nCino(US:NCNO)2022-09-02 01:48Financial Data and Key Metrics Changes - Total revenues for Q2 2023 reached $99.6 million, a 50% increase compared to Q2 2022, including revenues from SimpleNexus [7][28] - Subscription revenues were $84.4 million, representing a 57% year-over-year increase, accounting for 85% of total revenues [28] - Non-GAAP gross profit was $64.9 million, up 55% year-over-year, with a gross margin of 65% compared to 63% in Q2 2022 [31] - Non-GAAP operating loss was negative $2.8 million, compared to negative $1.8 million in Q2 2022 [32] - Remaining performance obligation (RPO) increased to $907 million, up 28% year-over-year [33] Business Line Data and Key Metrics Changes - Subscription revenues from SimpleNexus grew approximately 73% year-over-year, or about 47% organically [29] - Professional services revenues were $15.2 million, growing 21% year-over-year [30] - The number of bank operating system customers using nIQ solutions increased by 119% year-over-year [19] Market Data and Key Metrics Changes - Non-U.S. revenues were $14.9 million, up 38% year-over-year, representing 15% of total revenues [30] - Strong growth was noted in the U.S., Canada, and Asia-Pacific markets, while Europe experienced longer deal cycles [11] Company Strategy and Development Direction - The company is committed to achieving non-GAAP profitability next year while continuing to invest in growth [13] - The focus remains on a disciplined investment strategy to capture a $16 billion serviceable addressable market [14] - Recent executive appointments aim to enhance product development and market leadership [15] Management's Comments on Operating Environment and Future Outlook - The global market is characterized as complex, with varying dynamics across geographies [10] - Higher interest rates are seen as positive for financial institutions, with strong demand in the sales pipeline [11] - The company is increasing its full-year revenue guidance, reflecting confidence in future performance [12][37] Other Important Information - The company ended the quarter with cash and cash equivalents of $91.5 million [34] - The guidance for Q3 2023 expects total revenues of $103 to $104 million, with subscription revenues of $87 million to $88 million [36] Q&A Session Summary Question: Can you discuss the sales cycles in Europe and their impact on the outlook? - Management noted that European markets are slower due to macro influences, but they remain optimistic about long-term cloud adoption [43][44] Question: How is SimpleNexus performing in the current market? - SimpleNexus is expected to maintain a conservative forecast, with strong growth despite market challenges [46][49] Question: What is the outlook for retail opportunities with the new platform? - The company sees significant traction in the retail space, particularly with larger banks seeking to consolidate their systems [70][72] Question: How is automation impacting business wins? - Automation and integrated solutions are becoming key differentiators for the company, helping to streamline processes and improve efficiency [80][84] Question: What is the strategy for managing headcount and costs? - The company is optimizing its workforce and hiring at a measured pace to enhance productivity and achieve profitability [91]