NCNO - Earnings call transcript Q1 2025

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Operator

Good day, and thank you for standing by. Welcome to the nCino First Quarter Fiscal Year 2025 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Harrison Masters, Director of Investor Relations.

Harrison Masters

Good afternoon. First XXXX nCino's Call. to welcome Quarter Earnings Fiscal and Naude, call and Orenstein, With Officer. today's Pierre nCino's nCino's Financial Greg me on and are Chairman Officer; Chief Chief Executive

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

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

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

Pierre Naude

joining Thank thank and you all today. you, for Harrison, us

to the for gross sales sales We are pleased sales establishing company record We quarter, and a with the from exceeding built in on first very first the QX, the year. start momentum in gross with our quarter. plan the

year. net and expanding markets. sales with expected to customers, U.S. business across their of noted community saw We in over approximately the XX% 'XX I fiscal that Last Most regional existing the last increase our adoption strength enterprise for and quarter, we platform. notably

we more conversations to strategic Open visibility provided user efficiencies, performance, improve goal. into stabilization our financial X achieving positioning. more create been on operating that Reserve years. pointed was operations, and interest customer experiences U.S. normalized their more have stability for as of behavior. market With the institutions their improving initiatives Market more certainly confidence Our rates XXXX financial improve competitive and Committee strong their December better for Federal that their At refocus clients performance to missing increases key and the to buying in The almost provide QX tone of additional in own year-end, to meeting able

This is translating survey spend. internal of over their pulled this IT citing, an of increase XX% to budgets XX% month responded more from increased executives the X%. technology have year, in with an last we

rates have a While interest has kept business, higher for most under our pressure. stability rate the longer been mortgage of being market positive for

the reinforced the both well, leverage Mortgage Despite new difficult years XX couple efficient experience for continued perform to lenders to FI market targets business with over has IMB the and strength a mortgage exceeding market and difficult improve logos quarterly of best segments. past conditions, the technology Mortgage The market U.S. and internal our enjoyable again profitability to customer sales talent. attract gross and provide adding the imperative in more

base. reflect competitors again into displacing results success banking installed Our cross-selling our and in our

a mortgage takes how predicting in difficulty game puts when cut, the demand first and cuts of and for Fed waiting and rate of in add currently are do the will We level a equation impact up the rate volumes.

our prospects. year crisis yield That but by product lessons share to market-leading the all see we nuances priorities we markets will lasting liquidity aligned ensuing difficult across the market, Obviously, ongoing our and customers innovation some said, The a confident commitment are business are of our serve. and we there and technology cycle ago for that generally gains. to imparted continue

are experiences their matters quality, stakes clients. and for digital efficiency Operational table

to the financial bring spans operations efficiency to across uniquely only a positioned digital business and that account and we onboarding platform the within lending, modern As cloud-native, lines financial opening are experience single services. institution

This the Charlotte This In of XX% efficiency bringing X user the in conference, was at held aligns single improved institution survey, attendees our X,XXX more priority that annual ago. our for than display #X responding weeks on of and over mission to just nSight, full on a XXXX. customer-centric with in was directly for people, together data platform. confirmed attendees a processes registration

institution, steps focused been of are can our within digital solutions all As transformation first anywhere the our ensuring we've that to begin on the market-leading. financial

use account billion asset and in opening. business example, nCino include an quarter, well onboarding as first lending, For their deposit of treasury from bank the $XX small consumer over expanded to as

this we our flagship within including announced about the excited more of nearly this consumer for they was as the discussed launch solution, and In quarters. and a important through Xx GA lending incredibly April, solution. couldn't though are even of We announcements make feedback an a not experience the point-of-sale ACV truly of yet expanded lending same available omnichannel, mortgage for the the be mobile-first number we've product, from commercial already for lending. our experience account differentiator in solution omnichannel our QX, U.S. few reaction nSight of all our customers past we by consumer customer we across positive

vertical the efficient decision a through space, new out of most Abrigo. built accelerate for for for the way Financial to States to was in we possible evaluating lending credit consumer by solve technology partner development recent partner indirect valued our specialized our indirect union the tuck-in the Group. technology auto Rounding the lending decided In enhancements, acquire capabilities through made the lending, from to process

commercial with opportunity for to see acquisition last earnings for also was the process. This on small provides business customers we solution the a first traditionally and the inefficient discussed You'll banking. and many of opening digitizes recall DocFox and acquisition nSight and capabilities our of us high-touch, how time-consuming streamlines account new onboarding the call.

been tremendous, new nSight. over The and sales generated at had XXX leads feed including

time regional being cut banking the market early DocFox. with for and hour on onboarding We in been weeks community initially have customer mutual accounts X adopters One working product under targeted the an business integrated U.S. from with has reported to an at

platform In we our have half early FIs, the expect commercial yield the lending. ACV, for onboarding can market, solving commercial around for the testing of we of found

excited incredibly forward to will expanding opening opportunity the commercial for look enterprise as and are be solution nCino and this about DocFox offering account for referred year. We this onboarding to later the which customers U.S.

are financial a intelligence. with of digital of and an foundation with laid Having the data integrated we best-in-class solutions, platform continue transformation positioned automation, leading to services uniquely

portfolio does our Our the at rich offering monitoring that. loan manual credit decisioning what previously and companies Continuous tasks were AI newest partner, NIC automate data platform review to exactly leverages level. customer

able new risk. We financial institutions how setting announce customers credit pleased M&T first for will solution signs provide their M&T early to insights as we to detect senior This and and manage monitoring. tailored collaboration, are XXXX, more M&T's clients. standard employees U.S. to this a banking timely warning more credit on continuous since even experiences to in customer our were Through now and drive

file key to AI perhaps demonstrated return enhance most adviser generative of This and platform. one credit nSight memos, interpret to PDFs the shown policies, productized chat at creation developments we products into -- automate partnerships, And extend and example is and we innovative just documents have our to with deal the and upload, data. how our locate of with, the quickly banking

at actually so repremended got Our the Marshal for customers Adviser overcrowding booth. Banking are that by by the technology nSight excited we this Fire breakthrough

as customers' earned on adoption. them first cloud nCino reminder, journey our a let of As trust we the

mission-critical only in Our our by financial are process all But a our never serve we and same all account to global intelligence in in a and the as business is to before. services. onboarding nCino the automation partner reengineering vendor trust with of platform is sizes. by financial that AI single routes home goal as adopt not and of services products install the like to processes institutions their and and nCino's lending the have AI. to reach to inability being journey opening ability across drive for differentiated institutions

through financials. that, I'll to the us call Greg over With the turn take to

Gregory D. Orenstein

A as our all Pierre, which available remarks found for furnished and before stated. numbers the us financial otherwise you, X-K joining to on results. first our my that in referenced just quarter Form everyone, basis, fiscal metrics are unless GAAP is non-GAAP in this today's thanks, to and SEC to Please on be call. this XXXX exhibit reconciliation can afternoon the a Thank comparable website note an with earnings release, review

first are We of fiscal results. of our first with million, quarter quarter total were year-over-year, 'XX increase the Total of financial XX% very an first the Subscription pleased representing $XXX.X an of XX% were for revenues revenues quarter million, XX% revenues. year-over-year. $XXX.X increase for

the expected market. and As heightened moderate particularly churn previously growth the being first in while closely as year the did the the rates our are expectations we impacted discussed, churn rest full we will saw this year, for $XX.X continue last year rate discussed the quarter remain line IMB to with this Churn in interest in revenue of year. million monitor the environment, we for by

in revenues fiscal year-over-year. million fiscal the quarter XX% in Non-U.S. year-over-year. an first Professional for million XX%, quarter, Non-GAAP of were gross was services the first 'XX were Non-GAAP million, the of XX% compared increase of 'XX. profit quarter, $XX.X to in total revenues year-over-year. or XX% revenues growing $XX.X $XX.X of first was up X% the margin gross XX% quarter

from improved Salesforce. our approximately gross under Subscription of reflect Our with points margins benefit XX basis unit agreement economics

X% gross increase quarter, continued opportunity existing fiscal expect and margin them We in the for have lap 'XX as pricing. move Salesforce new the customers we billing to more line of we on last with our annual subscription events for discussed improvement to

$XX.X of the million Non-GAAP fiscal of quarter 'XX first operating quarter million, for $XX.X 'XX. was fiscal income first compared the with in

margin first was for quarter the quarter fiscal compared XX%, of in 'XX. with Our operating non-GAAP first XX% the

from renewals share share, 'XX quarter benefited in behind million, and the or $X.XX first per diluted hiring in improvement to compared Our insurance or fiscal 'XX. attributable $X plan net in the for to of debt nCino million income $X.XX operating first per slightly favorable of particularly diluted was quarter the expense, IMB fiscal margin space. Non-GAAP quarter, bad being in the $XX

to of than XXXX. from the XX% performance XX, of XX, April category, million April remaining XXXX, as XXXX, $XXX million $X.XX RPO, up Our XX% XX, up million as $XXX obligation, less as months in over with of or increased billion $XXX April XX

the quarter had activities adds of equivalents million had fiscal provided $XXX.X incremental accompanied We extensions strong including cash accompanying contract those cash by healthy ACV. million, we cash. ended 'XX. quarter operating duration that $XX.X cash of We with first restricted and expansion was deals, $XX.X the million, the to quarter Net another compared contract so with in

Capital 'XX. cash flow for the the quarter, in of million $XXX,XXX quarter expenditures first in $XX.X of were resulting fiscal free

the reminder, quarter. quarter cash generation a strongest our seasonally first As is typically

all-cash of statement excluded our of million cash DocFox, and from investing cash flow for purchase note, $XX.X was which $X for acquired non-GAAP purchase reflects Abrigo will consideration million. million approximately combination of expense, that as You our including of results. million reflects recorded This was $XX.X of net consideration activity post $XX.X

of increase expect will consumer the and competitiveness revenue lending product expands for number With credit indirect lending. year which our this unions, larger we Though a contribution consumer from addition functionality, lending opportunity the Alegro of fiscal this market technology the banks immaterial. to and expected further our is

our credit fund on subsequently the year borrowed million $XX continue to of of pay to cash. we as remaining We DocFox use We to million fiscal Abrigo. $XX revolving of this repaid generate borrowed quarter. on rest during acquisition the acquisition the and down principal million finance hand the cash the plan to facility $XX within We

to guidance. Turning

For the revenues million This to to total to XX%. we revenues with $XXX.X of assumes revenues $XXX.X subscription of guidance second of million, subscription million. million growth XX% $XXX.X year-over-year $XXX.X quarter, expect

revenues year million, $XXX.X full of of 'XX, XX% $XXX.X fiscal million of million, revenues $XXX guidance year XX%. expect assumes subscription $XXX with to revenue we This to full to year-over-year total continue For million. subscription growth to

to the a XXX million outstanding. expected approximately in diluted approximately is million be weighted income $XX share second Non-GAAP shares based of to $X.XX to be $XX.X net to operating and income average upon nCino quarter non-GAAP per attributable to million This is $X.XX.

quarter marketing expense $X nSight to the approximately incremental second add and on in a is of sequential basis. million sales expected

affected and salaries people rate. plus higher will Additionally, April, the with quarterly a in of increases run onboarded operating acquisitions contribute merit to annual wages expense

customer aggressively bottom drive overperformance to the some consumer incredible at the and of marketing our for and product the QX in our credit the reinvest sales light in capabilities, adoption of we union lending newer greater to saw nSight we market. more expanded plan solutions to line even of demand in opportunity Also, pursue

million. 'XX based we of to attributable diluted operating share said, non-GAAP Full income our That to to fiscal operating fiscal is shares net $X.XX million full increasing now be the weighted outlook upon nCino be a expected are year to million non-GAAP year outstanding. $X.XX for $XX income for $XX expect approximately XXX income and to per non-GAAP 'XX average

the for open we'll operator, questions. that, line With

Operator

Adam Our [Operator Sachs. Hotchkiss Instructions] first question comes Goldman from with

Adam Hotchkiss

they Pierre, into what nSight. I I appreciate innovation? leads the give color key generated Really you gave around for are And more AI products asking and of new little for comments you you would learned appreciate bit are It like the any just can sales things conversations? it. you dig around? from the customer to around seems focused love there? are people most a on? incremental XXX What What some then

Pierre Naude

the has hype market. lot It's interesting. Yes. got being around for that question. AI October a Thanks this since

there's lots problem, of then lots important talking industry, privacy, a You like of of of lots data regulation, a But issues. it. laws lot Dimon very people senior are we regulated get and Jamie a about

bad If do very So Don't the okay? guidance. I you get they seeing data how wrong into be do need used, compliant, tools it. stay the but with I are -- what of things They understand AI, people is, do what you can outcomes, how bad need I'm excited, feed majority to

and So in why nfire what seen that's the well. the comes rate and concept marker is, we've crime as

That They they those very solutions hungry narrow efficiency the feel what will tools actually they like And okay? bank really need operate solve, in to build of or solutions better. help and problems and that secure. them way, are drive to focus they purposeful the us people for very to what be

and that's specific along Because it's compliance. And so you come solutions very as journey to a purpose-driven. actually take and but imagine, within And with can a we over set. them both have very money where that's problem conservative this business It's time. banking industry about and focused will is regulation the

get show that processes start I most analytics. them business the and that first, and of the you can platform then platform do and that, fact data get right, And that why literally use the have the all of was to platform it excitement place, that's automation have So through in the steps we you out. laid compress your after taking

Gregory D. Orenstein

was your specifically about specifically which question DocFox, deposit XXX our calling on just opening that Adam, was And at onboarding That for their but commercial we're the and sales leads. booth. account now solution,

about nCino excitement of technology lot that into a So the bringing family.

Adam Hotchkiss

And there. the really consideration helpful. then, Okay. on Great. That's Greg, just margin

or a think the bit on little plan? need in talked signals behind you either do to from I hiring you being hiring see What about to other a revenue side? lean perspective

how think And out plans the you to at last relative within context that some of the expense year? margin then we laid of that Day expansion marketing do about sales the and Investor

Gregory D. Orenstein

to hiring a hire. perspective, folks From green got our light have again, the

to bringing the drive teams help in hiring last I who is mean our over think more what quarter talent think we and going forward. in they're very I and X about company methodical market. are or more And being the the

it's example. drive who breadth So nothing we have around when about the perspective, it's people the from growth, for we can office, we've making from all right products forward. help of got going particularly And sure CFO's the that that talk

that's So that.

But quarter, As once it to that, some it in in stable take second as our margin bit we're beyond perspective, year a gave again, the we OpEx about again, going reasons. from of we talked lines and I relates fairly the jump a as expect progresses. get a to be little

last head we've with think on the before I count very that about talked got. we feel call we've our comfortable

drive places We're drive to where and see growth opportunities continuing efficiencies. in we to add again

the did is the acquisitions our that's from and up, on solely brought that but really transactions. to we that head related X those count we that employees note You'll

Operator

from with Our Ryan next KBW. question comes Tomasello

Ryan Tomasello

for about Pierre, last needing bookings quarter, hit year. you your of target talked annual guidance to to roughly XX% the hit the

So takes the the bookings start puts some just maybe the top where the for year, line where year, visibility of some drivers strong guide maybe the to context and And maintained the given to strong you provide performance given stands just And us help can year. been? understand the start around today? just that have the

Pierre Naude

Yes.

quarter, look, gives first that of is a point. guide at quarter and So to market fourth this the confidence continuation sentiment of and us the exactly expressed how this firstly, was maintain our momentum

XX-XX it further at If color about on you look just the commercial. was bookings,

breadth to and to the that I We've cover okay? And expanded So the users. get is the look breadth. of as we that want emphasize for opening want that's as you that account That into all that historically a people. you member onboarding, deposit if well at solution how small you consumer now commercial, taken and -- we business at workflow all look

But and AI, deeper learning. value, analytics, that. a we through debt there's bank about the we're machine is And very and literally issue. debt and And all the the specific how efficiency go now at the And look roles release intelligence, operations of the adds into that bank. to going data, see tremendous can

commercial see as customer it. more to to a of base that automation we So and of tremendous asset customer get more out value actually drive

the So quarter to I our that would first confirmed confidence. say me

running because But to the we're Mortgage we're although have that than business market of slower company. time dilutive is company, rest our the all impact On growing the we the of to understand what downside, And have although the and going only of churn. at rates, be. churn total revenue about haven't is seen cuts because obviously to flat, slightly taking I And remember, since Mortgage it share have XX%, any And XX% business. it's growing is does you Mortgage overall we an have still to the is look impact. always to growth

now, have, by we'll to So market and what [indiscernible] how see the I'd develops we say going for hold we're right

Gregory D. Orenstein

Yes.

that quarter. continuing dilutive new this on my We would digits great you on bit. still the expand have the mortgage market. comments heard logos added growing the in is in double job that, around almost growth. to Again, XX but IMB it a is little difficult subsiding And debt, a perspective, particularly a side, Ryan. to do Just business From quarter, team to bad a

so last what expect was who these seen experienced still I year their that, IMBs, we've mortgage We've shutting I'd doors. we lenders it the upon the a touched those as year. to maybe And call, what really, we year, lot about just happen, it's not did mainly on somewhat think these I they and think slow, this of churn around of frequency I I really And seen with but that last M&A. in are say, some more is last think

of As some in you're share. aggressive left better smaller larger, becoming number of taking IMBs, and those with a are capitalized market

think customers. we are our Fortunately, many of those

So growth wrong on for side sometimes up we there. you trade. end again, of But there's opportunities a that hope the M&A through

gave And be that so in when March, guys we about prudent the think so as guidance, guidance, we think as you about the rest want we we the late of to year.

Ryan Tomasello

all the Great. over horizon, can in is about just and election, variables on U.S. think here of maybe different you that the just And some putting industry more the between as ones that of to you demand rates, urgency one like driving us next AI on the innovate. broader bookings obvious the the to help contextualize importance then play presidential picture maybe X I potential color. was hoping the Pierre, just bigger appreciate months, a catalysts I XX

to the think you among next major How would bookings about you environment any importance to mind come the months. And variables over those? that the as order X XX rank other

Pierre Naude

lot very year management environment Last their operate that you to this first When teams all rates you just a mindset macro stability stable. survive. survival. have the liquidity focus realize about the a a was have stable crisis, all through to a thing tactical year turn is with more The under and banks being

experience This are would that say moving year, more I options. they but strategic forward carefully from bruised they with

I they scrutiny right deals really places. prioritize that spending the their what So in a making lot of find and in is sure

of list Fortunately, the with prioritized what many get the we times. do, top we many, at

still you part see. of conservatism However, there is a can that

-- goes bit. look, to cut. time and the And what's stay to happen as be going stable a maybe little coming start rates a coming and down point going it's quarter Now then

So signal it's a not material in and it's the a dollar to of sentiment terms, market. more but

administrations, is realizing the efficient What banks changes company that we X under it to more under see this you'll an We're aggressive We operation. under started to they have Trump become When years. Biden. run Obama. election, and come you ran will for look, of now

oriented. and to We've So these tools administrations solve got for that go. come If more compliance the you. it's

If it's an tools they the all about to growth we've efficient. help XX%. got drive come to tools more the to the we've it's more ratio and efficiency, know if to around profitability to automation got more you But bankers have become and grow, driven, XX%, efficiency

XX%, Some of okay? run my top banks XX%, around

message can banks operate utilizing at confirm getting. we're the by that's a our profitable So out, we that's in for highly and they nCino surveys take message and and very and that you feedback these margins a efficient us

Operator

from question Sandler. Brent with next Our comes Bracelin Piper

Brent Bracelin

here those versus the Pierre from community for you're the Walk you're of or like build urgency it I DocFox, the buy what through banks there and reinvesting there some logic leaning you're the pull looks opportunity? need and why now? sense decided in hearing look you, and us at What's was Abrigo, area. there? business you Is of where to community bank -- small driving demand that because some in the if here

Pierre Naude

Yes.

packing onboarding first. wanted I hours, let in Look, has order. about it small do So interest account talk me business but onboarding deposit lending and of and came opening an first. to consumer always been

regulation of onboarding bigger is deposit money a literally for of as effort to banks that could is seen It's tremendously business, in the as okay? a to businesses. is highly helping and because get and depending to okay? commercial complex, and account them complex X it account loan, these that have and laundering, for a But how automating market. So open, international up openings originate attractive Some a months with take it we

building can start all DocFox, know, the bank go And that they've moment product always With will DocFox, that. to market. the we the for up accelerate enterprise. I integrated the way In you as community

for And by be go that, internationally so there's that. and will And tremendous global then a product. pull the way,

the So out building of an natural us of commercial step was the the platform. in onboarding next interest customers always was

market, Abrigo Let a was more of come lending an me lot in auto where happens. union indirect to of impediment Abrigo. credit the

banks doing Some it, But that service. depending are back out see favor markets, it member an falls business and climates. credit as the economic on of essential they union favor, in

highly do these a in product that that more to commodity. solution. would a complex, more integrated it's of So lending. your of And value. and go they actually connect no many that's where for as can to behind dealers with this And It's solution lending. dealerships you signed these dealer, up you to okay? book the have direct curtain get a And -- and added like I deeply the you get is us man see them, have to as and financing, know And the you add-on an helping you consumer

if And So new multiple go they with and up it's can the enterprise. old all when from. does got. apply it this covering way, stuff don't lending you you banks the our the then way credit have all that in, also because By issue have where I one technology And lending unions, a came U.S.-based vendors. That's that product. to to they to indirect goes select the that, indirect cannot you you then replace they've

Gregory D. Orenstein

think view have solution about far think confidence has Abrigo lending we also would that our again how as come And I consumer we Brent, the it. and Yes. in I the

that that evidenced As enterprise highlighted have we the a by X quarter purchased ago or bank it.

Box, as think we But because ultimately, side what now net other this asking we're and there. bring able not it's think where new for have to that. RFP ding able new noted, market don't we and you'd check get really be it a we to have I in an to rounding we is And the would net out market. frequently, you'd for consumer technology out functionality see it's to the Pierre the give technology, like

Brent Bracelin

quarter. here CRPO backlog just in uncertainty color, Was mortgage -- any accelerate an CRPO, uncertain the in commercial? tough Helpful and in like on Just of was that quick arguably of actually renewal? strong color growth growth like in quarter one the flagging build basis for it It a on the you, Greg very But why continued all to you're here that additional tied environment. follow-up accelerated year-over-year the even kind on sounds market. did

Gregory D. Orenstein

I Yes. mix was Look, that about the questions just an can XX% expanded us and a with commercial had We side. always quarter talk had about it this had, impact each saturation. into customers X We which play. that the know commercials. perspective, also we good get quarter. we over usage we We came X frequently commercial highlight of from us solely ACV just expanding commercial the

And plenty so we still the see of opportunity on commercial side.

crisis last get buy of the the coming again, events of The year as liquidity back other and in further thing the little further the enterprise with mix, a mirror. to bit customers, Brent, shows rearview and

urge or workflow with that's pricing with M&T the like commercial as have started other like about the lending, broadly commercial, continuous commercial, earlier you profitability. I'd we when lending we announced like about just comments, to bringing business about Pierre's really finally, would think adviser from and customers and thing you another we're that like but of DocFox, it highlight. And things and we commercial historic we commercial, talk that commercial the guess, again, people -- as about guys about So we I think talk we commercial like all spreading monitoring credit to those auto that banking you that encourage to more think

us. of view base, it lot at we as so a again, that runway we there's think commercial a asset, And tremendous customer we as look there and for

Brent Bracelin

A you. cross-sell lot Thank clear. for of sure, very

Operator

comes question with Alex next from Raymond Our Sklar James.

Alexander Sklar

back. What relative do think think year Tier business current bookings. to coming hear U.S. dig bookings you your I in activity, the of to first we start of segment and you in the on how you today? wanted on kind see should that said great to its of to record about comments the from X mix Pierre, I contributing particular that this segment kind quarter? And quarter your enterprise

Pierre Naude

bit What questions excitement. are I'm bigger the side, a same excitement with the same the there is the steps Obviously, seeing on the and sophistication IT same around but and of data. more usage

enough Remember, in you representative if Wells by book JPMorgan Chase that areas could rest data don't them of say has you U.S. mass of got the states the have all Fargo at a to look the critical maybe critical actually and have mass. the and of picture But bank, on

we products data processes, the anonymize and take the are as into to insights automating and data much as we in lake, quarterly on lending, commercial priced and Most these we loans reviews lake annual monthly of of actually of about think love right all sits data way. our With then to the and as and in covenant a is holding review well making and deeper the X existing into way provide big activities the book the and the the loan sure collateralized and actually work origination. well commercial as

remove automation. And with loan at And all, office a massive corporations where into generative literally the where we've processes that's to okay? years operation in us together XX is RDC next without retailer that the opportunity so built there's it's to pair that middle you AI And chunks to tools workflow. there. that's this origination partnership of So happening then back And drive putting over we're helpful. the or going

in we what a a footprint some drive can laid exactly bank automate products. they we these part a interesting now us that know We lower-cost do. of can broad because what they pay that's of out is we efficiently operation. and will for as and the lot more for that share we And here this efficiency And a take

Terrell Tillman

was a RDC keynote this know big I nSight year. part Yes. the Great. of Okay.

So question. I on, functionality for Paul's you part of One my end, more Pierre SimpleNexus, in know Brent's about just -- what color. to he's of or talk And good of taking you, Q&A, front that hear to I'll the the don't the auto launch lump response some can maybe in just the the talked capabilities? omnichannel if but you about indirect

spend to one more mean I What of of the on in does lending out, you're back year. the areas the for that half the Greg going called retail that's know segment?

your consumer what's lending? on So in there changed mind

Pierre Naude

Airlines of cetera. So and if but issuing you a have this, call. et about the make still to operations phone side change consumer-facing let's okay? What whole talk booking the tickets, American

to You go but them in It back the old middle our out view didn't the stuff. office. for help

can putting most stuff the elegant solution, consumers where go us up sophisticated, now and For front-end probably self-service. do this

you end always front if work modern we front It now It middle adoption removes a drives and a So of drives the it believing sudden, they It that plug extent, difference that were for. is okay? known office, self-service, making. in, this that all them in the back that's platform. did all burden competing consumer gives for not people to that hard the end bank. that banking today, start self-service the an And from

are We an of never piece final X it got the Otherwise, cool wanted But world. days okay? the the is front wait you've answer, It we got office puzzle. you this through clean. until we've end, middle moving to for do back a and

and years intelligence behind tools the self-service business from believe should X the banking driven by to and end that consumer consumers mostly totally intuitive and advise drives scenes at have low now. We help self-service. be be I to small

lending as iPhone the just there. a get platform, disparate be application and the doing that come we're all is a systems should replace don't doing. go simplistic, the systems. to The because going they in rip in so course. just The efficiency to what automation. We're your manual, same happen. XX to Everything They've indirect get with to to can XX self-service, banking box, their that go And wants. a solution don't like a of going level one is they walk totally if market We're between current got can is to hole literally fill halfway stuff single take you a and end, elegant that space into brands. this do come Abrigo that's training It through well, and same you you end-to-end different on front going right

it will I'll say, you you for person you. up brand yes, The off, left finish pick where

experience, of solution, walk applied we to dog the some to the kind elegance the the product feedback literally the largest the and wrote get a take that's you mortgage letters if I around of very mortgage, market. complex say, So around drive on And that. customers "I excitement and into lots to them to want where of for hear want our people we from

Operator

comes question next Our with from Barclays. Kalia Saket

Saket Kalia

that all to set a about of kind just point, for if it on Qualitatively, year? you rates you're right, course, system there talk feel building do about demand a pipeline I'd lending you. earlier of at double-click how you whole consumer looking are business kind for a competitive fill? Maybe consumer a just and this end-to-end maybe as of just sort And right consumer. love tool Pierre, matured, of the from little has how bit perspective. on could bit. like you your win little now, the To

Pierre Naude

Yes.

remind up to there of anyone commercial billion that investment, that cetera, it's all consumer having one you So mortgage $XX bank is you get by I with I'm we there then non-real us. you even and through real story around, point it's it's it's platform and . What have is I'll finance grew to consumer big the Xx okay? And walk single only okay? that coming. booths big a on with are us products HELOCs, you seeing done and we've things need commercial now the So They're I estate. these HCV And that noticed indirect would do are demand without to consumer actually we estate, resonating. And unsecured, got when do banks not is lending, been that et platform, bundle. signing nSight, secured beginning right? consumer to mortgage, yet. piece see seeing the the asset includes And fairly different has plus all one actually

the so a By meet X, yet, Blackberry. love little in okay? I'm now. way, it's you one, math, for many, iPhone. banking I simple have CEOs realize, XXX% products or people a takes using real you BlackBerry, banks okay, you had And to say, it's I've unprofitable. to today. never cannot the many but sure just it services you seen banks. That's bit afford with And a that's personal the the On like Day your

products theme most spending common And and that's from efficiency money Apart is we on that's unprofitable. with time cannot the people on keep

that. to So the going automation is do drive

about installing way, where So pipeline We by reference good the healthy. Customer it. the we're the is existing consumer is feel is projects healthy and healthy.

that demand we feel I overall have more success, grow. will So as actually that

Saket Kalia

makes it. it. a follow-up maybe ton Greg, for you. my sense. of Got for Got That

now. the Let's Services thoughts right about just your get business just

on I it to some there the think nice about the we've past, to of where that Maybe talked as we it balance Services revenue. mix strategically, going just term? down work. with more And of the mix of how journey? like about you is, think And looks do how total in longer a are might of maybe percentage work partners question be sort is SI that that some

Gregory D. Orenstein

, Saket think as just I continues that is. Yes. journey

you it Services to lumpiness do partner. we I to going they not think, to wanting going pretty time about as time a on because can consistently, may a strategy. us we've see to maybe talked to wanted partners And or some SI continues to be partner our project as to push from much based as the

value more with steady-state it, whether that's our customers working But more SI our a for the R&D our business. our supporting how of ultimately, the right continued we back product about a helps organization product, drive us the And implementing really think the get And learn or more customers, that's our partners. lot innovation. and about and customers provides then feedback and it directly into here which fairly from it's more folks again, goes and

Pierre Naude

add to emphasize, it. of want go better Projects on has nCino to just that I people that, sort with

is even people bank, put project. regardless nCino that the always of So emphasize, some the we involved on size of SI the

because the home out go they come just product talk they on the understand closest was to of Friday, how weekends, people, they to it product, come they . So on built.

see a so make current deemphasize up, to the get We to services, will we keep customer sure of set but percentage you'll balance that product continue. try we the don't And feedback. revenue probably nice

Operator

Securities. Next question Tillman with Truth comes from Terry

Terrell Tillman

you on language Maybe I've Pierre, Harrison. an when Greg international first question. prior the a local remember been and have attempt do win. would to I calls,

time So whether think in New Dutch it's French or Zealand. maybe or I one

at expansion talked international was just . It business strong community pickup in You Enterprise was international I with you're in a seemed in business about it new XX% have customers? a follow-up. the sales how revenue the the terms of generally, strong seeing banks year-over-year and/or being growth. like and with And U.S. new logos U.S. But then

Pierre Naude

-- signed that the had is I We that a up remind we We make -- you international Yes, you U.K. mean, Yes. a more But we're would us English an of. business institution an business. had great enterprise I for had can that of accent. proud

feel So that. good healthy. it's lumpy. The is pipe We about

not remind the America. I'll on that Americans Plus, all is call Canada

in going So would banks say Spain. got Ireland. got Spain Canada, we've got operation I we've got realize the outside about as of and a excited nice U.K., customers. you've Spain Spanish we're very We've

Spain, are we what Benelux, but do the once banks those Spain, very we Spanish for Where increasingly excited also specifically regions, demand Netherlands business with. And beginning see seeing Nordics platforms or Spain a we're us point those about. on put the and global is Belgium to Latin to focus we're America. since and into in around large the very entry

so healthy. I exciting development. very also mention very And are that's exciting There And an some that should developments. Japan looks

As had because the breadth what with us. But can and imagine, get out with get do it's references. the and developments more we as of want institutions to nSight. you of a traction and I market size to coming slow-moving more they them from different had Japan in general X exciting meetings just we

presence big Salesforce in also Japan. a has And

us. So that's also helpful for

union good the going sales up the U.S. a deeper on in that And marketing I to international short space see term, will adding growth want feel little and then of may current Abrigo the and I about the accelerate international emphasis because comment, you the catch business, the So of again. but the and into and bit. DocFox addition there,

that may for it grow not up, does internationally. we start we That a the okay? invest as regional, the see we say diminish opportunity You over phenomena just And we size little building or bit. community then time, because

Terrell Tillman

little second I'll and go a give question, for and it. stop Language], sake of Japanese is the then one that the ticks at least are so on end everybody's bit [Foreign I'll of ahead think Got a -- I at maybe but I Well, XX% side, the NIC quarter. just platform that solutions the little last of up assume the bit. maybe customers using of

Just anything on share that. Greg could

deals auto of And spreading it after auto hear I a seemed efficiency does a you launched a seem lot play. great had maybe good you then about like early like secondly, new lot it's them, but wins. had look, And but it spreading, really you didn't

so to more So tank, of more speak, still terms in is customers that? to subscribe getting in the to there

Pierre Naude

X.X% going around Yes. If on with share anybody a AI future, at Today, accuracy vision, I that who's excitement in technology is is We consumption. And talked on remember there. great with to interest give data based lot AI do nSight, that. OCR which will a the it's percentage. capabilities, And about technologies. the going you a of based

the that spreading people And I personal is the we tech, demos building think the so have get ingestation business okay? change months, And the stuff. document auto over XX it. tremendously to I we whole on next X to going have

there's And to product add? excitement value is end-to-end that again. think prop great accelerate around how I out. continuous that's anything going playing to So that Greg,

Gregory D. Orenstein

up just it's that a from there again, that been assume, can you in Terry, tick would quarter a have small Yes. ago percentage.

spreading getting just lender back well. accent, did auto announced as that purchase that we U.K. to the thing, other The

we And market, again, I so think these more be these as we didn't to more, products highlight it. But bring packaged. and they'll

we can platform. on this all the a single ultimately, platform, about a And that bank right? a for things is again, do And

again get deeper to they broader lines and institution. broader and over deeper blurred the so little continue and as financial we bit in expand a time the And

Operator

from comes James question Stanley. next with Morgan Faucette Our

Michael Infante

that I Is Pierre, right excitement James. the expecting think It's some this way 'XX. Or do FY the that previously it, in see velocity you seeing? interesting Advisor guys you mentioned you I think Michael revenue use contribution can Really weren't we cases customer for despite that and the uplift think adviser about any was product banking are Infante still on you to year? front, curious, Banking from Greg,

Gregory D. Orenstein

on think with to of year a It's fully back Advisers, not on this getting focus sure of purchased it, Michael. what DocFox, And part again, we platform Yes. integrate nCino product. we Banking Same still separate our that the making it really highlighted again, when is we we to the single having brought and I the part make plan, versus

nothing's this changed those in at of time. one cases So either point in

Michael Infante

current Got question. you towards a it III curious, But in either and But helpful. of but broadly, game. with conversations resolution easing some having more end in just prospective it. level of seems higher front of get of strategic high-level follow-up any on you're for tech would or some earlier in potential year, That's uplift the of Basel capital helpful. on like Maybe, that there's of terms be Pierre, terms form customers I'm just end broadly. it seems spend question a could this just Obviously, of just developments a that like terms the requirements been probably just we'll more it be

Pierre Naude

mergers. more see banking assumption the wait And current very are in an clearly I in a think a difficult. that on think is there's for banks the There and I under administration, appetite be that. some pockets mode will common

for wings what's FDIC. the election, of So there's foreseeing all the waiting the for that administration, in at the happening

inefficient, out. year behind like from year on when sitting, are play spend, waiting spend. that's that, your if But one see going the you're to this your I tax inefficient. So bankers think you're element you're And where your in apart to are what's tax behind a

keep that hearing I'm the people the attract the feel the up are the When 'XX, people same the people. is realize company, started we people banks, they 'XX they XXXX, they who demand pent-up spend record and winning fell behind. ways tech, literally don't what 'XX. could And best of in didn't then and And who and we with

So of behind. a not I'm forward careful move more fall strategic a actually to seeing

Operator

America. comes from Bank question with of Bergere Our next Adam

Adam Bergere

business to year and What maintain had overall, guide? Mortgage to for ultimately say down, improved the it sounds you like activity Just QX. ticked full in the clarify, that's choice would what customer isolation that the informed that,

Gregory D. Orenstein

ticked digits say again, that in competitive market. And logos, new grew signed almost I again We takeaways. still down again. No, business it XX double wouldn't difficult some including this

beyond. And well us year we get think through and that so again, incredibly as I this positions

over. some we the said, time And Ultimately, down like we're churn gave M&A winning I it but would is ago, but to may on hard just predict I know. we a it's short Like that a last be think the on right M&A. again, year, it I the it's from said, extent again, be to March. And we hope closing side. bit, settled seems little the has IMB can't of at of end but the IMB's hangover guidance a sensitive don't like space, to the side that we in just any And we there say

And so just to prudent. trying be again,

again, did to saw the on we you. you And we've information speak we the the on we will, And we're with to guidance, overperformance and what bottom progresses, as that. next line the able year got update based time

Adam Bergere

any quick helpful inorganic That's break context. are all? DocFox contribution billings to as at And RPO, Awesome. CRPO out a follow-up, from able to you

Gregory D. Orenstein

I'll that like note just those on basis. mortgage indirect the business our and Yes, monthly built we just and DocFox have, are things business also say a DocFox lending the

sitting to see going perspective, And so you're there. not deferred again, from a necessarily it

not well. sitting you see it you're as about billings, going think If to there

overall Again, out. pretty are bucket. the broken haven't of those And those pieces so we RPO small

Operator

Our Nabhan comes with question next from Charles Stephen.

Charles Nabhan

the model. question strategic follow-up and quick high-level a a Had on

strategic the -- nSight high of and out level, the the ecosystem. themes APIs the one partner growth your the on coming in your of modernization was question, On of your

touch of that strategic you've channel. a was terms could and of the I that in you importance the investments hoping on So little bit made

Pierre Naude

Yes.

in, on front the depending So like segment end. some own their market you're banks

nCino. generative Some both to maybe AI -- their to models, banks want own interfacing

got Some share integrate it. data banks have they with lengths big to we want to have us, with and

who as reasons want integrate the to central multiple for nCino there's So with people platform.

APIs decided our ends strategy, commercial dog consumer front available we we're that the to to will all going Which to the and make years use food. FIs market, few we our end, exactly front And that including be APIs for we're to our then to ago, a have same the means we products. get to same this API own our build going

our AI case the the and FIs our now, For add customers in that benefit, of bank's with up more will the open that instance, FIs skills. That's work so we benefit should it modeling to can generative benefit.

that be and whole proliferate bank of this everywhere. is the can play. whole a That ecosystem throughout goal So platform the

That's the the whole think that's under assets goal sitting that's of and for intelligence available the the platform. making And nCino. I good

good we for thing So of could is the you customers. direction feel the the well APIs, as monetize by as way, our open which company a

Charles Nabhan

helpful. quick you a to and that move as in built to guide the second into degree terms which year the could are the the variables to factors those any think expenses? quarter we as well as potentially of operating of we follow-up lower some outperformance Got on the bad just model, hiring income, on as had That's including led it. you factors And could speak highlighted debt through

Gregory D. Orenstein

taken to into we highlight we and looked was as Yes, at wanted drove that rest Charles, of overperformance, the appreciated. guys the those to things consideration QX you it. year. the Again, All what

look updated QX. the elaborate bit factors guidance provided, again, what little a we line that specifically we impact But takes our further into account. And would and as at around that guidance those bottom you

Operator

question comes Macquarie Robert Capital. from with next Our Trout

Robert Trout

and Greg and Pierre Harrison.

of the out know pricing didn't be a there. getting Just shift quarter running the wouldn't It that one if momentum you're we're I I time. quick because ask question about and

on you seems few shift commercial on timetable? is pretty it a and your potentially been like from consumer a -- reception Given to side, towards the seats that Would you for positive the away change now side? it's if will, quarters there hybrid, any accelerate

Pierre Naude

We the platform market. basis. on That's we have do how already we're a testing some deals

leadership to as the price has and meantime, to model way. package firm see apply the working sales with actually, correct So that capability they new the In the we're fit. consulting really

it I we it to it solar my do didn't system, me roll pull once, like updated out So and don't and it. back have to like

size very be to solution by because is have So do pricing, asset there's have we only we thoughtful to not to sure what expansion optimize look, and we capabilities. do make to by type, have

pricing the have the to competitive market, We and sure make to customer in the future. and how have it's it in view sure make makes they we sense to

upon these and And the all and very this I'm look get that impact going And to we then your that. will get will clear it take future finalized elements rather modeling next how right. make the together, bring calls all it X those to company's to with based on months you will how that

Gregory D. Orenstein

you with to get a will I note, party drive. it's to say, changing third working we as right? a I much think Pierre's it, It's on are complex, different list. than pricing a help into price just SKU, And

I And think so on track that. we're with

I good leverage and to what there's Mortgage on think talked momentum Consumer, on done about. we've as we've previously internally

And of a And our and the it also to -- as together in of much think much appreciate pricing opportunity an bundles at nCino our more breadth well again, and make bringing differently And that will something product, depth them light little terms customers that's look I of bit easier. sales together different I as the think folks. business bringing buying straightforward. really to the in us gives

right, be we're we're in to on terms track that. it. our it, Pierre's going excited about do I very it te.eveRyey, execute to we we're of make sure on point, plan about across But think every to So think I internal and methodical

Operator

Blair. Kennedy Chris William from with comes question next Our

Cristopher Kennedy

think I here. Just some to a about flow the for seasonality quick cash the there's one. year? know free way Any of rest

Gregory D. Orenstein

in guide our we to the the historically strongest have any We see Yes. QX We cash how quarter. note that cash tracking flow us don't QX -- Thanks, year in to throughout of flow. don't from I is differently of Chris. did terms historically QX. terms

ultimately, really do value. that's allowing been growth that make cash increasing note. tuck-in and But to things been can yes, really Again, these we otherwise, to us our drive help acquisitions obviously, like and nothing have

Operator

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

Pierre Naude

our mission, my of customers. Thank operator, ahead. excitement said We the heart opportunity are at earlier about the from for you always They drive this today. so the with map that X and road and learned so technology at attending customers shape days innovation. road and fuels all month, thank you, spend our product partners our nSight nCino's much We've customers to

We appreciate the as to for and hard trusting and the are the of always, nCino services team. us continue their financial work And loyalty industry. opportunity I grateful the After shaping Global together financial the transition another around for you to Thank we of your continued to all. efforts, quarter institutions Talk accelerate digital solid the execution, world. excited you as later. of I'm work

Operator

you the concludes your This you. Thank conference. Thank participation. for

You now disconnect.

nCino (NCNO) 29 May 242025 Q1 Earnings call transcript