nCino (NCNO) 28 Mar 232023 Q4 Earnings call transcript

Good day, and welcome to the nCino Fourth Quarter and Fiscal Year 2023 Financial Results Conference Call. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session.

As a reminder, today’s program is being recorded.

I would now like to turn the call over to Harrison Masters Director of Investor Relations.

begin. may You

Financial welcome call. and Naude, fourth fiscal Orenstein, quarter Chairman and Glover, Good Revenue Chief me to on earnings Officer. Chief Greg Officer; With Chief Pierre and today's XXXX Josh and President afternoon Executive nCino's Officer; call nCino's are

are are forward-looking acquisition These performance course business, assumptions of in made of make including, call, revise any on as and strategies obligation SimpleNexus. trends, subject other based financial without of to we filings economic statements. conference SEC forward-looking and risks the regarding views today's publicly described statements any and entail the date integration current our forward-looking conditions. uncertainties industry of During update certain documents, disclaims will the and limitation, services and to and this statements management's or and available the various our global anticipated expectations nCino

this we Investor is as believe earnings earnings comparable non-GAAP our can website call, reconciliation and before Form certain X-K to as as found well will GAAP discuss the today's financial A our today's in in on of be aid Further, results. also we which release, Relations our metrics that metrics furnished website with available at presentation SEC just exhibit on to the the an on the call investor.ncino.com. understanding

call Pierre. to turn over that, I will the now With

Good Harrison. today. you, afternoon Thank us all and you joining thank for

of details the accomplishments share our quarter to and with pleased fiscal are you. and fourth We XXXX year

few have impacting we remiss the would acknowledge sector. events be if which walk I results, been past not before you the I banking But did of the those through weeks,

States. financial regional the turmoil aware banks all are surrounding been United significant particularly certain uncertainty there institutions, in We and has

FDIC. ago, in total As and the Valley you known the taken will financial quarter of customers, fiscal less than the Bank, impacted A regarding Company's institutions revenues Silicon year of XXXX. our X% over represented Signature which Bank by weeks These both collectively we filed were X-K few an third recall,

X-K That the Bridge we full was assume for received notice they true nCino, fourth the Banks make that ability had the the vendors. established contractual that timely to banks as from have payments that been have and to well. was filed, Since both obligations within to quarter FDIC

took we announcements and note New Signature Bank, Community Valley Citizens and assets of would York of Subsequently, acquire First that Bank respectively. Bank Silicon

We with the will would situations. situation this see out M&A other monitor to and how plays just as bank continue we

that a financial remain confident customer while and sizes you remind than around and me support our through navigate has X,XXX the types current institutions conditions. of large they globe. all customers to our nCino ability capitalized diversified Let representing We in as and more base, positioned well

focus strengthening across to innovative financial our ecosystem. partnerships on taking customers, services is software our continue we developing care What and cloud-based of the

team, those and a to been priorities. As have always will management continue key be our

incredibly promise this are about the the have opportunities Company business. we passionate and We for see and growth we built future

will will controlling control, what do continue focus what can to markets we do. markets and We on the

and a long-term challenges short-term software management been cycles. while great economic many manage a seasoned through ability position industry-leading in team's confident different healthy nCino through continuing a am balance that model, have team to We the the sheet, for to business has I growth.

And quarter. fourth back with of turn now let the that, results the to me

posted exceeded guidance. are the Total non-GAAP midpoint quarter expectations. better and We grew profitable $X million QX, on income a that in again of another operating non-GAAP we revenues pleased XX%, than our basis, we once

toward last the year. committed we path successful the during first I'm year quarter proud team's loss million our which compared of execution improved accelerating the of midpoint to full at by the beginning second $XX the guidance to provided to of our We we profitability, year. the

especially performance, history. impressive. cross-sells The quarter difficult quarter were initial the There mortgage in including had into largest three also The SimpleNexus its competitive installed the deals largest ever, nCino its of sales team along five market with takeaways. seven signing made fourth base,

which rebounds. on be SimpleNexus. increased Two particularly as will to market mortgage highlight points demand valuable additional We share, again

progress heavily First, SimpleNexus and IMBs. mortgage by credit expanding to its into prior credit banks it mix which has much evidenced new footprint been this where and their evenly as split past between year years compared as banks weighted making and unions to independent was solid banks more of almost customers unions was

To are progress and sales unions within technology the we the the we of to platform. seen the seeing acquisition. engaged made are in just nCino very larger nCino SimpleNexus have And SimpleNexus we two the cross-selling point, the we opportunities. I'm SimpleNexus of continued are credit engineering, from on getting integrating we and teams now These benefits sales have banks Second, date, marketing. that customer the traction, SimpleNexus many by all the with by with excited integrated, and see nCino base. to including nCino

In increased move the QX, impact to banks with decisions. and ability definitely their uncertainty an on macro buying had forward

interest we In we was faced institutions an similar level of unprecedented earlier to with Canada. in their North our deal scrutiny, saw this issue behavior in in QX, continue Europe operations in opportunities. including in fiscal platform. with highlighted America, QX We financial modernizing strong We particularly from see 'XX. larger The issue

longer customer capital. thrive, delayed true That that in still while order slipped We digitally would pipeline Even taking just that that is ease fintech must signed lower banks deals quarters. that experience will and prospect of Europe embracing financial we the use this reinforces to believe cost view. from and a is The relevant Josh In started a than the if of we coming provide from only reality in close today. discuss nCino a it's bank's as get The as we even the decisions need QX, news our a were like. shortly. of more QX benefiting in was saw when health to deals year personalized customer some are moving transform. is last that to will in good signed banks of The

net to I meet reflected subscription for scrutiny, our Rule on RPO. and fiscal 'XX, led focused bookings achieving growth cycles growth specifically sales of in is quarter non-GAAP not remain fourth the mentioned to deal profitable growth. XX and Yet, overriding to which expectations, revenue we did at extended operating of increased me our that business profitability, The income focus of margin, thanks efficiencies, clear, let cost SimpleNexus remains our integration the But on of with model. our our the durability are be ability driving increase center including

technology of the nCino and front development, end in We into the invest are daily to continuing SimpleNexus product utilization platform. especially around integrating

sales renewing success also teams maintaining the prioritizing are expanding our customers. to by key We success in and global to SAM and our with and points customer deploying cover the touch

and and We'll the the from enthusiasm share to for and excitement May. regional this X,XXX turn and year community at in Insight welcome The enterprise, strategic team our global XXXX and company enthusiasm solid global, unions partners customers credit ahead. a over last kickoff set we banks month from

strategy, provide more to account, banking of which will we to portfolio This we the demonstrations And the takes year, excited environment execute. difficult networking are product into macro Greg and in have to product details the as and the three Carolina, our remain ecosystem. 'XX conference nCino for annual ability together fiscal our we Charlotte, even on and across breakout days sessions, keynotes, guidance, confident accommodate moved demand. increased our North

let me on he for for provide highlights 'XX. fourth turn positioning fiscal well call as can to thoughts the so quarter Now over our operational Josh as the the

of strategic teams our a noted, typical experienced recorded lumpiness with expansion environment Pierre significant as marquee and Even logos And we above signed Thanks. banking. challenging more and still, deals last new enterprise global quarter, accounts. beyond the and selling

assets team over banks as in the as customer as global largest example, of bank For a added billion Ireland U.K. a $XX the for commercial with EMEA one new lending. division of well in our

of of banks these top the Athena. five With the addition U.K. customers, Ireland use

In and selected than financial we nCino financial retail nCino. initial solutions with Financial with the Group, more saw and a company opening treasury small onboarding. deposit commercial, their U.S., contract continue business with privately lending, account $X institutions adding billion Wisconsin-based for services Johnson along held in assets, multiple leading to

in retaining of a we great since healthy deposits on deposit set experience a products with believe that maintaining is critical offering base. banks and broad environment, As organic growing we them are and filling know, a focused the this to

contract, at and up fourth with quarter and a middle of is great nCino to the now financial XX% in profitability. bank example system Financial customers of nIQ back and of lines. Adoption initial auto the least expand institution They continued Johnson front, offerings pricing one commercial nIQ operating our XX% solution, year-over-year. utilizing spreading product purchasing fully embracing nIQ their this a to with across modernize also adopted offices platform

following nIQ a evaluated XX commercial and New pricing a customers that signing bank multiple included vendors. U.S. process top for profitability

solution. our This date profitability agreement largest to represents and commitment pricing a for commercial

their saw the customer with We in good across multiple adding their also their $XX new expanding eight divisions existing in upsell assets, adoption XX% nCino States. over sales. continued FY divisions lending the tripled in of of in our quarter. quarter, expanding commercial billion nCino Western customer business, 'XX, An United with course activity across fourth This the representing over commitment the

proof the of in corporate business they on XX small and practice updated go value-added QX, to shown points less began that as lines year also Bank's U.S. in their QX integration bank, two find to record and including adoption gained a partners transactions services line shared to of business ways by offering solution. professional lending nCino's business we from was time system traction top Peoples Our a interactions. more that talking When live, time mandate small activating completed spend for for bank.

focusing ever, if small that qualification for in approval others examples, offer Xx that efficiency on has nCino. they do key loan helping once. Bank I'm with People's XX the with also rekey a for And platform. a and a These two is faster with bank happening pre-nCino, business times. bank employee than matter to nCino not Today, is allowed it business high-tech, and our so where would just climate more speed pleased experience working and customers nCino client low-touch shared administrative tasks. They information just that,

premier in history The nation's were a remarkable other homebuilders the Finally, accomplishment business, of business the of contracts cross-sells the fourth with largest and was two mortgage this base. nCino signed that into our one the these customer in three its largest of in quarter, the environment.

a nCino, our execution Pierre By are two key strategy is our sales SimpleNexus integrated is team combining the fully team one we 'XX. to in fiscal As activating and noted, teams, now as into independent the the mortgage in SimpleNexus' to credit cross-sell maintain bank and union efforts continue and will definitely opportunities, the in banking footprint which we team market. our critical focused our channels, expands supporting

continued focus around the by partner-driven addition Our EMEA. to will enabled proven and sales the of investing marketing lead globe digital efforts generation tools, on nCino in with be new go-to-market ranks in along leaders the the

can take financial us results? Greg, you through the

and this with thanks, fiscal everyone, excited results. closely and us Chief our Thank Officer to review more all quarter you, Chair. to afternoon fourth I'm joining Josh, Financial the work XXXX from very for financial you

the and CFO role so like our of would making my I their work transition for for and begin, teams accounting, I seamless. to efforts Before all tax thank members and the finance of hard to

numbers Please to the of all as on the today's note Form revenues. some just comparable SEC I'll otherwise the before is and in a which X-K financial call. unless With that, are GAAP an found referenced starting in from on can this and stated. to exhibit available furnished the metrics full my earnings reconciliation non-GAAP release, year, remarks our highlights that be with share with A quarter basis, website

increase Organic $XX year-over-year the and for representing were and full of an for in quarter million, fourth increase an million fiscal quarter, the year-over-year. XX% XX% of year, increase $XXX.X revenues Total XX% revenues of were for $XXX.X fourth the and 'XX, XX% XX% XX% of year, fourth and for were full million for $XX.X million the an $XXX.X $XXX growth year-over-year. increase year-over-year, year-over-year million million quarter revenues Subscription subscription an the respectively.

and sales on in the was new add-on Our quarter fourth from performance activation due customers. terms favorable subscription revenues to

XX% revenues strong challenging a organically million in As were SimpleNexus Josh total $XX.X revenues Pierre had were the market, the and XX% XX% another revenues of year-over-year quarter, in XX% or fourth revenues higher the due XX% up million subscription services growing by by revenues quarter Professional in growing quarter, XX% total and constant Non-U.S. utilization. with to noted, mortgage year-over-year. currency. or in $XX.X year-over-year improvement

increase fourth XX% organic of XX% million, in an XX% of fourth quarter On quarter gross were fourth revenues from the XX% $XX.X fiscal margin an of was of basis, fiscal to for gross fourth quarter, the total 'XX. in revenues non-U.S. profit was in up year-over-year. 'XX. the Non-GAAP quarter XX% compared the Non-GAAP

mix, higher contributor revenues. due nIQ to as subscription gross well mix including product Our continue as to larger becoming to improve total margins a subscriptions a

was Non-GAAP in with operating non-GAAP of income the compared for of quarter the operating fourth $X.X 'XX. fourth loss quarter $X.X a million fiscal million

fourth for quarter and charges Our associated the negative XX% with fourth with fourth fiscal severance made employee margin 'XX. were benefits quarter quarter was non-GAAP quarter X% million including operating the first of the in positive of the fiscal incurred during in $X Restructuring cash payments the 'XX. compared

loss and $X.X testament quarter the of in a and was non-GAAP of fiscal efficiencies, basic net of fiscal or SimpleNexus. Non-GAAP million focus diluted the to 'XX nCino operational fourth improvement the attributable $X.XX with year-over-year quarter including discipline share a the on 'XX. The Company's $X.XX fourth margins integration operating diluted was compared or to for income million per per in $X.X completing achieving of share

Our XXXX, as from $XXX.X $XXX.X January remaining million with up less XX, XX, performance January million obligation as $XXX.X in of X% XX% $XXX.X the up as than increased XX of over XXXX. category, XXXX, months million of million to XX, January

value out As the the the during impacted large quarter, contract fourth negatively sales which of deals Pierre from noted, slipped quarter. new total some added

have the of due renewals what renewals observed of in the with we fiscal the in fourth in tough significantly tracking quarter exchange lower foreign on But quarter RPO. Duration a roughly split. This to existing created and were line 'XX. was timing, volumes headwind RPO X% total customer evenly resulted in renewals The new was year-over-year. RPO and contribution on approximate to headwind growth also X% to compare from sales an since

facility used of cash 'XX. $XX clause including restricted approximately ended 'XX. million, was to $XX.X line remain the Cash Net fiscal fourth used cash credit. We from compared activities drawn the exercise equivalents million cash. $XX during operations operating in cash in exit million and in with of quarter $XX.X to our to quarter included $XXX,XXX of a termination early an fiscal million

is Capital quarter, the billings flow the of $X.X and resulting accrued first $X fourth in in free in 'XX reminder, greater first quarter fiscal collections quarter, cash second expenditures a our cash for in negative the of should were quarters As strongest million quarter the 'XX, generate flow which will $XX.X fourth fourth the million million 'XX. operations full negative million year. quarter Approximately of quarter from of restructuring $XX.X charges of fiscal reflected and cash cash for the fiscal in the of in be free

Capital fiscal million this of fiscal improvements subscription increase fiscal expenditures end 'XX contributed flow than customers fiscal contributed the 'XX. should fiscal 'XX. of cash up with from moderate from we to X,XXX these complete end than revenues, year of in 'XX. positive generate subscription begin fiscal of Of fiscal over XXX increase to customers, of we to We to more for the XXX the X,XXX our the $X ended and XX% of facilities year, to 'XX end free XX an customers, 'XX. over at greater as $XXX,XXX an 'XX Wilmington from full these XX% expect revenues,

revenue retention to 'XX revenue rate churn Our SimpleNexus. for for XXX%, XXX% subscription from of retention 'XX. or or mortgage annualized million churn banks subscription headwinds fiscal fiscal excluding and PPP was rate approximately our independent $X Elevated

year, had historically mortgage company communicated, a 'XX. experienced total previously fiscal approximately to from but churn churn have X% we banks have in we we just of to X%, X% bring As independent under last churn our rate elevated

three fiscal this into taking we factors In developing guidance main for year, are consideration.

of impacted unique adverse system the by approximately independent over from are by and acquired PPP revenue assuming mortgage historically that conditions $X.XX churn the combined remaining for X% the market, subscription operating banks customers noncustomers. from churn are high mortgage in we business million two First, and annualized being bank

While the we in M&A, two not been the frequently beneficiary was unfortunately have specific that case transactions. these of

deal sales to below mentioned, churn Second, quarter, referenced above, scrutiny along fourth bookings and the we cycles the taking extended expectations. with account were increased the fourth net into quarter in our which, that are led Pierre

are customers some some in and deals the that is The third assuming and delays factor of challenges macro prospects. current closing more in light main facing environment difficult our the we of

fiscal recognize will the in second light of to 'XX of events half couple pushed the expected in this of weeks, particularly distractions the first think fiscal be 'XX into We fiscal will and past in caused by of would revenues the quarter anticipate be we subscription true over some which otherwise to professional 'XX. services cause have the we

growth anticipated to for end revenue fiscal including of visibility subscription our said, XX% expected at the the That currently 'XX provides and guidance. renewals XX% revenue churn and top our approximately backlog, subscription

our line Additionally, to the our environment. products this our notwithstanding and execute sell goals supports pipeline we ever on positioned available with more plan for healthy before, the well to are remains year. than And top year, current

growth for revenue expect U.S. to also in We the year fiscal currency. outside 'XX constant full from accelerate the

our see accretive continue U.S. outside States. the and markets growth in in United the participate brand builds We we expect of invest of and opportunities as all outside of globally to we the from

The lines. to for rates of assumes leverage testament January strong seasonal on fourth team on services will We be all margin XX, our effect do accretion dependent a quarter expect variability our in anticipate normal Note finish expense guidance that. XXXX. exchange was that and professional as gross foreign see product subscription Further mix, margin. to in EMEA our we operating

guidance results integration business effectively of the and for consolidated complete, the will SimpleNexus we provide With forward. going

share is expected expect million million 'XX, million. of $XX.X to to revenues based first million, $XXX.X million $X of This $X.XX revenues upon XXX be outstanding. and shares diluted $X subscription of Non-GAAP average approximately nCino be income quarter of we to approximately to For total for the income to a with quarter. $X.XX non-GAAP attributable is $XXX.X first net weighted $XX.X to million per operating diluted to fiscal million the

expect $XXX revenues million, of $XXX million to of $XXX 'XX, For total million fiscal year subscription revenues we to $XXX with million.

million. million nCino for $XX We $XX based outstanding. to of $X.XX expected approximately shares upon non-GAAP XXX average income a per to weighted $X.XX be be net attributable million to 'XX share operating to expect income fiscal Non-GAAP is diluted diluted to

margin effort on operating to Please profitable that year conditions, this remain subscription number and current in a Rule years with market dedicated follow. note growth XX the growth income focused of that we specifically with notwithstanding revenue achieving on increasing non-GAAP

year, profitability throughout proper conditions we emphasize As how to balance we will market the evolve continue evaluate two. growth the over between and the

Pierre crisis, times I were publicly officers navigate closing, present incredible In can resilient experienced are during to market portfolio, well 'XX software positioned global team, a was traded balance that this financial that and to and our institutions main challenging the of business broad we our sheet, base, and financial opportunities. one of that believe environment experience from model, company takeaways sold strong With and diverse we presence product customer share. gain very 'XX,

With for questions. open that, line the I'll

from [Operator first with comes Faucette James Stanley. question Our Instructions] Morgan

open. is line Your

impact I not, and I a wondering, little of any ability March how of cetera. banks which you year to think if some revenue? terms expectations your that from affected to put guess statement And FDIC to banks? headwinds Signature on have out your in XX, to an the stated would clarification make of 'XX full timely obligated ultimately when fiscal the do as guess affected see think should those we I'm a effectively payments we were around SIVB wondering about and I'm Bank bit bridge vendors. The banks, et

M&A, noted those be our year. disclosure the in no mean, and with customers I based we what expecting his than we're view both referencing we as today opportunity, over Ultimately, with M&A you Yes. to know Pierre experience on banks the as comments, Thanks, in James. that time. this throughout dealing different an prior dealt customer noted just we've FDIC

institution in space. U.S. and a is new not Consolidation trend certainly financial the

and we that playbook executed. we've M&A from the beneficiary we not transactions. that's beneficiary that the have And been numerous times not noted this on. two did our perspective, what a we'll here Historically, we're quarter, there's we Even focus so of -- though

And places color lot or decomposed are. banks. due credit in acquisition loss that that guess, And kind go. those help guess you deconversion But ACV us via at can just exposure get contracts events? provide your and be it. least payments in banks question I some could top Got have a there's on directional allowances or -- would sense banks, wondering domestically between and trying the I just in those of to I XX of we tied differences unions, a small I'm regional where is of And that to exposures of typically do customers your if

I Josh. speak spread. can is to ACV the This

off If and we in space. you'll started recall, regional community the

business that We continue then those banks the a we'll of speaking we have about these time take lot care nice a to accounts really of big calls. there, on spend and are

evenly times ACV say market and we grateful are our that would market guaranteed is the spread we bank balance. contracts. I So, bank from that the get to and community contracts, these across the resilience regional Relative for where pretty enterprise, have the we're

this see near-term at impact those. so a don't And from we point,

Thank you.

next question Altmann from Our with Nick Scotiabank. comes

is open. line Your

I quick have ones. two

just banking this conversations sector look turbulence and were today? The for sort all Josh, like of compare what in you of how they can your before the sort with just Josh. is customers first kind of one

to we've been it's had a lot busy. because Absolutely, and discuss

lot I think these time a interest you the end to to the portfolios. looking last of at back of if banks it forced spend has year, their play environment rate

see the over don't of see did weeks, has deposit any the we quality. It like feels even calmed flows. in narrative So would credit that some last about couple down. I I say change

was accounts bigger. that smaller of to Some from

on lately you to And can't of a deposits U.S., compete very sometimes you that's market, people in your accounts broad bottom. in and I to of out the across deposits really those a the of lot you can lot regional particularly from that that The has and can a to race in spread organic risk. customers bank community fulfill offer a organic expect way compete you them, now products to for a strength. a that retain of is willing organic and is see the bank are energy What channels. well that for deposits and Sometimes multiple the realization rate been fill to that was where source real just narrative was set our

heard to since is a started person. What lots to We've get of when conversations talk COVID need want digital. heard I've my all recently go to tough, about from customers they that the things

You still want to offer them the them an convenience of throw in the just digital app. channel, but at we don't want to or website a

how So, channels. smart are diverse to fill do the out we of well trying our those banks that multiple figure customers and set products to do products engage provide we across how

that's is job, them they if see and The look I've little a mobile has lot than spread they their deposits Big, out. where personal bigger family them. try individual are relationship I businesses interesting a or their you deposits are to other commercial you it's look that bit that customer, piece and consumer you a with good rates, organic take care the have of found a at Whereas stickier going more risk what business to that treasurers and if is my that seen to a the have commercial deposits banking deposits. job an at

market the from I So that's what hear today.

headwinds macro in market. And end there's a then came below bookings more guys a your you turbulence incremental bit called and your little just in follow-up, some now out mentioned expectations Great. XQ and as

sales more plan just talk from perspective, combat curious, to a about maybe can I'm the leaning these that nIQ some you base just focusing how sort Is landing into into around of it of So the new cross-selling sell challenges? on Is that of into more incentives go-to-market existing installed typically sort you into and those of leaning structuring base. it some and customers? installed products you maybe less comp existing

talk some sort changes, about and of little the given go-to-market of that if maybe making a ambiguity. you're Just bit the turbulence any,

economic of thing conversations seen when playing the is this of challenging game. Greenfield being and to very to team get that we've for benefit see about down. variety now going we XX company always this having easier. we're times years continue first shut cycles. expansion In long do But upsell is absolutely a the The they run

story. A going lot more that as are it internally project a growth profitable We're to at budgetary scrutiny. of as customers our continue continue and approval doing telling we we're our company. looking evolution But them

I I looking now, have to from see the themselves the if that who of grow is are even what other they things banks cycle. forward are position side think to tough on

conversations continue. those So

you. Thank

Securities. next Our Terry question Tillman comes with from Truist

Your line is open.

and of challenge know around business COVID how if we credit guess impact? into of their COVID. a Maybe on on how your you talk bookings lending how tighter appreciate that. operates credit that. becoming credits. and of terms I tighter terms have tighter maybe credit to questions kind more some general, continuity. tell? banks some of I to we're the building saw Is in to customers, of in I banks standards ongoing like a focused an side, color that bit in If COVID about a compare prior are in just would environment. helping on the don't quarter, business compares macro Does I'm little of and some was North became that the about the getting like just providing big new just fourth situation Just color could But that disruption questions kind disruptive this then particularly in it and on terms market. early and all like getting what in standards happening like we business on focusing too in on America

Terry. Thanks,

going COVID what we PPP action a then sudden, massive short with realize becoming do the the new time into you initial from see. that take to net the address a you case you show margins always would compression to help it's and them And of this? me I all reality. shock of the that are about term to interest Let distribute Remember, cetera. to jumped came In a all it. banks, tell to start we COVID, digitize bank And thing. et And there's for the first of opportunity going forefront. the over an the is realizing people time money government,

margin saying And business, my then to once automation. once what you And is at there, squeeze have gross is looking is left? start your you're It's else efficiency.

what as must software come it's need a while more in need and in go, relationships, maintain and a infrastructure banks the to see that customer for digitize trends So experience to and of investment to automation keeping compete a your their effectively. have is for the your we and efficient personal service to more actually way people just these these becoming

the find is you'll the acquired second acquired. a in banks with they XXX as should banks view time and well lack to their none. over experience that will And everything be an gives be will as end-to-end customer IT infrastructure digitize investment infrastructures deep is that it What by

So, I as positioned NIM them. well be market that and way to tighter shift help I a see get positioned feel we to are the in to used very that well

now had of starting Pierre. on are SimpleNexus, Josh, a That's and the set How you're impacted? half with that of less kind banking question quarter? to the retail have largest that And ever, Was full, it that the very there sounded out. integrated quick play did three seeing synergies that products? And glass you guess, you're with I helpful, motion just cross-selling like in broader perform real of contracts broader

Yes.

initial commented three as system actually that that And cross-sales deals of customer proud as that proud are those largest made their I'm two of are a they've progress SimpleNexus operating very base. ever very We the bank signed. we

get the the So us teams cross-sales get that to took year as we motions and fiscal aligned. XX in the down just

the dedicated to integrated a there, That's because market to team me for into a now. our they and space. we're have We market eyes on is continue great IMB very share have important that SimpleNexus there. still expanding sales fully nCino keep going and

we when But about at XX relationships that years. for And and towards had for and platform one that that unions for fulfilling you products single a is step the we've banks look more this we've focus have, just years to them talked vision. multiple or credit

we're in, that lot accounts introductions. So, in a them in we know getting great spent market those we time that of the

was their the the I'm I numbers in That's that proud think this added cross-sell as seeing fact that by market. deal of. year, that, you're XX% is something average this or up size

Thank you.

Kalia with next Our comes from Saket Barclays. question

Your is open. line

all of qualitatively. I'm adoption Europe, to logos maybe I does talk clearly, sort conversations about more for you just kind you, I'm there, earlier of the on wondering very if right? talked just the a kind Europe comment Josh, Europe new here in at on there. can in banks for But is how of But U.S.? mean, in all Ireland big that news there there we specifically all I given could just how that win room business the compared have helpful after here. maybe changed commentary about If focusing curious, tone of internationally, on think in as the you with

push little deposit bit delineation in think accounts. continuing the a draw But bit Obviously, I a thinking. expand weeks. greenfield and unique. they're little of in are been to obviously extend the huge couple I where some banks. this wouldn't it's how We banks measures seen been have the we're last a European we U.S. more advance in has of crisis the over

I to think on make it's a an expand. successful get input board, the you one little and with you time slowly them try strategy tech bit of

So doing our Canada, done markets what we'll and on we is we've that in continent the in continue other well. UKI did in as international what something

you ACV growth I'm clearly of but you're how Got model. for revenue comment for visibility next we've it. good is it. sort the year? however Greg, makes about on with, how right, sort that year, curious that of you. know sense. lagging testament you bookings seat-based thinking about maybe I approach driver, quantitatively, are curious type to of preliminary it, top-down thinking got of Got that. kind growth which for to could want How ACV if thinking about kind Qualitatively, of But you're follow-up activation year? bookings you That revenue my next next a course, into of

to what some year with, Yes, we've additional in we're give of along you the again, market. in tried terms and just the visibility seeing outlook, the

obviously, as year you so And update we'll the progresses.

progresses think from But perspective, strong. ultimately, bookings again, move fiscal moving. and noted, the to we year. and always As are that provided We visibility remain for kind and we want gave both focus I Things pipelines of year we'll that the quicker. the a guidance Josh them on how see our healthy, are Pierre you this

you. Thank

KeyBanc question next Our comes Beck Markets. with Josh Capital from

Your open. line is

financial done. down the drill three to what wanted bit. it institutions, as quarters that That's the up certainly ones. smaller From two I larger little on well of was some the work the cycles had think sales I remember, I to a roughly we something we in had for picked

quarters. four it to double think that six I about was

So I probably you precision how contemplating it's know that, much forecast a and little any have the in it's extension to of difficult are bit here? an on but early

their what early and some is to these et the what every because focused time this we to it in cetera. normally liquidity, get news find quantify can tell flow, takes see It's think feet. I Like you That's bad markets or right these they they it people about. bank the deposit now, is of see difficult things aware on

to have it their long-term strategic will some better that today. And a then cannot the much And to automate, down, we're they done. drive long on and there ratios we consolidation where get it do because around the say, some strategically is at then now? management look sits term. efficiency they do just And settled to point team teams And what because that's be management what focused things the have moment means

in market, our about overall, business model the deployed. good we we the But positioning where and feel we've sit

You've heard all the good about news SimpleNexus.

like we periods but Company we go going this we in as that be is grow put because the our our And solutions, to to way market was puzzle and like relentless market, sentiment. that focus feel the this nCino on of and read thrive execution. actually So also will best throughout together the

we Pierre. the point. year, move to probably Or headwinds, follow-up lot able is margins Rule in more the a few something stepping we forward real would future ago. it operating XX. months a with the think, nobody of of But that the then Obviously, a as of, contemplate inflection just of terms around years, you've I should foresee in future a to a maybe outlook just able this Very even been in And certainly helpful, have really been at could years? bit that's fiscal business that look as the into moderate up of 'XX an

think Just curious framework years. future of kind how we roughly on should about the in that just

Yes.

XX. now, FY the of which So Rule we're to 'XX, in we right committed

us. profitable was company pure important I a a company growth think strategically to growth from to change to

team I the our that. that execute expectations. do and execution think this can of go-to-market the line shown the cost building the now they've they ability they The cover well. our product, strategy, we We of business of is believe can basis right with SAM in

those feel all about I of So good items. line

very If longer we beyond overall, to a not know, give over be to term, have look as to aspirations, the of bullish. been conditions. Rule I'm have at time. growth which want grow marquee we'll look to profitable we because XX you means company, you market always specifics have But our going But

you. Thank

Charles Nabhan comes with question Stephens. from next Our

open. is line Your

ask questions my quick been have a mortgage wanted of independent on Most I but market. to the one asked,

conversations customers your their the right-sized feel But where at in obviously quite year. have today, employee this of you customer layoffs as Specifically, you bases market do last stand we though point. the the -- a majority had, had their few

as we in Yes. Clearly, been churn the out that. capacity year, up some it had result We extra has guidance of for this elevated again, and heightened of system. the that excess still And saw And the or last to we the assuming that really market watching environment we've heightened coming elevated with adjust mortgage being the this churn. are a run capacity year. new

it is about played as what will tell. without of the completely. But other time really it's it's that of and it optimistic But us like think some us. with is behind out behind we year, on last you'd it think of we're this to year Obviously, passed us confirming happened what or side you're that most

on just Got a it. follow-up quick And competition.

of potentially I going again, across any You sizes all that the forward. get compete wanted advantage And if your set curious -- to know dynamics. take end at competition of you potential against market there's for potential know that could some potentially dislocation of just -- commentary your the lower it's but just institutions I early, could on markets.

with story. Yes, our nCino we absolutely. of and proud product, look at that the you when We're always company's start

this the and two we earlier, we discussed this quarters, our profitable looking to put growth at you're a be company shift margin year. for profitable now flow we expansion that will that million If has despite $XXX cash been And the positive product will into year.

great commitment discipline is believe that validation point stability that a that to we us partner. shown select going and do banks we've their vendors. execution So is differentiate investment that as as they that to And evaluate and

Thank you.

comes question SVB from Our Ader with MoffettNathanson. next Jackson

is line Your open.

the with the The timing the or deal announced? of quarter? any was first think to of one is. Were reduction issues any workforce fourth of that do in bookings those the had closure Do you

we is their very no didn't that, specific cases large thing large are Those see that scrutinizing typically to negative do feedback didn't and and the perspective. any that had banks, from deals those from the be right have to market are to that. impact We've resources then in line We like any point. projects see negative into a at play. They their making right sure factors all comes And that time. with feedback the they align

fair. right, -- That's or been that what I'm in has then Yes. you following earlier. relative coverage previous mentioned it Greg, strong, ratio year years? still healthy Okay. but down a up, on up coverage, like And ago, pipeline from question pipeline, is Saket's pipeline flat to curious

-- Yes. you And want Josh, to actually will that. I'll probably answer

Absolutely.

look going at pipeline few we to farther demand look at set deals We'll doing. we at and the deals pipe the pull -- that here, at from period. goals that to and forward period, we're at our look for things. slip look we're then look look we're a might fiscal we we that Obviously, a when generation, able generation at As existing we'll

just coverage put evaluate the we on execute So try feel have to the what's point, pipeline forward. at of we we and that that make on plan we this news, the as we the going to in need that sense confident

got that's factor in right around that SAM to market that on we growth folks again, covering opportunity January, obviously to question something that. back first in places always continue the It's the in, aspirations. we've your that that is sure getting our we've with do that have. we we the Jackson, reduction did workforce so the making can reinforced, we critical focus We

Yes.

size But Let me you if and the of the the people make reduction, the the one less because there, more that and about event headlines cetera. that was as are earlier, hear of et look X%. of the comment we Company at $XX are XXXX, spent size went than it we my we'll this these one to and customers when in $XXX other in R&D. year, million. mentioned million you spend And that Josh numbers, day reminded public public I over

salespeople on commitment and team innovation. This well maintained It's field, that. committed as are people deep It's that. market got pretty and executive seeing platform motivated change in seasoned and a to that assignments customers as this company a level to I over and got of about is innovation who's our place, It's we approach. time, partnerships and and good account the feel

market and short period take we'll more this share. through get then will We

you. Thank

question Our Needham & next from Peterson with Company. comes Kyle

line open. Your is

Peterson Tandon. from on Mayank Kyle

baked is then to of at like touch the kind bit I getting wanted Or that and guys whatever. some obviously, uncertainty recent year? that's in in last there on Are more this kind in want uncertainty out some little a stability of or the I of little commentary still is seems getting weeks into continues the with kind the to guide if guide. But downside couple the couple I'm sales of in of of you've guess cycles just guide cycles year? of this this you see pushed how few continues the or or And Just bit a of of some least at of the is, the kind this what months some into weeks. much It and confident built risk deal kind uncertainty of laid here? for malaise a

known factors guidance. has been the all in market firstly, accounted for so our in Look, today

to were we all of salespeople, So We to factors and speak this we assess our the speak guidance. considered in prospects, our market. those clients, our

liquidity end January. of there came the Secondly, if at were of banking ago. end January, weeks to very sudden about the no two three crisis It of end QX, and you look at

things up. can those pop So

only or to this, what can delays call as I've exactly downtrend will past forecast survive, base healthy in sure from they out of perspective. cannot actually they banking. seen it, bankers in where which sentiment react What is in sure survival immediately this you not I and make regulatory have in the the case be the a place bank is compliance also make balance deposit necessary their So from a liquidity, that sheets perspective, and but a

actually The they moment threw It's they're loan take properly. that understand what making. they And comes have start of it's they and they their do bank And with about about not nCino in. lot focusing to to effectively that's going where the breath, and a only those on because managing more future portfolios strategic next. the

loan of Over The the on place. in covenants, opening portfolio et about origination. around collateral of done systems amount in XX% work work are with And our systems, is the XX% of renewals, make our being it deposit cetera. typically management, sure same all account is that's only

the I again. level sudden, going of to all sales So feel short-term forward you're very good cycles see a will that and the then start moving

deals push cannot these You forever.

just is seeing We haven't seen we're What losses. slower decision-making.

in to guidance. prepared question I'll just I again, address in we point Kyle, remarks, highlighted Yes. that approached And of XX% your terms my how visibility to you giving that that

we larger at the kind a helpful. of client could us kind significantly most mix if within have in banks consider you kind money then of kind guys where or of exposure bit your credit-focused kind just or a client your in I of credit kind least community the here some sense, of in and is higher-level the banks, of versus union, mix? center a enterprise of so more give on question qualitatively terms regionals client you between maybe And of play at of you highest least some That's of base the aggregate where guess for maybe just

market the robust regional Outside U.S., evenly the enterprise, U.S., you community the it see in the or pretty the middle really across and market. don't In that regionals. middle is of spread

So Then top it's a or de we towards little of the banks. more or the challenger weighted outside see novos enterprise. bit more heavy U.S.,

I just is in countries, So globe. but different, our slightly different across looks the because industry laid think, how different down the generally revenue that's

you. Thank

question Raymond comes James. next with from Alex Our Sklar

open. is line Your

to on want your question answer a Kyle's second I ago. Pierre, up just to follow

talk going survive In they're from going out XX get going get just of terms that lines? first. conversations, sort your to banks what out terms of are you that in confident in Is and like time bankers kind of how period? any terms about to bankers hearing what a when to there in bogeys are Can commonality of of Or banks period? are June they're to you there survival review figuring

immediate had were obviously a they there analysis done. No. What and I this that flow banking there was bank names the When you would effect up. say come run And shocked deposit that was okay? is in heard the SVB ripple on environment, certain

you liquidity. have concerned and the other people about in Signature were heard where You names news certain

balance settled it market, banks Fortunately, deposit whole $X,XXX. is there down. When make sits when liquidity, big account of some the sure in, around was now average at step notion look the you speak you adequate across actually that the

second or lower, the for few that a the means started people moment capital, sits exposure of a majority mark So There's if now. bank how which lot lot that that has going and that at less. the notion big aftermath around down. moving whole on And you a the understood look accounts settled raising is guessing ties and into that liquidity understanding that of of and

big was Bank. Congress SVB, account per that account But was there in the unique that to bank today, Hill a a saw meetings and et high cetera. very to case Signature around you with balance As happened similar what on in

at say would And is they their of in down. book I've tend we settling and are out I sheet realize ease number bank to that. the now spoken once at strategically, of So them. They look CEOs to balance with do they to book we're Look now place. about a your do good they this healthy. loan coming. loan into that's have feel this mode where the loan book, what the is

moving I always a feel it's that but actually that. So short-term good beyond factor, there's shock

Great. Okay.

up have those the impact you to on So and any FY maybe deals seen slip, this close still those 'XX can But on deals follows that of that. did results? date

slip crisis not any in these after so. that. because liquidity the or month The of did came deals of Those Those factors slip. last deals

and kind What deals in and and see full very seeing. for, commodities you of big If thing it's these is system you okay, look at look of of projects, the layoffs of you're a global at budgeted are I confident delayed. very close tell the progress. gets cetera. going some basis that you at largest et some are the some would people We're That's those you to integrators,

about So them. we feel good

year's still those this fiscal impact mistake and Got quarter slipped, that deals given Clarifying it. though? when Yes. time fourth My book-to-bill to the results, those

to timing Potentially, it's going depend on environment. fluid a to

So given clear see we today. we've based the as can, the world it on we guidance that

Thank you.

question William with next Bob Our comes Napoli from Blair.

Your line is open.

loan of seeing sorry, to around -- I was maybe I is that -- think could what portion? the -- number mentioned And loans? seeing a out how are banks there. percentage of I commercial loans. But really Do are seeing to the tightened is the credit? only directly that Pierre, commercial of that question remind commercial, to revenue your know a you you I you significant tied maybe earlier you think specifically in separate are revenue low you number you mean, of you us a you loans? mean, percentage underwriting slowdown tied So

not place. don't of meaning and and bank, of loans the at covenants and the we renewals of stays no, that What existing is Yes. the volume-based transaction do the inside on in No, model. sure what was because you I the do revenue making to look book number the by people they we work workload measure of we're collateral if business is

your And heavily on towards is what okay? loan covered, obviously, that the Company. well I as effort the cannot That weighted sit, origination And that they're XX% comment started actually a we banks is portfolio. the where common bank very know, is commercial bank's credit we policy No, or where notion is you is loan new that doing.

that's the means dealing all you is with What just they're tell rising is life. expensive lending which fact to consumer. a of rates, I end And would more

binary I bit a think the of reality is a it's reality.

you lend if have either going to going going or to. it money You're it regulators And won't because lend money, well you not to to let the you're you're do poorly. do

banks good care seeing not in along this manage leave we're see vigor also to and market, renewed a we take way. environment well So, their and need that that customers the they of the portfolio

cut long And see actually industry have of decreased. years to in in other But commercial really your? your looking we has nCino U.S. say, if in just the industry does your over on in banks continued next know are the decade? XX the the of I been the consolidation. to thrive, on expand small banks were increased, actually, time. And be for -- substantial number number next thoughts certain how a what X Or SAM consolidation sizes are to that industry have some the in long, while half the you they banks if over ways? Does consolidating

time consolidation I seen of there. of we've wave and while for lot And this spent a a Absolutely. little

the the banks, slightly might we the banks, that we'll in will The of First away. Asia, banks market and U.S. community the to both different. the think regional all, because composition of serve don't continue look and mid-market go community enterprise

of beneficiary have. that We to the that footprint we been consolidation have due our upmarket

of you provision core your value your a credit branches the work users With consolidation rolling is bank. of grow pretty nCino culture. you to train bank wants and real proposition to can day can one, your consolidation. rolling a great is for the nCino into consolidating bank they're is frankly, a acquisitive actually risk a -- within we as a that's an policy, lot that And potentially but from on credit and a opportunity license, attractive Integrating

The other of the bank at continue these look is operating mention, we a to to we that in talking lot the that opportunities SimpleNexus system accounts. have because upselling about piece spending a to are time

if And that XX customer account our you said, we're we started. As year. getting fiscal cross we disclosed, at this sales look just

of this. at look nIQ, talked about continued growth really you the If haven't we

that we that more of more have solution offer proud one than the out have our Coming of year, to We're That's them one of quite operating year-over-year accounts growth. than XX% solution. XX% one bank and system we and use nIQ choice.

feel the to leverage base customer bought that So asset with is that from this them our they what to we that their market able one ongoing increased continue the more navigate. as and us better we optimize the go innovation and is we also we'll and business. back solutions in nCino time, then to consolidation help can be And product enjoy have

you. Thank

with next Our comes question from Autonomous. Ken Suchoski

Your open. line is

of you're Or I also guess union sales I'm then across institution? any what I of your interested what any it seeing base? just wanted kind about seeing the financial to in ask customers? the of across-the-board bank And of customer in different across size credit your versus delayed the the slowdown? differences on you're just is cycle. based Can And segments mostly of differences you about talk type terms

I preapproval think the financial delegated to approval. may Board. in where general, listen, more of potentially it's a hey, bit a any -- might this just little scrutiny. have They institution say,

serve. are out to as might and in unions as the to different point. had conversations And uncertainty. and stand to they're look is a this because the times, generally happy but we business we've have know want the this it value conversations do segment just timing. Relative continues for generalizations You to lot to We're difference that and have impacts IMBs in we I any at and years, provide to customers deeper dealing all market with market, with banks because going market business may that CFO we this credit all case. wouldn't those but they we out, those this the an have in up, think play big initial I navigating look, now business draw it's observations

I Okay. was growth, think I the out a RPO And that All impact slipping helpful. you guys renewals to of out That's right. called quarter. think X% to and due

RPO a higher. And a step close? Should then might The deals we these slowing, this when growth of sense expect year-over-year X% RPO kind taking grew strong is any fiscal So margins back, are year. in XQ, XQ, fiscal of fiscal just number? OpEx the business moving

you in the in as can remaining year move revenue and 'XX? about So talk year throughout confidence your we growth robust fiscal

many last this was substantially QX. Ken, year on Yes, the X%, really we did as just we on QX, not based QX over it QX. higher And timing had just have renewals

It anything a it from equated timing was just so a compare, And tough wasn't X%. moving. was that which to it perspective,

As don't run we to relates RPO. RPO, the to it business

an previously big output Last a as year, just in year ultimately, discussed, QX. really lumpy. mentioned, operations. was think we've particularly be with as RPO our I I of renewals, it's can But it

just our as that we've going IPO back disclose discussed, I so, And number. days, account we into as take that to think,

Thank you.

comes with Brent Sandler. from question next Piper Bracelin Our

is open. line Your

the Mauro ask just Insight just and I'll around it's for on XXXX is Brent. conference. This one, jumping

environment out from is points But just as any bookings trending So we're that in still you conference interest the important up data of light activity? have the event And of how to to driving how on sort that in? conference that in date. a is we're picked obviously, relevant ways new

that Thank we last high to it increased of to had over Yes. move to year. a level seeing interest volume, We're quite Charlotte. you. Due actually

Nobody us feel than together confident a I better So have protect bring for our our been installed base, sells to no long conference. And very that we're a you with people when and time. customers. have going great see with

a casual to is stages, but energy conference. that settings more every we, them around settings, and from settings in not the positive they tremendously and output see informal directly. actually only year, see that I And feedback they speak on and customers And tremendous That can powerful. from

may us, going interest higher we're It So up is we're before. conference than Volume for glad ever. it. have to ever our is largest be

It will be.

largest the It you, remind I it will be be. would definitely definitely ever. conference will just

Thank you.

question with of America. Bank Sills comes Brad Our next from

Your line open. is

Bergere Adam Brad for This Sills. is on

explain housekeeping duration And color some any Could and the to or Just around one. having RPO changes quick be those on just might duration CRPO? between a give delta metrics? the just impact you or

up X% XX% XX%. Yes. From year-over-year. The again, up an than was perspective, RPO less

and As noted, in, have we headwind. of timing we renewals had again, X% the compare a then slipping, impacted deals tough X% would -- And based talked we few talked come in as we renewals, FX then they had large the about, about just headwind, obviously which on QX. RPO there's on

lump lower all that year together, is or go time a didn't together had renewal The cancel all that renewal last year, once renewal deals will if contract A the old, in else. And has then to year, long for a that may And the in be happen the they to renew previous had is contract if have and they're comes renewal then when three to because New want sure QX I had somewhere we that contract That's comes the maybe they renewals York is smaller is massive from, where quarter QX, a or big it year. years -- QX. up, is they next up. it a And not year, make my we to or five slippage. last okay? when one what is

long Yes. well. number some which last impact obviously that duration would had year, we And renewals, as

that hope your This RPO. is hopefully. question, into massive coming answers I that

Yes.

it clarification. of Is QX? point fair last to Just come a duration say that basis than on to did QX down year-over-year

and up. we can up follow Let's follow take a look and into that,

call you. to At are closing no like Thank There any questions. this turn back time, remarks. for Pierre over I'd to the further

our so you much this today. call, to on earnings everyone for coming thank To call

tireless we our and of the partners support customers of the stockholders, for are efforts for grateful our always, As globe. across the and employees

Thank evening. you, and have a good

conclude does Thank the presentation. you. This

You disconnect. may now