nCino(US:NCNO)2025-08-26 21:32Financial Data and Key Metrics Changes - Total revenues for the second quarter were $148.8 million, up 12% year over year [15] - Subscription revenues were $130.8 million, up 15% year over year on a reported basis and 10% organically [15] - Non-GAAP operating income was $30 million, representing 20% of total revenues [18] - The company ended the quarter with $123.2 million in cash and $203.5 million outstanding on its line of credit [19] Business Line Data and Key Metrics Changes - The U.S. Mortgage business saw subscription revenues of $20.9 million, up 22% year over year [16] - Professional services revenues decreased by 2% year over year to $18.1 million [16] - The credit union segment added six new logos and 35 cross-sells in the second quarter [9] Market Data and Key Metrics Changes - Non-U.S. total revenues were $33.5 million, up 22% or 19% in constant currency [17] - Non-U.S. subscription revenues were $27.4 million, up 30% or 27% in constant currency [17] Company Strategy and Development Direction - The company is focused on expanding its presence in EMEA and activating the credit union market [8] - nCino aims to leverage AI and data analytics across its platform to enhance customer experiences [12] - The transition to platform pricing is proceeding as expected, with approximately 21% of ACV converted to this model [19] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions have improved, leading to increased deal activity and sales opportunities [30] - The company expects total revenues for fiscal 2026 to be between $585 million and $589 million, representing growth of approximately 9% at the midpoint [24] - Management expressed confidence in meeting or exceeding the full-year ACV outlook based on strong deal activity [62] Other Important Information - The company repurchased approximately 750,000 shares at an average price of $26.89 per share during the quarter [19] - The AI strategy, particularly the Banking Advisor, is expected to drive significant customer engagement and operational efficiency [12] Q&A Session Summary Question: What are the drivers behind the recent revenue strength? - Management attributed the revenue strength to solid execution and improved macro conditions, leading to increased deal activity [30] Question: How is the AI strategy performing? - The AI strategy is resonating well with customers, contributing to wins and driving interest in the platform [34] Question: What is the status of the platform pricing transition? - The transition is going well, with expected price uplifts around 10% for renewals [42] Question: How is the mortgage business performing? - The mortgage business is expected to grow approximately 5% year over year, driven by strong customer acquisition [21] Question: What is the outlook for international markets? - There are signs of reacceleration in pipeline activity in international markets, particularly in EMEA [96]