the Nasdaq composite (NASDAQINDEX: ^ IXIC) has been unstoppable for a long time, and the positive trends favoring the tech-heavy index continued on Thursday. As of 12:30 p.m. EDT, the Nasdaq rose about a quarter percent and moved further into the record range.
Within the Nasdaq, two companies stood out for their strong performance in software-as-a-service stocks. Investors are offering the stock prices for nCino (NASDAQ: NCNO) and Nutanix (NASDAQ: NTNX), and many of those who follow the stocks believe the two SaaS stocks could go higher. Let’s take a closer look.
A nice jump for nCino
NCino’s shares rose nearly 19% on Thursday lunchtime. The provider of cloud-based banking and digital solutions for financial services companies reported strong financial results in the second quarter.
The report produced by nCino showed a lot of growth. Total revenue grew 36% to $ 66.5 million, with subscription services revenue up 37%. Total remaining benefit obligations under current customer agreements increased 55% to $ 707 million, representing more than two years of revenue at current terms. Particularly noteworthy was nCino’s international success, with sales outside the United States soaring 129% year over year and accounting for about one-sixth of the company’s total sales.
NCino’s customer list is impressive. The company boasted a new commercial bank loan agreement Wells Fargo and expanded his relationship to US Bancorp. Meanwhile, nCino has signed a major French financial institution and found nine new customers for its automated dissemination product.
Investors liked what nCino sees in the future, as it forecasts third quarter revenue of $ 66 million to $ 67 million and annual revenue of $ 263 million to $ 264 million. While nCino is expected to continue posting modest losses, shareholders appear pleased with the rate at which the emerging fintech is gaining market share in a key industry niche.
Nutanix goes to the clouds
Meanwhile, Nutanix’s shares rose nearly 10% on Thursday lunchtime. The cloud infrastructure software provider’s fourth quarter financial report inspired shareholders to believe in its longer-term prospects.
Nutanix capitalized on efforts to digitally transform its customer base. Quarterly revenue rose 19% to $ 390.7 million on billings up 26%. Annual recurring revenue increased 83% year over year to $ 878.7 million. Net losses were significantly lower year-over-year, with the company posting adjusted losses of $ 0.26 per share.
Nutanix also takes pride in what it has achieved lately. Partnerships with companies like Red Hat and Hewlett Packard Enterprise should help grow the size of its business, and the election of longtime technology advisor and investor Virginia Gambale as chairman of the Nutanix board of directors brings the experience and expertise to help the company move forward even faster.
At the beginning of the report, some investors feared that Nutanix might not be seeing as much activity on its cloud computing platform as they had hoped. A big question the company is facing is whether the executives responsible for IT purchasing decisions are willing to make new expenditures.
As the economy improves, these purchases become more and more likely. That seems to be sparking a lot of buzz for Nutanix stock today, and it’s good to see the stocks trading at levels not seen since 2019.
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