Earnings call transcript Q2 2024

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Operator

Good day and thank you for standing by, and welcome to nCino Second Quarter Fiscal Year 2024 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would like to introduce your host for today's call, Harrison Masters, Director of Investor Relations. Please go ahead.

Harrison Masters

Good afternoon and welcome to nCino's second quarter fiscal 2024 earnings call. Officer. call Greg Naude, and Orenstein, President Chief today's Chief Chairman Josh on and Officer; Executive Chief Revenue me are nCino's Pierre and Glover, With Financial Officer;

we other During expectations, assumptions will strategies, the entails the of are obligation our publicly to subject various certain forward-looking and SEC are performance services made filings in and forward-looking business. anticipated nCino and this current based or course documents, conference on and and economic make statements management's date regarding today's any of industry, available uncertainties forward-looking risks financial trends, to the conditions. These statements described of our as revise call, statements. views global and disclaims update any

on also believe that non-GAAP release our today's will discuss GAAP understanding to of in X-K at Further, certain the aid results. available on is the can well on we A our as reconciliation Investor metrics earnings financial exhibit comparable earnings as the an call, this as metrics before in website Relations found today's with which just be our we furnished the call, and Form investor.ncino.com. presentation website to SEC

turn over the will Pierre. to I that, With now call

Pierre Naude

to thank joining you you, performance. Thank and Harrison second us review this quarter for afternoon our XXXX fiscal

XX% subscription the a We are posting XX%, and and the quarter. revenues again the total on with the results profitability, increased momentum very income throughout while pleased operating Both we saw margin quarter. both outperformed non-GAAP we for

in with year-over-year. sales quarter we saw XX% our a quarter parts we business. second of in We and across recovery last activity that that up second all saw We said expected certainly quarter strength sales the

are solid hearing we from what Our mirror customers. results

have us. and experience. with their on has the infrastructure refocused technology optimizing breath industry Essentially, their providing most and largely behind customer a banking U.S. have strategy, long-term includes caught The which their banks crisis liquidity stabilized superior

of unions and gathering experience a view XXX-degree any of purposes. loan one on originating just all to and onboarding all the It single management view provides customers, them this The facilitates platform. portfolio customer, differentiated credit was these Leveraging for architected personalized, platform nCino allowing deposits, holistic sizes, customer, platform. nCino from banks a a product, the of create

In risk such and broaden enhances ultimately ability institutions and their as addition, successfully products evolving course our allow of and optimize to nIQ financial pricing relationships, profitability. profitability, an reward. commercial by compete customer balancing This to market in for cross-sell, their

margin most still interest the seeing increased way platform to institutions industry's efficiency, was automation self-service. in offset maintaining to helps With drive efficiency. credit of to core quality by nCino's on is effective financial high compression, are move built margins. platform at the accelerate while pressure the interest effect, greater while The rates the net driving

growth platform the With are by our capabilities of number many been a Building the customer. out key maturity, we products of new the driver. of pleased always utilized has per products now increased reaching

second than XX% of included one System, Bank logo solution. fact, quarter the over in deals In more new Operating

out has with current focus customers. been building footprint Another our

cross-sell were installed within sales and base. XX% This quarter, up-sell of over the

As we base. can't of the functionality and expand overstate satisfied of I value customer referenceable continue our the installed the platform, to the

footprint this reflected our We sales in expanding seeing pipeline. are also

more of lending. than for the commercial the of second the end quarter, products is than As other XX% pipeline of

and commercial products traditional nIQ, created of we that all to the sales pipeline. opportunities reiterate our lending of over small have supplement the business, point, XX% business in represent now me Let retail, mortgage, treasury,

reach of to this are we excited level commercial for technology how you nCinos' demand tell beyond lending. cannot I

As a SAM large. reminder, as twice the is commercial outside of

products At customers. ahead. opportunity we we So beyond nCino in have a diversified significant

important This recovery. geographically. diversified are We been the macro also with particularly has uneven

case, adding develop differentiator. bank, U.S. the a a another we ability the of of including the to in this universal, EMEA, and quarter specific are needs in ESG APAC, U.K.-based saw demand outside while been challenges face regions second bankers has key products global our to the in example, solid many customer For large respective

particular mortgage nCino in and and suite. of progress continued U.S., of the continues our the the the channel. integration nCino our The with SimpleNexus' accelerate to to banking Switching penetration teams

saw to This cross-sells, quarter, we seven competitive takeaways. addition in six

We also upsell a quarter, of we large noted a number closed XX last the seven-figure lender. including top with deals mortgage pipeline deal

need ended and to order with team for compete both market. volatile growth, pipeline year-over-year couldn't quarter-over-quarter revenue market. of mortgage I efficient as in their understand lenders mortgage another quarter strong second to in become in prouder the We continued the this deals, mortgage again and mortgage more be difficult of the this

I around from to highlight mortgage. top U.S., mortgage analytics for a analytics our our vision are I the But mortgage with will When by want suite our Nexus deal adding Josh originated this surfaced key and offerings ACV account. existing let XXX capture through Increasing customer. of point over compensate upsell differentiators products. first, SimpleNexus out provide One offering. sale mortgage quarter data to for round XX% and additional that capabilities involved details these

data just product to core this our expertise But is roadmap. one area analytics where our is

financial platform. single spend stage me of around invest amounts of to customer opening, account customer learning, platform, continue including information onboarding, we automate analytics. machine minute nIQ our origination, and to and the Let including With a strategy reviewing data, process intelligence ongoing we bank production across further AI, and loan our vast every

more done layers spreading, of underwriting where informed help manual continue we As develop we'll the removed for loans, to work decisions. make to process auto accelerate solutions to we've with bankers faster,

customers solutions and most thoughtful expertise domain complex developing our deep is face. hard has team issues the to at work banking in Our

an virtual that customer Recent philosophy automated numerous of our assistance With and open attracting enabled group reviews. internal also are strategy, their impressive our of use experience. by augmenting portfolio including highlighted demonstrations partners cases, are interactive an nCino we ecosystem API

legacy workflows become more within increasing our powered point of AI, on Together, single developing efficient. number to we to institutions are and more by financial thoughtful analytics, automate platform solutions and allowing and solutions eliminate reliance data, an

We industry the were standard. banking proposition cloud. today, We were to reluctant and value embrace pioneers, is prove when considered bankers the cloud that

the evolution Our this of over anticipated once AI throughout intelligence see we platform change original industry initiative and we as years exciting services nIQ and journey embracing financial more. continues for data vision the services as ago. when on industry to demand we embed four to It launched financial our technology driving is continue our our the

years, the important of To in to But for five at Nix, our to be VeraBank. to vendors, predict are employee of quote five one a We we'll and there know right in your with forefront lending bank lending Henderson technology headquartered modernize nCino experiences. partnered needs with VeraBank, be going to customer them. What's processes evaluate is at Ron nCino and years. not streamline is where going to and you customers, its community CTO be today. in Texas,

retail taken platform adopted, lending, see is portfolio account nCino deposit operational industry example could the of to and a analytics, lending, a full headed. appreciate order has adopting including we across efficiency spreading. an We organization where for be in our how opening, vision trust drive approach, bank The commercial them as textbook the and

pipeline extends far sales our now proves commercial influence nCinos' lending. beyond of that makeup The

loan leadership retail, of maturity market analytics, matching our With expansion AI, mortgage, data, our business, continued in origination. small to and platform, our and are to the commercial extend poised we success

come. of XXXX fiscal and the second and for to positioning half our reinforce progress years Our the optimism

to turn the second Josh Now our quarter. let provide specific execution me solid to in of call examples the

Josh Glover

Thank Pierre. you,

users top digital focus to We're of deal quarter great table on user U.S. to and four back who existing add we very with additional pleased our second an lines small is saw renewed the the States, business additional to added the lending. expand our accounts with we business a space such the for is One within United This transformation In white example largest even in results. example customers bases within see our a bank, footprint. coming of expansion projects.

closed onboarding. retail standardize the deposit treasury retail and equals add-on auto banks. nCino We commercial community in include for also their will opening deployment of and account merger in lending, between conjunction with the combined lending spreading, The bank will two

bank. with scaling the as it As operations lending the combine we've minded bank ability base, growth portfolio many of across platform's and management success and multiple bank M&A the products customer key see these transactions our cultures help nCino with to extend grows, to credit the new will to for lines to another bank are proud while leveraging with Integrating merger merger the business, and activities. critical past we're experienced within nCino of mission

platform financial institutions great that validated a more single the grow has using also delivering market efficiently, tools the while experiences. differentiated to have customer and believe We

nCino. one of opened average in like online customers example, our increase regional monthly accounts deposit new implementing bank XXX% after For

another operations provided one billion And bank business bringing expansion an retail our lending products These added proof platform of small and onto with lending, opportunity strategy. single over join the all that point $XX bank lending nCino. existing deployment, commercial platform in

The Colorado institution Colorado quite for community a onboarding. journey. State commercial by nCino for and foreign lending account this commercial was to opening good and quarter. credit expansion nCino was the mortgage for within us another did yet Community treasury for homebuying and bank we selected used an of lending deposit Bank This already

nCino's As Pierre financial to noted, market business our well presence mortgage brand established benefit from institutions. U.S. continues and within

our the institutions, Our quarter with of value XX in were logos new primarily depository the mortgage proving approach.

greenfield deals mortgage Bank two suite We System deals. where included are net particularly Operating logo by was in new pleased our

first deal The was community retail lending mortgage. that included and analytics bank a portfolio

for to value to our lines, our also the We're to community receive as the was analytics, bank committing our vendor their second accelerate portfolio nCino as all lending, see business nCino excited across The customers from trusted commercial a nIQ to solutions products. single look mortgage. and they they incorporate

delivers the focused providing These of We'll deals for multi-solution nCino's that pillars value, greenfield and on impact experience. product across customers. the our to see illustrate nCino continue three intelligence, strategy automation, strategy is

our to to continues provide footprint global stability Our profile. growth

market we top Australian in Australia, that this quarter deploying added be new This XX nCino's will logo lending a leading commercial solution. bank time another

times, greenfield profitability experience. point note model, included I'm solution. banks nIQ's the nCino worldwide. help also of to the and proof bank This another customer is yet commercial for origination this loan to solution was cycle pricing particularly, excited their simplify in deal improve the operating this and commercial selected reduce opportunity that

from has customer with our signed recent lending. markets the of for world's area nCino's partnership in XXX Accenture, one banks in us the emerging addressing first demand team been UAE for financial largest footprint, and the of great beyond East geographic Middle institutions established focus our top commercial Another the from

partner nCino is new efforts. uncover and global integrator customer our sales emerging only in of reach, is System not go-to-market true force and also Our relationships, local ecosystems, markets. ecosystem both success, helping global in but multiplier a in combination opportunities unique delivering

their in the customers of success Expansion expanded in made within renewed second existing and their An to bank Continental adoption agreement Also, for a Netherlands another solution contribution international of lending nCino's subsidiary $XX of a billion commercial enterprise the borders commercial the over quarter. for U.S., with we our Caribbean strong global nCino lending. bank an years. five beyond the asset had

for We and for exciting journey, also signed retail lending, U.S. the in deal. analytics, bank mortgage portfolio homebuying community territory a multi-solution an

Sustained requires customers. referenceable success happy any in market

to market We nCino's are live customer on pleased Japanese commercial take the from early another lending solution.

opportunity adopters of look in the to that market. Japan success provided are early forward We of and examples we highlighting us in have more appreciative

commercial, We and also and proudly profitability, retail, Live for opening. markets, milestones other pricing account commercial small Go business, deposit celebrated in

customer-focused feedback. have client for we organization, a continued appreciation As

of company second history, to highest proud in score in XX%. extremely the We're score receive quarter an average the NPS

to addition stability accelerate recent the are of and their business success. maturity feel usage to our yielding analytics we allowing customer In own teams globe, demonstrable in platforms talented benchmark and value. our are single investments intelligent customers the the around and nCino's And success

over to the financials. for you Greg,

Greg Orenstein

afternoon our Josh results. and Thank you, this fiscal us for to 'XX joining thanks quarter second everyone financial review

are unless an X-K Please SEC release, today's Form with on website is can exhibit comparable before in otherwise call. stated. to earnings this the reconciliation the and basis be that all numbers A note remarks available found to as in which just my GAAP non-GAAP metrics referenced furnished our a on

of quarter quarter for $XX.X an second strong 'XX sales deals the of with of total Total $XX.X quarter. year-over-year increase services of $XXX.X XX% XX% representing of XX% revenues in second million, revenues some the the to Professional and XX% revenues year-over-year. an were also year-over-year. Subscription were in revenues those million the revenues benefited from quarter fiscal for increase million, quarter, growing revenues. the in contributing were Subscription

second Revenue quarter of second or constant this U.S. a States began the growth XX% in of last XX% sales momentum that in accelerated million $XX.X result up United outside revenues total increased half in revenues the were or as quarter year. of XX% the Non- year-over-year currency.

fiscal of operating million an the for quarter XX% was $XX.X was year-over-year. $XX.X of million, gross fiscal quarter second to the compared gross 'XX of of increase quarter the in Non-GAAP million income was margin $X.X the second XX% of XX% fiscal Non-GAAP for Non-GAAP profit compared loss with quarter 'XX 'XX. 'XX. second in fiscal second

margin 'XX. income continued operating the the in operating expense $X.X $X.XX second basic income $X.X or quarter million a We positive share to million second the quarter negative performance. quarter 'XX. was compared attributable revenue our share net fiscal or X% for $X.XX diluted nCino of non-GAAP compared the fiscal per diluted fiscal for from to Our against negative of with net of 'XX with was in and and of loss guidance budgets per second solid quarter non-GAAP XX% execution exceeded, second Non-GAAP

or to $XXX.X as 'XX million July XXst, from Performance $XXX.X million up months of up XXst, RPO XXXX. July of category, X% than Remaining in the million $XXX.X of XXXX with as Obligation July increased over X% XXXX, as Our less XXst, million $XXX.X

In quarter. to a a RPO solid sales also strong quarter, benefited renewal addition from

expansions, renewals. were accompanied revenues meaning in there noted, Josh annualized significant increase subscription As several an that

highlight, do sales a was mentioned up regularly not the Pierre do we it sales with manage achievement business to in and year-over-year. second in quarter what June I to reinforce but greater the were we Note As July. RPO, XX% sales quarter that earlier, strong want

quarter. of occur million cash quarter So including some cash. in corresponding $XXX.X the with restricted equivalents third ended cash were and the billings We

the million no note amounts outstanding expenditures of for Net cash second flow that of in flow Capital Also the free the $XX balance operating outstanding quarter $X.X our activities we Please fiscal credit we the million thereunder. facility quarter. year. repaid 'XX. provided $XX.X in compared revolving million by second positive resulting the quarter, $XXX,XXX $XX $XX was balance of through expect to million note free to were cash have on million the fiscal cash generate that of and in

July, mediation, in March and of court District that States the District million through the the that complaint Court please putative settlement note in remains subject a XX, a for on in approximately action XXXX and Carolina company the $X.X approval. Finally, class principle agreement Eastern United filed North of reached to plaintiff

balance XXXX and of which as in is accrued accrued unaudited the proposed on consolidated has for company's sheets. settlement the company The agreement, liabilities included expenses other July XXst, condensed

business. We ordinary outside have this excluded our from non-GAAP as results expense it is the course of our

Now turning guidance. to

shares based is nCino net million for to expected approximately to to This revenues $XXX $XX operating approximately midpoint For we quarter non-GAAP be of total income third to be million million to to $X.XX subscription with third outstanding. assumes growth is $XXX $XXX the $XX of quarter. range. million and of guidance diluted of 'XX, Non-GAAP at $X.XX million. of subscription This attributable per weighted income upon average million to share year-over-year million expect a the XX% the $XXX.X fiscal revenues of $XXX.X our

the drive year. both. for our market Despite earlier performance the pipeline for concerns of maintaining our the the in for continues half we our total the but in conscious U.S. environment. following that segment the was are with expectations, navigate quarter our raising the and strong revenue second optimism rate second low the quarter, second mortgage our in of in this see to this of heightened and to customer guidance be end our end with guidance year of intend the both Accordingly, line IMB we prudent opportunities while the revenues, we by expectations the liquidity full-year top subscription conservatism, base interest our Churn stabilizing

subscription to For at $XXX of we year-over-year revenues expect XX% million $XXX of subscription million assumes total of million. guidance to with $XXX.X fiscal revenues full-year 'XX, the million $XXX range. our This midpoint of growth

$XX $XX revenues of average to million. We our for be top million top guidance operating expected $X.XX XX objective are per of $X.XX non-GAAP 'XX shares is income weighted the to continued of to of million reflects to to our The for operating the year. income and outstanding. share subscription diluted a our the between both low upon end fiscal attributable increasing Rule and based commitment to end net $XXX approximately fiscal non-GAAP Non-GAAP nCino full guidance income

open With for the questions. that, line I'll

Operator

And first Instructions] Securities. question our from [Operator Terry Truist comes from Tillman

Your line is now open.

Terry Tillman

keep win. in Hi these stay language. to there, calls, accounts some important XX% good picking regions, bit but up you think greeting UAE I but well. done Josh, sales in and second that the question sort But then or in a that growth, an see Usually if more. And on when the you. of And have out best. different of of I'm tried it activity, I'd afternoon. -- we unpack follow-up I great I've as out bookings? coming is new tried the sales Is that first year? like to lighthouse thawing Holon, local talking ACV higher, the German Thank my do I know the business for had little like Maybe for Arabic, French. can Pierre don't about it's to momentum I a half XQ the versus that

Pierre Naude

question. just XX% that Terry, reminder year-over-year. thanks a is that for Yes,

which remarkable. it not more makes and Okay, quarter-over-quarter,

market. shows momentum pent-up also and it we see demand it shows the think in I the the

regional still aligned but only U.S. look markets, at the the and and market, banks the forward, strategically moving big I As to enterprise is place U.S., I the where would global including buy. people are careful are say careful the where very

the for that's we believe review being visit truly current community interest and and in customers we've is got a reconfirmed squeezes, the U.S., demand interest. And efficiency. very around margin driver as as mentioned, platform and see we it. net internationally the to strong of segments for economic rest Apart drive and the the I from we that, strong region see environment

Josh, anything add? to

Josh Glover

add No. Nothing that. to to

Terry Tillman

on curious, to people question kind the to what up year half in really and as the the second to the mean, do what But I'm in you great I show look relates of talk it the looks we happen I But you think year-to-date foretell then next we hear. the at as start And doesn't are I activity of it be That's RPO like how you about XQ of did year-over-year, said Greg. are much second or maybe the then could the activity year? thinking those follow-up revenue the June sales in Greg, guess metric CRPO. might RPO. done because what you've up just in half some in that you July Do just based and they of to about for see feel what is Thank you. and reported perking metrics troughing start up year? going

Greg Orenstein

was Terry. from got related comment Hi the of towards heightened billings, My some in as would activity and billing to the around comments that quarter definitely deals the our would and post have been where heard the but saw overall the what standpoint But ultimately signed activity reflected end. pickup end have we we RPO, Pierre's remarks, to quarter momentum a that quarter prepared you in happened progressed.

will we to And going better when year belief. quarter, circuit half. first investor a momentum seeing my of be first expected was enforces last be quarter we the from right that of said than kind that second comments obviously And half better to I that. the on perspective The back demonstrated to sales/bookings and the than expected the now quarter we second we're we

Greg Orenstein

you. the great, job in quarter. good Thank That's

Operator

question. Nabhan from And Stephens. for And, thank Charles our our next one you. moment comes from question next And

now Your open. line is

Charles Nabhan

FI recent churn curious in you're selling taking the question. SimpleNexus? the But just to the the Good I'm afternoon business legacy seeing base. within for for my the in It's see customer in IMB any if and given uptick good into thank rates, mortgage cross momentum you stabilization base

Greg Orenstein

to account nothing this with mortgage we did seeing really going churn there's mentioned churn as believe year, expectations. but for, the here second of from to today was unexpected that I increased our has that just or say as to our in I'd again in your beyond churn us We're we'll not sit comments ultimately overperformance our us remarks, of market not back line the in rates around perspective, the to some a Yes, guidance churn through view. half we second a take really in we heightened wanted our the forecasting quarter conservative have leads in roll my forecast,

that better what's the think is aligned and when about the market year-over-year I mortgage a they've amazing fact ultimately incredibly the larger lot despite we then positions acquired of since business think stabilize IMBs. the we've of grow particularly challenge I us to the does with and and that quarter-over-quarter well that business market, continued as rebounds, ultimately the capitalized

customer into base. as sales we've financial And had additional nCino the institution

that's think focused while as a be standpoint. a think into the for now, So settle as I opportunity a churn on to we us things future down, from little think going I growth we're I think bit significant

Charles Nabhan

And on looking hitting looks follow-up, as also well. well target But a year. you're you've XX, exiting the of year point some like just it. talked as at at hit XX that Rule of about Got 'XX, guide to the for full track Rule the it

in trajectory how standpoint? both we of should momentum progress sell we from from I'm the long-term and how So about margin that on curious, that revenue and should about my and the away is, towards in of activity. question think think given margin XX pipeline of cross the shift a commercial Rule the

Pierre Naude

models look forward we Investor our made at explain future, mix Day. some actually three-years acquisitions to we've the as to business looking which impacted We the public. as size those activity interesting. all future mix, The just you the changed. performance, been our been sales And models. We I from pipeline me it's is how as share has and since tell well Yes. and really as pipeline can purely well at see

commercial. across well. sure make to in want sort the they newer pullback products platform I more adoption of of of that It's as the

well we new maintain to showing commercial, are So really now additional products, while full out in customer which market our sales platform leadership in rolling in our as we up is our as speed are base. ahead

for add Just clarification.

Greg Orenstein

other Chuck, Rule just progressed years of we a get in Again increase to should but one ground that and beyond. year, that add. stake was the XX this the said be And to kind the we'll to expectation as thing of XX,

And again journey, so stake difficult step that put in in a the we in first what's kudos the first from we've that the our executing year this from really is been team this of year. half ground of And whole terms the how through been perspective, to a customer standpoint.

Charles Nabhan

the to Got look Day. guys, color, at the it. Appreciate and you. forward Thank hearing Analyst more

Pierre Naude

you. Thank

Operator

question. And, thank moment comes Stanley. you. next our James And one question our from from for And Faucette next Morgan

Your line is now open.

James Faucette

very some Historically, that in around at and these nIQ customers adoption much. an customer. this tends adopting than I'm you And you've product. result XX% mentioned you an are commercial kind ACV of guess increase to to for that module me, activities. uplift cross-sell more existing in Thank had looking of one I in

between difference a pricing I'm trying uplift, to your retail. count just for similar the opportunity. commercial front adopts get commercial potential customer seat and -- if potential and to leverage the learn ACV cross-selling existing retail, in curious there on on that if of you sense Given math

Greg Orenstein

this intent is previously that, up our again, disclosed as and September, how provide base the playing within we on I cuts customer different end not so beyond. have first for really whitespace understanding of the have We've details, out or our additional better platform think and Yeah. Day Investor we to provide is guys our truly of really that story business the at commented you and of can gear a

James Faucette

given environment kind How competitors larger particularly opportunities, that you deals. characterize renewals be going improvements was forward? and Got the and about large the it. lumpiness then is in on metric of deal large has one wondering impacting spoken And your and deals about how you're would quickly large how European those thinking that demand for bases in asset RPO the could impacts in just of

Josh Glover

larger We're we out that last this of exciting formalized seeing, in is This those variety pleased called geographies. a a with few the quarter we're that spend we Josh. opportunities engagement

XX of U.K. You in Australia banks. the had in our with a nice expansion of solution ESG and a a had one nice win bank top global their out We

Middle that win in We the had East.

So we we're pleased are. with where

We the a an within in also Netherlands. had large account expansion

impacted we proof they that we're last engagement early, point there. show their So continued came of that back kind saw seeing market and year early, those momentum

James Faucette

Thanks Got it. so much.

Pierre Naude

Thank you.

Operator

moment our from for next question And you. thank our question. next Altmann And Nick Scotiabank. comes from one And,

Your line is now open.

Nick Altmann

to new a by guys. clarification achievement on just I that a quota the wanted Thanks Can maybe ask net question XX% Awesome. mean year-over-year you that comment basis. what quick Is is growth you on XX% ACV. sales on attainment, number? that

Greg Orenstein

XX% year-over-year look a that's So increase bookings QX in compare. as we at the

Nick Altmann

And is on ACV that basis? a

Greg Orenstein

gross on Yes, an overall The booking. basis. ACV

Nick Altmann

look the XX% a follow-up, question the mentioned I of pipeline new of just for of Okay. products the XX% existing? I much mentioned bookings guess when think the And as then cross for half. versus And sort lending. net the is pipeline had you is, commercial you my the of outside second you at is second of then in quarter How pipeline were sells. guess I

more talk a your deals? Thanks. terms of So acting door in these of expansion is and or front maybe can just retail whether sort are pipeline more SMB you oriented about of

Greg Orenstein

the I'll get the and the question, new Josh, base. From take to into you pipe healthy first between back selling customers a if leveraging mix current want second. are perspective, a there's

addition mature our excited is adopt amount we're we is as to net and in to which into there's continue incredible products Pierre see base new about noted have of go But an there our important. as a that mix, that tremendous them more, So asset customer in comments, his and newer we we think opportunity customers.

Josh Glover

being base where started. we commercial obviously that And customer

entry to account a something or is Johnson retailer get or priority those or solutions the they be talked retail a multi-solution large so do situations deposit would them matured we opening. spoke so that some have we've while start prior if make see Financial to about accounts a where we with add Group else, seeing For confidence. able quarters, in we like other in, try for opening with to customer's who and about solutions account point, live you we're Those accounts, commitment. still Have would

exciting. we're Obviously, to them But the on and We'll our quite what those expand sense to on the ecosystem, with time. later. success on bet are then vision going live broad them to solutions single solutions, makes and platform other hopefully show present job we'll based then the it's customer our we'll for the a bet showed nCino, get path to a

Greg Orenstein

point to really they're that as maturing We ability And to forward. with we the address. think trying products of anywhere Josh's issue to that exciting bank an enter our look the the has it's

Josh Glover

grow stat back on by referenced Really that where you that excited logos of we to being validation On we liquidity of earlier the the to the do future to for other fulfill banks, on platform best one, the in a committed Pierre of efficient an that channels, nicely to just believe most a that day of reality products minds of more we aligned than from but what's set to path see idea our the bankers' to but provide customer side is and in XX% market. adopted be that continue new fulfill about multiple today. though a variety that that's these needs, we're brings broad maturity, well back them and to product manner one single coming to really year, vision the a us have and grow stable to solution very the seeing across not

Operator

And, thank question. our from question our one William Blair. And next from Kennedy Cris comes for you. next And moment

now is open. line Your

CrisKennedy

you for Thank the taking questions.

just treasury, importance, to comment. the back XX% of cetera? et Just is Can outside commercial of pipeline you whether the rank lending. nIQ, pipeline the Over order retail it's going

JoshGlover

we of volume with account be we're depositories. I it new banks. side in may the commented mortgage you be opening may see those half or than SimpleNexus, in that of our the retail, these but see So were pipe XX That for consumer of may solution. actually it, pleased the it more When logos on stat, be

well. resonating really that's So

that to with brand that over nicely It's built to sign the a and aligning accounts path years, the success worked the show we've there. hard we've

the account the SimpleNexus in pipe lending high side product a significant and also So the of and I it's a of of consumer most mix our opening. say, then retail our would those. portfolio, components at level,

CrisKennedy

just Okay. you. a Thank follow-up. then And

You just solution. one years time? than ago? Thank a over new year trended was that statistic How or XX% that using you. has What logos two are that maybe of mentioned more

JoshGlover

increase to yes, well. well. on than saw we one across the a new XX% solution of that of looking So seen more year-over-year portfolio quarter, as our last day. That's one to customers our at increase We're logos product full now we platform XX% using an clarify, We've committing -- as in solution. more the one than on

GregOrenstein

that nIQ. And excludes

pure talking You're platforms.

JoshGlover

nIQ of XX% you one solution. platform, least XX% include pure at -- one if

CrisKennedy

Thank you.

Operator

And thank next And, you. one from moment Baird. from our And question comes next question. Vruwink for Joe our

open. now line is Your

JoeVruwink

everyone. Hi, long-term the just all ratios that Can operating resourced and it over this outlined? appropriately previous detail midterm targets great the expense a maintain then means does and you Great. higher Okay. core could just margin go on just be a model you frame, exploit relative maybe in ratios more a certainly And suggest maybe to that that mentioned so what's other year? the Pierre, answer, and leadership areas. bit in you've time obviously to what Thanks. previous been expense to some you pursue wanting counterbalance just leverage relative but expense into the commercial, of

Pierre Naude

make people there's that now, targeting goes well, X,XXX unions. that we're it's There's over as the I in still see To product investing we've but are now Yes. No, commercial sure over what that a mortgage you, global IMBs massive still institutions. over returned XXX in got understand, X,XXX I over we wanted and we credit opportunity. remind that would X,XXX to product, There's say accounts after is the right banks. We've U.S. X,XXX

over So target, institutions XX,XXX okay? can that you're talking we about

go not what deal we deals. we're Obviously, our But commercial does core countries, account East, where front in are these would IMBs. after opening our a SIs to new along on outside sell with named with I call this of going Middle the

targeting. we're are deals So And exciting got globally we've very of list those a accounts

is profit the into need of take I the shows elements many, these much these many only and That will take the continue borders driving thing nIQ product base. the the it understand center to it credit sure And but itself, to we doesn't people and commercial how run banks. in around underwriting and in And invest efficiency actually you changing it countries. of in that's not to of can make want we that across why

if profit is great so second to a you They U.S. house, which of sheet. mortgage rate balance variable lose attached, mortgages center those the want collateral you The your is piece product on which don't balance we outside it's the paying. on keep go keep and all sheet because with a

well future, the has think address self-service. we a positioned issues load in are heavy actually that foreseeable and I the of to efficiency core drive So banking

maintaining And pull I we perspective, these that they're because make to growth, work from then get so market down. leadership other view all coming there. their balanced there's And as mature, to to products wanted of commercial a hard up weight sure

GregOrenstein

both it's Again, Joe, a is add, of AI AI. as over our about couple been this four and analytics. for whether machine talking in investments as learning portfolio just well lot now all to we've or product expanding Yes. of in of We've plan. is retail in made of the years, part years And investing our again, last everyone expanding geographically

heard is investments continued versus if your execution this so of net new And any question. part I all

JoeVruwink

you. No, maybe Yes. changes segment. areas scope have or When speaking taken then for spending Or visibility, been books? the what's thinking engagement comes been of pause? the of decisions product on on careful where comes quality ESG, a given put some you've spending do good. Do think the being for you by a credit that's just enterprise back bit about things in that back, bank and the the strategic today, on it focus Thank comes portfolio, think interest better approach might a U.S. that you when of worse back? the consider on of net nCino what margin, And

JoshGlover

providing just variety can them fulfill a use see more that we're focus dedicated they customer of set a needs. going so think with robust to to of products to We

to look going want the always But in lending they're a to important assets business, other So see lot that's to really purpose it's well sit. do obviously, business increased of engagement take want intelligence within And well. well at to solutions, as that optimized as they to make to offerings and execution leverage it our their the point where we to their then going of they're because, commercial and other and can better. even process of all as

Pierre Naude

with been meet there traveling I've rethinking of to country a clearly the customers. old strategy. around the And is

-- For about U.S. the now, deposits, we love commercial talking I've always the consumer we longest but I'm had, in like deposits time lending. consumer we and love banking,

years but Now you sector, deposit look consumer has at seen for accounts as wasn't these deposits we've as lot big it the moved the if of lately. trends which magnified banking been across a problem, to a and four,

big were they that is asset. there interest And them now all like JPMorgan, that with and a Bank always one Bank from an have the good rethinking these ease their you and customer, of benefit seen self-service And they that their you National what want provide change around deposits. have a a okay? expect customer, relationship the And sudden, to doing relationship where when customer to rate, realize said, low atmosphere commented the use technology. you brands that a brand you companies are with Silicon me people deposits can need big a happened, technology, that the And was around consumer have as big to America, the that consumer Valley of for customer of should that people is with if

as all can so commercial. fill we up I siloed And to going provide simplification and traveled that small to the low market focus up of We account opening, that And we're and that provide origination, country. inside the strategy renewed I echoed And et because the is to way think banks. the the to drive business that customer way I've nCino what's going cetera, heard that from to these and as client-centric. the IT opposed void then on around consumer the

JoeVruwink

That's great. much. you very Thank

Operator

our And thank Alex question Sklar moment And, from you. And next next from for question. our one Raymond comes James.

now is line open. Your

Jessica Wang

R&D just on are Alex. your ongoing priorities? taking example, considering versus for R&D investments when questions. This wondering, is Thanks. about nIQ or was Jessica existing developing, Start enhancing I What you're product new you my your are off for Thanks other for like and For products? thinking possibly map? with, road your

Pierre Naude

Yes.

these million public product. around if ago. at we just look And company, probably historically We And million. on So we $XX in are XXXX. the materials. three you this years It's went year, spent spent $XXX

us years, literally ready now. are up that been spend is we for the incrementally analytics So so more this oh, of working situation basis. daily for intelligence. We've have doing okay? to to that, The because we've to need remember, lot years not on all a revelation sudden faster, we been to new companies a that some not okay? four we get it's So us We've on nIQ bulked move acquiring there to the

doing elements, use feature add needs, can of who when different it the because them. customer now broaden or we're these you evaluate subset look of at functions you product what So launch is you the customer integrations appeal. as broadening all a And markets can may customers or over products, suites. we be always time, We then that

nIQ we underneath driving all products money But us, we what on will of we're us umbrella, those an evaluate to will it And because the there's where market. that clearly the doing so will difficult and around. the differentiate us and is now point opportunity ahead emphasis shift with actually be in intelligence compete through nIQ

platform the intelligence feel you and pretty position. combine If with our about client-centric we good competitive approach, the

Jessica Wang

the business international, today? are where nIQ your you the confident like wins you've Got what it. really like -- in follow-up there opportunity, you most as looking have again, And was Is something more or Thanks been that. thinking it's When different hearing about it at great I've growth Thanks. big nationally, you said for question. of are had a it you got else? you're differentiation lines is

JoshGlover

Yes.

about that think show of the we that single every sets platform we continue base grow market there. some our thrown conversation just in of earlier and intelligence continuing of serve. We've our the and continuing serve out add adoption United that markets As international as to focused that the build on increased in you various we logos that a is presence. customers to part great we're In few markets, expanding States customer

Operator

next And from Sandler. our And comes you. our question. Brent from Thank one Bracelin next for question moment Piper

Your line is now open.

J.R. Herrera

of growth? Thank CRPO Touching with how QX current of Brent. on low should question. the QX, growth taking again, the in is This high you. is for about J.R. in growth Or once looking think be doable? could single-digit we X% on RPO XXXX Thanks XX% rate at asking and behalf growth double-digit we

Pierre Naude

renewals could of words, Let me of and could bookings Remember, depending significant have jumps all comment quarter we a the play seasonality big on a about a other first but bookings, XX%. RPO. a make low sudden, RPO on renewal RPO. impact In distorting

RPO. to make So is, to be else come It careful to indicator, provide think Greg, additional you to a and listen about the but deal too to comments actually very I with an to that. should of much data a anything conclusion will do carefully me, I you you have add? we

GregOrenstein

have to on the remind the top both with line, bottom RPO. the consistently in we a again, the that's that what model, think, it point we J.R. don't provide to lot try I to folks we parts visibility that point guidance to and really you we business and of there's again, that moving the do and manage And in we

J.R. Herrera

great. you. Sounds Thank

Operator

Jackson And, moment thank question. Ader you. And next question from comes one And MoffettNathanson. for our next from our

Your open. now line is

Jackson Ader

guys. Hi, Great.

are The the specifically in little it's room of is some The higher. think, go we behind U.S., maybe a where to Europe, I outside but guess, still, Pierre. mean, first for you, rate environment in question I state, I the

most And peak the the maybe once the your cautious at banks that geography? expectations maybe to we kind of around, rate of you are enterprise for so moment I'm just segment the European in react how is curious kind get will being as what U.S. cycle look if

Pierre Naude

and complexity had they liquidity Bank today who the would looks I with what energy rate last well war year if as okay? as over. people also of relative. the And school all always then compared Sunday like got the to you are of Yes. problems crisis. dealt problems that Swiss And the at taken starting then picnic the remind last shock look add The year, you

normally, current loans declining coming I what again. would your to where everybody adding other relatively rates squeeze and like your portfolio go loan your So there well But have a sits banking on the those ideal and margins. in it's not up, a good. It's to raise income tell get you and because deposit renew words, jack those see as that's rates, stable there's through rates you forward that you cycle you is that But in your as can rates over so time, up. would

in long healthy, lot As stays you credit as the problems of economy the book. a see don't

banks will these come this think I through fine.

side. It's to -- I'm the credit always bankers amazed are manage about good

surprise the left time the could world is this, stand literally line field the how it okay? you was in an angle big was Internet-enabled get I think we're to renewed they versus the there in but they close move to today and and focus they and is as out as on forward. strategy like surprise saw liquidity of money would money a ease your previous came what withdrawing well a hearing the to So door, -- have of

more a I I that's you And these in government lot regulation play there. that, why mentioned tell is Europe, for there's will before, and us involvement banks. as in also ESG a great

that's where us. to the banks over going this, some understanding interest I'm talk themselves new better, they a As going take in can the to how better. of matter technologies there still fact, of I'm manage September about and in significant seeing But industry to

Jackson Ader

like bookings than typically there quarter was you back-end in quarter from the in Was perspective quarter. quarter? typically more any or than the you moving you All June quick impacting quarter, and follow-up Okay. the spoke for the is the that July Greg. context. linearity That billings maybe The Great. about next in right. -- see a loaded given see second into helpful One

GregOrenstein

No.

momentum Jackson. I think, of the progressed and as the liquidity settle again, just just the crisis, other we quarter things down, saw side the coming build on

note would QX. think anything for I been have to thing the really -- than that would more be

Jackson Ader

than was like than less just I'm or or it loaded more usual I back-end sorry, mean like you expected?

GregOrenstein

No.

again again, in together momentum of we talking some in the to expectations. the of And and quarter and tried middle that the quarter building I to nicely. highlight with came think it was the we line investors, saw speaking

job, Our was and nice team great did a it see. to

Jackson Ader

All Awesome. right. you. Thank

Operator

Bergere And, of question. our from our next thank question Bank Adam moment America. from one you. next And And comes for

line Your now is open.

Adam Bergere

And, good Thank you. afternoon.

the liquidity that far? a how crisis that logos year for the basis thinking Thank new balance are this you. expansion go-forward between So versus about you're And is on balance doing there? focus deals changed how so with you

JoshGlover

a changed. our things we market and logos, We make The to sure also new the have focus when field is the take challenging. existing field we to sure able the on reality tell we're hasn't accounts. balance care our The team story out in to of of make get

conversations because a thing in with be continue with because hard first it's which is base. due folks the to new The referenceable the slows just we good to diligence for greenfield that and vendor, customer for situation have down is happy on great us a

So explain of when macroeconomic that weighting ups points bit why will may a see little see heavier and some downs, expansion we you at bookings.

where So part But our of changed has just all. reality of at not the focus is that world market the is.

Adam Bergere

the kind it. it consistent for two as go-to-market terms international, Got between then motion your domestic between versus of fairly logos And of in well versus new is expansion?

JoshGlover

base. and maturity customer in of distribution a to and consistent leads which market motions, of Consistent market, the and different penetration just markets focus time different

Adam Bergere

Thanks. sense. Makes Yes.

Operator

And, And from question one our And thank Barclays. question. you. next moment our Saket from next for Kalia comes

is line open. now Your

Saket Kalia

me for I'll questions. it Maybe kind Josh. you, one thanks first for here. the Okay, with is housekeeping great. Hi, of keep quick two getting in guys,

feel very achievement commercial about things certainly you That's things retail, do lending? sounded see, much as the like felt lot by it and like well. of product great was you growth? the still Or sales like that that like As rank that of was the a driven XX% you do to sort first which nIQ drove mean, think areas and composition, sales pipeline order How I that achievement, drove you also it others question. better.

JoshGlover

on of side. speak the XX logos to about We talked here. we SimpleNexus No, mix had offerings new to nice you. a it's Saket, good

we have solutions. our is stats new the that XX% of multiple referenced One of logos

those, business see you in but things will retail, offerings SimpleNexus commercial small and you see involved or like So also nIQ involved.

customers, So proud take we those commercial continue well. and and but that care our from look, product, to expansion very we good We of take new solutions with logos see our of it. as other of we're care perspective,

Saket Kalia

It's I'll can bit lending great. is Greg, go do you, versus over that That's is, on that of longer-term The noncommercial great lending. revenue question Maybe mix that the today? the a like commercial what for to you And but a breadth. years? what call next question, you follow-up see XX% point does pipeline that few maybe little look think in terms where for mix

GregOrenstein

Yes.

think a of big. as I market noted from is market perspective, So Saket, commercial the Pierre outside twice

again, retail attack so with And we on commercial our business a side the we U.S. the massive lending with but retail mortgage see first, outside U.S. opportunity with mortgage of

our ultimately, And based on just as is started. think about we as opportunity the think I again, studies, have, that so we're think And getting large just we as SAM we commercial. twice opportunity

Saket Kalia

Very helpful. Thanks guys.

Operator

question. And you. one next Research. Ken thank our next question Suchoski our moment from Autonomous for And, And comes from

is line now open. Your

Ken Suchoski

another the commercial and from think one XX% what folks, afternoon. on I is the when for side. Thanks lending your Pierre, that's leadership on really I'll lending I mean the lending. ask Maybe talk maintaining reputation Good I commercial question. think that out your mentioned in coming stands And Hi. the you've pipeline we products. market to noncommercial taking

just competitive the I the holding the competition in is your it confidence about of part remote, SAM? in in because lending your a the and talk you can So noncommercial guess, products dynamic own big versus

Pierre Naude

centricity focus, more simplistic more you. customer set That's Thank your great for be as much us. platform end lot think a as is use and ease a is a big Consumer user Yes. differentiator simplistic because question. well instantaneous. and Look, a our must product I the of experience

However, all a that fairly simplistic to the because regulations, develop actually the it's with to to it use. difficult product integrations of all make

end the problem it's make to solving, consumer. you you're to complex a simple but have it So

small people you basically at back base. seeing of a is into in who What companies business and look that software the other you're developed consumer 'XXs 'XXs. If selling or bunch then

don't the a here a up solution of coming the IT that we're broader out other people cloud-based infrastructure trying of box I see so with to And same thing is and modern do part coming here.

in this and to I bank, and of to that profit maintain about If there execute influence this playbook least we think what opportunity. the maintain country, So leadership And think of we and of And do And the back the same momentum then meetings reputation the in is center we're exactly reputation the aspects you platform. outside get you're same go going hearing biggest here. reputation, get I similar if the well at I focused then the around in thing. the the have to that's other the stories. on the commercial market I'm see the

play highly I'm So out. optimistic will strategy this

Ken Suchoski

Okay. just a including out potential exploring sale. commentary maybe there I'll be of might a company maybe was strategic ago M&A. about ask as follow-up, options, There months couple Great. And stating some the my

a is for of guess, how, this we be options thinking getting a about I markets? wondering guess, not due talked the the certain is competitive I guys you've the on are know was that company I And you here to potential So in reasons. because disclosing I lot questions should it. about metrics company public are

get would just to your there. So I latest love thinking

GregOrenstein

don't the we can I speculation. question, appreciate rumor and sure on appreciate, you but comment Ken, I'm

really address any So further. can't that

Pierre Naude

what love we We do.

GregOrenstein

We what do love we do.

Ken Suchoski

you. Okay. Thanks, right. Thank guys. All

Operator

our And, comes our for question moment thank question. last Alex you. one from next And from KBCM. Markgraff And

is line now Your open.

AlexMarkgraff

of you markets, taking Hi, full everyone. here less go first maybe, the think ahead in do Middle you, When of the international to win. of steam with are like Josh, penetrated question. feel for pieces these in just East Thanks all curious Maybe the opportunities? types about you place some opportunities just on kind these for

JoshGlover

not to company. a not follow to on. of a bank We're a commitment it's through ready that to First make all, going we're reputation-based

a show new So the announce great the UAE. we're market, going in when them we one excited to path of banks go to into to largest We're a success.

So show absolutely those and a there. path of ground markets to machine I have teams the the the those in pieces on confidence that success. distribution customers high a in level are the

ecosystem validated ago, Toronto gives global in us system same as in to year, in And greater in and signed the several showed Europe, if to one where scalability in APAC, the you three by remember we success a ecosystem. leveraging Canada, unprecedented we them we and Japan, a years path banks

those be started we'll getting in markets. we're proud So we're excited and just and

AlexMarkgraff

on And that. follow-up for second Thanks the quick just half. maybe one

Just renewal describe any of curious there's in all for us? way if you for kind opportunity to second the the half

GregOrenstein

basis a customer in terms -- the renewal of Alex? forecast current what From like customer looks

AlexMarkgraff

yes. Yes,

JoshGlover

really time. So we as keep perspective, formalize to seasonality. have opportunity we there those a see We customers And normal guide taking to we're an and our going partnerships year a those don't care in hopefully that. long of from renewing for

GregOrenstein

Yes.

contracts think have as products to terms, but accelerate again, a become customers can additional interest I of that renewal well. as

as opportunity And to so we always an sales opportunity see expand. a new

cadence our out. hard kind outside So of of that predict to normal

AlexMarkgraff

you. Thank Great.

Operator

closing to the I Pierre turn call now you. Naude would remarks. thank for to like over back And

Pierre Naude

Thank around past thank and a the and for period, you business to senior in values proving all market. yet and six want months, helped focus are I for employees very difficult joining passion, the teammates customers the over that their true today. have world us differentiators our the execution, nCino through again particularly culture

We are on our We'll you for Carolina. among excited forward to seeing so September our Investor XX much Thank and other tonight. to of outlook North topics. Day updates in look We share insight our additional financial attending strategy you on welcome into Wilmington, any then. first product you to

Operator

conference you today's Thank participating. call. for concludes This

disconnect. all may You

nCino (NCNO) 29 Aug 232024 Q2 Earnings call transcript