nCino Stock Skyrockets After Impressive Earnings Report and Analyst Upgrades

Why nCino Stock Was Vaulting Skyward This Week

The company enjoyed the very pleasant combination of a quarterly earnings beat and a clutch of analyst price target raises. The past few days have been kind to nCino (NASDAQ: NCNO), at least as far as its stock is concerned. Data compiled by S&P Global Market Intelligence reveal that the finance industry software specialist's share price had risen by a meaty 22% week to date as of early Friday morning.

The company crushed fourth-quarter bottom-line estimates

On Tuesday shortly after market close, nCino unveiled its fourth-quarter and full-year results for fiscal 2024. In the fourth quarter, the highly specialized tech company booked revenue of just under $124 million, representing a 13% improvement over the fourth quarter of fiscal 2023 figure.

• The increase was far more dramatic on the bottom line, with non-GAAP (adjusted) net income enjoying a more than fivefold rise to nearly $24 million, or $0.21 per share.
• Although the consensus analyst estimate for revenue was higher, at $124.7 million, nCino crushed the average prognosticator projection of $0.12 per share for adjusted net income.

On top of that, the company proffered profitability guidance that came in well above the average pundit estimate. It's anticipating net income will come in at $0.60 to $0.64 per share for the entirety of fiscal 2025; collectively, analysts were modeling $0.56. Revenue guidance came up a bit short, though, with the $538 million to $544.5 million range not quite reaching the collective analyst forecast of $545.7 million.

It's price target raise time

The bottom line matters more than the top in most minds, though, so a few of those analysts raised their price targets on nCino stock following earnings. Among the raisers was Needham's Mayank Tandon, who added $2 per share to his level for a new figure of $42 per share. He also maintained his buy recommendation on the stock.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends nCino. The Motley Fool has a disclosure policy.