Why Shares of nCino Jumped 17.5% Today
Shares of nCino (NASDAQ: NCNO) were up about 17% as of noon EDT today. Second-quarter sales came in higher than expected, prompting an increase in management's full fiscal year 2022 expectations (for the 12-month period that will end in January 2022). The cloud-computing-based banking platform is doing well this year in spite of lapping the sharp uptick in sales last year during the pandemic, which sent a stampede of financial institutions scrambling to update their operations for a new digital era.
Specifically, nCino reported second-quarter sales of $66.5 million, up 36% from a year ago and topping its previous outlook for revenue as high as $64 million. Through the first half of the current fiscal year, free cash flow was a positive $19.6 million. That was down from the $29 million generated during the same time frame last year, but this is a growing business that's funneling excess cash back into sales and marketing efforts. Even so, it's an efficient operation. Free cash flow profit margin was 15% during the first half of this year.
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Source Fool.com
