Core Viewpoint - The digital banking space is identified as an attractive investment arena, with a focus on companies like Alkami Technology and Q2 Holdings, which are modernizing customer-facing software for credit unions and regional banks [1][3]. Company Summaries - **Alkami Technology**: - Rated as Overweight by the analyst, with organic revenue growth exceeding 20% and trading at six times EV/Sales for 2026E [4]. - Holds less than 5% market share in a ~$10 billion market, with up to 60% of the market being an addressable opportunity [3]. - Benefits from high customer retention and long contract lengths, supporting revenue visibility [1]. - **Q2 Holdings**: - Also rated as Overweight, with similar characteristics to Alkami Technology in terms of customer retention and contract lengths [1]. - Holds less than 10% market share in the same ~$10 billion market, with significant growth potential [3]. - **nCino**: - Rated as Neutral, focusing on cloud-based banking software solutions for financial institutions [2]. - The analyst has noted idiosyncratic factors that have kept her on the sidelines regarding nCino compared to broader vertical SaaS [2]. Market Dynamics - The digital banking industry is characterized by a defensive monetization model based on the number of bank accounts and products subscribed to by banks [2]. - The opportunity for improving bank efficiency is described as seemingly limitless, indicating a strong growth potential for the sector [2]. Price Actions - As of publication, stock prices are as follows: - Alkami Technology (ALKT) is up 5.26% at $28.24 - Q2 Holdings (QTWO) is up 3.56% at $89.07 - nCino (NCNO) is down 0.44% at $26.96 [5].

Summary of nCino Conference Call Company Overview - **Company**: nCino - **Industry**: Banking Software Solutions Key Points and Arguments Leadership and Background - The CEO of nCino has over 30 years of experience in the software industry, transitioning through various technological shifts, including mainframe to client-server, enterprise to big data, and now to cloud and AI in banking [4][5]. Commercial Business Performance - nCino's organic commercial Annual Contract Value (ACV) grew approximately 10% in fiscal year 2025 despite normalization in the business [6][7]. - The company aims to deepen its penetration in the commercial sector, currently at 30% within its existing installed base, with a focus on enhancing efficiency through AI [8][10]. Banking Advisor Functionality - The banking advisor functionality has gained significant traction, with 16 new skills launched, aimed at automating manual tasks and improving efficiency in commercial workflows [15][16]. - Early data suggests a potential ACV uplift of 20% to 25% from the banking advisor, although the CEO refrains from committing to specific figures at this stage [17][18]. Consumer Business Growth - The consumer lending segment is growing, with 20 new deals signed in Q4, including a significant deal with a $200 billion asset bank [20][22]. - The consumer business is currently about 15% to 20% the size of the commercial business, with similar growth rates expected to accelerate [21][23]. Mortgage Business Strategy - nCino's acquisition of SimpleNexus aims to enhance its position in the mortgage market by providing a consistent digital front-end experience across all banking solutions [26][28]. - The mortgage business has shown resilience, growing every year despite challenging market conditions, with a focus on transitioning to a new pricing model [30][32]. International Expansion - nCino operates in North America, EMEA, Australia, New Zealand, and Japan, with plans to expand aggressively in the European market [35][36]. - The international subscription business is growing in the high teens, but year-over-year growth in EMEA has been disappointing, prompting leadership changes to drive improvement [39][41]. Pricing Model Transition - Currently, 15% of revenue is on a new pricing model, primarily in the mortgage segment, with expectations for gradual conversion over the next few years [43][44]. - The new model is designed to align value and growth with customers, allowing for annual adjustments based on asset growth [46][47]. Implementation and Efficiency - nCino is focused on reducing implementation timelines from months to weeks through pre-configured solutions and leveraging AI [54][55]. - The company aims to deploy all solutions in under 200 consulting hours, enhancing speed to market and decision-making for clients [54][57]. Future Growth Initiatives - nCino is optimistic about growth opportunities across various segments, including commercial, consumer, and mortgage, with a focus on AI integration and international expansion [61][62]. - The company has increased its sales capacity by 14% and believes its customer base is healthier than in previous years, setting the stage for reacceleration of growth [66][67]. Additional Important Insights - The CEO emphasizes the importance of speed and efficiency in banking operations, suggesting that banks will need to adapt quickly to remain competitive in the evolving landscape [49][67]. - The transition to AI banking is seen as a significant opportunity for nCino, positioning the company as a leader in this emerging category [67].

nCino (NCNO) 2025 Conference June 05, 2025 01:40 PM ET Speaker0 Everybody, my name is Koji Ikeda. I am, one of the software analysts here at BofA. I am super thrilled to have Encino CFO Greg Ornstein here for a fireside chat. Thank you so much for being here. We really, really appreciate it. And so, yeah, I guess from a high level perspective, you know, for those in the room that are unfamiliar with nCino or those on the webcast that is unfamiliar with nCino, just to maybe spend a minute or two on what does ...

nCino (NCNO) 2025 Conference June 03, 2025 09:40 AM ET Speaker0 Our next presentation comes from nCino. NCino is the leader in cloud based lending systems. To my immediate left is Sean Desmond, CEO Greg Orenstein, CFO. This is gonna be a fireside chat. If members of the audience have questions, you can email session2@rwbaird. I'll get those on the iPad. But maybe to begin, I'll ask for an intro to nCino and then overview of the investment case. Speaker1 Sure. Thanks for the time. We appreciate it. It's grea ...

Group 1 - The previous investment rating for nCino Inc. (NCNO) was a sell due to significant headwinds, particularly its exposure to mortgage volume [1] - The investment approach focuses on long-term investments while incorporating short-term shorts to uncover alpha opportunities [1] - The analysis emphasizes bottom-up analysis to assess the fundamental strengths and weaknesses of individual companies [1] Group 2 - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Group 1 - nCino held its first quarter fiscal year 2026 earnings call, featuring CEO Sean Desmond and CFO Greg Orenstein [3] - The call included discussions on forward-looking statements regarding trends, strategies, and anticipated business performance, which are based on current management views and expectations [4] - The company plans to discuss non-GAAP metrics to aid in understanding financial results, with reconciliations to GAAP metrics available in the earnings release [5]

Group 1 - NCino reported quarterly earnings of $0.16 per share, matching the Zacks Consensus Estimate, but down from $0.19 per share a year ago [1] - The company posted revenues of $144.14 million for the quarter ended April 2025, exceeding the Zacks Consensus Estimate by 2.90% and up from $128.09 million year-over-year [2] - NCino has surpassed consensus revenue estimates four times over the last four quarters [2] Group 2 - The stock has underperformed, losing about 19.7% since the beginning of the year, while the S&P 500 gained 0.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $144.2 million, and for the current fiscal year, it is $0.68 on revenues of $577.15 million [7] - The Zacks Industry Rank for Internet - Software is in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

nCino (NCNO) Q1 2026 Earnings Call May 28, 2025 04:30 PM ET Company Participants Harrison Masters - Manager - Strategic Finance & Investor RelationsSean Desmond - President & CEOGreg Orenstein - Chief Financial OfficerSaket Kalia - Managing DirectorRobert Dee - Equity Research AssociateKoji Ikeda - Director - Enterprise Software Equity ResearchRyan Tomasello - Managing DirectorNick Altmann - Director - U.S. Software Equity ResearchAlexander Sklar - Vice PresidentAaron Kimson - Vice PresidentMichael Infante ...

nCino (NCNO) Q1 2026 Earnings Call May 28, 2025 04:30 PM ET Company Participants Harrison Masters - Manager - Strategic Finance & Investor RelationsSean Desmond - President & CEOGreg Orenstein - Chief Financial OfficerSaket Kalia - Managing DirectorRobert Dee - Equity Research AssociateKoji Ikeda - Director - Enterprise Software Equity ResearchRyan Tomasello - Managing DirectorNick Altmann - Director - U.S. Software Equity ResearchAlexander Sklar - Vice PresidentAaron Kimson - Vice PresidentMichael Infante ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2026 were $144.1 million, representing a 13% year-over-year increase [17] - Subscription revenues were $125.6 million, up 14% year-over-year on a reported basis and 9% organically [17] - Non-GAAP operating income was $24.8 million, or 17% of total revenues, with non-GAAP net income attributable to nCino at $18.4 million, or $0.16 per diluted share [20][21] - The company expects total revenues for Q2 2026 to be between $142 million and $144 million, with subscription revenues between $124.5 million and $126.5 million [21] Business Line Data and Key Metrics Changes - Professional services revenues were $18.5 million, an increase of 5% year-over-year, driven by revenue recognition adjustments [18] - Non-U.S. total revenues were $31.6 million, up 22% year-over-year or 23% in constant currency [19] - Non-U.S. subscription revenues were $25.9 million, up 31% year-over-year or 32% in constant currency [20] Market Data and Key Metrics Changes - The company reported strong demand in the market, particularly for AI capabilities and omnichannel experiences showcased at the annual Insight customer conference [6][8] - A $25 billion regional bank doubled its annual commitment to nCino through the adoption of mortgage and consumer lending solutions [9] - An $800 million credit union expanded its relationship with nCino by adopting additional solutions, indicating strong market penetration [10] Company Strategy and Development Direction - nCino aims to eliminate inefficiencies in financial institutions caused by legacy infrastructure, focusing on a unified scalable platform powered by AI [4][5] - The company is committed to international expansion, with significant progress noted in Europe and Japan [11] - AI is central to nCino's long-term differentiation strategy, leveraging a large process-centric dataset in FinTech [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial institution customers' positions, noting healthy balance sheets and growth projections in loan portfolios and earnings [12][13] - The company is sensitive to macroeconomic conditions but sees encouraging signs of stability in the mortgage market [12] - Management highlighted a restructuring event affecting approximately 7% of the workforce aimed at streamlining operations and enhancing efficiency [14] Other Important Information - The company repurchased approximately 1.8 million shares during Q1 at an average price of $22.17, totaling $40.6 million [21] - The restructuring is expected to yield approximately $24 million in gross annualized expense savings [24][25] Q&A Session Summary Question: How is the underlying demand and willingness to invest with bank clients? - Management expressed confidence in demand, validated by steady interest across various solutions and a strong pipeline activity [31][33] Question: What is driving the Professional Services gross margins? - Management noted price and cost pressures in the community bank space but highlighted efforts to redesign products for efficiency and leverage AI for margin improvement [34][36] Question: What is most misunderstood about the company’s story? - Management believes there is good alignment and understanding of the company's focus on execution discipline and growth initiatives [40][42] Question: How does the company view the workforce reduction and office space optimization? - Management indicated that the office space reduction was part of a broader strategy to optimize capacity and improve efficiency [48][51] Question: What are the growth signals for reinvesting cost savings back into the business? - Management looks for pipeline activity and overall sales process health as indicators for potential reinvestment opportunities [72][74] Question: How is loan growth impacting demand? - Management confirmed that loan growth is positively influencing demand for their solutions, particularly in loan origination and monitoring [102][103] Question: What is the outlook for international performance? - Management noted strong international growth driven by acquisitions and optimism about opportunities in Japan and Europe [110][111]