0001902733-26-000066
SEC filingnCino achieved 10.6% revenue growth and improved profitability, with subscription revenues rising 12.2% and net income more than doubling.
nCino delivered strong operating results for the first quarter of fiscal 2027. Total revenues grew 10.6% year-over-year to $159.4 million, driven by subscription revenue growth of 12.2% to $140.9 million. Professional services revenue remained essentially flat at $18.5 million. Gross profit increased 16.8% to $100.9 million, with gross margins expanding from 60.0% to 63.3%. Subscription gross margin improved 100 bps to 72.2%, while professional services gross margin improved from (16.3)% to (4.0)% due to lower headcount and higher billing rates. Operating income swung from a loss of $1.5 million to a profit of $21.1 million, representing a 13.2% operating margin compared to a (1.0)% margin in the prior year. The improvement reflects discipline in operating expenses, which decreased as a percentage of revenue across all categories. Net income attributable to nCino more than doubled to $13.6 million from $5.6 million.
While nCino does not report formal segments, the MD&A highlights two revenue streams: subscriptions (88.4% of total) and professional services (11.6%). The subscription mix continues to increase, supported by new customer additions and expansion within existing clients. International revenues accounted for 22.8% of total revenues for the quarter, indicating meaningful diversification beyond the U.S. market. The company also noted that enterprise customers are expected to represent a growing proportion of sales, which may lead to longer sales cycles but higher lifetime value.
Management expects to continue investing in product development, particularly in AI capabilities, while optimizing operating leverage. Sales and marketing as a percentage of revenue declined from 22.9% to 21.2%, and further leverage is anticipated. The company's strong cash flow from operations ($81.4 million) supported significant share repurchases ($110.5 million) and debt repayments. With a $250 million revolving credit facility and a $200 million term loan, liquidity remains robust. The MD&A also notes the completion of an accelerated share repurchase program and an ongoing $65 million authorization under the December 2025 stock repurchase program. No specific numerical guidance was provided, but management's commentary suggests a focus on profitable growth and capital allocation efficiency.