Company: NCNO
Filing Date: 2025-08-26
Form Type: 10-Q
Source: 0001902733-25-000106
Chunk: 94

Company: nCino, Inc.
Filing Date: 2025-08-26
Form: 10-Q
Item: Part I, Item 1
Chunk 94
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 services and other revenues increased $4.3 million for the six months ended July 31, 2025 compared to the six months ended July 31, 2024, generating a gross margin for professional services and other revenues of (20.9)% compared to a gross margin of (10.5)% for the six months ended July 31, 2024. For the six months ended July 31, 2025, personnel costs, including stock-based compensation expense, increased $3.4 million for professional services compared to the six months ended July 31, 2024, mainly from an increase in headcount primarily due to acquisitions and restructuring costs incurred in connection with the Restructuring Plan. The increase in cost of professional services and other revenues also included a $0.7 million increase in allocated overhead primarily attributable to internal investments in AI technology, as well as a $0.4 million increase for third-party services costs. The decrease in our professional services and other gross margin for the six months ended July 31, 2025 was primarily attributable to strategic investments in expanding our professional service capabilities, coupled with lower effective billing and utilization rates.

Operating Expenses

Three Months Ended July 31,Six Months Ended July 31,($ in thousands)2024202520242025Operating expenses:Sales and marketing$31,713 24.0 %$37,265 25.0 %$59,758 22.9 %$70,236 24.0 %Research and development34,271 25.9 34,667 23.3 64,252 24.7 68,008 23.2 General and administrative20,394 15.4 25,489 17.1 42,938 16.5 47,132 16.1 Total operating expenses86,378 65.3 97,421 65.4 166,948 64.1 185,376 63.3 Loss from operations$(7,906)(6.0)%$(9,296)(6.2)%$(11,569)(4.5)%$(10,809)(3.7)%

Sales and Marketing

Sales and marketing expenses increased $5.6 million for the three months ended July 31, 2025 compared to the three months ended July 31, 2024, primarily attributable to an increase of $2.8 million in personnel costs driven by an increase