nCino Sets Path To Profitability

Like any FinTech startup looking to find its place in the financial services industry, nCino has seen its share of successes and setbacks.

Founded in 2011, the North Carolina-based company developed a cloud-based operating system, working with more than 1,100 financial institutions globally whose assets range in size from $30 million to $2 trillion. Its clients include TD Bank, SunTrust Bank, and Santander Bank. nCino’s strategic partners include Accenture, Deloitte Digital, PwC, and West Monroe Partners. The company has more than 900 employees around the world.

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Their subscription revenues in fiscal 2020 were reported at $103.3 million, up from $64.5 million in 2019 and $38 million in fiscal 2018. However, while the company has raised $213.2 million in funding to date, nCino has yet to turn a profit. In fact, it recorded net losses in fiscal 2018, 2019, and 2020.

That hasn’t stopped them from making moves towards expansion. Last year, nCino acquired Visible Equity and FinSuite to accelerate digital transformation efforts for FIs worldwide. The company also expanded its functionality for clients through the use of artificial intelligence (AI) and predictive analytics.

A few weeks ago, the company filed a Form S-1 for a proposed Initial Public Offering (IPO). It has now revealed that it is offering 7.6 million shares of its stock, which is expected to be priced between $22 and $24 per share.

“Our cloud-based platform empowered our customers to quickly and safely move their employees to work from home with no disruption to their operations,” nCino Co-founder and CEO Pierre Naude wrote to investors. “We further enabled our customers’ most critical business processes during this time by enabling them to underwrite government stimulus loans to their clients that had been impacted by the pandemic, helping to sustain these businesses during this challenging time.”

According to the SEC filing, underwriters will have a 30-day option to purchase up to 1.1 million additional shares of stock, and nCino could raise as much as $210.4 million. The company said it will use the proceeds to purchase additional office buildings, as well as possibly acquire, invest in, or obtain rights to complementary technologies, products, services, or businesses.