Analysts Expect Breakeven For nCino, Inc. (NASDAQ:NCNO) Before Long

We feel now is a pretty good time to analyse nCino, Inc.'s (NASDAQ:NCNO) business as it appears the company may be on the cusp of a considerable accomplishment. nCino, Inc., a software-as-a-service company, provides software solutions to financial institutions in the United States, the United Kingdom, and internationally. With the latest financial year loss of US$38m and a trailing-twelve-month loss of US$29m, the US$3.1b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is nCino's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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nCino is bordering on breakeven, according to the 16 American Software analysts. They anticipate the company to incur a final loss in 2027, before generating positive profits of US$45m in 2028. Therefore, the company is expected to breakeven roughly 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2028? Working backwards from analyst estimates, it turns out that they expect the company to grow 96% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for nCino given that this is a high-level summary, but, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for nCino

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 19% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on nCino, so if you are interested in understanding the company at a deeper level, take a look at nCino's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

1. Valuation: What is nCino worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether nCino is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on nCino’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.