Ncino Inc. (NCNO)

Shares of Ncino Inc. (NCNO) dropped by 7.84% from $29.98 to $27.63 in the trading on Thursday, November 30, 2023. The reason why NCNO is down today is due to the company's guidance for the future, which disappointed investors. Although nCino reported quarterly earnings for Q3 that exceeded consensus expectations, the market reacted negatively to its forward-looking projections.

• Q3 Earnings: In Q3, nCino reported earnings per share (EPS) of $0.14, surpassing the analyst estimate of $0.11. The company's revenue for the quarter was $121.9 million, showing a 16% year-over-year increase and surpassing the consensus estimate of $120.63 million. Notably, subscription revenues for the quarter reached $104.8 million, a 19% increase from $88.3 million in the same period the previous year. The U.S. mortgage business of NCNO achieved double-digit revenue growth.
• Guidance for Q4: However, the company's forward guidance for Q4 indicated revenue in the range of $123.5 million to $125.5 million, with adjusted earnings per share expected to be between $0.11 and $0.13.
• Analyst Reaction: In response to the report, BofA analysts reiterated a Buy rating on the stock but lowered the price target from $35 to $34 per share. This stock drop primarily reflects the market's reaction to nCino's forward-looking guidance, even though the company reported strong earnings and revenue for the previous quarter.