Revenue Analysis
Total and Operating Revenue: NCNO’s Total Revenue shows a gradual increase over the four observed quarters, moving from $113,672,000 in 2023-04-30 to $123,693,000 by 2024-01-31. Operating Revenue tracked the Total Revenue perfectly across all periods, indicating that all revenue was derived from core operating activities.
Gross Profit: Gross Profit margins indicate consistent performance with $67,484,000 (2023-04-30) increasing slightly to $74,483,000 by 2024-01-31. This aligns with the slight increase in Total Revenue.
Cost Management
Cost of Revenue: Cost of Revenue also increased slightly from $46,188,000 in 2023-04-30 to $49,210,000 by 2024-01-31. This increase is proportionate to revenue growth, suggesting stable cost control in direct costs.
Operating Expense: Operating Expense was significantly managed down from $76,111,000 in 2023-04-30 to $77,668,000 by 2024-01-31 despite the increase in Total Revenue, indicating improved operational efficiency.
Total Expenses: Total Expenses show a decrease from $122,299,000 in 2023-04-30 to $126,878,000 in 2024-01-31, despite the growth in Total Revenue, which suggests effective overall cost management.
Profitability Analysis
EBITDA: EBITDA improved from a negative $4,324,000 in 2023-07-31 to a positive $7,029,000 by 2024-01-31, reflecting significant operational improvement.
Operating Income: Operating Income, despite significant losses in earlier periods—$-14,794,000 in 2023-07-31—has minimized to a loss of $-3,185,000 by 2024-01-31.
Pretax Income: Pretax Income displayed a decreasing loss from $-14,534,000 in 2023-07-31 to a smaller loss of $-1,756,000 by 2024-01-31, indicating better management of non-operating costs.
Net Income: Net Income has notably improved from continuous losses, with $-15,884,000 in 2023-07-31 to a positive net income of $1,160,000 by 2024-01-31.
Cash Flow Indicators
Reconciled Depreciation: Reconciled Depreciation costs remain relatively stable, indicating consistent capital expenditure and asset depreciation practices.
Interest Expense: Interest Expense shows a slight increase, potentially indicating higher leverage or borrowing costs.
Taxation
Tax Rate: The tax rate for calculations was reported at 0.4 on 2024-01-31, up from 0.21 in earlier quarters, suggesting changes in tax obligations or adjustments.
Tax Provision: Tax Provisions moved from a rebate scenario of $-3,130,000 in 2024-01-31 to having paid $1,545,000 in 2023-07-31, consistent with changes in pretax income scenarios.
Tax Effect of Unusual Items: There was no unusual tax-effect reported across the periods.
Shareholder Metrics
Diluted and Basic EPS: EPS has positively increased from -$0.14 in 2023-07-31 to Nan by 2024-01-31. However, earlier periods show notable negative values.
Average Shares: The average shares outstanding seems consistent around 112 million, suggesting stable share capital.
Net Income Available to Common Stockholders: Reflects the same pattern as general Net Income, with improvements in the latest period.
Conclusion
NCNO shows significant improvements in operational efficiency, revenue growth, cost management, and profitability. However, focus should continue on improving net income and managing borrowing costs. Observing the tax changes will also be crucial for future fiscal strategies.