From commerce to culture, software is digitizing every aspect of our lives. The undeniable tailwinds fueling SaaS companies have led to lofty valuation multiples historically,
but rich prices also make re-ratings harder and place a ceiling on returns -
over the past six months, the industry’s 5.3% gain has lagged the S&P 500 by 5.2 percentage points.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Banking software provider nCino (NASDAQ:NCNO) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 12.4% year on year to $148.8 million. Guidance for next quarter’s revenue was better than expected at $147 million at the midpoint, 0.8% above analysts’ estimates. Its non-GAAP profit of $0.22 per share was 58.1% above analysts’ consensus estimates.
Shares of banking software provider nCino (NASDAQ:NCNO) jumped 17.7% in the morning session after the company reported better-than-expected second-quarter earnings and raised its full-year financial outlook. The company announced total revenues of $148.8 million for the quarter, a 12.4% increase year-over-year, which surpassed analyst estimates. More impressively, nCino's adjusted earnings per share (EPS) came in at $0.22, significantly outperforming the consensus forecast of $0.14. Looking ahead, nCino provided a bullish forecast, raising its full-year guidance. It now expects revenue between $585 million and $589 million and adjusted EPS between $0.77 and $0.80. This strong performance and optimistic outlook signaled to investors that the company's growth trajectory is robust, prompting the significant stock rally.
Wall Street traded cautiously on Wednesday, with major indices little changed at midday as investors awaited NVIDIA Corp.‘s (NASDAQ:NVDA) second-quarter earnings after the bell.
Banking software provider nCino (NASDAQ:NCNO) announced better-than-expected revenue in Q2 CY2025, with sales up 12.4% year on year to $148.8 million. Guidance for next quarter’s revenue was better than expected at $147 million at the midpoint, 0.8% above analysts’ estimates. Its non-GAAP profit of $0.22 per share was 58.1% above analysts’ consensus estimates.
