nCino, Inc. (NASDAQ:NCNO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. nCino, Inc., a software-as-a-service company, provides cloud-based software applications to financial institutions in the United States and internationally. The US$4.9b market-cap company's loss lessened since it announced a US$42m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$29m, as it approaches breakeven. The most pressing concern for investors is nCino's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

According to the 15 industry analysts covering nCino, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$33m in 2027. The company is therefore projected to breakeven around 3 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 95%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won't go into details of nCino's upcoming projects, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we'd like to point out is that The company has managed its capital judiciously, with debt making up 3.7% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of nCino which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at nCino, take a look at nCino's company page on Simply Wall St. We've also put together a list of key aspects you should further examine:

1. Valuation: What is nCino worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether nCino is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on nCino's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.