Company: NCNO
Filing Date: 2025-12-03
Form Type: 10-Q
Source: 0001902733-25-000131
Chunk: 92

Company: nCino, Inc.
Filing Date: 2025-12-03
Form: 10-Q
Item: Part I, Item 1
Chunk 92
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 decrease in stock-based compensation expense. There was also a favorable prior year payroll tax adjustment in the amount of $0.5 million from certain of our foreign subsidiaries that did not recur in the current year in personnel costs. The increase in sales and marketing expenses also included $0.5 million in additional marketing costs. 

Sales and marketing expenses increased $13.9 million for the nine months ended October 31, 2025 compared to the nine months ended October 31, 2024, primarily attributable to an increase of $6.3 million in personnel costs driven by an increase in headcount, mainly attributable to acquisitions, and restructuring costs incurred in connection with the Restructuring Plan, as well as compensation increases, inclusive of a $1.9 million decrease in stock-based compensation expense. There was also a favorable prior year payroll tax adjustment in the amount of $0.5 million from certain of our foreign subsidiaries that did not recur in the current year in personnel costs. The increase in sales and marketing expenses also included an increase of $4.7 million in allocated overhead, inclusive of a $3.9 million increase in amortization expenses for acquired intangible assets, a $3.0 million increase in marketing costs, and a $0.4 million increase in travel costs. The increase in sales and marketing expenses was partially offset by a decrease of $0.5 million in third-party professional services.

Sales and marketing headcount increased by 18 from October 31, 2024 to October 31, 2025, primarily attributable to acquisitions and net of restructuring. We expect sales and marketing expenses will increase as a percentage of total revenues as we expand into credit unions in the U.S. and on the European continent.

Research and Development

Research and development expenses decreased $3.5 million for the three months ended October 31, 2025 compared to the three months ended October 31, 2024, primarily attributable to a decrease of $2.7 million in personnel costs due to the headcount decrease in connection with the Restructuring Plan. The decrease in research and development also included a decrease of $1.0 million in third-party professional fees. The decrease in research and development was partially offset by an increase of $0.4 million in allocated overhead for internal investments in AI technology.

Research and development expenses increased $0.3 million for the nine months ended October 31, 2025 compared to the nine months ended October 31, 2024, primarily attributable to an increase