NCNO - Earnings call transcript Q2 2025

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Operator

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

Harrison Masters

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

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

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

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

Pierre Naude

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

very our for are non-GAAP income. results, guidance with operating total financial pleased as exceeding We as well our for again, and once quarter second revenues both subscription

and a in with with to in the accelerated last healthy on the headwinds the the sentiment additional ago, gross has Before the I argue details first of Buying in net year, you seeing the with we bookings turn half would mortgage in the bit and in what markets first quite are a industry XX% U.S., In services community and the United financial provide to call second abating. from without balance improved over up to up mortgage. both and of half through quarter, year 'XX over including margin regional financial generally the FI fiscal sheets U.S. market. Greg States, enterprise behavior I interest like XX%

opportunities single momentum driven as our This been our platform. embrace more by existing base more and within customers primarily customer has expansion

end were of and over their enterprise way XX% As U.S. year. their and bookings the of community quarter, regional second goals our both the to total gross businesses for of

Lending expect mortgage we customers business, U.S. relatively did in of X view X remain activity be a market would our mortgage strong historically in We quarter, suppressed In selling institutions. quarter. U.S. maintain the otherwise new volumes signed which seasonally were our second and financial what that growth be revenues quarter growth in fiscal be look and previous year, we rate mortgage a our year, this this comments. in to overall but the will dilutive catalyst for we interest next as consistent nCino starting into to with fourth reaccelerated for business cuts

situated one well very past our successfully now and have of rollout XX% are over pricing the navigated difficult the years in nCino including our logos through expected to largest a U.S. activity, mortgage market very pleased Solution of XX% the to are we benefit Mortgage approximately began nationwide from with the on our couple believe We in We of of mortgage of revenues and mortgage model. in which States homebuilders July. from United new the increase U.S. mortgage the

Turning to U.S. business outside the our of

the nicely more year. time grown markets But remain the international operate last this pipelines in than U.S. have in Our challenged we

lumpy bank can business. be are the much of U.S. climate our outside of this light As primarily nature inherently business in logo of any which pipelines comprised opportunities, in new longer large to a do more take the reminder, close of and

the of new of operations we a our second expect logos said, to add number half healthy do in year. international That the

more highlighted You'll Gross fourth in bookings the for said business the towards year. is earnings quarter half U.S. goal, first and I a by recall roughly of while in picture our our overperformance XX% bookings months year our were around on gross total normal more XX% international our having call, the U.S. legacy for the X approximately annual mortgage challenged. our businesses first were of

As the at we track believe meet our look year. our goal bookings we on to pipelines, sales we are gross for

in encouraged particularly enterprise large our increasingly markets. opportunities to an are and both number of We established newer see

half year-over-year. the quarter, XX% ended bookings up we net we up believe XX% bookings our of and approximately solutions. of commercial total consumer deposit new the being new a and of we on goal the first added On are track half second net over we which customers, X of both over and new year-over-year, year including lending, company X basis, In our opening deals of bookings of came half added lending outside account X to from customer

financial of channels Legacy our to efficiency speed and processes digital never down bringing systems automation are institutions and they thought middle the possible. office and continue and and back bog

opening deposit a New the a $X to removed for banker a need in bank minutes example, get XX-minute taken For clients down just shared involved. account and to process have they X billion England for business

consumer do products approval banking bank to speed With fulfill has the realizing nCino even can satisfaction. and which lion's client depth, share the yes, platform. consumer lending institution for the product with more for true And to business quicker services In and requests everything community advantage. Another Tennessee deposit consumer more ] in loans account are we world, already our with [ by opening, financial reduced times XX%. with the a a competitive value delivering on customers are

to analytics commercial stress include lending expanding $XX bank portfolio deposit also and account of analytics our became one their largest For for opening customers, adoption example, CRE portfolio billion from a testing.

platform risk on Again experience portfolio operations more platform a of this office for used back demonstrate data onto more same and for enjoyable customers the is that for nCino multiple consistent client solutions adopting efficient institution. and and a bringing By within availability the single risk and originations, bank the level enhancing analysis suitability management. again, yields

ownership investments to integrations reduce the a administration. to streamlining core financial cost be implementation institution and third-party ongoing to continues continue lines, and for by plug-and-play of make time Efficiency reducing hardening, every mandate we

the program in in of line banks largest a key will New We milestone allow level institution. this business the legacy with that aim financial the quarter, during went to Zealand every over second nCino live systems. in for of the that One XX efficiency across FI retire

Turning Advisor. to Banking

X though the generally made quarter progress and are regional the available segments enterprise We in Canada financial Advisor our across the only data U.S. Banking and and pleased unique and through live Even second taken in with quarter, customer AI services deals have bringing our with in we family. capabilities we this Banking became product the community, it. first market to signed quite the Advisor have

Our representing knowledge classes, base a base. narratives customer across and asset cross-section have of drafting our skills resonated with diverse strongly FIs

our term, access to road obtaining data focused financial great Advisor which Long the team automation, with institutions a Banking on use. by done deeper our has go is opportunities unique even and to map enabled consent to intelligence job

far expectations. opening the In our DocFox to made front, commercial we and response has functionality have the account acquired we the Allegro. particular, DocFox progress On pleased with exceeded the with we market and integrating onboarding both M&A are

outside We to as our customers U.S. versus purchase are this accelerate basis. with of of exploring especially stand-alone the on opportunities single part looking to actively this along this product integration a the are as product platform rollout of

With hand that, financials. over to to Greg I'll our it cover

Gregory D. Orenstein

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

guidance. year-over-year of approximately subscription end XX% of revenues revenues, of Mortgage with $XX revenues pleased quarter an XX% second year-over-year, we ahead our an in the second noted, Pierre representing were growth million, 'XX for were subscription Total revenues $XXX.X million XX% for increase XX% of As were $XXX.X revenues quarter, are Subscription financial both top increase of representing of quarter the million, results. the quarter fiscal our X%. of of second year-over-year. the total very or

including year. the to remained moderate and continue line quarter the forecast mortgage, churn -- in for second for through million The with Churn, our $XX.X

discussed, which have mortgage churn total October turned we peaked impacts negatively this last year. As quarter, rates year and fourth in in growth the our peaked

Professional growing year-over-year. in the services X% $XX.X revenues were million quarter,

continue prospects and out-of-the-box time exhibit to to rates are addressing administration and to consulting in Our gold standard more strongly which lines go-live. reduce implementation recommending order sensitivity by a post deployments costs customers we

more are not the available of customer total were the of States. quarter, revenues sales International million fact second $XX.X dependent customer revenues newer year-over-year. and yet revenues of Non-U.S. United smaller up in on are solutions the XX% XX% our given the base installed some outside new or

We second the of until with half this revenues expect revenue sales line in new in further growth of growth, impact overall sign the moderation company's plan year more we revenues. to international logo

in for of Non-GAAP -- was to gross $XX.X fiscal year-over-year. XX% margin Non-GAAP quarter the margin was quarter second an and gross profit XX% million, gross compared of the quarter Non-GAAP subscription agreement with 'XX compared $XX.X increase 'XX. for XX% fiscal of second benefited with fiscal million of fiscal 'XX. from operating amended of the quarter Non-GAAP second larger mix second and was revenues. the from income our million in Salesforce $XX.X the 'XX of

-- was second 'XX. compared quarter in XX% of with for operating XX% quarter non-GAAP We fiscal our second the margin the

to costs. approximately a marketing annual User sales Our increase million Insight contributed in $X and Conference sequential

the million quarter and to the first Additionally, in annualized contributed $X research completed development. costs acquisitions approximately of

to quarter diluted $X.XX was nCino the $XX or income net share $X.XX fiscal for to share compared 'XX in attributable diluted second second 'XX. $XX.X quarter fiscal million of or of million per the per Non-GAAP

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

ended the pay rest we million cash free million cash. Capital in of provided second to credit second quarter, in fiscal in million of million million compared were equivalents of and the quarter revolving the was cash including this resulting $XX cash second with fiscal borrowed by The $XXX,XXX of year million, the $XX $X.X -- the remaining the $XXX.X quarter flow plan as 'XX. in principal quarter fiscal cash during facility expenditures down and $XX for second generate $X we activities 'XX. cash. restricted operating of to our We of the repaid on quarter Net

unbilled a on date contract when earned of by exceed Unbilled receivable accounts that since revenues has contract. Note for receivable million billed recorded accounts year. $X.X has what January to this XX increased that been are

during the platform pricing the term, aligns increase satisfaction fees nCino, to billings. For when contract including performance this revenue recognition to occurs obligation typically of arrangements, and under than rather

strategy we are arrangements increasingly platform becoming not for business calculated our a revenues us revenues model. more and These subsequent pricing in pricing predictive the execute as to may Accordingly, will comparisons platform be trends to deferred that periods. to evolve previous are of recognized billings reflect commonplace less our accurately quarter's on in

Turning to guidance.

third expect For subscription million. of approximately with million, quarter, to total $XXX million we revenues $XXX the $XXX revenues $XXX of to million

$XXX.X full For million, million. expect total of $XXX continue $XXX with 'XX, million million of to subscription year revenues to to fiscal $XXX.X we revenues

expectations churn discussed on line calls. remain with noted, currently X previous earnings 'XX million the we our As our $XX.X in for fiscal

fiscal revenues growth third year in subscription Our U.S. for X% this with no financial expected the year-over-year mortgage includes quarter. growth outlook

Our mortgage lending revenues quarter. increased volumes our do fourth not assumption impact to start that the positively maintains guidance until

revenues We we subscription to are it Banking contribution year price to at assume garner as this be continue minimis point will to an de attractive offering adoption. initial Advisor's

revenue Our continue model transition efforts platform in the to company's to earnest. pricing

mortgage platform and of refine pursuant will on out year. consumer deposit and to continue of pricing, this to our U.S. platform lending, business opening new we Our and later roll remainder we which sales solution pricing account across bundles expansion are solutions the

meaningful and usage will pricing part year every we beyond. deal formal a and Advisor Banking to more we change, Beginning next revenues contribution drive this expect new be to expect with of

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

and 'XX million. of the fiscal year, the increasing income quarter, light income For to the $XX second $XX outlook non-GAAP in outperformance non-GAAP are be full operating we our expect in million operating now to for

of to is be For XXX $X.XX approximately based $X.XX weighted outstanding. non-GAAP nCino full net attributable to upon fiscal a year income average to per shares million 'XX, share expected basic

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

Operator

Adam our Goldman from from Sachs. Instructions]. first [Operator And comes Hotchkiss question

Adam Hotchkiss

where Pierre, the referenceability it'd the broadly But to maybe little talked newer the these bit how high DocFox you guess of see the of business. we to willingness some U.S. and at are strength I Banking just just to understand about legacy institutions our a through Advisor, I around model? level on know be about great spend? start, Great. continuous and credit -- you're of monitoring talk products trust building flow how those like financial should

Pierre Naude

that innovating their see don't Yes. Thanks what volume. in like large But more they as a volume many it's tuning the you a In still. could continuously And it's U.S., in past. the Adam. very see lot, upgrading and transformation see. in results. are do I systems. we Yes, the we've of and what projects business People seen good

return in here. to the market clearly So there's normalcy a

that's When the you at enterprise look international an market. markets,

you'll a is lumpy, big it's it's good it's yes, see deals. what news. more But So

at are behind in adoption, Because automation, transformation to these We U.S. if drive of are in I'm deals. cycle the the they and the looking see beginning look somewhat history, pipelines, at cloud big back efficiency. you

accurate? what's a the seeing to in because always number to that's us. transformation How you, to to early, to out on that Europe, Advisor in so Japan, it your on again, What that tell adopt But pleased pass it going I'm well and they it benefits, hearing places will Australia on. for concerted with pipeline is When it drive going got revenue. bodes want et hype masterworks cetera, deals which to skill new they et beginning bigger I'm see very People there's Is beginning these I'm cetera. [ does start to technologies, set Regulators, ]? deals, effort I some want very cycle. quickly. that comes build the start on the Banking We've of then of like see

Banking you revenue be to but going not So be have AI us, for only to to and is also going a differentiator Advisor realize it's a generator.

So we're excited that. about

positive of So in rates. is market is by these tone. just the especially up, deals overall, mortgage course, timing more international. come It impacted as And

it So will we're the marketplace. all waiting September for that curve believe changing which start as well we as yield

Gregory D. Orenstein

to Yes. just other And Adam, X add thing.

of again, in markets, those In with of those Pierre Australia upon terms XX% countries, a and and see EMEA, but up of international we some touched lumpiness Zealand, pipes couple the larger of the Japan, New year-over-year, opportunities.

basis, we're encouraged U.S. And a in so the we're by just like. what it global quickly seeing out there, on never as not of we'd course, although, comes but as

Adam Hotchkiss

Okay. some and model how then us Greg, you And around generally U.S. maybe and also some RPO remind step the in like products commentary of us there? billings through RPO? flows the and commentary just that what the down could That's down maybe Got And just things with step helpful. new between the then and positive then, of bridge it. sequential demand explains

Gregory D. Orenstein

and U.K. metric. highlighted an not as consistently, release that press the in largest quarter, deal, a we this Perfect a in that we RPO right? renewed X-year again, right? X-year that skewed meaningfully, using From lumpiness of Adam, Had highlight deal, great our a our client again, that we standpoint, example Yes. that We been would it renewed relationship RPO have a with the for

a normal. you a mortgage urge of would we're guys of standpoint, lower I always some as out little nothing that. quarter, to And you cautious the and standpoint, so renewal from cautious look renewals at duration ordinary, again, than were out a From the call although be this

RPO. And would impacted also so that have

to total the we back we QX our kind And at and that. to year the see But in call, for highlighted distance of halfway through within bookings like of XX% ourselves striking QX around gross overall, getting our be what again, of we year.

I of so year. we at here from see good I the the first think feeling of ahead the what And half the as we're we look think second pretty in half of year, we when us sit

Operator

question And from Tillman comes from Securities. our next Truist Terry

Terrell Tillman

Pierre, and Harrison Greg Joanne.

all is pricing year? But Just going net multiple understand structure the be in to it in about deals I just because is XX% trying think platform and to hitting how this of it is prepared first terms remarks, and you growth important of, talked the question terms bookings platform for I'm in times. was this

that How kind we and leaving think same revenue as monetization into well? I for like, is in year is vein, look, year. the could a follow-up of Greg. into the And accelerate year, into look next then year the I platform idea sub is business important back potentially have next the And as next coming

Pierre Naude

to and going with and year, Yes. renewals I new to going say, look, it's start late the happen would in we're business.

specified et this. make cetera. the know But XX numbers. data not [indiscernible] the pricing on been to running we like do haven't exactly we've the for specific We that change structure company We are to how field dependent enablement, this years.

We're years. to to up perform is is deals, our to you I make X change to the pricing And on to platform would on over And come X.X love is it's this also going moves as contract how to remember, say to our numbers cycle okay? therefore, is dependent platform change the going to the through the for this prepared, duration not average going But that necessarily ] X means year, can about and take dependent that. at get model we [ pricing. which to tell not and years us, X us and years I sure would people field renewals all. platform buy they that our those, needle, everything pricing

Terrell Tillman

follow-up. a I Pierre. guess, just helpful, That's And Greg,

there be the for about timing anything And free year, in for flow does full about call anything how to we flow cash XQ, related or full out thinking year? cash collections? the should change of terms In could you

Gregory D. Orenstein

Terry. Yes. Thanks,

You recorded just for around comments, typically may And us [indiscernible] because to AR in been is guys that on revenues when prices focusing have we these just what's occurs exceed reiterate on up XX-plus unbilled beginning when customers billed. And important the the the of was earned contract under XX, years. said, being so $X be which heard expect a you year. my to unbilled I since million AR, what

always have we the a that into And . so point be go when want we stepping renewal discussion. to off

even maybe of this. navigate And transition so more that little platform as we're of some kind seeing pricing to we and of and bit we as a transition that

of driving that's billings some differentiator that so ultimately. And in

this again, in what you straight And XXX reflection your agreement. even And billing over a where ultimately with line earlier again, the contract. term is what recognizing you're of the you match may up not bill

You're than going more build later to the ultimately in revenue contract.

So over in some Terry? view the certainly be although change cash, there a that could it short doesn't And wash. term. to it's of time, your impact responsive our question, long-term

Terrell Tillman

mind, just sounds it see Yes. remind us And just we some that on free Yes. should seasonal year, of is you I you strength mean the maybe in in you can helpful. notwithstanding explained in But it. even I some seasonal strength mean you there's just said, mean, the dynamics like mean, with out. the it like cash in mechanics. I called flow, half like I second

Gregory D. Orenstein

sure. Yes,

us the than second the first recall half. more You for cash half year the generation of is

of based So the and and when timing we a just perspective, second on from ultimately have cash bill. a deals seasonality . historically that's lower half, we generation had historically, lot in

Operator

Citizens Kimson from comes Aaron our JMP. And question from next

Aaron Kimson

First plans, would pricing. to execution of by accompanied largest are management changes say roles? the pricing one, going to side? lot be the on a transition transition just pricing comp Or be will new And operational associated structure, the X commercial the with sales or you what X it's risks

Pierre Naude

moving make actually size They pricing not the studies you consumption used of around And asset this. models. We've new surprise, the no all to out market on are are to extensive Yes. understand reason. we're model. roll buying XXX% to consumption sure model prefer we that done I And this for a going to want customers pure simple to either or

either based the guaranteed the institution. moving are that volume We be side of of pricing or to will on on a foundation asset

be will cost what's more variation, to then in okay? there'll on their the to when push a minimums but that, volume unit bundle up, they company. higher pay So And it pricing guaranteed motivate in than be a smaller financials the exceed will they that's actually play of them play the

and that nickel much studies used our While versus or X XX okay? XX if seats, people seats, will the I not, that prefer seats, show seats diming,

banks But from Second to AI effective. machine of learning. efficient a will more that, adoption helping and accelerate analytics strategic to think and are with perspective, we I the more that be

model. do you're purely this, they're that's as and a good essentially them then And less, pay successful, seat-based you you a business not you to when business, going make

The roll So thing execution I positive And sales perspective can renewal or I leaders, from very highly don't to am out. our of company. this going leaders disciplined see us I to involved be our confident is client a with lot a be we internally. biggest a marketing of going how personally you risk is for thing this backlash for I'm the perspective. a tell

Aaron Kimson

continuing next That's really to an kicking on about, in happening driven you in FY talk helpful. just subscription was commercial then in, XQ Is we have it about of nCino it the in you with growth of exceed the on call, just acceleration to into core part mortgage? visibility Mortgage ex year? and consumer 'XX. fiscal XQ XX% kind that talked that business that still think by in track do Or when revenue I And

Pierre Naude

Yes.

have or FY in We any shape or 'XX giving not addressed way, further yet form.

of the to largely year's to next to contribute to comments on stick growth. And from from on focus earlier this going executing around end year to your that. what to going year because is now we're we We the then book going are

as on early year actually the set up next focus for always important for as closing this it's So year can we great really us team for and to business success.

Gregory D. Orenstein

perspective, talk a of again, We about we product talk that, at We we Allegro, talk side, breadth consumer mentioned there. DocFox, lumpiness if we we've a been see and opportunity Advisor. about you Aaron, again, about the add the talk international lending about you Banking doing just are but talk where to we from to opportunity, on look of mortgage. And depth what about lot

that's about the put rates and couple excited of levers we're of liquidity have the that between the behind meeting as that COVID one standpoint. our think things all we've investments made targets last growth us, interest and I we years from long-term that for crisis, the a we

so Pierre's believe down now, I us it's to towards keeping just all heads executing really track continue that about and to those think our for And point, of right are and we there I think ingredients targets. to the

Operator

from question next Barclays. our And comes from Saket Kalia

Saket Kalia

terms internationally you're markets? into versus similar U.S.? to Pierre, sure maybe you strong how Are get those is of deeper and those anything landscape and Or about with looks of strong, just competitive is deeper there competitive to sort start you asked. in a U.S. internationally. seeing the just the Clearly, a Can landscape? question roughly very different that pipeline Maybe just the you. solid make talk as

Pierre Naude

No. Yes.

of there's So number a differences.

The is Dubai. motivation one first

If you look and at focused. efficiently and profitability the U.S., very shareholder it's

If to in. how you not balances And you compliance it's these go But these and international focused. more are at look XX-XX, regulation that's most massive XXX. if come Europe X

enter cetera. is you government the towards to et when understand more there, So compliance, have you regulation, motivation regulations,

difference. big that's So X

are commercial will you slot the half far in U.S., space the they bank or platform a to least -- a shot. which focused bit it's to regional in are that they sell IT buy When And fewer we and and so more more second point and we also your to go the go bit the okay? studies is to that Europe, out between. more that people P&L infrastructure ] infrastructure. IT those [ of commercial market simplified bit take X came these everything lot in could at slightly pricing because into smaller, see When of is you is a research believe the it we different this The enterprise, you, prefer you and we get of the got, deals whole a solutions did, one can

and the some that are the they have address flexibility price see to actually as us. opposed we want in and market. sure make to as the So buy to We markets of we those package nuances we these

phenomenon the the here. just flip On it's same the side, It's behind U.S.

look If than market the you into really Domino's to once at what market get -- begin you fall. we do, understand that a and

that. is Zealand The is another okay? good example a that, example great New U.K. of of

early in seeing along well. coming like signs Japan, I'm markets And and other Australia as that of

Africa but a bank we've customers now nCino smaller much DocFox all the is with direct there. as our great well is a as presence market South which acquisition, now to market, got

Saket Kalia

maybe Got it. of XX% my revenue of I you the talked That's XX% just think XX% it's depending on we've or want mortgage or a platform it. that a for was I know the focus business Greg, Got being that's I priced gave a that platform of super but I Pierre. business, follow-up question to a stat on sort you. really helpful, or XX% maybe about basis. useful for lot just on pricing, little logos, bit. thought it

see getting And that mentioned through go to that different a at earlier? does point? on do to of sort sort X that focusing mortgage take XXX% some time at process, X just component, Or to you that Again, of like the frame? could slightly Pierre years happen

Gregory D. Orenstein

Thanks question, the Saket. for

in For on are little mortgage, a duration shorter average. bit those contracts

just so with X in receptivity, happen think very quicker to legacy say, more X-year in those probably years, well discussions and I nCino I'd like range. received. And terms that business, the of could And think, than the I X- the

had business as as well for SimpleNexus, acquired a If right? that you think about nCino business, we as they it, well. for the that did seat-based mortgage And we pricing seat-based business Legacy's

those But the are anomaly. really

have buy. buying it's with are as customers our around come really company. throughout and and the platform our more they line we so evolved in pricing how we've or buyers what And

it's been think I company, the throughout towards we XXX% time. and as very so execute we'll over well to And received adoption continue that drive strategy on

Pierre Naude

few mortgage. Saket, about a things other just

why that's a We've important mostly will to another was realize. built homebuilders, widened which That's and where we whole "Look, nCino, I in and provider. sector focus, there. said, over brand. we've that go When they got got think is brand came it scope banking an it's SimpleNexus IMBs. a then good to they and good

The sector. X still that today, is the is struggling sector IMB

few are great then that profitable. news in now ago, expect the IMBs somewhere. average we cut all weeks we a the the And read September all Although on rate is

whole, So that the through okay? that think, The going industry market a one. start they of are I trough, to as better. doing size is, and Number

see the we The homebuilders, we've the see provide as innovation of They as They their we've we done. some the done competitors that. the make into implementations the and actual fantastic product. investment with well success

And Banking lower to teams up mortgage deploying much over is year. you actually was on focused SimpleNexus. the over XX% We've last come then which banking. now with year-over-year, proudly

lot IMBs risky we're business the what because there, time a and it M&A that is the business. doing try down they once doing So banking bought stays okay? like business with It's the shut is to less for not mortgage or all

different optimistic I up, as that us now. mortgage growth oriented. more volumes cut And rate this lot actually I'm comes soon the a us. highly is balanced business So more outperforming for believe at a go level It's for that was as and

Gregory D. Orenstein

bookings at that Saket, ACV add, to in . FI the gave year-over-year that data you Pierre XX% was point for just And space.

Operator

question comes next Stephens. Nabhan from our And from Charles

Charles Nabhan

over getting bookings, shorter next see you portion mean set, cross-sell you guess domestically think couple your revenue into cross-sell. expect to you the well the the trying XX-month from at book for could we the of as Pierre, is, of I'm about And just visibility talk as business bill existing what a versus new cycle here as new product about . you're RPO broaden mix net that to of years? could the what I the could driving on as base? before the

Pierre Naude

Yes. interesting. It's very

The pipelines I cannot if first the with XX% almost year but half new looks of deals XX% look a it's cross-sell, business, look logo to logos. half what the cross-sell. opposite. more year the of like lot of the new project the in versus cross-sell, like, going exactly Back XX/XX balance I at

products. got cross-selling We so run used at now XX-XX, to many we

more going move guess because XX-XX, to onboarding. think I have to if a we're you here at me is going like asked that commercial just XX-XX to

very got deposit going have to okay? opening. got got We've you've products, Advisor, AI in. NIC that's coming your products, have product, Banking going analytic all You're small you're your consumer account business We've to new. your

quarter, again, XX% products -- bookings. the last noncommercial over of was We this

to So company has than business the the balanced clearly, extent different a it used much be. to what

XX%. back I over the the what to XX-XX yes, XX% that foresee the of end I But going is time, So be new just the first versus half of tell would investor half. on logos, cross-sell XX-XX you, is

Charles Nabhan

could well as And internationally about it. geographic where your as into mature markets? talk standpoint parity you you're from as perhaps a of investing less introducing a Got product follow-up, some greater

Pierre Naude

Yes.

in got hub follows. is and then the as So and on international operation the focus our us, for the great a we We've focus current Canada, Nordics, Benelux Ireland U.K. then Spain. the

international massive well Spain. We got those It's banks, have of let's decided may banks. back to go a Spanish a got great we France. America number we've be into on day in of us as Latin Spain logos deemphasize right focus great of sets But as There Germany outside there. for that now, and

had And go customers we down Obviously, Zealand, then to Africa as have got you New acquisition there some as beforehand. South we've DocFox well the Australia. with

these where in English and et New we SAM, have we've there to drinking Japan. then a laws, focus now. success massive is are success Salesforce speaking, countries, X had follow well as residency. Zealand That and this data similar countries structures, similar And going we we're right found So and we banking cetera, and TAM as that's

I feel very good about that.

now nicely. new the product We've as well onboarding U.K. had wins as some products we We're are there. what both as Australia Those coming out have to building these. as of well do think mortgage. focus is on along for I

So what and we very would I a in say can markets is successful. got be we've strategy it's familiar we feel where focused

Charles Nabhan

Got it. the appreciate color. I

Operator

from next our question comes from And Sklar James. Raymond Alex

Alexander Sklar

the the mortgage Pierre, in is part year, I clear. XX% confidence expressed this headwinds achieving terms around Great. think lapping of that bookings just growth of you the net

most bit Just that optimistic pipeline are on sitting could -- here your elaborate of you reiterating outlook. terms you today comments? XX% in little a more Where

that pipeline, that back Is third Tier going way And enterprise back big though, talked the not know I it's and related about activity, to weighted? Europe. in in activity U.S. that then the be a of some X fourth both think fair quarter quarter. enterprise segment, historically about buying quarter still is in more the you question, a a but to year

Pierre Naude

they have third Many quarters decisions. is so their that is September, We've to the We know traditionally these visibility that. banks their out, we're into years believe budget that good got for a ends kicking. the is dates. just going approval. to to year-end especially fourth stuff of I preapproved. the flow We Board a enterprise. at Yes, when going Board quarter exactly of make They quarter, or but Many then in big understand how great us. be get final is for October have

do as a just It's third you're be massive there. normal to see as see to but well, going we quarter going So is fourth not a seasonality quarter negative.

the It's just that want love I like that's space. why community forward, business I Now so make to okay? on some rolls It comments bank a much. And machine.

I the come think slight international, mentioned exceeded already good a as IMBs rates start you a is profitable. far. Then becomes the the all over lumpy, go mortgage little seeing Enterprise and seeing more behavior. bookings the year the the a this will footing. down on of U.S. all movement more so but I'm improvement in right We right bit and XX% we

struck middle make to There's feel a balance right that on numbers confident we've only we it's case, put And actually low case makable, those always case. we feeling is that reach. the a those table and within So case a numbers. are we a the not great --

Alexander Sklar

your -- Okay. I comparability all always I Greg, you. as deferred X just in the maybe color In metric. RPO issues appreciate down past, prepared know talked the revenue, with on remarks on you've and you've key some like of you for bookings in on or fared ARR tell how of us or ARR RPO. ACV second of terms Is kind combat in can kind just of to anything that ACV there kind color growth, given a quarter?

Gregory D. Orenstein

we quite us in as nothing that We to noted call. Yes, enabling and out of prepared try in Alex. Thanks, That guys this metrics you you did in our numbers. was what of had into bit terms track progress remarks. of we give came thought beyond laid a color really we the some towards our to those our

Operator

Morgan our question Michael And from next from Stanley. comes Infante

Michael Infante

catalyst and whether Pierre, months. be that has deposit perspective for the over bit a XX U.S. on bank share XX curious get last a more executives attraction not market inflection I'd retention commanded in larger and get be growth some a loan calendar the to or mind pretty could outsized year your potential on to in the transformations. a 'XX to of constructive scale for

Pierre Naude

to is believe That and they have activity. point is good a buy loan because attention what point I an will actually be do there think span in where they their they very solve. inflection

seeing is clearly companies what nCino However, markets the we're now have is does, what the understand what leader. doing. the They they're understand market matured,

we're risk can now is driver, effective. use towards you that? moving to you for be so a automation from project to great cost the of now the and people put get important us. impact there. the efficiency systems an exposure? business We're book That's bank, And but going how important. sheet? And management and you of of traction differentiation portfolio in actually that in a do It's next interest we can calculating place workload perspective, you if look going we're portfolio help thing the and And seeing management, can how is the portfolio great which at your more also and the that balance of origination management big only and not But how efficiency to

that talking as a that as as well So about. I the driver demand see loan you're

Michael Infante

business. the on a X quick Maybe, Understood. Greg, That's clear. for you mortgage just

growth at of healthy 'XX. expectations next growth was in MBA volume call the year I looks think it, looking pretty for like 'XX. declines And to, to in versus close a XX% back I snap XX% some

of Obviously, share there curious just general of the any to you've year. this framework I'm how this taken a to that, business line about SimpleNexus grow just given sort overall growth think the mortgage for year? with at took premium a broader level wouldn't even ton or that a to just market of that the think share in reason of market, terms is in

Gregory D. Orenstein

question, as to. is certain about they're have the or with the Michael. then number of entitled guaranteed price these loans that talked for with comes Again, Thanks that comes where what contracts, platform and a -- we've that we

going those versus start to going to were right? And our some What customers, need over they're to ourselves more of We that set each to on need ultimately minimums more go-forward we business we still volumes And where minimums. data data as still the volume. participate revenue. that's ultimately, well is do so to increased in increase understand positioned the points upside when we've be incredibly trip think of

to expecting it's the change such able was the to little focus last and X first XX% platform next what and big be which, I really the we a and evolution are going But year volume, benefit positive a a be you over said, a as be we've to soon, with on of one from those that or of folks from have some year contracts that to changing participate in obviously, too But increased years. seen bit whether reasons number. that to think, being was determine really that align other

thing, just about specifically more think has your logos question order think difficult the this And share business gain, without trends market and benefit And able year, to growth over that to that to we've incredibly been again, take incredibly we've the in other period. X performed perfect obviously, I I do data that. and from years us well points we spot but time able to be being been puts last talked answer I that in again, need we think a that. because able to able to mortgage the those during

Michael Infante

Understood.

Operator

next our from And question Scotiabank. Nick from Altmann comes

John Gomez

Nick into about retail any Altmann. when in thinking reps make about for talk how changed changes the has the into. you And Can to on second up commercial? pipeline Gomez versus the John It's heading are terms pipeline half where winning and of

Gregory D. Orenstein

more perspective, From to what like we're now XX-ish XXs a John, pipeline noncommercial. high seeing is

get we and as ultimately, noncommercial more from of those mature trend some them. referenceability And products so again, that continues

about And so we're mix. excited that

now, aggregate look at earlier about mentioned being it's commercial But EMEA of Japan, year-over-year focus we're think pipe And the number. Australia, New it see the line. on basis. team and about our and growing. we maturing XX those and over ultimately, XX% pipes and an up again I looking as Zealand, we as kind just we the higher XX-ish see at on right these noncommercial to being getting deals noncommercial colleagues just it's And we -- and executing it

John Gomez

with your on for those it. would helpful. a seeing you new deals? versus pipeline half, those multi-department the as net discussions Are there reach customers? you or comment net multiproduct the are more Got more geographical within upfront And seeing helpful? follow-up, more more new That's first color heavily leaning be mix to Any

Gregory D. Orenstein

Yes.

we multiproduct the the mentioned, I versus think platform, the comments internationally. maybe enterprise geo. In I'd who U.S., it as less you're geographic depends yes. back as again, Pierre's community earlier, on a to U.S., perspective. to talk within Getting say so selling from And the about you continued X sale, like lending -- bank, We that maturation then about new talked lending. I this products consumer X traction that again, And consumer of there. newer we we DAO deals got deals a loan the got this that quarter, the those see of that's quarter. of some we think reflection the

trend. that that excited so about in And we're

Operator

And next from comes Vruwink from Baird. our question Joe

Joseph Vruwink

in pipeline? see this, quarters? looked fiscal potential think kind decisions next an this within across the earlier at Or and next both the aids of outlook enterprises lag is happen new enough ultimately year? and I he the all pipeline, to into established the Pierre into that X big maybe Does the imminent going are you expecting it a when markets. just larger cuts of made for the catalyze comment guess, I some enterprises those you rate

Pierre Naude

X, prepare to the be bank to is is we're you XX, look full sitting XX that a No. to for I the these now. on going are months where These and have a X team, management they years decision. board, picture X, cut there that don't the X, waiting the much see you from deals bigger prepare working old, at people rate strategically strategic actually make

method, that you say would standardize the interact if you future an I people don't the you do of procedures utilize intelligence operating driver with platform customers, to your data the allows the those you going to how that live, I their my we and IT is more deal how your issue. are issues back remarks prepared in is bank X mentioned mean, systems. with. It's old okay? XX removed and they I infrastructure have

around rate where Well, But a it's strategic our to they little a help the forward? in be. conversations, the and bit cuts from not somebody It X lot now. may more bank see years X

Gregory D. Orenstein

with of the well, went you look look the say, sensitive. have unprecedented the base. well. as unusual, at side only, rates Joe, have let's crisis, liquidity what really business, over rise customer the did at impact business, years is it's that maybe last rate when you not the in on and IMB the that Obviously, our you been when business, we sensitivity that's we But very the our historically, of when homebuilders X really rest rate the through and this

impactful more on to as the business we the of really IMB distance be But of normal maybe a mortgage our operating is side. get where interest and will rate cut ourselves part on again, back environment, that that from

Joseph Vruwink

the XXXX. you to of customer have heyday the and consolidated. is in different Okay. specifically But going XXXX be also, That's be helpful. are to a good to going And to then now mortgage I back certainly those wanted you a those is offering to conversation, MBA proven back out forecast, structure not thinking go about the pricing purchase set quite more that's have origination robust and XXXX,

but mortgage your a of to environment to up that, know years When SimpleNexus next kind expect the on 'XX those and what of 'XX? all in you relate how you of basis. was versus terms a historically history, pro in compare growing would better in when X obviously you and at at we of not growth kind upturn, all stack you can robust, rates prior in forma out settle

Pierre Naude

IMB, contracts bank the understand So structured is market, well that the going how the of think is have patterns the bank, okay? people our the and to see the a as in how I depending homebuilder, to performance it you're we type contracts dice are and it to difference it the firstly, slice like. as is these

help to I've these didn't I And Will been increased cut are going believe rate a things volume Absolutely. us? conservative. come. and very always

to then does Now now with little rate that what I evidence. get going okay? rates in a very fast, one, you. too weights we I'll the you I want cut see that believe right if at concerned boom, Number looking And still September. frank then see and to not will next stop it's come have to cutting, soon, us year. we're and I'm So too they inflation. that be more bit to pricing

to And a cut beyond as number and see what two, how a and activity the what economy I the is rate reacts that is result. actually want rate unemployment the slowly to U.S.

Operator

Macquarie And our next from Robert Trout question comes Capital. from

Robert Trout

the if Greg, initially. Pierre, ROI about could guess, Harrison. in showing the I I just with your balance how think start customers you striking

balance You year ROI. mentioned price your drive course, I this repetitive makes which, a attractive you've in of striking adoption, was started Because the mentioned at think Banking pretty prepared introductory to sense. that demonstrable and between adoption Advisor remarks

where into initially? you get portfolio worth, not give way a of see How away these is something kind you that introduce as scares use free, do management for but particularly not there a it's of products, kind not that deeper a price framework in people you what new you them to -- at but as

Pierre Naude

very thanks. question. a Yes. Robert, That's insightful

we here's our in with So metrics, got I would people based on when us, its understanding. get guestimates and measurements go we analytics, and system, got before into verbal to usage and falloff. We go new remember systems, tell his in currently they've we banks this okay? And what these have do. takes new literally and it no us about So look, had a literally

minutes. is place, customer, in this come X down and that literally XX spending we nCino we you're on Banking X to to existing them going minutes can minutes measure then on if And task, an cetera. say With show it's task, this XX-minute task Advisor et

example, Just an okay?

value you they immediately a what the So there. it, with pricing products, you and unit gives they they're going the a you guaranteed it then in one, with And just the and there. then cost more is guaranteed And go all we're up, a you new to more of and recurring do count than then they which monies the pay and pay see the revenue. bit they use low use like more doing more that okay, usage expensive people us move in platform the

time going early we're In guaranteed it. upside to for a a we're and and So go using follow we number as did with that model. us to higher adopting lower same a in just the with they tough like stage mortgage even start willing,

If it I've magic action, is you seen. see product that closest the really in thing to

drive bank broadening skills and as And we're get so then I adoption for driving actually would the to the matures, wider what what penetration. down us. product is in And skills to a revenues market settle enhancing material now more think will I it and much adoption a the say the and is

Robert Trout

simply you It's of very there the a than Mortgage I has within market? originations? that sort spill storm Are dislocation that ago, or IMB the I gone cash already some then over confusion if But mortgage for space, if quick very that. NAR mortgage know at of potential that market particularly helpful. industry, through be short could will, follow-up. in the the space just ripples ask all term. might decade more commission so you realignment, a worried And and into the the their with and IMB

Pierre Naude

news got a great it. the sell our -- them next that to to structure how we and the we've is that clients, we Well, compensation with help product

new this help in better, that we do them So number environment, one. can to actually

paid, goes investments. estate mortgage going is transaction going real And volume come market. the through by us. the and making the It's best are buy brokers moment Number still houses. people to product far two, regardless in agents of to is We're the the to get how going the up,

market is the manual out but So processes. in that I us. be that a optimistic market, we what And automation going that of market for the winner to and more that is can to for very we relationship opposed take friction better as the model, actually do market the and the feel

Operator

Tomasello And our from Ryan from next KBW. question comes

Ryan Tomasello

Pierre, road the upon I On product hoping expand map international could you there. front, was the

particular bringing You some mentioned in at for to your in customers prepared point. remarks international DocFox, the opportunity

still So different rank expand opportunity curious the U.S. platform how set? across an what you look of you features you kind of in represent to what as order would the product internationally have

Pierre Naude

for is I commercial a market the small onboarding. months That testing next the process in that that commercial X-month say from down opportunity a would has like clamoring okay? weeks biggest process, everybody the shown that problem. our To universal And is product to business okay? really a is space, and take

that them is literally difficult It to for accounts. open

Australia, the working The It from on will second is mortgage big New span product a Zealand. Ireland we're that to U.K. there Canada product. into down

the would say, those automation workflow big So type products. I are X,

of NIC well all products to then out coming products Banking Advisor, the global as realize But your you as our have chute.

and initiatives environments. of forward. the have get we there intelligence seen need specific local every for and will our that So data go benefit customization they customer as don't

for a And ton then us internationally. business there's of commercial left still

-- start on major then on your with in you from products. and footprints go X can NIC we advisers, banking fronts So that automating

about good pretty we've the feel I footprint got So there.

Ryan Tomasello

mortgage Great. as a particular a area of U.S. for Greg, mortgage. follow-up a as maybe U.S. on customer mortgage guess against that question that's more being across go the are something mindful talked term? the to mix base, over X-part And you're make you about in the that you here look at churn last M&A-driven of the any intermediate guide. quarter, likely customer more M&A base, Greg, I then dynamics there you terms

the a year the and are half. as quantify in, the the expectations what where piece, follow-up your churn then And half can on you came back in first of that if for

in not be as of of Just weighting the we a churn the half source of could upside look trying the to whether there at or year? potential terms understand second

Gregory D. Orenstein

the Thanks Ryan. question, Yes. for

a tried front, bigger We've hard to hard worked align unique M&A specific that think and ourselves of would in players that IMB it risk. winners the to there's as ourselves pose with with On out we've hard And the point, anything the tried the I don't to there. some align space.

right, certainly go the extent to a when M&A, the to But be to so they side, a somewhere is it would frankly, you're against of certainly product beneficiary. IMB and predict, go in use the hope And loan that forecasting. Even and else, we've we and there can they on insist It's now salespeople specific not part hard past, been mortgage you. on best some the nCino officers at Mortgage their of work that life. our our when are, SimpleNexus being

deal can go And us. a so does well actually even that as when be benefit a against

industry. But a to starting space. IMBs there. that more nothing are money just is seeing unique out again, reflection make It's which stabilization for to call that some really the in we're great

you of years experienced X potential And it's so churn, business, think about about as and what more past which M&A. IMBs less the going is we around out of the majority over

in Through the the the the out year, about we year, $X half million. churn, this for $X.XX of million around $XX.X question space. million second mortgage churn of your forecasted To first we're

we be And the half again, so year stable. on of track. right more we're And to expect think second the

so think today. feel where good And about we I are we

Operator

Chris comes question William and Blair. next Kennedy our And from from .

Cristopher Kennedy

Great. commentary think the and new you there is next about years to way mix nCino a think as you When about you evolve so? or about will the for have products about ACV the X the your that pipeline, think how

Pierre Naude

the they're markets more I bigger think thing. it in pattern I noncommercial, so you where be current continuing XX% will will holding that that for much see pattern see left than us because

cross-sell at being versus I you're XX-XX the I to earlier new talked the the The think to going and second look second see about cross-sell, it. is, way thing XX. business That's XX about

look at U.S. And you if then the thirdly,

the product of market think institutions the at outpace continuously. breadth got I of in because the of more. for here. years, I the the mentioned U.S. sheer looking set you in unions volume here we've to will of just markets, calls, the bookings are international and those dedication X previous next that here put are earlier to credit going And as focus We we on kind

I bookings look at not development ACV only and but the transition of So revenue how that's of pipes, into the that.

Operator

back Chief over to And I call Pierre now questions. Officer, I'm turn the Executive further to would remarks. Naude, showing like no for closing

Pierre Naude

and you be on all you, Thank thank operator, insightful questions, your et today call cetera. and with to the

summary market. my Here's what I'm in of seeing the

by we're We Strategically, execution Great X and the positioned. crisis, of came now well liquidity team. cuts. then is years as to Team ever positioned we this out well COVID, in rate of seeing are as start going company.

And time, So I for company. in there's culminate We investing all macroeconomic coming. that is environments on going same of kept cetera. to better down. truly great a this positioning At et products, believe our the kept that heads we in

the I'm the good at there. feeling what actually in optimistic. signs pretty I'm I'm So pipeline, only early not seeing

So And your insights our all analysis enthusiasm go business. as and I you you to you hopefully, forward. appreciate effort Talk we into see can later. your we Thank the much. very

Operator

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

may disconnect. You now

nCino (NCNO) 27 Aug 242025 Q2 Earnings call transcript