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]

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, a 7% year-over-year increase, and $523.1 million for the full year, a 12% increase over fiscal 2025 [27] - Non-GAAP operating income for Q4 was $34.7 million, or 23% of total revenues, compared to $24.4 million, or 17% of total revenues in Q4 of fiscal 2025 [31] - 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 Q4 was $12.5 million, up from -$10.4 million in Q4 of fiscal 2025, and for fiscal 2026, it was $82.6 million, a 55% increase compared to $53.4 million in fiscal 2025 [33] Business Line Data and Key Metrics Changes - ACV as of January 31, 2026, was $602.4 million, a 17% year-over-year increase, with an organic constant currency growth of 13% [35] - The ACV net retention rate improved to 112%, or 109% on an organic constant currency basis, up from 106% in fiscal 2025 [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 for fiscal 2026, they were $131.5 million, up 13% year-over-year [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 year-over-year [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 company anticipates strong sales momentum and a healthy sales pipeline for fiscal 2027, with expectations for continued growth in subscription revenues [47][48] Other Important Information - The company announced the hiring of Keith Kittell as the new Chief Revenue Officer to further accelerate subscription revenue growth [25] - The company has initiated 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 what you saw in terms of the change in close rates or win rates on the back half of the year versus prior years? - Management noted a larger pipeline and healthy conversion rates, contributing to a positive outlook for ACV [50][51] Question: Can you provide insights on the greatest usage across the portfolio of capabilities and skills? - Management highlighted strong adoption of agentic credit reviews and credit monitoring as areas of significant traction [54][55] Question: Are you seeing AI models impacting nCino's differentiation? - Management acknowledged the evolving AI landscape but emphasized nCino's unique position due to its compliance-focused architecture [59][60] Question: Can you share metrics on efficiency gains or P&L impact from customers using intelligence units? - Management indicated a direct correlation between intelligence unit consumption and positive outcomes for customers, particularly in credit monitoring [63][64] Question: What is the status of the credit union initiative? - Management reported good momentum in the credit union market, with a growing pipeline and established relationships [77][78]

Core Insights - nCino serves financial institutions by focusing on four main areas: lending, account opening, customer onboarding, and portfolio monitoring, all on a single platform [1] - The platform caters to a wide range of clients, from community banks in the U.S. to major institutions like Bank of America and Wells Fargo, and also has international clients such as Barclays and Macquarie [2] - Approximately 21% of nCino's subscription revenues in the last quarter were generated from outside the United States, indicating a growing international presence [2]

Summary of nCino Conference Call Company Overview - **Company**: nCino - **Industry**: Application Software for Financial Institutions - **Key Customers**: Includes major banks like Bank of America and Wells Fargo, as well as international clients like Barclays and Macquarie [3][4] Core Value Propositions - nCino focuses on four main areas: lending (commercial, consumer, small business, mortgage), account opening, customer onboarding, and portfolio monitoring [3] - The platform serves a wide range of financial institutions, from community banks to large global banks [3] - Approximately 21% of subscription revenues were generated outside the U.S. last quarter [3] Financial Performance Highlights - The latest quarter showed a **600 basis points** year-over-year and quarter-over-quarter increase in operating margin [5] - U.S. mortgage business grew over **20%** for the second consecutive quarter, excluding tough comparisons from the previous year [5] - Organic subscription revenue growth in the U.S. accelerated by **200 basis points** to **9%** [5] AI Integration and Adoption - nCino has introduced over **110 Banking Advisor customers** in the AI segment, with significant momentum in AI adoption [5][6] - The company aims for all software to evolve into AI capabilities, enhancing decision-making for financial institutions [9] - AI features include Continuous Credit Monitoring and operational analytics dashboards to track efficiency gains [10][11] Sales and Market Strategy - New KPI introduced for **Annual Contract Value (ACV)** growth, targeting **80%-90%** growth [15] - The company is optimistic about Q4, historically its biggest bookings quarter, with a healthy customer base and improved sales activity [18] - Changes in the sales organization have focused on accountability and efficiency, with a shift from a one-product to a global enterprise sales model [21][22] Margin and Efficiency Improvements - A reduction in workforce was implemented to streamline operations, resulting in improved margins [27] - The company aims to achieve its **Rule of 40** target by focusing on subscription revenue growth [28] Growth Initiatives - nCino has identified five growth initiatives, with plans to add more in the future [28] - The mortgage segment, which constitutes about **15%** of revenue, is expected to contribute positively to growth despite previous market challenges [29] International Expansion - International growth was reported at **3%**, with expectations for accretive growth next year [40] - The company has made strategic acquisitions to enhance its international offerings and onboarding capabilities [41] Pricing Model Transition - Transitioning from a seat-based to an asset-based pricing model, with **27%** of customers already migrated [46] - This model aligns with customer growth and efficiency gains, providing a potential **10% uplift** in revenue [48] M&A Impact - nCino has been involved in **270 customer transactions** over the past decade, winning **95%** of those deals [49] - The new pricing model is expected to enhance revenue from M&A activities by recalculating assets post-merger [50] Underappreciated Aspects - The AI strategy is seen as a key differentiator, with nCino positioned to lead in AI banking solutions [58] - The rapid adoption of AI by customers is not fully recognized by investors, despite significant growth in customer engagement [59] Conclusion - nCino is well-positioned for future growth with a strong focus on AI, operational efficiency, and international expansion, while maintaining a robust customer base and innovative product offerings [58][59]

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 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]