nCino Inc Q2 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Adam Hotchkiss - Goldman Sachs - Analyst : Great. Thanks so much for taking the questions. I guess to start, Pierre, it'd be great to just understand at the high level where financial institutions broadly are on willingness to spend. I know you talked about the strength and referenceability of the legacy US business, but maybe just talk a little bit about how you're building trust around some of these newer products, like Banking Advisor and DocFox, continuous credit monitoring, and how we should see those flow through the model.

Question: Adam Hotchkiss - Goldman Sachs - Analyst : Okay, got it. Thanks. That's helpful. And Greg, could you just maybe bridge us between some of the positive commentary around US demand and new products and the sequential step down in RPO. And then maybe just also remind us how some of that commentary generally flows through the model with things like RPO and fillings, and what explains the step down there.

Question: Adam Hotchkiss - Goldman Sachs - Analyst : Okay. Very helpful. Thanks, Pierre. Thanks, Greg.

Question: Terry Tillman - Truist Securities - Analyst : Yeah, thanks for taking my questions. Hi, Pierre, Greg, Harrison, and Joanne. Just the first question is -- because it was in the prepared remarks, and I think you all talked about it multiple times. But in terms of -- I'm just trying to understand, how important is platform deals and platform pricing structure is going to be In terms of hitting this 50% net bookings growth for this year? And in that same vein, as we look into next year, I think the idea is like, look, the business is coming back and potentially sub-revenue could accelerate leaving the year into next year. How important is platform monetization into the next year as well? And then I had a follow-up for Greg. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 8:30PM, NCNO.OQ - Q2 2025 nCino Inc Earnings Call

Question: Terry Tillman - Truist Securities - Analyst : Yeah, that's helpful, Pierre. Thanks for that. And I guess, Greg, just to follow up. In terms of cash flow in 2Q, anything you could call out there related to timing or collections? And for the full year, does anything change about how we should be thinking about free cash flow for the full year? Thank you.

Question: Terry Tillman - Truist Securities - Analyst : Yeah. Yeah. I mean, it is helpful. I mean, it sounds like there's just some mechanics. And like you said, you explained it. But in the second half of the year, I mean, even with that in mind, I mean, should we see some seasonal strength then? Like just maybe you can just remind us on seasonal strength and free cash flow, notwithstanding the dynamics you called out. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 8:30PM, NCNO.OQ - Q2 2025 nCino Inc Earnings Call

Question: Terry Tillman - Truist Securities - Analyst : Got it. Thank you.

Question: Aaron Kimson - JMP Securities - Analyst : Hey, thank you guys for the questions. First one, what would you say are the one or two largest execution risks associated with the pricing transition on the commercial side? And will the pricing transition be accompanied by a lot of operational changes to sales management structure, top plans, new roles or it's just going to be pricing?

Question: Aaron Kimson - JMP Securities - Analyst : Thank you. That's really helpful. And then just when we talk about -- I think it was on the F4Q call, subscription revenue growth on track to exceed 15% in FY26. Is that in part driven by an acceleration in nCino mortgage that you talked about it kicking in in fiscal 4Q of '25 continuing into next year? Or do you have visibility to that still happening just with the core commercial business and consumer X mortgage?

Question: Aaron Kimson - JMP Securities - Analyst : Thank you guys so much.

Question: Saket Kalia - Barclays - Analyst : Okay, great. Hey, guys. Thanks for taking my questions here. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 8:30PM, NCNO.OQ - Q2 2025 nCino Inc Earnings Call

Question: Saket Kalia - Barclays - Analyst : Hey Greg. Hey, Pierre. Hey, guys. Pierre, maybe just to start with you., Clearly, a strong, solid US and a very strong pipeline internationally. Maybe just to make sure the question is asked, can you just talk about how the competitive landscape internationally looks versus the US? Are those roughly similar in terms of competitive landscape or is there anything different that you're seeing as you as you get deeper and deeper into those markets?

Question: Saket Kalia - Barclays - Analyst : Got it. Got it. That's super helpful, Pierre. Greg, maybe for my follow-up for you, I know we've talked a lot about platform pricing. But I want to just maybe focus the question a little bit. I thought it was a really useful stat that you gave just on -- I think it's 40% or 45% of the mortgage business, depending on revenue or logos, 40% or 45% of that business that's being priced on sort of a platform basis. Again, just focusing on the mortgage component, do you see that getting to 100% at some point? And does that take three to four years to go through that process like Pierre mentioned earlier? Or could that happen at a slightly different timeframe? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 8:30PM, NCNO.OQ - Q2 2025 nCino Inc Earnings Call

Question: Saket Kalia - Barclays - Analyst : Got it. Super helpful, guys. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 8:30PM, NCNO.OQ - Q2 2025 nCino Inc Earnings Call

Question: Charles Nabhan - Stephens Inc. - Analyst : Good afternoon, and thank you for taking my question. Pierre, could you talk about the mix of business you're driving domestically from new bookings, net new, versus cross-sell? I guess what I'm getting at here is, as you broaden the product set, could we expect to see a shorter booking to bill cycle as you cross that (inaudible) space? And I'm just trying to think about what that could mean for the 24-month portion of the RPO as well as your revenue visibility over the next couple of years.

Question: Charles Nabhan - Stephens Inc. - Analyst : Got it. And as a follow-up, could you talk about where you're investing internationally, perhaps from a geographic standpoint as well as introducing greater product parity into some of your less mature markets? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 8:30PM, NCNO.OQ - Q2 2025 nCino Inc Earnings Call

Question: Charles Nabhan - Stephens Inc. - Analyst : Got it. I appreciate the color. Thank you.

Question: Alex Sklar - Raymond James - Analyst : Great, thank you. Pierre, just in terms of the confidence you expressed around achieving that 50% net bookings growth this year, I think the lapping of the mortgage headwinds part is clear. Could you elaborate a little bit more on your pipeline comments? Where are you sitting here most optimistic today in terms of reiterating that 50% outlook? And then a related question, the third quarter historically is not a big enterprise buying quarter. I know you talked about some tier one enterprise activity back in the pipeline, both in the US and Europe. Is that still a fair way to think about that segment, though, that it can be more back fourth quarter of the year weighted? Thanks.

Question: Alex Sklar - Raymond James - Analyst : Okay. Thanks for that color, Pierre. Greg, this may be one for you. I appreciate all the color in your prepared remarks on comparability issues of deferred revenue. I know you've always talked down RPO as a key metric. In the past, you've given some color on ACV or ARR growth just to combat that RPO. Is there anything you can tell us in terms of like how ACV or ARR bookings kind of fared in second quarter? Thanks.

Question: Alex Sklar - Raymond James - Analyst : Okay, great. Thank you both.

Question: Michael Infante - Morgan Stanley - Analyst : Great. Thanks for taking our question. Pierre, deposit attraction and retention has commanded pretty outsized mindshare for bank executives over the last 12 to 18 months. I'd be curious to get your perspective on a potential inflection in loan growth in calendar REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 8:30PM, NCNO.OQ - Q2 2025 nCino Inc Earnings Call year '25 and whether or not that could be a catalyst for the US market to get a bit more constructive on some of the larger-scale transformations.

Question: Michael Infante - Morgan Stanley - Analyst : Understood. That's clear. Maybe Greg, a quick one for you just on the mortgage business. I think I was looking at some of the MBA expectations for volume growth in '25 and looks like a pretty healthy snapback to call it 20% growth next year versus close to 40% declines in '24. Obviously, SimpleNexus took a ton of share this year. I'm just curious just in terms of a general framework for how to think about that. Is there any reason to think that the mortgage business wouldn't grow in line with broader market growth or even at a premium to the overall market just given the level of share that you've taken this year?

Question: Michael Infante - Morgan Stanley - Analyst : Understood. That's good color. Thank you both.

Question: John Gomez - Scotiabank GBM - Analyst : Hey, guys. it's John Gomez on for Nick Altman. Thanks for taking my question. Can you talk about the pipeline in terms of how it has changed when thinking about retail versus commercial? And any changes to the pipeline makeup heading into the second half and where reps are leaning into?

Question: John Gomez - Scotiabank GBM - Analyst : Got it, that's helpful. And as a follow-up, with your comment on the pipeline mix leaning more heavily to net new versus the first half, are you seeing more multi-product discussions up front for those net new customers? Are you seeing more multi-department or more geographical reach within those deals? Any color there would be helpful.

Question: Robert Trout - Macquarie Research - Analyst : Thank you. Good afternoon, Pierre, Greg, Harrison. Thank you all for taking my question. I guess if I could just start with how you think about striking the balance in showing your customers the ROI initially. You mentioned striking the balance between adoption and demonstrable repetitive ROI because I think you've mentioned in your prepared remarks that Banking Advisor this year was started at a pretty attractive introductory price to drive adoption, which of course makes sense. How do you kind of -- is there a framework that you use as you introduce these new products, particularly as you get deeper into portfolio management to not give something away, not for free, but in a way where people see what it's worth, but not at a price that scares them initially?

Question: Robert Trout - Macquarie Research - Analyst : It's very helpful. Thank you, Pierre. And then if I could just ask a very quick follow-up. I know the mortgage industry, the IMB space, has already gone through their commission realignment, if you will, a decade or so ago, more than that. But with the NAR storm of chaos and confusion and the potential for dislocation in that market short term, are you at all worried that particularly, certainly within the IND space, there might be some ripples that spill over into the mortgage market -- mortgage origination market?

Question: Robert Trout - Macquarie Research - Analyst : Excellent point. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 8:30PM, NCNO.OQ - Q2 2025 nCino Inc Earnings Call

Question: Ryan Tomasello - Keefe, Bruyette & Woods North America - Analyst : Thank you. On the international front, Pierre, I was hoping you could expand upon the product roadmap there. You mentioned in your prepared remarks the opportunity for bringing DocFox in particular to international customers at some point. So curious how you would rank order what different features of the platform still represent an opportunity to expand internationally as you look across what you have in the US product set.

Question: Ryan Tomasello - Keefe, Bruyette & Woods North America - Analyst : Great. And then a follow-up for Greg, maybe a two-part question here on US mortgage. Greg, last quarter you talked about M&A-driven mortgage churn as a particular area that you're being more mindful of in terms of the guide. I guess if you look at the mix across the US customer base, mortgage customer base, are there any dynamics that make M&A something that's more likely to go against you over the intermediate term? And then as a follow-up on the churn piece, if you can quantify where that came in in the first half of the year and what your expectations are for the back half, just trying to understand the weighting there in terms of whether or not churn could be a potential source of upside as we look at the second half of the year. Thanks

Question: Ryan Tomasello - Keefe, Bruyette & Woods North America - Analyst : Great. Appreciate the color.

Question: Chris Kennedy - William Blair & Company - Analyst : Great. Thanks for taking the question. When you think about the new products that you have and your commentary about the pipeline, is there a way to think about how the ACV mix will evolve for nCino as you think about the next three years or so?

Question: Chris Kennedy - William Blair & Company - Analyst : Great. Thanks for taking the question. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 27, 2024 / 8:30PM, NCNO.OQ - Q2 2025 nCino Inc Earnings Call