nCino (NCNO) 1 Apr 222022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to nCino's Fourth Quarter and Full Year Fiscal 2022 Earnings Call. [Operator Instructions] It is now my pleasure to introduce Brittany Riley, Investor Relations.

Good afternoon, and welcome to nCino's Fourth Quarter and Full Year Fiscal 2022 Earnings Call. With me on today's call are Pierre Naude, nCino's Chief Executive Officer; David Rudow, Chief Financial Officer; and Josh Glover, President and Chief Revenue Officer.

During the course of this conference call, we will make forward-looking statements regarding trends, strategies and the anticipated performance of our business, including, without limitation, the acquisition and integration of SimpleNexus. uncertainties based made current and economic available as to financial risks and are entail and are industry documents, statements SEC services on various assumptions our our to conditions. certain of and of including forward-looking those on other and the views management's expectations, subject filings related These and in impacts publicly COVID-XX described global today's the date business, revise disclaims obligation update forward-looking nCino or any any statements. to we discuss of certain call, that will believe aid understanding metrics today's the we our on Further, also non-GAAP in results. financial comparable metrics to this website to and reconciliation the Form found A our which call. exhibit an with GAAP before the in release, today's just earnings as on X-K be available is furnished can SEC call now to the that, will With I Pierre. over turn

and achieved fiscal thank results. are in fiscal year year revenues discuss We 'XX. to share achieved total 'XX in over the joining and us and how of with an be today $XXX for million XXXX XX% quarter fourth you year. thinking about a increase tremendous here in today had fiscal you our we 'XX Good to year full I'm to We XXXX, beyond. fiscal glad and afternoon, fiscal we success

announcing Our Fargo, release in banks Wells business. one in strong the with of Shortly a U.S. fourth quarter key expansion issued with of nCino deal press was those wins our big before we the core especially some significant a this new one call, four wins,

and That project the Fargo is commercial off in 'XX. quarter signed second of Wells first we kicked fiscal going well. recall, for you As has lending

lending. System Wells Bank that another fact, signed to with their small business and during So small Operating consumer expand business deal for Fargo bank the well fourth us the quarter, nCino into in

of our growth. team partnership enable with We trusting to proud are platform Fargo, future and and they're extremely Wells further our our their

we our on to our business the leader quarter international the will vision in as shortly, worldwide we Josh was footprint to numerous cloud Germany of as markets, as execute planted international more continuing France, to fourth South it while grow year U.K. also grew specifics strong Canada nCino in banking. markets and flag international to our a new of Spain, Japan, Africa, but Our such continue mature the being on from the to to in touch

fiscal company. for in completing us highlight our all our leading fourth a of to services done thank financial to their This as efforts major acquisition our get transformation was digital important involved of SimpleNexus, element teams Another software acquisition industry. hard quarter I the is deal to this year-end. cloud-based before we mobile-first the of an work want across homeownership strategy for and continue drive our

you see want some loan at and we nationwide. on opportunity this with I a serves banks the more share business. to independent statistics for XXX to minute credit unions XXX banks than and and Today, XX,XXX originators mortgage over than SimpleNexus So take SimpleNexus more

work we continue referral nCino number programs as gain base. nCino starting the SimpleNexus teams have to And our SimpleNexus existing aggressively on using to lead fiscal our We and banks expect sales sharing established unions this our in of opportunity, are within software traction. these credit capitalize to increasing solution this cross-sell and transformative and To 'XX customer programs.

the that seat based results volumes. on generate subscription-based revenue reminder, company nCino, financial are similar and a As SimpleNexus per enabling mortgage more not predictable, recurring to model transaction to has a

can leverage is than statistic. the there look mortgage one key seven SimpleNexus. out for we of a that our originated several ahead, loans. continue we SimpleNexus in $XXX equated And the in in powerful You've every say to mortgage heard U.S. driving This trends loans This in through XXXX more are was before me processed industry to growth as that business. billion

refis purchase significantly shift activity, as After record of years increase. expects the industry home refinance First, market. this to year decrease to I a as inventories

parties the Mae's forecast, $X.X for estimated mortgage volume the share XXXX. purchase suited According same trillion, mortgage Fannie home approximately a X.X%, March officers easier However, involved officers, continue and application XXXX purchase. We and home their the market in mobile-first SimpleNexus provide is it borrowers SimpleNexus as purchases is to connects purchase referrals volumes to the demand grow. find to above for believe all particularly utilizing Loan loan will purchase with realtors, well platform. in at third for in

increase, to homes growth this continues continued and for for differentiation demand in As we see opportunities new segment.

closings Second, of significantly the demand pandemic. increased has since the start electronic for

from be As financial without to able our notarization. a electronic digitally, face to remote meet SimpleNexus or to to fully face documentation, a lives, access upload traditional, person. borrowers solution with closing, branch e-closing supports online having platform, of nearly complete fully With lenders modern hybrid in transactions and every have and integrated closings to visit that want digital closing Nexus consumers to aspect

best-in-class, systems new XXXX, and home and process with and Hispanic homebuyers. with the Forecast seamless, then CEO Accenture, help SI be a Bilingual, is during Finally, quoted of of SimpleNexus the the will could longest-standing prospective is driver is all recent American is cloud-native underserved market. enabler, Hispanic Spanish-speaking the homeownership nCino's fiscal to this of differentiator. to that that see was Nexus fiscal a tailwinds key the Julie more fourth the trend I see buying. study will of buyers our cloud response, A growing of stages the as quarter of growth more. and the for the traditionally solution. an Sweet, launched accessible and saying, as beyond. these trends can engine as And end-to-end largest comprise suite, people, of We one loan agree to XX% AI from feature recently support three 'XX the process partners a serving from There not makes data third of we ownership we In SimpleNexus product the opportunity homeownership mobile-first the in incredible market. us growth XXXX, expansion home key XXXX Urban Institute

premier of We are all institutions uniquely the to around globe. be the sizes all provider cloud software for positioned financial

have by AI transformation, And union leveraging drive data a digital offerings credit We scratched opportunity just bank. our including surface. community, barely every enterprise and and fantastic mortgage every regional nIQ through challenger we've to of bank, into and the independent corner bank,

that annual excited to believe team revenues which that, is And our and million now to North it best fiscal this XX the started in in come. here in approaching of proud years over is we We yet $XXX are global incredibly turn 'XX. company Carolina, ago Wilmington, company with a I'm Josh. I'll

I'm today, you our Thank you, to great results fourth It's fiscal year and of excited on strong the be about Pierre. XXXX. quarter with and

their that to customer, In our of and products, is increasing enterprise Before SimpleNexus. growth market-leading of remind of a Banking. help and transformation and within want Commercial U.S. our based the lending to nCino clients commitments quarter saw pillars, key renewals. a on their fourth largest I with with to growth Starting of year. quarter, One nIQ fiscal we some their multiyear top Banking performance U.S. in I dive wins Commercial strong the each enterprise few highlight our consumer fourth strategy these billion like over segments retail Spreading. into assets, in financial financial four continued expanded solution, double the full everyone notable commercial bank nCino's bank including that to largest drive and specifics, into adopting deployment commitment and a XX while our nIQ pillars nearly I'd expansion with nCino simultaneously expansion, international Auto $XXX their

As commercial, continue pay saw geographies, newer and and we off we generally lead fiscal to markets in 'XX. enter that with we strategy

continued Canada our year fantastic despite example, For lockdowns. a in team had

during Also, that we to first CIBC, Canadian quarter, customers. as Commercial nCino top CIBC five software in year during Canadian Canadian that bank trusting fourth top by joined in bank. top the partnering I'm financial during during addition we appreciate announce is base us. proud an was of remember institutions fiscal market-leading with another signed may nCino Canada. nCino in largest top deeply Today, these already Banking third 'XX. the the Canadian the You are quarter, platform fourth institutions quarter, quite also the an to announced customer Canadian the we we seven We announced five had five customer. the Canada solid bank signed five nCino. That

as We retail lending Canadian each lending, we'll growing are such making business momentum, on with of laser-focused on these successful. that customers small on continue focus solutions other base nIQ. and customer And to our

with not may strategic you Japan. as Turning I'm have digital international as nCino for recently Kiwibank, pleased but our in origination our Continuing logos to momentum we three the business. priorities investment the with with support may first Zealand-owned APAC, to in nCino New that note efforts. of announced you their for recall, announced areas they technology strategic the will partnering scalability other to continued Last transformation their year has lending Japan. to seen customer future and with Bank platform. made that largest improve and the growth of be ended market Kiraboshi our Kiwi quarter, working in bank, X, are that delivery their we

to in Banking. customers. 'XX expanded We Natixis signing are partner customer year we as One cases our & EMEA-based is excited Investment fiscal South in to EMEA with customer Africa proud existing incredibly first announce as Corporate use well with are

platform its have into is division solution group collaboration with of financial repeatable for Spreading. our CIB may with part teams deal corporate largest release also live BPCE, Natixis and process financial and press automate Natixis Natixis eliminate nCino's a the banking processes is CIB, Automated now Global manual and credit decisioning. banking Natixis seen faster on use deliver credit partnership will Financial yesterday tasks of seamless the efficiency, CIB CIB to Group journeys, intelligence our nCino global across our You speed using to second analysis nIQ up improve the announcing France. institution. in leading Services

in recently our to local also digital markets Spain. entity and to our of London, across enable and local entities the our main institutions brand and with nCino additional hub accelerate announced We financial in Along this grow continent. our in strengthen awareness nCino office commitment transformation these demonstrates our further will EMEA the and new Germany teams, presence France

and of for institutions meet as XXXX. Bank. demonstrating and year three is commercial us nCino of and Turning calendar era. the our the Valley in expand three needs customers solutions to nCino has today; solutions One nIQ been I'd single our to in solution grow the several profitability changing early to Spreading, profitability Today, live all This digital was Pennsylvania-based customer highlight already in platform continues key they We Automated have you've across newest which their like how Commercial solution is evolve commercial solution solution. maturation Analytics; several pricing that heard we are from the to discuss Profitability. fall bank increase, financial solution, I umbrella, continued the commercial to our truly the the to lending Pricing relationships consumer using under Adoption to launched Portfolio and differentiator has including currently the nIQ. pricing nIQ comment on who and an the gain Huntingdon community efficiencies first adopters of and approach. additional years. excited for banking

and worked implementing solutions, Connelly, our small HVB. and Hugh projects nCino's features Chief and with and Along clients' business EVP work of I've best bank's streamline at profitability the these Lending will one has very employees' industry-leading nCino's As financial been commercial lives. stated, Officer commercial our pricing the on

bank platforms the to the our is of in the banks a community it all that One scales from largest way differentiators world.

look a original was with us. Banking only This heard add-on business earlier. tremendous Wells Commercial the speak quarters deepened with testament significant partnership Fargo This our and power their You two to after of ecosystem. platform, nCino We team. partner expansion team our commitment a the Fargo is secured the small Wells about Pierre to forward

account enterprise nCino fourth opening In consumer addition solution. long-time key commercial strategy, as an a use our the of in customer Deposit to our nCino's is assets quarter. for is account a nCino over billion pillar, expansion part opening lending Wells, deal with also bank of during U.S. deposit fourth retail lending. signed growth retail This its $XXX expanded

lending We solution. continue with to retail our make progress

retail a products to live believe year to During sign-on SimpleNexus with industries the fiscal on using delivering and ensure in the newer with the excited in once execution echo more these I spending innovate our by solid with ever all turn solutions several numbers. connect signed opportunity Pierre the respectively. in and business, over experience is app to to want part community time the in today. and that about and action. product about it at U.S. are Their cloud-based number and with to platform they're we I SimpleNexus downloaded technology Note offerings and the the to quarter, I'll phone, to forward deeply increased the important nCino's to mobile-first the deposit best David of over a truly account streamlined colleagues of the And huge about strong SimpleNexus for and met and our ahead. thank for nCino I've quarter more I've new advantage my I and the work sentiment. of consumer I've their and and customers. the year is XX% opportunity customers. XX%, banks, that finish continuing SimpleNexus to is fourth employees fourth sharing customers 'XX, single the 'XX. features joint we also on participants that start customers the strategy. an that, last I few a to more a our in the fiscal about tell our solution. their David? And retail look opening teammates privilege our hard in detail leaders for spoke months with want all are to you process SimpleNexus seen than had of homeownership mortgage more experience. through lending

reconciliation with A quarter just fourth available call. be this XXXX non-GAAP unless remarks an GAAP which comparable fiscal my found results. earnings numbers SEC financial afternoon are basis, on website and thanks, Josh, note in a is Please to and furnished to the to X-K our stated. that can you, for all us metrics on review and joining as today's this the Thank our referenced exhibit release, before Form on everyone, otherwise

professional XXXX Professional SimpleNexus approximately were million, million the from of year-over-year. XXXX revenues the respectively close $XX we as business Non-U.S. $X.X million XX% the revenues revenues fiscal were end an $XX.X million more $X.X were an were We Fiscal of quarter, revenues. date million, services of to are Fiscal and quarter. results. an revenues year $XXX.X the total 'XX with Total in were were driving XX% revenues of total from the revenues growing for $XX partners. XX% XX% XX% revenues an XX% million, revenues. subscription year representing quarter year-over-year, year-over-year acquisition fourth XX% revenues for revenues and representing were Fiscal their year-over-year. fiscal very through continue pleased XXXX of subscription X% of services million, or increase revenues. in Full Total revenues $XX.X year-over-year. year-over-year. our our revenues XX% year-over-year, quarter January XX% professional total of X, increase million, of of fourth fourth the $XX were PPP of included year million, of and increase up 'XX $XXX.X Subscription fourth quarter subscription increase million total up services $XX.X quarter,

For revenues the an increase than full revenues U.S., doubled last of more both from XX% outside from in full the quarter International year. XX% fourth came year, and the year. the for subscription

was XXXX services. As margin the strategy gross for compared 'XX. international to our quarter a fourth fiscal quarter increase in of Non-GAAP fourth of partner Non-GAAP an our $XX.X includes ecosystem professional year-over-year. for gross XX% of XX% fiscal XX% profit the reminder, leveraging was million,

for fourth with the as fiscal from $X.X gross was Non-GAAP enterprise larger of becoming as as subscription the revenues operating fiscal of well and more in loss comprise to a improve product million customers subscription 'XX. 'XX largely quarter total million margins $X.X Our revenues. of contributor compared to international mix fourth our continue quarter

of fiscal to non-GAAP $X.X fourth $X.X compared for per negative negative to operating or was quarter fiscal Non-GAAP quarter $X.XX fiscal for the the XX% quarter compared to margin Our 'XX. or the the million loss improved of share fourth of 'XX fourth share per nCino in quarter fourth with 'XX. net $X.XX XX% in million attributable

million operating non-GAAP XXXX, loss was in 'XX. fiscal with $XX.X fiscal year million For $XX.X compared

operating net million 'XX million to was fiscal compared to share fiscal per 'XX to for 'XX. fiscal $X.XX for $XX.X improved negative or non-GAAP loss $X.XX Non-GAAP fiscal year $XX.X Our margin in to attributable X% or compared X% nCino per in share negative 'XX.

million expected as contributed remaining XXXX, $XXX Our less obligation, in amount in XX category, up months. million RPO, with the recognized of of XXXX, $XXX with January the of be or increased RPO, XX% $XX million performance from to as XX, over $XXX $XXX XX, that million million to to XX, SimpleNexus XX% than of up XX-month XXXX. as January million January next $XX

of SimpleNexus and million. fourth million for was quarter of quarter cash resulting compared $XX funding ended Turning fourth in activities of cash. cash quarter in operating million in cash of expenditures with to million acquisition, million After free cash quarter the the flow used fiscal the Net were the equivalents $XX.X we $XX.X the XXXX. $XX.X in $X.X negative fiscal Capital 'XX. to

QX billing quarters. generate first second reminder, our quarter, in strongest the is cash which and a As should collections greater

to nCino XXX XXX $XXX,XXX year. revenues, prior 'XX. more end at XX contributed our greater to 'XX than X,XXX million fiscal capital reported For We these fiscal the from we used fiscal ended million, the flow customers, of of free an compared customers, million. end SimpleNexus, million 'XX cash bank system of the up $X.X $X Of to than from 'XX XX operations XXXX. fiscal X,XXX at full subscription operating $XX.X in resulting of year, customers, expenditures obtained subscription $XX.X through and the negative in of in including contributed acquisition Of XXX with revenues, increase the over cash fiscal of those over

fiscal rate excludes year retention mix more was deals, XXX%, faster balanced bookings typical down XXX% earlier were 'XX as any Josh. upsells saw 'XX than results. of in impact for this existing expansion by year to PPP with for part activating customers revenues prior revenue from in new not year's those were This mentioned 'XX including and retention with as from We our a fiscal largely much our return sales subscription rate customer business. of Our they fiscal to healthy fiscal SimpleNexus our a

year, our in with Our contracts churn that line X% average remained including subscription fiscal of to of PPP annualized revenue. in rate, the concluded X% historical

guidance. to turning Now

revenues subscription expect quarter, $XX For $XX $XX of the of $XX first to total to million we million million, with revenues million.

Regarding and SimpleNexus' contribution, we in results total guide to to manage company future. intend the

However, attributable operating for for million revenues $X.XX our the year-over-year of to loss growth million net non-GAAP quarter. for first be per approximately to to subscription the in based plan balance shares assumes basic is of expected weighted and of XXX average guidance million nCino $X.X fiscal loss of the the $X.XX easier with organic outstanding. $X.X first subscription quarter. This share a XX% to discuss for midpoint to approximately and comparability. we combined growth subscription Non-GAAP organic This 'XX, XX% range is approximately of on

which of will year million. $XXX full first the organic million of midpoint of of to second annualized assumes our approximately with growth. guidance year fiscal a fiscal $XXX organic with note year-over-year headwinds For growth growth Please PPP our XX% over present to revenues does some from million churn assumes of This XX% little $XXX to revenues subscription and subscription subscription in million revenues $X we million 'XX, rate. that guidance quarters expect total XXXX, at range the subscription $XXX of

$XX.X million non-GAAP be 'XX loss $XX.X expect to operating for We fiscal to million.

onetime expected half based nCino this to which shares SimpleNexus $X.XX loss net will costs. loss be expect a includes outstanding. per approximately basic We of million certain non-GAAP weighted Non-GAAP is of integration on to to operating share close average XXX.X $X.XX attributable to represent

our We to $XX cash as 'XX of facilities. expect negative approximately and we from expenditures in operations million capital expand fiscal incur

fiscal our of both opportunity 'XX positive for SimpleNexus the reflects view nCino use relative business. to global and of cash increased the core Our market

to expect In ahead. cash team open focused with summary, for growing profitability continued efforts the flow Given nCino is investments revenues, in non-GAAP our quarter that these for do 'XX. enthusiasm to financial the 'XX positive work free performance and I questions. on of world fourth subscription operating hard on fiscal the we successful. achieve income we of passionately as appreciate now customers a And our fiscal base and line credit is the will your your well the truly that, around the all as making opportunities strong

of first Instructions] comes Our with Tillman line the question [Operator Securities. Truist from Terry

the for I it, quarter knew said, congrats on questions. as congrats new two and know more If had goodness lyrics but would business. strength I lyrics. I And involved, guess the Canada, on the thank I on David, normalized to sing maybe fourth Oh, you I bookings, don't the everybody

The question. first question multipart is a

And first, The recently will the know SimpleNexus but this did Josh, of of had But in energy I think, follow-up is I What question. some you don't first simpler. to second that I had low-hanging kind where from see one terms question, see do Pierre a first event, be And then fruit for the Utah. synergies? on if of earliest or that? on a revenue you customer potentially

It's the now to acquisition. that work nice It's the team to SimpleNexus lot we're Terry, a of Josh. fun with past get with you been to speak today. it's

mortgage traditional and been from them synergies, and is Relative that see the because expertise first have had with taken combination I've doesn't their mortgage And a industry spent space, away loan years SimpleNexus that banking customers that XX at the for have their expertise for loan. equal a of of on for a at to the appreciation We nCino they time have more with the is focus real our then user customers. events. has great in what the we that event. from respect they relationships the deep some just the thing We've

simple matter. landscape. synergies existing integrate. really great conversations. am we our on into are I simplifying together SimpleNexus our really They're revenue That that It nicely we into with that base, these thing. excited But to a it that's those very bringing go folks So And solutions where who see like interested resonated We our customer like lot as we does see is management of customers, the their to feel something sounds customers. in a I excited customer. taking care by with the was more to cross-sell of back and great and of relationships most of that are, signed initial of customers our that accelerating we've our nCino their customer the goal of our actually today, have those. relationship built years is do first

data FY part That's the in text Pierre bookings enterprise the year-over-year larger I for are related tipping is I about point. bank think plus a point I in retail first we one still And new those. we then hear, deposit on in account Or the there of Wells question your quick about the billion did both the banks a $XXX data points is potentially or on as great potentially enterprise new guess, guess we for David. that on growth got you included opening. more second think to, we or around And in I of release 'XX, -- consumer? offing? a guess win. was on for Josh, Fargo the had then And press this then talked I consumer see on the and

proud business case obviously use and Wells about business announcement we're their that make expansion consumer with within is commercial the to excited small really something that we were of the because quarters ago, Two the bank bank announced relationship our into Fargo. well. executing we're small and We

quarter. a and experience they They a their and see point as contracted $X for billion the by do nice out fourth we'll growth opening those want put press Bank. you goal in various in if platform, don't That's give retail. bank release pursuing. the we to evidenced the for We a Armstrong retail across lending So a products the disparate vision Oklahoma. out single for business, continue to for small that's play deposit I customers momentum the during account would commercial, for because And

organic I'll and know by David, of XQ, XX%. like great. based of to also sense after could promise. headwinds you're on organic full I not first stop notable your growth the that the bit the is up more the a growth. That's picking terms guiding color I year XQ just as this, in are on on but you're year? The bookings there kind be activations, ending little is half

Thanks, Yes, QX slight so expect great. and Terry. further XX% the QX, into improvement in into in we a moderation some QX, Yes, then improvement that's QX.

the as that see would that's that So way we we today, -- to we flow. revenues expect

comes Our with from BoA of Brad line Sills next question Securities. the

oil, a of to wanted the with banks. environment, a on We've year. I environment we've threat ask of inflation, of just fiscal end nice which general the should cetera. got Congratulations a for the here, about be potential Pierre. recession et rate interest Yet, got cost war rising positive here the and the

of terms spend transformation overall? CIOs what to of hearing curious, in are willingness from a banks Just you digital

I as building Europe rising at around got leading off is see see digital that is there, question would because We've interest don't Yes. profitability. ESG. good Great by We transformation slowing with We I mentioned kicked and solution an the pandemic. acceleration team actually rates you see of bank there for on additional say world. a out it. all. down initiatives the actually working whole

have have the We because many if that how important, tremendously portfolio will it, in what those those, and that how see that is it's judged oil an about nCino them to having an will you ESG the a banks on goals. internally every British senior a only is building moved and an cetera. it, all program can Petroleum, actually ESG have compares speak metrics look we green instance, can okay? ideal their you banks of company, knowledge. be evaluated will the segment, -- codeveloping if be solution. to our for data and report we for will based with become company ESG in for one future around have like, windmills, tell portfolio frameworks to what because us about interest so We the make role but is which of And people what do models the actually most on to leading that but et we think and loan as tool loan, a what we into Because loan, we you not customer, of helpful. a that which And of And is

a I tell about optimistic you, environment, So see would future. we the and we're overall, positive very

you QX? hear. that in QX, in forward. then the churn. going David, onetime PPP Just on please, to the your any Great for the color on And outlook on kind and that just Is mentioned million view, $X that one just of comments the

Yes.

in So the that expect had And quarter fiscal PPP. that on seats being 'XX three PPP, bookings we we million and second are negatively $X activating first we from had then also, have churn. PPP. redeploying where fact see didn't seats. The We million those We're $XX.X quarters that in any also are impacted to now. those we not in

We expect to churn out $X million.

And the of the those with repurposed and/or being so rest customers elsewhere. are stay

And the how And view year for we that's it. so PPP. that's

rate. seat, just a Yes. when want is essentially to And I emphasize, that repurpose a we zero growth

growth rate. though create the a an come so the in impact. finally, quarter. this difficult end Okay? compare to to We But even does still like And we'll that's redeploy year-over-year of that the second them, for

Your Saket next of line the question comes Barclays. from from Kalia

all. business to the -- you as and the commercial, we're congratulations, of start deeper Wells? how what Josh, did we're where then with lending, your to that But opportunity leading land clearly big with Wells with and of into rest just into sort expand more of expansion expand with small you. here Fargo first base commercial maybe level like maybe is you at Can you go at just look -- one broadly,

have to nice we're had going with that. pursue commercial. entry Saket, small to success, situations to do Look, speak We business we always that we'll to large point you. expand on a our be then where bank and through

a tell pursue accounts to And platform. the about they for the So all whole to them the single provide can their the market, goal value with incremental story that. going we're is across these to customers

you prepared investment impact the out well. little that the about margin on talk touched topic, a to then profitability out, just remarks, maybe walk And talked few Got maybe it. my some about in on more just maybe sort Got to just the flesh year? you David, just it. SimpleNexus think but broadly. onetime it of can as and a through I follow-up, there this path for this you bit zooming

Yes. great. that's Yes,

on 'XX, hiring. We've about force big So tripled the half the is loss for at fiscal We've SimpleNexus. that sales a of SimpleNexus-related. done loss

we've to So team well. that's this year, annualizing product as the added

of And we The have that the around some And integration as full of smaller loss many so really marketplace. the the adjustments is that's balance headcount from salary loss out on that for consolidated to -- about companies around some there like with line you see is of the but year also adds. in just around we're that making, be loss half numbers. of more well, costs is those half

And so cost that's on side. our the view

committed being positive operating are flow in positive. free We fiscal and income to 'XX cash

we and place, in the got in that visibility plans model. in great headcount have the to are doing committed 'XX. fiscal We We've

comes next our Brent question the line And with Piper of Bracelin Sandler. from

these kind to and retail. Pierre, into see expansion now start we I'll bit. expand pretty a renewals of with obviously, about to of opportunity customers? like existing about nIQ, you renewals sounds opportunity the little further Encouraged the with some the think Maybe Xx SimpleNexus, do have, You it here. good talked you, How traction to

customers? installed expand looked much in room you how If you to do left the just with have base, existing

Yes.

when at bank. look theoretically, banks coverage overall that okay? XX% about or I have client We of in So left XX% got you've to opportunity XX% because, our have to we the a we tremendous explained past, seats, our of customers, only you as the a

as of point entry that can addition we SimpleNexus, retail. literally take an the on with Now

the you we we with earlier multiple creating retail are of but it's went Wells heard side small into a As Fargo, okay? So bank, points. business case, use for the just

we very I'm that opening, out. to institutions You now the we billion nimble side quality larger deliver, this software. on debrief platform bank they pipelines. what see team, say their we vision as much that in $XXX are and And level are actually an of the heard beginning banking We've bank optimistic brand a tremendous today, go we account more a so in we're unprecedented built forward. with other to the attacking in deposit in playing we And deliver going is SimpleNexus of a provide earlier

the all on are business. we fronts of So optimistic

uplift uplift color. uplift? and three for nIQ frame trying every three how think specifically, XX% nIQ dollar Just XX% those drill products what three then Helpful across into of David, Are about we potential the opportunity as And we for those products products, to around pricing? a -- from Is could those down be? a you, commercial $X to it the the should spend? the economics analytics, portfolio commercial

Yes. very products. about excited nIQ we're Thanks, Brent. Yes, our

new actually whole of the traction CECL live product would the we've great With Auto given of pricing, customer interest Spreading we've about any and ACV on PA XX% expect nIQ and to commercial seen had went We a on that. product where on customer. side, some as contribute great

question line with Autonomous comes the Suchoski Ken of next our And Research. from

the I think And XQ. growth for you assumes organic full subscription subscription growth. fiscal organic also just wanted XX% revenue guidance then the fiscal about I I expecting guidance. to David, ask mentioned year, XX% you're think that revenue for

into curious year trying So you growth of is much that year. to also growth lead two the first growth faster as the how understand that trying for I'm the just So see is number. reconcile half rates if full weighing acceleration? in conservatism Shouldn't to that just those and PPP on baked to

Yes. Yes. Ken. Thanks,

is similar some we'll our guidance done in built model. model, then way for SimpleNexus provide does expect accounted kind second the have -- that at that fourth little we moderate in see of trend the on quarter past, quarter. -- the we QX, to a the do and add That's to go then it an guidance And in the we XX% the at to in in as modeling. then less the quarter year-over-year we the moment so well. and improve as achievable based growth growth improvement the in further to we visibility So has third and

for we year, business XX% the For expect whole XX% the subscription with organic growth as growth. a

I to look are a year next as And -- penciling you I ask Okay. then might cross-sell you can figures like. a in or mean that revenue And what to standpoint. and SimpleNexus Great. little and of a what us give also, then standpoint from just the for wanted a customer year, about kind either this flavor cross-sell.

offer We about we the the that as as Absolutely. we how We experience off. on I paying would understand is Ultimately, to journey cross-sales process this relative set to and guidance? everyone that evidenced for position story David, these we them. up transform that aligned finalize like you by opportunity see those mechanisms combined take cross-sales for the their to -- are to assumptions address about the can nCino-SimpleNexus manual would customer acquisition, team out enabled helping earlier. spoke a the customers, fantastic referral customer the to homeownership jointly the the got and

mean close I we Yes. overlapping I when customers. did the an think we of analysis transaction,

know that see to I a closed each that as we'll as earlier getting we're other think -- activity, and end activities product. just these that with assume based of minimal would conservative on think sales cross-sell the we get know model. But up we But expect, we early view to we closing taking be conservative on we the possible to the the some sales today. as force

comes the Your from Beck of Josh KeyBanc. line with question next

ask you greater streamlined is excited is of mortgage areas some purchase the growth get there the for a front I really digital a mortgage to bit market, a much on also the end. about. really demand SimpleNexus wanted little alluded to certainly, Certainly, in topic. there Pierre, to

So certainly lot be to there are a about. excited areas of

market down. you really side, flip the On have the slowing significantly obviously refi

the of us kind the understand forecast out that point balance for you how factors David's also just on kind visibility maybe help build market So address these of segment. and as you

as mortgage market and many performance-based I've Remember view took much much they players okay? actually are a in more now. small that said the with transactional very price for that pay the or volume-based, very, of that, is a transaction seat-based Yes. before, SimpleNexus longer element. And

is not quality that of tell customers We're will their We're now. revenue model reflecting because back. seeing signing more interest their of far. We're they a SimpleNexus for that coming which a is and that of software very of quality customers predictable. seeing these also So negative much rates that of not an I organization have up you the before. is seen now customers size them. mortgage the in impact seeing so large We're seeing

of brand institutions. experience our for as scaling is and company is software and are that large banking the a the scaling impact well with We believe nCino studying some that of association that why these happening. as businesses We as in

positive So that visibility, thing. got they've contracts. When revenue is a very me comes realize to it to shorter-term I

that fantastic confidence how conferences giving we're right and to confidence to the done their customers. into we've out one. number figuring that, to retention how But are to of history that gives which forecasts, right number of that all we net We deal got et their two, here. So here. us is build went me cetera. on the track the that extend actually And They've a listened

on us believe fiscal will, total of think high if Excellent. organic you're subscription in XXs, David, And to I the follow-up revenue 'XX year. XXX% I for maybe the it this point a guidance business. subscription retention a on was question guiding basis. you kind

between that? forecasting. kind gap those component the where thinking of as was business, I bridge subscription bridge Any factors imagine PPP metrics? of you're The and would other we we should a churn the we when So about where two obviously, retention is be

Yes.

over the for range I assume that's we we On think XXX%, longer a think run that in nCino. time, would the

have Now SimpleNexus higher. does

at the see I a on But you that is number that future. level. a in XXX% range think So looking elevated from an towards consolidated basis, comfortable we're could

provide an We achievable forecasting. out that give guidance Now we and is our like to thought well number.

And to XXX% net that the so run think is revenue a target. good retention I number number in long

logo because And that a that and 'XX in retention inflated inflates then is which PPP as back was heavily cross-sell, many realize, and business new well as 'XX, just cross-sell, as normalized And didn't sell new now FY logos to retention. net our calculation. more we XX-XX for FY your that sales impacts as it

Napoli from question next William Our line Bob Blair. with of Instructions] [Operator the comes

impressive. Guidance sounds And fiscal good hear signings. the customer good. international the and Congratulations year the continues also to in to momentum profitability progress in The on 'XX. be all

some What's what's business? And of pipeline as be international on large years the pipeline? on understand several the the services higher is profit or the international? model I North the America? better to with maybe the over color Just next outsourced, -- the margins the being guess this are growth how a in percentage gross And mix than -- profitability is but international equal can I professional for

take I'll profitability Yes. first. the

banks, mainly it's pricing I -- we've seen internationally. because what larger international stronger think we see

on gross And to the Josh? And the business. are the side enterprise margins similar the of U.S., side so -- very that large but

different. Yes. business. product brings resell add to sales is U.S. force small that bit margins We the I'll mix remember, the that in U.S. your And a in the just down banks. gross

gross So of as enterprise European higher, is David a impact the the the quite mentioned, is plus better banks, actually, margins bit well. as

So Europe. we see a margin business very in strong profitable gross

U.S. a the though. U.S. the market so international than to thrilled Relative I'd see a until larger be to Obviously, international that happen, had in head team the lap a while in opportunity, start, we SAM them. see can the little see we maybe

And the last look logos on in now well. team what XX frankly, years. relative Africa, in But to at If in we I at revenue them internationally. the top would We to going more we the this in world U.S. three ask very to we've everything you last we year, than really Japan. Germany, announced new announced is South subscription did in of environment we're France, doubled have what difficult We execute executing you look asking a XX two the banks. in done The

I'm financial Fargo fiscal year. we've five Toronto of top in quarters that three done in We to announcement banks proud. institutions two wanted again today. and signed Wells I saw seven Canada, in our at the because say what expansion with one Canada. You Look ago it just

that at goal globe the the that's continue of look rest when target, the I and to decided that. the So to markets we've replicating

growth strategy what a question, just mortgage The product mortgage, is on is mortgage in but business. pipeline? maybe is first margin question. set And the Great. SimpleNexus there of what around the product in the think a at a market? look the is And mortgage? you step broader just SimpleNexus, on the mortgage, do like follow-up you broader Overall, gross And

and point Josh. only, you to journey a excited getting go and but to with This is do e-closing engage after to information for There queuing journey. work with appraiser we keep is are with I in to of realtor, SimpleNexus. that we the obviously, so sale been doing logos, that the logos part homeownership have. new roll not about loan about them homeownership we'll opportunities the This want mortgage up an this go Which just process, a then that, about is I've a compensation really allowing there. not bringing engage in deep Yes. to that to to myriad with to of application. go This is with appreciate sign the is why allowing applicant because the into officer, them

to within that we but aligned get in that broader want customer, also the live, we're them deeper get and see continue much very we're journey. going to we're chain go philosophically to investing the that going value to You

to that. just can I add Yes. And

mortgage there's is qualified then your for there portfolio you the If mortgages at look market, mortgages and Fannie/Freddie.

that into relationship We Fannie/Freddie close a platform. Ellie a build with got have those no plans deepest the ACE product very to front mortgages. is for SimpleNexus or We've Mae. integrated

that in them. So we've got market tremendous with success

will And platform an complement the whole solution. platform this, story as and retail purchases, experience that you refis that We is will a that across you offerings SimpleNexus, we our product if the the integrate do portfolios. LOS different a bank all from build expand give I And single perspective employee with winner. HELOCs think this and complementary for

And as program. well mortgage our opportunity so overall as we for see mortgage banks independent in a massive banking

Charles of Your Nabhan next question comes from the line with Stephens.

a So little fourth what around led give in apologize revenue quarter look And SimpleNexus. It excluding than quarter? in that variance if this, the you color and could at expectations. positive guidance I us missed I if this some the higher to performance, but I came

absolutely. Yes,

quarter. around just early activations sales well some the fourth the quarter, we in upside sales, So requested. any that seat as really customers reason we had is given do see and in for add-on And that add-on

color. on the Simple quick one Appreciate And Nexus. Great. one

they Within but -- professional have services services their sure do predominantly revenue it's professional subscription, that mix? there is predominantly mix, within any any Or revenue? I'm is it

Yes, that they X% it's to have revenues. about -- team a XX% deploys product, services total and of XX%

operating products the have could A Great. more. the hoping in core environment developed leader. of few an I system your business. past And still number years the on perspective competitive get while industry competitors if I and sneak to one your over you're was within

seeing Just standpoint in the market. a competitive curious what you're from

you like banking, ledger, to landscape, statements Yes. wires, core look business, a online a things et one. process interest, extremely the core do the cetera. money transaction ACH, includes not of realize a That's at want It's to company, Look, out as play number If okay? have movement balances, you the processing transaction keep processing Number where calculate general the get two, we, you is account bank. the and balancing And in processes. or difficult that an of it's it the engine.

We there. have hold a strong on very

just So some you show ones. by innovative to that, big through early of I'll have the or disrupt companies been those acquired and try

that's banking in make provide want ESG global more where We've profitable act like there. I get them drive company. a record, and sits don't them what we them revenue. a and just better process for solutions to today. transform can we do. to a I FinTechs with them We drive and that efficiency, believe drive compliance provide them, the So love business marketplace We're got reengineering opportunity

all are on. So buttons we're focusing hitting banks those that the

will stick knitting. And we to just our so

Raymond And Alex our next with question of comes from Sklar line the James.

what's started force factoring sales in Great. Pierre, And see year meetings pick that the been noticeably the the to I'm with of on that's the outlook? have kind if kind at to the all you sales face-to-face organization? ability for travel, and this of investments, particularly internationally curious up Josh, profitability

becoming recently, I had to about and the make I back market get do could I've I'll internationally been easier. binder see sure speak in world that's across speak expense we I thick what opening to the X-inch papers travel a border, to and go But to of the the able David starting can assumptions. up is away. to see

So haven't out where to been of years. to we markets look in getting really we a couple forward

we up, more which are lot with in-person customers nCino. We meetings all also people events, see a at popping more convening see a in-person of helpful for back lot and very

User this Yes. beginning We're and personal in will Insight again those Conference in excited banks our that with I week. met be all June, person connections.

see literally could the You and want drive forward. energy to how they reengage and business

So that's a very for positive David? us.

is Yes. there's some And embedded we're on the travel. all in What side, return cost seeing to guidance. it's

we think travel. XX% last ended about pre-COVID year XX%, of at up I

that year, cost airline as is tickets. up. this all But be sure much to guidance expect higher that's that. our but I'm travels are That's in everybody embedded in we well. seeing gone We higher seeing who

kind deals pretty massively. Great. to Okay. but probably RPO swing these And then good have, a problem it's some of large can of

RPO change duration in within noticeable there's So David, . any can I'm curious if about you if talk

Yes.

average most exciting, still in RPO our say X.X, a think actually would I RPO is had for upsells. the five the we up of quarter. I But had ended did We renewals range. as very had the renewals at another additional strong bulk And one year have very customers X.X We of strong years. we sign larger -- up well.

nCino will customer hopefully we future. than we very an that have a in Now with years XX and longer for work bank much large that them as the be customer

Needham line Mayank of Company. from comes the question with next Tandon Your &

This Peterson is for on actually Kyle Mayank.

mortgage kind But in guys you -- in volumes, proceed adding are kind might least to any see guys origination more exposed and SimpleNexus. to least given I spike constraints some of that less growth if lenders like is on their touch Just of wanted terms of recent it's some in these have model. change directly of to in the plans. outlook client the given at noticed appreciate at rates demand subscription of that of just you pressure a going seats, probably wanted obviously mortgage to

a any notable of seen not that. or impact cancellation seats from No, market. like competitive It's material we've

their I two companies superior. driving these think technology and association growth clearly is is of the logo

looking good for it's So us.

that quick the there helpful. gross professional of services want about small at to on a Was onetime then best little one the look margins, anything of they way layering services That's kind there? SimpleNexus The to the services revenue? amount And in margin that, kind forward. think was follow-up. Okay. just of, Or bit came in light. Just going

off And was real that had a quarter. customers the reason the the more we call No, trend impact has we took that I with really why that quarter. happened that just the -- SimpleNexus was was in that, were Yes. no that number weeks of that year. our noticed But the rates of can only number the beyond a out thing in was around last the a saw utilization on quarter. customers. that the of It There two that's

I'm this showing at time. no further questions

remarks. for hand call So with Pierre to CEO, any that, closing back over the I'll Naude,

following closing, Thank noted growth. you, further the continued operator. I position investments David are this for year reinforce first top us making earlier, would line to what In we to like

with to at also nCino committed company recent free at annual fiscal 'XX. are motivated and I positive reminded High-performing non-GAAP We I incredibly And need for companies employees. experience we my profitability our our during to how flow kickoff. like fortunate would operating income you are. and kickoff, share was creative cash

be and end entire day. in-person proud opportunities people by my year enthusiasm, business this which the every The virtually is colleagues. culture our innovative demos Our for now more of we passionate much. pour creativity skits. like with of employees' favorite, call and week and X,XXX excited the gathered customers thanking our what passion product a in keynotes, single the This ahead. you into for across to our conversations, truly team, from updates, and all and is inspiring. panels and leadership Thank includes so partnerships employees our you products, volunteer would and and I I'm globe our innovation, than SimpleNexus customer our to nCino

you for gentlemen, participating, now call. today's Ladies may Thank disconnect. this you concludes and and conference