Company: NCNO
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001902733-25-000026
Chunk: 40

Company: nCino, Inc.
Filing Date: 2025-04-01
Form: 10-K
Item: Item 8
Chunk 40
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, subject to terms of the ESPP.The first offering period for the ESPP began on July 1, 2021 and ended on December 31, 2021. Thereafter, offering periods will begin on January 1 and July 1.The fair value of ESPP shares is estimated at the date of grant using the Black-Scholes option valuation model based on assumptions as follows for ESPP awards:Expected life. The expected life reflects the period for which the Company believes the ESPP will remain outstanding. The expected term for the ESPP award approximates the offering period of six months.Expected volatility. The expected volatility is based on the historical volatility of the Company's common stock.Expected dividends. The expected dividend yield is zero as the Company has not and does not expect to pay dividends. Risk-free interest rate. The risk-free interest rate reflects the U.S. Treasury yield for a similar expected life instrument in effect at the time of the grant of the ESPP share.

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Table of ContentsnCino, Inc.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(In thousands, except share and per share amounts and unless otherwise indicated)

The assumptions utilized for the ESPP shares for the fiscal years ended January 31, 2023, 2024, and 2025 were as follows:Fiscal Year Ended January 31,202320242025Expected life (in years)0.500.500.50Expected volatility49.65% - 84.59%38.70% - 61.86%38.70% - 40.74%Expected dividends0.00%0.00%0.00%Risk-free interest rate0.22% - 4.77%4.77% - 5.53%4.25% - 5.37%As of January 31, 2025, total unrecognized compensation expense related to the ESPP was $0.7 million. That cost is expected to be recognized over the remaining term of the offering period that began on January 1, 2025 and will end on June 30, 2025.Stock-Based Compensation ExpenseTotal stock-based compensation expense included in our consolidated statements of operations were as follows:Fiscal Year Ended January 31,202320242025Cost of subscription revenues$1,430 $1,847 $2,891 Cost of professional services and other revenues7,263 9,369 11,977 Sales and marketing13,283 15