What Happened?

Shares of bank software company nCino (NASDAQ:NCNO) fell 34.3% in the pre-market session after the company reported weak fourth quarter 2024 (fiscal 2025) results as its revenue and EPS guidance for next year fell short of Wall Street's estimates. The quarter was underwhelming, with sales roughly in line with expectations, while earnings missed by a wide margin. The results revealed a continued struggle to turn a profit and manage cash burn, while the guidance suggested a sharp slowdown in growth. Overall, this was a softer quarter.

The shares closed the day at $22.60, down 19.6% from previous close.

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What The Market Is Telling Us

nCino’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for nCino and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock dropped 21.4% on the news that the company reported underwhelming third-quarter 2024 financial results. Revenue narrowly outperformed Wall Street's estimates. On the other hand, its revenue guidance for the next quarter missed significantly, and its full-year revenue guidance was only in line with Wall Street's estimates. Overall, this was a softer quarter.

nCino is down 29.7% since the beginning of the year, and at $22.80 per share, it is trading 46.5% below its 52-week high of $42.64 from November 2024. Investors who bought $1,000 worth of nCino’s shares at the IPO in July 2020 would now be looking at an investment worth $256.58.

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