The crisis that has roiled regional banks spread to another software company on Wednesday.
Shares of cloud-software company nCino Inc.
NCNO,
“It was in the U.S. enterprise segment, those above $100 billion in assets, where we have seen the most impact, which caused lengthening sales cycles, particularly with larger sales opportunities,” nCino Chief Executive Pierre Naudé said in a conference call Wednesday.
Executives also pointed at banks focused on mortgages, as the housing market struggles with higher interest rates. They noted elevated “churn,” or canceling of subscriptions, from that sector.
“From a timing standpoint, some of the independent mortgage bank churn occurred sooner than anticipated, which will negatively impact our second-quarter and full-year subscription revenues,” Chief Financial Officer Gregory Orenstein said in the call.
NCino executives forecast fiscal second-quarter revenue of $114 million to $115.5 million, and full-year sales of $474 million to $478.5 million, a reduction from previous guidance that called for $476 million to $483 million. Analysts on average were predicting second-quarter sales of $117.5 million and full-year revenue of $479.5 million, according to FactSet.
For the first quarter. nCino’s financial results lived up to Wall Street’s estimates. The company reported a net loss of $11.2 million, or 10 cents a share, on sales of $113.7 million, up from $94.2 million a year ago. After adjusting for stock compensation, acquisition and litigation costs and other effects, nCino reported earnings of 7 cents a share, improving from an adjusted loss of 6 cents a share a year ago.
Analysts on average expected adjusted earnings of 5 cents a share on sales of $112.6 million, according to FactSet.
NCino’s stock had already suffered this year amid concerns about fallout from the banking crisis, but had rebounded so far this month. Shares are up 4% on the year after an 11.2% gain in May; the S&P 500 index
SPX,