nCino Conference Call Summary Company Overview - nCino is recognized as the leader in cloud-based lending systems, focusing on transforming financial services through innovation, reputation, and speed [2][3] - The company aims to lead in AI banking, addressing long-standing issues in financial institutions by democratizing data and enhancing digital collaboration [3][4] Key Points Industry Position and Strategy - nCino serves 2,700 customers globally, including 15 of the top 30 banks in the U.S. and five of the top seven in the U.K. and Ireland [5][6] - The company is focused on onboarding, account opening, loan origination, and portfolio monitoring across commercial, consumer, and mortgage lines of business [4][5] - nCino's strategy includes leveraging a rich data set to capitalize on vertical AI opportunities in banking [5][7] Financial Performance and Outlook - The customer base is recovering from previous liquidity crises and rising interest rates, with increasing activity in pipelines [12][13] - The company has set a bookings plan for the year, with a midpoint guidance of $3 million more than the previous year [13] - nCino aims to achieve a "Rule of 40" by the fourth quarter of next year, indicating a commitment to balancing growth and profitability [16][17] AI Integration and Product Development - nCino has been proactive in AI product development, with a threefold strategy: Banking Advisor skill sets, Agentic AI, and a data backbone [20][21][24] - The company has already launched 18 Banking Advisor skills and is working on automating workflows to enhance efficiency [21][22] - The focus is on connecting value delivered to fees charged, moving from a per-user model to an outcome-based pricing strategy [25][26] Market Dynamics and Growth Opportunities - nCino is positioned to drive efficiency in banks regardless of interest rate environments, with a sustainable business model that has proven resilient through various economic conditions [27][28] - The company sees significant growth potential in the remaining 70% of the market, particularly in international markets like Japan and EMEA [34][35] - The acquisition of SimpleNexus has strengthened nCino's position in the mortgage space, providing a consistent digital experience for customers [46][47] Competitive Landscape - nCino differentiates itself by offering a global platform that integrates various banking solutions, unlike competitors that focus on point solutions [31][32] - The company is aware of competitors attempting to undercut contracts but remains committed to sustainable business practices [48][49] Future Directions - nCino is currently in a "digestion mode" regarding recent acquisitions, focusing on integration and maximizing the potential of existing resources [52][53] - The company remains open to opportunistic acquisitions but emphasizes growth through current capabilities [53] Additional Insights - The company has successfully navigated challenging market conditions, demonstrating durability and adaptability [28][29] - nCino's approach to customer engagement emphasizes fulfilling promises and delivering measurable outcomes, which is critical for maintaining customer trust [10][11]

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]

Financial Data and Key Metrics Changes - Total revenues for Q1 were $144.1 million, representing a 13% year-over-year increase [18] - Subscription revenues were $125.6 million, up 14% year-over-year on a reported basis and 9% organically [18] - Non-GAAP operating income was $24.8 million, or 17% of total revenues, with net income attributable to nCino at $18.4 million, or $0.16 per diluted share [21][22] - Guidance for total revenues in Q2 is expected to be between $142 million and $144 million, with subscription revenues between $124.5 million and $126.5 million [22] 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 [19] - Non-U.S. total revenues were $31.6 million, up 22% year-over-year or 23% in constant currency [20] - 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 [8] - A significant $25 billion regional bank doubled its annual commitment to nCino through the adoption of mortgage and consumer lending solutions [10] - An $800 million credit union expanded its relationship with nCino by adopting additional solutions, indicating strong market penetration [11] 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 [6][7] - The company is pursuing international expansion, with notable progress in Europe and Japan, and sees a large global opportunity [12] - AI is central to nCino's long-term differentiation strategy, leveraging a large process-centric dataset in FinTech [9] 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 [13] - The company is sensitive to macroeconomic conditions but sees encouraging signs of stability in the mortgage market [13][15] - A restructuring event affecting approximately 7% of the workforce was announced, aimed at streamlining operations and enhancing efficiency [16] Other Important Information - The company expects to realize approximately $24 million in gross annualized expense savings from restructuring and other cost-saving actions [26] - Non-GAAP operating income guidance for fiscal '26 has been updated to $112 million to $116 million, reflecting a 19% increase over fiscal '25 [28] 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 solutions and pipeline activity [34][35] Question: What is driving the Professional Services gross margins? - Cost pressure has been concentrated in the community bank space, with efforts to redesign products for efficiency and leverage AI for margin improvement [37][38] Question: What is most misunderstood about the nCino story? - Management believes there is good alignment and understanding of the company's focus on execution discipline and growth initiatives [42][43] Question: How is the omni-channel experience integrated into the platform? - Upgrading to the omni-channel experience does not incur additional costs for existing customers, as it is part of the platform [45] Question: What are the implications of the workforce reduction on future investments? - The reduction was a strategic decision for long-term viability, with expectations of increased efficiency and velocity in software development [54][56] Question: How is AI playing a role in workforce efficiency? - AI is expected to enhance efficiency in R&D and project delivery, contributing to improved gross margins over time [28][56] Question: What are the growth signals for reinvesting cost savings back into the business? - Management is looking at pipeline activity and customer interest in AI solutions as indicators for potential reinvestment [78]

Financial Data and Key Metrics Changes - Total revenues for Q1 were $144.1 million, representing a 13% year-over-year increase [18] - Subscription revenues were $125.6 million, up 14% year-over-year on a reported basis and 9% organically [18] - Non-GAAP operating income was $24.8 million, or 17% of total revenues, with net income attributable to nCino at $18.4 million, or $0.16 per diluted share [21][22] - Guidance for total revenues in Q2 is expected to be between $142 million and $144 million, with subscription revenues between $124.5 million and $126.5 million [22] 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 [19] - Non-U.S. total revenues were $31.6 million, up 22% year-over-year or 23% in constant currency [20] - 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 [8] - A significant $25 billion regional bank doubled its annual commitment to nCino through the adoption of mortgage and consumer lending solutions [10] - An $800 million credit union expanded its relationship with nCino by adopting additional solutions, indicating strong market penetration [11] 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 [6][7] - The company is pursuing international expansion, with notable progress in Europe and Japan, and sees a large global opportunity [12] - AI is central to nCino's long-term differentiation strategy, leveraging a process-centric dataset in FinTech [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial institution customers' healthy balance sheets and projected growth in loan portfolios and earnings [13] - The company is sensitive to macroeconomic conditions but sees encouraging signs of stability in the mortgage market [14] - Management believes potential deregulation could enhance capital availability and streamline decision-making for customers [15] Other Important Information - A restructuring event affected approximately 7% of the global workforce, aimed at streamlining operations and enhancing efficiency [16] - The company expects to realize approximately $24 million in gross annualized expense savings from restructuring and other cost-saving actions [27] 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 solutions and pipeline activity [34][36] Question: What is driving the Professional Services gross margins? - Management noted price and cost pressures in the community bank space but sees opportunities for improvement through product redesign and AI [37][38] Question: What is most misunderstood about the nCino story? - Management believes there is good alignment and understanding of the company's focus on execution discipline and growth initiatives [44] Question: How does the omni-channel experience fit into the sales strategy? - Upgrading to the omni-channel experience does not incur additional costs for existing customers, as it is part of the platform [46] Question: What are the implications of the workforce reduction on office space and reinvestments? - Management indicated that the office space reduction was part of optimizing utilization and that there are efficiencies to be gained through modernizing software development [50][56] Question: How should the market think about the ACV target and sales productivity? - Management clarified that sales capacity growth was not impacted by the recent workforce reduction and emphasized the importance of pipeline activity [75][78] Question: What are the growth signals for reinvesting cost savings back into the business? - Management highlighted pipeline activity and customer interest in AI solutions as indicators for potential reinvestment [80] Question: What led to the strong international performance? - The Full Circle acquisition significantly contributed to international growth, with optimism around opportunities in Japan and Europe [114]

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]

Financial Performance - Q1 FY2026 - Total revenues reached $144.1 million, a 13% year-over-year increase[7] - Subscription revenues amounted to $125.61 million, reflecting a 14% year-over-year growth, with 9% being organic[7] - GAAP operating loss was ($1.5) million, an improvement of $2.1 million[7] - Non-GAAP operating income stood at $24.8 million, a 2% increase[7] Key Performance Indicators - Annual Contract Value (ACV) reached $516.4 million[10] - ACV year-over-year growth was 13%, with 8% being organic (9% organic in constant currency)[10] - ACV Net Retention Rate was 106%[10] - Subscription Revenues Net Retention Rate was 110%[10] Revenue Breakdown - Subscription revenues constituted 87% of total revenues in Q1 FY2026[13] - International subscription revenues accounted for 33% of total subscription revenues in Q1 FY26[19] Financial Outlook for FY2026 - Total revenues are projected to be between $578.5 and $582.5 million[35] - Subscription revenues are expected to range from $507.0 to $511.0 million[35] - Non-GAAP operating income is guided to be between $112.0 and $116.0 million[35] - Annual Contract Value (ACV) is projected to be between $564.0 and $567.0 million, including approximately $4.5 million from the acquisition of Sandbox Banking[35]

Revenue Growth - Total revenues increased from $128,087 thousand in Q1 2024 to $144,137 thousand in Q1 2025, representing a growth of 12.5%[17] - Subscription revenues rose from $110,406 thousand in Q1 2024 to $125,588 thousand in Q1 2025, an increase of 13.8%[17] - Total revenue for the three months ended April 30, 2025, was $144.1 million, representing a 12.6% increase from $128.1 million in the same period of 2024[67] - Revenues from the United States for the three months ended April 30, 2025, were $112.6 million, up from $102.2 million in the same period of 2024[160] - Subscription revenues for the three months ended April 30, 2025, were $125.6 million, a 13.8% increase from $110.4 million in the same period of 2024[182] Profitability - Net income attributable to nCino, Inc. improved from a loss of $2,976 thousand in Q1 2024 to a profit of $5,562 thousand in Q1 2025[17] - The net income attributable to the Company for the three months ended April 30, 2025, was $5.6 million, compared to a net loss of $3.0 million for the same period in 2024, representing a significant turnaround[157] - Net income improved from a loss of $2.3 million in Q2 2024 to a profit of $6.0 million in Q2 2025[202] Operating Expenses - Operating expenses increased from $80,570 thousand in Q1 2024 to $87,955 thousand in Q1 2025, reflecting a rise of 9.4%[17] - Operating expenses increased from $80.6 million in Q2 2024 to $88.0 million in Q2 2025, with the operating loss narrowing from $3.7 million to $1.5 million[211] - Sales and marketing expenses rose by $4.9 million, driven by increased personnel costs and marketing expenses[212] Cash Flow and Liquidity - Cash flows from operating activities remained stable, with $54,442 thousand in Q1 2024 compared to $54,320 thousand in Q1 2025[27] - The company reported a net cash increase of $17,394 thousand in Q1 2024, while in Q1 2025, the increase was $12,313 thousand[27] - Cash and cash equivalents at the end of the period decreased slightly from $129,481 thousand in Q1 2024 to $133,230 thousand in Q1 2025[27] Acquisitions - The company acquired DocFox for $74.3 million, with transaction costs of approximately $3.9 million recorded in general and administrative expenses[79] - The FullCircl acquisition was completed for a total consideration of $142.4 million, with $129.2 million paid in cash at the acquisition date[94] - The company acquired Sandbox Banking for an aggregate purchase price of $62.9 million, enhancing its data connectivity and operational capabilities[179] Stock and Shareholder Actions - In March 2025, the Board of Directors authorized a stock repurchase program of up to $100 million, with $59.4 million remaining as of April 30, 2025[119][121] - During the three months ended April 30, 2025, the company repurchased 1,829,113 shares at an average price of $22.17, totaling $40.551 million[120] - The company granted 2,644,929 RSUs on May 1, 2025, expecting to recognize stock-based compensation expense of $60.5 million over a weighted average period of 4 years[163] Future Expectations - The Company expects to incur restructuring charges of approximately $7.5 to $9.0 million in the second quarter of fiscal 2026 due to a workforce reduction of about 7%[165] - The company expects to increase investment in product development and sales and marketing to drive future growth[188] - The company anticipates that subscription revenues will continue to make up an increasing proportion of total revenues over time[185] Financial Position - The Company had outstanding debt of $208.5 million under the 2024 Credit Facility as of April 30, 2025, with an interest rate of 6.32% and an available borrowing capacity of $41.5 million[143] - The total lease liabilities as of April 30, 2025, amounted to $21.169 million, with long-term lease obligations of $12.338 million[131] - The Company had total purchase commitments of $217.1 million and financing obligations of $52.4 million as of April 30, 2025[149]

Exhibit 99.1 nCino Reports First Quarter Fiscal Year 2026 Financial Results WILMINGTON, N.C., May 28, 2025 -- nCino, Inc. (NASDAQ: NCNO), the leading provider of intelligent, best-in-class banking solutions, today announced financial results for the first quarter of fiscal year 2026, ended April 30, 2025. "Strong execution drove financial results above guidance, underscoring our ability to deliver value for shareholders and customers," said Sean Desmond, CEO at nCino. "We're fulfilling our commitments and a ...