nCino Inc at Barclays Global Technology Conference Transcript

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

Question: Saket Kalia - Barclays Capital Inc. - Analyst : Listen, Greg for those of us that remember nCino from the IPO, we remember a leading platform in commercial lending here in the US and a growing story internationally. Maybe you could just talk to us about how the story has changed since the IPO in terms of the areas of focus and new markets that you've entered.

Question: Saket Kalia - Barclays Capital Inc. - Analyst : Yeah, you've been busy.

Question: Saket Kalia - Barclays Capital Inc. - Analyst : Maybe zooming in a little bit, Greg. I mean, we just reported a quarter last week. Could you just maybe recap some of the key takeaways that you were maybe most proud of, if that makes sense?

Question: Saket Kalia - Barclays Capital Inc. - Analyst : Absolutely. And I think I know RPO is -- it can be a noisy metric, but it really showed in that RPO, I would argue, right from just an underlying bookings perspective, if that makes sense.

Question: Saket Kalia - Barclays Capital Inc. - Analyst : Yeah, absolutely. Maybe that's a good segue just to talk about the health of your market. You know, it's obviously been an interesting year with just some of the choppiness and bank spending over the last you know, really over the last couple of years, with some of the macro sluggishness and of course, the liquidity issues that some of the regional banks saw last year. How do you sort of see demand at your end customers today? And I'm just going to ask to maybe put the mortgage market aside, right, because that's a little bit different animal. In sort of the core bank market, how do you kind of feel about the health of that today?

Question: Saket Kalia - Barclays Capital Inc. - Analyst : I'd love to double click on international actually, right? Just because, to your point, we heard you mention a couple of new banks in several markets, right, on the call last week. Maybe the question is just to level set, what are some of the biggest countries where you've landed reference customers in, right? Like you mentioned Japan, for example, I'm curious what the other ones are. But then also what competitors do you typically run into in those markets that -- I don't know, is that what's maybe impacting that lagging nature of international or is it macro -- I'm just kind of curious how you think about that? 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 11, 2024 / 11:05PM, NCNO.OQ - nCino Inc at Barclays Global Technology Conference

Question: Saket Kalia - Barclays Capital Inc. - Analyst : So I mean, if I had to summarize international, it kind of sounds like more of a matter of when as opposed to if those markets are going to be -- whether -- it's when rather not rather than if you're going to gain share in those markets, if that makes sense?

Question: Saket Kalia - Barclays Capital Inc. - Analyst : Yeah, absolutely. We look forward to seeing more developments there. Let's switch gears to the mortgage market here in the US. You talked about some of the dynamics there that are impacting Q4. It seems like with rate cuts maybe coming into play, that should offer a boost to kind of new purchase loan volumes. But maybe the question is what are your customers saying in terms of their willingness to invest into this period of growing volumes? 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 11, 2024 / 11:05PM, NCNO.OQ - nCino Inc at Barclays Global Technology Conference

Question: Saket Kalia - Barclays Capital Inc. - Analyst : I think it's a completely fair assumption to think about a fed rate cut to drive a mortgage rate cut. But for whatever reason that didn't happen. But I would argue that that is somewhat inevitable, right? So we'll look forward to kind of seeing how that, how that sort of trends. I want to dig into the churn, maybe not just the churn event but a category of your mortgage customers, right, which of course are the independent, independent mortgage banks or IMBS, right? Can you just remind us how much of your revenues is tied to those customers? And how are you thinking about churn maybe more generally in the mortgage market, in your mortgage business, after what's been an elevated year of churn, given this unprecedented market?

Question: Saket Kalia - Barclays Capital Inc. - Analyst : How do you think about churn in your role going forward?

Question: Saket Kalia - Barclays Capital Inc. - Analyst : I agree. We've talked a little bit about the commercial lending side. We of course talked about the mortgage side. I would love to just maybe touch on the consumer side, right? I mean, could you just maybe remind us consumer x mortgage, can you just remind us how large that is as a percentage of revenue today? And I mean, you talked about you typically used to lead with commercial lending. Now you're starting with wins and consumer. Why do you think is nCino starting to win that market a little bit more?

Question: Saket Kalia - Barclays Capital Inc. - Analyst : That reference model, right. That works so well in the commercial lending. 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 11, 2024 / 11:05PM, NCNO.OQ - nCino Inc at Barclays Global Technology Conference

Question: Saket Kalia - Barclays Capital Inc. - Analyst : Very consistent model with other verticals companies that I cover as well. I'd love to maybe segue into sort of the new platform pricing model, right, that we first heard about at your investor day last year. Maybe just to level set. Can you just remind us when this platform pricing model is going to be standard, right, for all of your new deals and renewals? And is it going to be the same -- sort of the same type of structure across consumer mortgage and commercial? Or is it going to differ across the three? Talk to us about the implementation of that new pricing model if you will.

Question: Saket Kalia - Barclays Capital Inc. - Analyst : That right, just kind of good early feedback from --

Question: Saket Kalia - Barclays Capital Inc. - Analyst : That's an interesting perspective. I want to talk about the accounting behind it a little bit. I mean, I think an interesting point around it is it kind of feels like we'll have faster time to revenue here compared to the ramping type of waterfall that we've had historically. Maybe talk about that dynamic a little bit. And any other accounting changes -- not accounting changes, any other impacts, right, that the new pricing and the new pricing model would have.

Question: Saket Kalia - Barclays Capital Inc. - Analyst : Right. So it's interesting. I mean, from a deployment perspective, the customers are still going to be sort of activating it based on their own schedule, correct? But from a rev rec perspective, this is going to be like, the revenue model will be almost like any other Sass company in terms of, sort of ratable rev rec over it was kind of nice straight line is. 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 11, 2024 / 11:05PM, NCNO.OQ - nCino Inc at Barclays Global Technology Conference

Question: Saket Kalia - Barclays Capital Inc. - Analyst : Yeah, absolutely. You know, I'd love to move to some other higher level kind of modeling questions. I think that at last year's analyst day, we talked about the long term goal of growing at about 15%. Maybe the question is how do you feel about that as you look out the next couple of years with the moving parts of the, underlying growth, right, the mortgage market, and actually the new pricing model that we just talked about. How do you think about those moving parts in the context of the 15%?

Question: Saket Kalia - Barclays Capital Inc. - Analyst : Yeah, absolutely. Maybe the last question I want to touch on here is just margins. I mean, nCino crossed, I think, the 20% margin threshold for the first time here in Q3. And the emphasis for a while has sort of been -- the emphasis for a while has been on profitable growth. Maybe as you look ahead to 2025, how should we think about sort of your priorities between driving -- prioritization between growth and margins if that makes sense?

Question: Saket Kalia - Barclays Capital Inc. - Analyst : We could not think of a better point to end on. So maybe with that, Greg, thanks so much for the time. Really enjoyed the discussion.