Earnings Preview: Ncino

Ncino NCNO is gearing up to announce its quarterly earnings on Tuesday, 2025-04-01. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Ncino will report an earnings per share (EPS) of $0.18.

The market awaits Ncino's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings History Snapshot

Last quarter the company beat EPS by $0.05, which was followed by a 12.28% drop in the share price the next day.

Here's a look at Ncino's past performance and the resulting price change:

Ncino Share Price Analysis

Shares of Ncino were trading at $28.92 as of March 28. Over the last 52-week period, shares are down 18.8%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on Ncino

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Ncino.

With 5 analyst ratings, Ncino has a consensus rating of Outperform. The average one-year price target is $39.8, indicating a potential 37.62% upside.

Peer Ratings Comparison

In this comparison, we explore the analyst ratings and average 1-year price targets of Zeta Global Holdings, SoundHound AI and Asana, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Zeta Global Holdings is maintaining an Buy status according to analysts, with an average 1-year price target of $32.33, indicating a potential 11.79% upside.
• Analysts currently favor an Buy trajectory for SoundHound AI, with an average 1-year price target of $18.25, suggesting a potential 36.89% downside.
• For Asana, analysts project an Neutral trajectory, with an average 1-year price target of $18.0, indicating a potential 37.76% downside.

Analysis Summary for Peers

In the peer analysis summary, key metrics for Zeta Global Holdings, SoundHound AI and Asana are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Ncino ranks at the bottom for Revenue Growth and Gross Profit, while it ranks at the top for Return on Equity.

Delving into Ncino's Background

Ncino Inc is a provider of cloud-based software for financial institutions. Its software solution digitizes, automates, and streamlines inefficient and complex processes & workflow and utilizes data analytics & artificial intelligence that enables financial institutions to onboard new clients, make loans and manage the entire loan life cycle, open deposits, and other accounts and manage regulatory compliance. It also offers professional services, including configuration & implementation, training, and advisory services. Ncino generates the majority of its revenue from subscription services. The company caters to financial institutions, enterprise banks, regional banks, community banks, and credit unions. The vast majority of its revenue comes from the United States.

Financial Insights: Ncino

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Ncino showcased positive performance, achieving a revenue growth rate of 13.82% as of 31 October, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Ncino's net margin is impressive, surpassing industry averages. With a net margin of -3.78%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Ncino's ROE excels beyond industry benchmarks, reaching -0.49%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Ncino's ROA stands out, surpassing industry averages. With an impressive ROA of -0.36%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.22.

To track all earnings releases for Ncino visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.