324,585 342,919 Loss from operations (3,185) (5,738) (39,512) (18,131)Non-operating income (expense) Interest income 510 353 2,567 1,761 Interest expense (858) (3,798) (4,135) (8,763)Other income (expense), net 1,777 (10,265) (856) (10,427)Loss before income taxes (1,756) (19,448) (41,936) (35,560)Income tax provision (benefit) (3,130) (3,871) 1,590 (2,511)Net income (loss) 1,374 (15,577) (43,526) (33,049)Net loss attributable to redeemable non-controlling interest (241) (63) (1,109) (472)Adjustment attributable to redeemable non-controlling interest 455 3,096 (71) 5,301 Net income (loss) attributable to nCino, Inc.$1,160 $(18,610) $(42,346) $(37,878)Net income (loss) per share attributable to nCino, Inc.: Basic$0.01 $(0.16) $(0.38) $(0.33)Diluted$0.01 $(0.16) $(0.38) $(0.33)Weighted average number of common shares outstanding: Basic 113,263,176 115,826,652 112,672,397 115,162,175 Diluted 115,782,532 115,826,652 112,672,397 115,162,175 nCino, Inc.
