nCino Stock Boosted by New GenAI Banking Advisor

nCino Inc. (NASDAQ: NCNO) is a fintech that supplies cloud-based banking software to financial institutions to automate, manage and track various banking services. Its banking platform enables banks to provide a more seamless, integrated online banking experience while optimizing back-office tasks. Some of its more than 1,850 financial institution customers include Bank of America Co. (NYSE: BAC), Toronto-Dominion Bank (NYSE: TD), Truist Financial Co. (NYSE: TFC), Wells Fargo & Co. (NYSE: WFC), Bank of New Zealand, CIBC, Citizen’s Bank, Rabobank and WaFd Bank.

nCino operates in the computer and technology sector and competes with banking software providers, including Fiserv Inc. (NYSE: FI), Temenos AG (OTCMKTS: TMNSF) and Mitek Systems Inc. (NASDAQ: MITK).

Exploring nCino's Products

nCino offers its nCino Cloud Banking platform for many lines of business and industry needs for financial institutions. The platform provides commercial banking to mortgages, small businesses, and treasury management services for automation, modernization, onboarding, portfolio management, compliance, and relationship strategy.

Artificial Intelligence Features Powered by nCino IQ 

Integrating AI and machine learning (ML) into its cloud-banking platform helps to enhance operational efficiency and automation. AI can extract data from documents like financial statements and loan applications and feed it into the nCino platform, reducing errors and manual labor. ML algorithms analyze historical data for predictive analytics like loan and credit risk outcome scenarios, providing data-driven insights and actionable ideas. AI helps to mitigate fraud. These are all ways to optimize and streamline workflows while providing a personalized banking experience to end users. Its AI chatbots and virtual assistants can be used to answer questions around the clock, especially outside banking hours.

Rollout of nCino's Banking Advisor AI Product

nCino has rolled out its Banking Advisor generative AI (GenAI) product, a banker-focused conversational co-pilot tool. It enables financial institutions to offer proactive portfolio management, track and comply with financial regulations, and streamline routine tasks. Banking Advisor enables multiple roles to increase productivity through automation, enabling advisors to focus on higher-value activities.

NCNO Forms a Symmetrical Triangle Pattern

The daily candlestick chart for NCNO has been held in a symmetrical triangle pattern. This pattern is comprised of a descending upper trendline representing the lower highs on bounces and an ascending lower trendline representing higher lows on pullbacks. The two trendlines converge at the apex point where an imminent breakout through the upper trendline or breakdown below the lower trendline occurs. The daily relative strength index (RSI) has been floating sideways along the 55-band, awaiting the impending break. Pullback support levels are at $30.94, $29.85, $28.50, and $27.13.

nCino's Solid Fiscal Q1 2025 Results with 13% YoY Revenue Growth

nCino reported fiscal first-quarter 2025 EPS of 19 cents, beating consensus estimates for 14 cents by 5 cents. GAAP net loss was $3 million, an improvement over the GAAP loss of $11.2 million in the year-ago period. Revenues grew 13% YoY to $128.09 million, its highest-ever quarterly revenue, beating $126.61 consensus estimates. Subscription revenues grew 13% YoY to $110.4 million. Non-GAAP operating margin jumped 900 bps to 19%. The remaining performance obligation was $1.069 billion, up 17% YoY. RPO expected to be recognized in the next 24 months was $701.8 million, up 13% YoY. Cash and cash equivalents were $134.8 million as of April 30, 2024.

nCino Provides Mixed Guidance Forecasts

nCino expected fiscal Q2 2025 EPS to be between 12 and 13 cents, falling short of the consensus estimates of 14 cents. nCino expects fiscal full year 2025 EPS of 65 to 68 cents versus consensus estimates of 63 cents. Fiscal full-year 2025 revenues were reaffirmed between $538.5 million to $544.5 million versus $541.58 million.

nCino CEO Pierre Naude commented, “Just as nCino led financial institutions to the cloud, we are uniquely positioned to lead them on the path to greater efficiency through the use of data, analytics, and AI."

nCino analyst ratings and price targets are at MarketBeat. The consensus analyst price target of $35.64 implies a 13.13% upside.

The article "nCino Stock Boosted by New GenAI Banking Advisor" first appeared on MarketBeat.