nCino's Plunge Was Wholly Justified Despite Exceeding Analysts' Forecasts
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nCino's stock dropped 12.4% despite exceeding Q3 revenue and EPS estimates due to disappointing guidance. The company showed a 13.9% revenue increase and improved profitability, but its high valuation demands significant growth.
December 05, 2024 | 10:45 pm
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NEGATIVE IMPACT
nCino's stock dropped 12.4% after Q3 results exceeded expectations but guidance disappointed. Despite revenue growth and improved profitability, the stock's high valuation requires substantial growth.
The stock price drop is attributed to the company's guidance falling short of consensus, overshadowing the positive earnings surprise. The high valuation of nCino's stock necessitates significant growth in cash flow and EBITDA, which the current guidance does not support.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100