Financial Data and Key Metrics Changes - Total revenues for Q4 were $149.7 million, a 6% year-over-year increase, and $594.8 million for fiscal 2026, a 10% increase over fiscal 2025 [26] - Subscription revenues were $133.4 million in Q4, up 7% year-over-year, and $523.1 million for the full year, a 12% increase over fiscal 2025 [27] - Non-GAAP net income for Q4 was $42.8 million or $0.37 per diluted share, compared to $22 million or $0.19 per diluted share in Q4 of fiscal 2025 [32] - Free cash flow for fiscal 2026 was $82.6 million, up 55% compared to $53.4 million in fiscal 2025 [33] Business Line Data and Key Metrics Changes - ACV (Annual Contract Value) as of January 31, 2026, was $602.4 million, a 17% year-over-year increase [35] - ACV net retention rate improved to 112%, up from 106% in fiscal 2025, reflecting growing demand for the AI-powered platform [36] - Professional services revenues were $16.3 million in Q4, a decrease of 1% year-over-year, with full-year revenues flat at $71.6 million [30] Market Data and Key Metrics Changes - International total revenues for Q4 were $32.9 million, down 1% year-over-year, but up 13% for fiscal 2026 [29] - International subscription revenues were $28.4 million in Q4, up 1% year-over-year, and $109.5 million for fiscal 2026, a 19% increase [29] Company Strategy and Development Direction - The company is focusing on AI integration within its platform, positioning itself as a critical player in the financial services market [5][7] - nCino aims to leverage its proprietary dataset to enhance product development and provide industry insights [12][21] - The transition to a platform pricing model is underway, with approximately 38% of ACV moved away from seat-based pricing [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position within the AI landscape, emphasizing the importance of regulatory compliance in banking [14][15] - The sales pipeline is reported to be strong, with expectations for continued growth in subscription revenues and ACV [24][47] - The company anticipates free cash flow of $132 million-$137 million for fiscal 2027, reflecting a 63% year-over-year increase [39] Other Important Information - The company has hired a new Chief Revenue Officer to further accelerate subscription revenue growth [25] - nCino has implemented a $100 million accelerated share repurchase program, funded by free cash flow and a term loan expansion [34] Q&A Session Summary Question: Can you frame the change in close rates or win rates in the back half of the year? - Management noted a larger pipeline and healthy conversion rates, contributing to a positive outlook for ACV [50][51] Question: Where is the greatest usage across the portfolio of capabilities and skills? - The focus is on adoption of Banking Advisor and agentic solutions, with significant traction in credit monitoring and automated processes [54][55] Question: Are you seeing AI models impacting nCino's differentiation? - Management emphasized that while AI capabilities are evolving, nCino's unique position in the market remains strong due to its compliance-focused architecture [59][60] Question: Can you provide metrics on efficiency gains from intelligence units? - Management highlighted that there is a direct correlation between the consumption of intelligence units and positive outcomes for customers [63][64] Question: What is the update on the credit union initiative? - The company is actively engaging with the credit union market, establishing relationships and growing the pipeline [77][78]

nCino (NasdaqGS:NCNO) Q4 2026 Earnings call March 31, 2026 04:30 PM ET Speaker13I would now like to hand the conference over to your speaker today, Harrison Masters, Vice President in Investor Relations.Speaker8Good afternoon, and welcome to nCino's fourth quarter and fiscal year 2026 earnings call. With me on today's call are Sean Desmond, nCino's Chief Executive Officer, and Greg Orenstein, nCino's Chief Financial Officer. During the course of this conference call, we will make forward-looking statements ...

Financial Data and Key Metrics Changes - Total revenues in Q3 were $152.2 million, up 10% year over year [18] - Subscription revenues were $133.4 million, up 11% year over year on a reported basis and 7% organically [18] - Non-GAAP operating income was $39.9 million, or 26% of total revenues, representing 600 basis points of operating margin expansion year over year and quarter over quarter [21] - Non-GAAP net income attributable to nCino in Q3 was $35.8 million, or $0.31 per diluted share [22] - Free cash flow generation is expected to be seasonally lower in the second half of the year, with a meaningful influx of cash anticipated in Q1 of fiscal 2027 [23] Business Line Data and Key Metrics Changes - U.S. mortgage subscription revenues were $21.1 million, up 2% year over year [20] - Professional services revenues were $18.8 million, a decrease of 1% year over year [20] - Non-U.S. total revenues were $33.6 million, up 13% as reported and in constant currency [21] - Non-U.S. subscription revenues were $27.9 million, up 21% as reported and in constant currency [21] Market Data and Key Metrics Changes - The company saw strong sales traction in the U.S. community market, with a $5.5 billion bank expanding its relationship with nCino [16] - In Japan, a major regional bank signed with nCino for mortgage lending, reinforcing opportunities in that market [17] - In EMEA, the Integration Gateway API Infrastructure solution was included in renewals with a $90 billion bank in the Czech Republic and a $9 billion credit union, resulting in ACV uplifts of 13% and 48% respectively [17] Company Strategy and Development Direction - nCino aims to leverage AI and automation to enhance operational efficiency and user experience for financial institutions [5][10] - The company is transitioning to platform pricing, with approximately 27% of ACV converted to this model, up from 21% last quarter [24] - The focus remains on driving adoption of AI capabilities and ensuring customers are comfortable with the technology [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sales and financial goals for fiscal 2026, citing strong demand across market segments [7][8] - The macro environment is seen as favorable, with banks increasing IT budgets and focusing on efficiency and modernization [46] - Management anticipates a spike in AI adoption as banks shift from understanding AI to deploying it quickly [85] Other Important Information - The company repurchased approximately 1.4 million shares at an average price of $27.71 per share, completing a $100 million buyback authorization [23] - The fiscal 2026 outlook for total revenues is now expected to be $591.9-$593.4 million, representing growth of approximately 10% at the midpoint [29] Q&A Session Summary Question: On margins and AI efficiencies - Management noted that they continue to see opportunities for further efficiency and are confident in hitting their Rule of 40 target [33][34] Question: Visibility into future subscription revenue - Management refrained from discussing next year's guidance but expressed confidence in the current sales activity and pipeline [37][39] Question: Demand from big customers and international markets - Management highlighted aggressive tech investments by banks, with a focus on efficiency and modernization driving demand [46] Question: Early renewals and their impact - Management indicated that early renewals are not surprising given the continuous innovation and value provided to customers [50] Question: Mortgage business outperformance - Management noted expansion in top 100 banks into mortgage and traction in the IMB space, contributing to outperformance [81][82]

Financial Data and Key Metrics Changes - Total revenues in Q3 were $152.2 million, up 10% year-over-year [18] - Subscription revenues were $133.4 million, up 11% year-over-year on a reported basis and 7% organically [18] - Non-GAAP operating income was $39.9 million, or 26% of total revenues, representing 600 basis points of operating margin expansion both year-over-year and quarter-over-quarter [21] - Non-GAAP net income attributable to the company in Q3 was $35.8 million, or $0.31 per diluted share [22] - Free cash flow generation is expected to be seasonally lower in the second half of the year, with a meaningful influx of cash anticipated in Q1 of fiscal 2027 [23] Business Line Data and Key Metrics Changes - U.S. mortgage subscription revenues were $21.1 million, up 2% year-over-year [20] - Professional services revenues were $18.8 million, a decrease of 1% year-over-year [20] - Non-U.S. total revenues were $33.6 million, up 13% as reported and in constant currency [21] - Non-U.S. subscription revenues were $27.9 million, up 21% as reported and in constant currency [21] Market Data and Key Metrics Changes - The company saw strong sales traction in the U.S. community market, with a $5.5 billion bank expanding its relationship with nCino [16] - In Japan, a major regional bank signed with nCino for mortgage lending, reinforcing opportunities in that market [17] - In EMEA, the Integration Gateway API Infrastructure solution was included in renewals with a $90 billion bank in the Czech Republic and a $9 billion credit union, resulting in ACV uplifts of 13% and 48% respectively [17] Company Strategy and Development Direction - The company focuses on leveraging AI and automation to enhance operational efficiency and user experience for financial institutions [5][10] - nCino aims to be a trusted AI partner for banks, emphasizing the need for a deep understanding of banking and the ability to drive industry-wide change [10] - The company is transitioning to platform pricing, with approximately 27% of ACV converted to this model, up from 21% last quarter [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sales and financial goals for fiscal 2026, citing strong demand across market segments and geographies [7][8] - The macro environment is seen as favorable, with banks increasing IT budgets and focusing on efficiency and modernization [46] - Management anticipates a spike in AI adoption as banks shift from understanding AI to deploying it quickly [86] Other Important Information - The company repurchased approximately 1.4 million shares at an average price of $27.71 per share, completing a $100 million buyback authorization [23] - The company expects total revenues for fiscal 2026 to be $591.9-$593.4 million, representing growth of approximately 10% at the midpoint [29] Q&A Session Summary Question: On margins and AI efficiencies - Management noted that they see opportunities for further efficiency and are confident in hitting their Rule of 40 target around Q4 of next year [33][34] Question: Visibility into future subscription revenue - Management refrained from discussing next year but expressed confidence in the current sales activity and pipeline [37][39] Question: Demand from big customers and international markets - Management highlighted aggressive tech investments by banks, with a focus on efficiency and modernization driving demand [46][48] Question: Impact of customer M&A on nCino - Management indicated that bank M&A has historically been a tailwind for nCino, with a high percentage of customers continuing to use nCino post-M&A [58][60] Question: Drivers of mortgage business outperformance - Management pointed to expansion in top 100 banks and traction in the IMB space as key drivers of mortgage business growth [82][83]

Financial Data and Key Metrics Changes - Total revenues in Q3 were $152.2 million, up 10% year over year [18] - Subscription revenues were $133.4 million, up 11% year over year on a reported basis and 7% organically [18] - Non-GAAP operating income was $39.9 million, or 26% of total revenues, representing 600 basis points of operating margin expansion both year over year and quarter over quarter [20] - Non-GAAP net income attributable to nCino in Q3 was $35.8 million, or $0.31 per diluted share [21] - Free cash flow generation is expected to be seasonally lower in the second half of the year, with a meaningful influx of cash anticipated in Q1 of fiscal 2027 [22] Business Line Data and Key Metrics Changes - U.S. mortgage subscription revenues were $21.1 million, up 2% year over year [19] - Professional services revenues were $18.8 million, a decrease of 1% year over year [19] - Non-U.S. total revenues were $33.6 million, up 13% as reported and in constant currency [20] - Non-U.S. subscription revenues were $27.9 million, up 21% as reported and in constant currency [20] Market Data and Key Metrics Changes - The company saw strong sales traction in the U.S. community market, with a $5.5 billion bank expanding its relationship with nCino [16] - In Japan, a major regional bank signed with nCino for mortgage lending, reinforcing opportunities in that market [17] - In EMEA, the Integration Gateway API Infrastructure solution was included in renewals with a $90 billion bank and a $9 billion credit union, resulting in ACV uplifts of 13% and 48% respectively [17] Company Strategy and Development Direction - nCino aims to leverage AI and automation to enhance operational efficiency and user experiences for financial institutions [6][9] - The company is transitioning to platform pricing, with approximately 27% of ACV converted to this model, up from 21% last quarter [23] - The focus remains on driving adoption of AI capabilities while ensuring customers are comfortable with the technology [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sales and financial goals for fiscal 2026, citing strong demand across market segments [5] - The company is witnessing a shift in banks' technology investments towards efficiency and modernization, driven by AI [38] - Management anticipates a spike in AI adoption as banks move from understanding AI to deploying it quickly [57] Other Important Information - The company repurchased approximately 1.4 million shares at an average price of $27.71 per share, completing a $100 million buyback authorization [22] - The fiscal 2026 outlook for total revenues is now expected to be $591.9-$593.4 million, representing growth of approximately 10% at the midpoint [27] Q&A Session Summary Question: On margins and AI efficiencies - Management noted that they continue to see opportunities for further efficiency and are confident in delivering on medium-term free cash flow and operating margins targets [31][32] Question: Visibility into NTM subscription revenue - Management refrained from discussing next year but expressed confidence in the current sales activity and pipeline [34][35] Question: Drivers of mortgage business outperformance - The outperformance is attributed to expansion in top 100 banks and traction in the IMB space, with normalized revenue growth in line with industry volumes [54][55] Question: Update on DocFox and onboarding experience - The onboarding experience has seen a year-over-year pipeline increase, with expectations for ACV conversion next year [59]