Ncino Shares Tumble Following Disappointing Q4 Earnings and Lackluster Outlook

NCino Stock Plunges After Worse-Than-Expected Q4 Eps, Weak Forward Guidance

NCino, Inc. (NASDAQ: NCNO) stock plummeted over 20% in extended trading on Tuesday after the cloud-based banking platform provider reported worse-than-expected fourth-quarter earnings and offered weak forward guidance.

The company reported Q4 non-GAAP earnings per share of $0.08, missing analysts' estimates of $0.12. Revenue came in at $53.5 million, exceeding the consensus forecast of $52.6 million.

However, the disappointing earnings and revenue growth, combined with weak forward guidance, sent NCino's stock tumbling. The company guided for Q1 non-GAAP EPS of $0.05 to $0.06, below the Street's estimate of $0.10.

NCino's Q4 results were also marred by a significant increase in operating expenses, which rose 75% year-over-year to $33.5 million. The company attributed the increase to investments in its sales and marketing efforts, as well as the expansion of its product and engineering teams.

Despite the disappointing earnings, NCino's CEO, Greg Walford, remained optimistic about the company's long-term prospects. "We are confident in our ability to drive growth and profitability as we continue to execute on our strategy," Walford said in a statement.

NCino's stock has been under pressure in recent weeks, down around 40% from its 52-week high. The decline accelerated after the company's earnings report, with shares trading down around 22% in extended trading.