nCino Inc Q3 2025 Earnings Call Summary

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

Question: Michael Infante - Morgan Stanley - Analyst : Hey, guys, thanks for taking our question. Greg, I just wanted to circle back to the fourth-quarter outlook. I appreciate the commentary on FullCircl's contribution in 4Q. But could you just help us sort of decompose if you sort of back out FullCircl contribution sort of what the building blocks are to the fiscal 4Q guidance reduction on an organic subscription basis? I heard you on the $2 million of mortgage churn, but I just wanted to figure out the residual. Thanks.

Question: Michael Infante - Morgan Stanley - Analyst : Okay. Understood. So, as I think about fiscal 4Q and the exit rate and sort of extrapolating that into next year, FullCircl $4 million. Is it appropriate to annualize that into next year? And as we look at the implied organic subscription numbers in fiscal 4Q, again, is that a relatively reasonable run rate to assume for next year? Thanks.

Question: Michael Infante - Morgan Stanley - Analyst : Thanks, Greg.

Question: Adam Hotchkiss - Goldman Sachs - Analyst : Great. Thanks so much for taking the question. Greg, just a follow-up on the Q4 commentary. Curious how you think about how the other pieces of the business performed outside of mortgage, and so far what you're seeing in Q4. I know there's a lot of larger deals that typically close into December and January. So, any early indicators on how that pipeline is shaping up and how if at all, affected the guidance change? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 9:30PM, NCNO.OQ - Q3 2025 nCino Inc Earnings Call

Question: Adam Hotchkiss - Goldman Sachs - Analyst : Great. Okay. That's really helpful. And then, Pierre, just on the Intelligence solution framework, I appreciate the commentary on the top 40 institution that went on to the new pricing model. Just curious how that process went versus your expectations. And anything you'd highlight that either from a pushback perspective or from a worked-well perspective, anything you'd highlight for folks as we get to the point where you're putting all the renewals on the new pricing model? Appreciate it.

Question: Adam Hotchkiss - Goldman Sachs - Analyst : Okay. Thank you very much.

Question: Robert Dee - Truist Securities - Analyst : Great. Thanks for taking the questions. This is Bobby Dee on for Terry. My first one is for Pierre. Pierre, we picked up some commentary or speculation that you may be retiring sometime soon. Is there any perspective you can share on some of that commentary in the market? And then I had one follow-up. Thank you.

Question: Robert Dee - Truist Securities - Analyst : Appreciate that. And then just any updates or customer feedback to share from the initial cohort of Banking Advisor customers, including the one customer that went live in 2Q? And are you all able to share how many customers went live in 3Q? Thank you.

Question: Robert Dee - Truist Securities - Analyst : Thank you.

Question: Brent Bracelin - Piper Sandler & Company - Analyst : Thank you. Good afternoon. Pierre, I wanted to ask about cross-sell. You clearly have a large installed base of commercial banking customers. You're layering on additional product capabilities, expand the TAM with DocFox, FullCircl, you've got Banking Advisor. When do these products get fully integrated? And your best guess on the timing when you start to see material cross-sell? Do you think it's another six months, another year this materializes? These are large customers. Just trying to think through cross-sell and timing as you layer in these new products, when it could have an impact.

Question: Brent Bracelin - Piper Sandler & Company - Analyst : Very helpful color there. Greg, I would love to double-click in the mortgage, kind of going in here you earmarked maybe $8 million to churn, even with rates going lower, you're seeing more churn, I think another $2 million here in Q4, $10 million for the year. When do you think the mortgage churn kind of pauses? Is the worst behind you? Is it still TBD? What's your visibility into churn beyond Q4 as you think about headwinds to that market, it feels like we should be at a point where churn should be behind you, but that clearly is not the case.

Question: Brent Bracelin - Piper Sandler & Company - Analyst : Got it. Makes sense. Thank you.

Question: Saket Kalia - Barclays Capital - Analyst : Hey, guys, how are you doing? Thanks for taking my questions here. Pierre, maybe just to start with you. I think from the customer examples that you threw out in the call, it sounds like just the US activity is doing a lot better than expected. My question is maybe more on the international side. Can you just touch on maybe how much of the performance internationally is kind of coming from just the different macro environments out there versus other factors, right, like market maturity or anything else? Does that make sense? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 9:30PM, NCNO.OQ - Q3 2025 nCino Inc Earnings Call

Question: Saket Kalia - Barclays Capital - Analyst : Got it. Very helpful. Greg, maybe for my follow-up for you, I know RPO was never a metric that you manage the business to or that you really focus us on, but the growth there accelerating, and I know that that can really depend on mix of business and, of course, duration. But just to make sure the question is asked, can you just speak to some of that RPO strength this quarter?

Question: Saket Kalia - Barclays Capital - Analyst : Very helpful. Thanks, guys.

Question: Alexander Sklar - Raymond James & Associates - Analyst : Thank you. Greg, maybe just following up on your answer right there to Saket's question. The commentary on the strong gross bookings and on your way to exceed the targets for the year. You did call out, to offset those is the higher IMD churn. So, how should we think about that net 50% bookings target? Is that still in play given those two factors of the higher gross bookings, but to slightly higher gross -- lower gross retention. I'm curious how those kind of offset. Thanks.

Question: Alexander Sklar - Raymond James & Associates - Analyst : Okay. Great. And then maybe one for each of you on FullCircl. But Pierre, just some more color on what you saw in first FullCircl. Why now? And then Greg how much of that $4 million hitting subscription revenue? And any color on kind of the growth rate this year of the FullCircl business? Thanks.

Question: Alexander Sklar - Raymond James & Associates - Analyst : Okay. Great. Thanks for that. And just real quick, Greg, any color on what that was growing this year just as we try and think about for next year?

Question: Alexander Sklar - Raymond James & Associates - Analyst : All right. Great. Thank you both.

Question: Koji Ikeda - BofA Securities - Analyst : Yeah. Hey, guys. Thanks so much for taking the questions. A couple from me here. I wanted to ask on the mortgage volumes. And you gave some excellent color in the prepared remarks, thinking about volume increases and what it would contribute in revenues based on those volume increases. But you said something interesting about customers exceeding contract minimums. And so, the minimums. And so, the question here is, at what level of volume increase would it be required to get all the customers above minimum commitment levels?

Question: Koji Ikeda - BofA Securities - Analyst : Got it. Thanks, Greg. I really appreciate that. And maybe a follow-up here, more philosophical for Pierre or Greg. As you head into next year, fiscal '26, what's -- what do you think is the bigger driver for your customers to increase spend with nCino? Is it quite simply lower interest rates? Or is it more a resilient economy that would really drive more spend from your customers?

Question: Koji Ikeda - BofA Securities - Analyst : Thanks, guys. Thanks for taking the questions.

Question: Ryan Tomasello - Keefe, Bruyette & Woods - Analyst : Thanks for taking the questions. Greg, just wanted to double-click again on the 4Q guidance, just the back of the envelope math stripping out FullCircl and also looking at this organically removing DocFox. I think the rough math implies that you'll be exiting the year somewhere with an organic subscription growth rate in like the high single to low double digits. I guess, does that math sound right to you? And how should we think about that exit run rate in the context of your confidence in the 15% subscription revenue growth target that you've called out for next year, which I assume was an organic target?

Question: Ryan Tomasello - Keefe, Bruyette & Woods - Analyst : Okay. Thanks. And then, Pierre, just a follow-up question for you. I think one of the dynamics that wasn't called out maybe as much in your remarks was this optimism around deregulation and this sigh of relief that banks are breathing with the new administration. I guess, has that dynamic come into conversations at all with customers? And is this something that you see is helping to unlock demand appetite for larger-scale tech deployments just as banks are presumably a little less distracted if this deregulatory theme really comes into play? Thanks.

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

Question: Cristopher Kennedy - William Blair & Company - Analyst : Good afternoon. Thanks for all the detail, and thanks for taking the question. Greg, can you just give us an update on the fiscal 2025 expectation for revenue churn? I think it was 5% previously. What's your current expectation?

Question: Cristopher Kennedy - William Blair & Company - Analyst : Okay. Thank you for that. And then you also alluded to providing additional KPIs. Is there any kind of preview you can give? Is that ACV? Is it business mix? What more are you thinking about disclosing going forward? Thank you.

Question: Cristopher Kennedy - William Blair & Company - Analyst : Great. Thank you.

Question: Nick Altmann - Scotiabank - Analyst : Awesome. Thank you. Pierre, you talked about earlier how Banking Advisor is going to be part of every net new deal as well as renewal in I guess on the positive side, perhaps there's going to be some ACV uplift there. So, can you maybe just touch on that aspect of it? On the flip side of the equation, you're bringing in a generative AI product into some of these deals. Those deals might take longer, they might have to go through a more lengthy approval process. So, maybe just talk about the puts and takes there and whether we might see some sales cycle elongation, albeit with the benefit of an ACV uplift? Thanks.

Question: Nick Altmann - Scotiabank - Analyst : Got it. Okay. And then, Greg, just circling back to the implied organic Q4 guidance. Any change to your guidance philosophy as we look at that growth rate exiting the year? Thanks.

Question: Nick Altmann - Scotiabank - Analyst : Great. Thank you.

Question: Aaron Kimson - JMP Securities LLC - Analyst : Hey, thanks for the questions. I have two on digital account opening, given the focus there. First, is your deposit -- or deposit account opening, excuse me. Is your deposit account opening product something you see mostly credit unions and community banks implementing today? Or are you seeing success selling that product as is into enterprise banks as well?

Question: Aaron Kimson - JMP Securities LLC - Analyst : Got it. And I think you kind of answered my second question just around the strategic importance of owning that deposit account opening relationship, right? I mean, the uplift you see there and owning that real estate, but it sounds like you're attaching that. You're -- it's in all your lands. So, I think you answered my question. Thank you.

Question: Aaron Kimson - JMP Securities LLC - Analyst : All good. Thanks.

Question: Charles Nabhan - Stephens Inc - Analyst : Hey, guys, thanks for getting me in, and I apologize if I missed this, but you had mentioned that the home-builder deal fell into 3Q. Could you quantify the impact that may have had on the quarter and specify whether -- how much is in professional services versus subscription?

Question: Charles Nabhan - Stephens Inc - Analyst : Got it. And as a follow-up, I had somewhat of a philosophical question. In the past, you've talked about M&A as a catalyst to demand in that acquiring banks tend to get their house in order from a middle back-office standpoint before they go out and do deals. And I know it's early given the timing of the administration change. But I wanted to see if that's something you envision occurring, whether you're already having conversations around -- centered around that concept or type of activity.

Question: Charles Nabhan - Stephens Inc - Analyst : Great. Appreciate all the color. Thank you.