nCino Analysts Cheer Q2 Beat Amid Uncertain Macros

nCino, Inc NCNO reported Q2 revenues of $99.6 million, up 50% Y/Y, beating the consensus. Adjusted EPS loss of $(0.04) surpassed the consensus.
KeyBanc analyst Josh Beck maintained an Overweight and lowered the price target from $40 to $35.
nCino reported solid results similar to the adjusted prior-quarter result driven by a potent mix of go-lives, renewals, upsells, and new logos.
SimpleNexus results came in strong despite the challenging mortgage market.
It signed Rabobank, the world's leading specialist food and agribusiness bank.
Additionally, there was momentum with products like nIQ.
The price target reflects rising bank IT budget macro-driven growth risks though he remains Overweight on product leadership and LT cloud banking growth opportunities.
Piper Sandler analyst Brent Bracelin maintained an Overweight and raised the price target from $40 to $42.
The cross-sell of SimpleNexus (47% Y/Y organic growth) during Q2, and the largest Automated Spreading deal to date at Rabobank contributed to another solid quarter.
Q2 revenue beat Street estimates on 29% Y/Y organic subscription growth.
He was encouraged by the 2H organic growth outlook of 25% and internal belt-tightening.
Tailwinds tied to the inherent automation benefits of implementing an end-to-end Bank OS platform streamlining banking operations appear to partially offset some of the FX and macro headwinds.
He raised estimates slightly, increasing the price target on higher estimates and new product wins.
Needham analyst Mayank Tandon reiterated a Buy with a price target of $42.
NCNO continued its strong momentum in Q2, beating expectations across the board.
RPO rose a healthy 28% Y/Y (19% Y/Y organically) on the back of strength in renewals, cross-selling success, and new customer additions, which included signing Rabobank Australia and New Zealand to implement NCNO's automated spreading solution.
Management also guided Q3 above consensus and raised its guidance for FY23 despite the macro uncertainty.
In addition, NCNO reiterated its plan to be profitable and FCF positive in FY24.
Following another impressive beat and raise performance, he remains positive on the shares given the strength in demand for NCNO's market-leading digital banking solutions.
Raymond James analyst Alexander Sklar maintained Market Perform following Q2 beat, with an increased outlook for FY23 despite challenging macro and high FX headwinds.
While the more challenging macro management adversely impacted net new business measures like RPO/billings, it was still able to deliver some impressive recent wins, including an nIQ entry at a large FI.
Management also delivered significant improvements in the margin profile for FY23, with productivity improvements expected to help mitigate the potential impact on growth.
Price Action: NCNO shares traded higher by 6.13% at $31.16 on the last check Friday.

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