Q2 2024 nCino Inc Earnings Call

Speaker 1: Good day and thank you for standing by. And welcome to Encino's second quarter fiscal year 2024 by Nancy Resolve Conference call. At this time, I'll participate in some on a listen only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded.

Good day, and thank you for standing by and welcome to Encino second quarter fiscal year 2024 financial results Conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question during this session.

You will need to press star one on your telephone you then here in the automated message advising your hand is raised to withdraw your question. Please press star one again, please be advised that today's conference is being recorded.

Speaker 1: I would like to introduce your host for today's call, Harrison Masters, Director and Vestor Relations. Please go ahead.

I would like to introduce your host for today's call Harrison Masters Director of Investor Relations. Please go ahead.

Speaker 2: Good afternoon and welcome to Encino's second quarter fiscal 2024 earnings call. With me on today's call, our Pierre Nadey and Encino's chairman and chief executive officer, Greg Ornstein, chief financial officer, and Josh Glover, president and chief revenue while we have a

Good afternoon.

Afternoon, and welcome to <unk> second quarter fiscal 2024 earnings call with me on today's call are Peter No day and senior.

<unk>, Chairman and Chief Executive Officer, Greg Ornstein, Chief Financial Officer, and Josh <unk>, President and Chief revenue Officer during.

Speaker 2: During the course of this conference call, we will make for-looking statements regarding trends, strategies, and the anticipated performance of our business.

During the course of this conference call, we will make forward looking statements regarding trends strategies and the anticipated performance of our business. These forward looking statements are based on management's current views and expectations entailed certain assumptions made as of today's date and are subject to various risks and uncertainties described in our.

Speaker 2: These forward-looking statements are based on management's current views and expectations until certain assumptions made as of today's date and are subject to various risk and uncertainties described in our FEC filings and other publicly available documents. The financial services industry and global economic conditions.

SEC filings and other publicly available documents.

The financial services industry, and global economic conditions, Encino disclaims any obligation to update or revise any forward looking statements.

Speaker 2: and CNU disclaims any application that data revives any forward looking statement.

Speaker 2: Further, on today's call, we will also discuss certain non-gap metrics that we believe aid in the understanding of our financial results.

Further on today's call. We will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results are.

Speaker 2: A reconciliation to comparable GAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8K furnished with the SEC just before this call, as well as the earnings presentation on our investor relations website at investor.ncno.com. With that, I will now turn the call over to Pierre.

A reconciliation to comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8-K furnished with the SEC just before this call as well as the earnings presentation on our Investor Relations website at Investor <unk> Dot com.

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

Speaker 3: Thank you, Harrison, and thank you for joining us this afternoon to read our second quarter fiscal 2024 performance.

Thank you Allison and thank you for joining us this afternoon to read our second quarter fiscal 2020 forward performance.

Speaker 3: We are very pleased with the results and the momentum we saw built throughout the quarter. Both total and subscription revenues increased 18%. While we again outperformed on profitability, posting a 10% non-gap operating income margin for the quarter.

We are very pleased with the results and the momentum we saw both throughout the quarter, both total and subscription revenues increased 18%, while we again outperformed on profitability.

We're seeing a 10% non-GAAP operating income margin for the quarter.

Speaker 3: We saw strength in sales activity across all parts of the outbiz.

We saw strength in sales activity across all parts of our business. We said last quarter that we expected a recovery in the second quarter and we certainly saw that with second quarter sales up 22% year over year.

Speaker 3: We said last quarter that we expected a recovery in the second quarter, and we certainly saw that with second quarter sales up 22% year over here.

Speaker 3: Our solid results mirror what we are hearing from customers. The US banking industry has largely stabilized with the liquidity crisis behind us. Essentially banks have caught their breath and most have refocused on their long-term strategy, which includes optimizing their technology infrastructure and providing a superior customer experience.

Our solid results mirrored what we are hearing from customers. The U S banking industry has largely stabilized with a liquidity crisis behind us.

Essentially banks have caught their breath and most have refocused on their long term strategy, which includes optimizing their technology infrastructure and providing a superior customer experience. The <unk> platform was architected for just these purposes. It provides banks and credit unions of all sizes.

Speaker 3: The Encino platform was architected for just these purposes. It provides banks and credit unions of all sizes, a 360 degree view of the customer, allowing them to create their personalized, differentiated experience on a single platform.

A 360 degree view of the customer, allowing them to create a personalized differentiated experience on a single platform.

Speaker 3: leveraging the holistic view of the customer and senior facilitators gathering deposits, originating any loan product, onboarding customers, and portfolio management all from one platform.

Leveraging this holistic view of the customer and senior facilitates gathering deposits originating any loan product onboarding customers and portfolio management all from one platform.

Speaker 3: In addition, our unique products, such as commercial pricing and profitability, allow financial institutions to broaden their customer relationships, cross-hell and optimize for profitability.

In addition, our <unk> products, such as commercial pricing and profitability allow financial institutions to broaden their customer relationships cross sell and optimize for profitability.

Speaker 3: This, of course, ultimately enhances their ability to successfully compete in an evolving market by balancing risk and reward.

Of course, ultimately enhances their ability to successfully compete in an evolving market by balancing risk and reward.

Speaker 3: With high interest rates still in effect, financial institutions are seeing pressure on net interest markets.

With high interest rates still in effect financial institutions are seeing pressure on net interest margins.

Speaker 3: The most effective way to offset margin compression while maintaining credit quality is by driving greater efficient.

The most effective way to offset margin compression, while maintaining credit quality is by driving greater efficiency.

Speaker 3: And China's platform was both a drive efficiency while the automation at the core of the platform helps accelerate the industry's move to increase self-service.

And Chinas platform was built to drive efficiency, while the automation at the core of the platform helps accelerate the industry's move to increased self service.

Speaker 3: Voting out the capabilities of the platform has always been a key growth driver.

Building out the capabilities of the platform has always been a key growth driver.

Speaker 3: With many of our new products now reaching maturity, we are pleased by the increased number of products utilized for customers.

With many of our new products now reaching maturity. We are pleased by the increased number of products utilized per customer.

Speaker 3: In fact, over 40% of bank operating system new logo deals in the second quarter included more than one solution.

In fact over 40% of bank operating system, New logo deals in the second quarter included more than one solution.

Speaker 3: Another focus has been rolling out our footprint with current cuts.

Another focus has been building out our footprint with current customers.

Speaker 3: This quarter, over 60% of sales will cross sell and upsell with Indian stalled base.

This quarter over 60% of sales with cross sell and up sells with India installed base.

Speaker 3: As we continue to expand the functionality of the platform, I can't overstate the value of our satisfied and the Referenceable installed customer base.

As we continue to expand the functionality of the platform I cant overstate the value of our satisfied in the reference or boat installed customer base.

Good day, and thank you for standing by, and welcome to Ncino's second quarter of fiscal year, 2024, by Nancy Result Conference call.

Operator: Good day, and thank you for standing by, and welcome to Ncino's second quarter fiscal year, 2024, by Nancy Result Conference call. At this time, I'll participants on a listen only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star one on your telephone. You will then hear an automated message, advise in your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded.

We are also seeing this expanding footprint are affected in our sales pipeline.

Speaker 3: We are also seeing this expanding footprint affected in our sales pipeline.

Speaker Change: At this time, I'll participants on a listen only mode.

Speaker 3: As of the end of the second quarter, more than 50% of the pipeline is for products other than commercial lending.

As of the end of the second quarter more than 50% of the pipeline is full products other than commercial lending.

Speaker Change: After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again.

Speaker 3: Let me reiterate that point. Retail, small business, treasury, mortgage, and Nick. All of the products we have created to supplement our additional commercial lending business. Now represent over 50% of sales opportunities in the pipeline.

Let me reiterate that point retail small business treasury mortgage and Nick all of the products. We have created to supplement our traditional commercial lending business now represents over 50% of sales opportunities in the pipeline.

Speaker Change: Please be advised that today's conference is being recorded.

Harrison Masters: I would like to introduce your host for today's call, Harrison Masters, Director of Investor Relations. Please go ahead.

Speaker Change: I would like to introduce your host for today's call, Harrison Masters, Director of Investor Relations.

Speaker 3: I cannot tell you how excited we are to reach this level of demand for Encinas Technology beyond commercial lending.

I cannot tell you how excited we are to reach this level of demand for <unk> technology beyond commercial lending.

Harrison Masters: Good afternoon and welcome to Ncino's second quarter fiscal 2024 earnings call. With me on today's call, our Pierre Naude, Ncino's Chairman and Chief Executive Officer, Greg Orenstein, Chief Financial Officer and Josh Glover, President and Chief Revenue Officer. During the course of this conference call, we will make forward-looking statements regarding trends, strategies and the anticipated performance of our business. These forward-looking statements are based on management's current views and expectations, until certain assumptions made as of today's date and are subject to various risk and uncertainties described in our FEC filings and other publicly available documents, the financial services industry and global economic conditions.

Speaker Change: Please go ahead.

Speaker Change: Good afternoon, and welcome to Ncino's second quarter of fiscal 2024 earnings call.

Speaker 3: As a reminder, the SAM outside of commercial is twice as large, so we have a significant opportunity ahead.

As a reminder, the Sam outside of commercial is twice as large so we have a significant opportunity ahead.

Speaker 3: but in scenery diversified beyond products and customers.

But <unk> diversified beyond products and customers.

Speaker Change: With me on today's call, our Pierre Naude, Ncino's Chairman and Chief Executive Officer, Greg Orenstein, Chief Financial Officer, and Josh Glover, President and Chief Revenue Officer.

Speaker 3: We are also diversified geographically. This has been particularly important with the uneven macro recovery.

We are also diversified geographically.

This has been particularly important with the uneven macro recovery.

Pierre Naude: During the course of this conference call, we will make forward-looking statements regarding trends, strategies, and the anticipated performance of our business.

Speaker 3: For example, in the second quarter we saw solid demand in MBR and APEC, including adding another large ESG customer, in this case a UK-based global bank.

For example in the second quarter, we saw solid demand in EMEA and APAC, including adding another large ESG customer in this case, a UK based global bank.

Speaker 3: While many of the challenges bankers face outside the US are universal, our ability to develop products specific to the needs of respective regions has been a key differentiator.

While many of the challenges bankers outside the U S. Our universal our ability to develop products specific to the needs of our respective regions has been a key differentiator.

Harrison Masters: Ncino disclaims any application's date or revised any forward-looking statements. Further, on today's call, we will also discuss certain non-gap metrics that we believe aid in the understanding of our financial results. A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8K furnished with the SEC just before this call. As well as the earnings presentation on our investor relations website at investor.ncino.com.

Speaker Change: These forward-looking statements are based on management's current views and expectations, until certain assumptions made as of today's date, and are subject to various risk and uncertainties described in our SEC filings and other publicly available documents, the financial services industry, and global economic conditions.

Speaker 3: switching to the U.S. and in particular our continued progress with the Encino mortgage suite. The integration of the Encino and Simple Nexus teams continues to accelerate our penetration of the banking channel.

Switching to the U S and in particular, our continued progress with the Encino mortgage suite the integration of the Encino and simple access teams continues to accelerate our penetration of the banking channel.

Speaker 3: This quarter we saw seven cross-cells in addition to six competitor takeaways.

This quarter, we saw seven cross sells in addition to six competitive takeaways.

Speaker 3: We also closed the number of large pipeline deals we noted last quarter, including a seven-figure upsell deal with a top ten mortgage landers.

We also closed a number of large pipeline deals we noted last quarter <unk>.

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

<unk>, a seven figure upsell deal with a top 10 mortgage lender.

Pierre Naude: Thank you, Hattison. And thank you for joining us this afternoon to read our second quarter fiscal 2024 performance. We are very pleased with the results and the momentum we saw both throughout the quarter. Both total and subscription revenues increased 18%. While we again outperformed on profitability, posting a 10% non-gap operating income margin for the quarter. We saw strength in sales activity across all parts of our business. We said last quarter that we expected a recovery in the second quarter.

Speaker Change: Ncino disclaims any application that date or revise any forward-looking statements.

Speaker 3: We ended the second quarter with another strong pipeline of Morgi steels, as Morgi's claimers understand the need to become more efficient in order to compete in this market.

We ended the second quarter was another strong pipeline of mortgage deals as mortgage lenders understand that needs to become more efficient in order to compete in this market.

Speaker Change: Further, on today's call, we will also discuss certain non-gap metrics that we believe aid in the understanding of our financial results. A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website, and as an exhibit to the form 8K furnished with the SEC just before this call.

Speaker 3: I couldn't be prouder of the mortgage team for their continued revenue growth. Again, both year over year and quarter over quarter in this difficult and volatile mortgage market.

I couldnt be prouder of the mortgage team for their continued revenue growth again, both year over year and quarter over quarter.

Speaker Change: As well as the earnings presentation on our investor relations website at investor.ncino.com.

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

This difficult and volatile mortgage market.

Speaker 3: I will let Josh provide additional details around U.S. mortgage, but first, I want to highlight our data capture and and release capabilities are key differentiators for our mortgage offering, with surface three our compensate and Nexus vision product.

I will let John provide additional details around U S mortgage, but first I want to highlight our data capture and analytics capabilities are key differentiators for our mortgage offering when surfers threw our compensation and Nexus vision products.

Pierre Naude: Thank you, Hattieson, and thank you for joining us this afternoon to read our second quarter fiscal 2024 performance. We are very pleased with the results, and the momentum we saw built throughout the quarter. Both total and subscription revenues increased 18%. While we again outperformed on profitability, posting a 10% non-gap operating income margin for the quarter.

Pierre Naude: We saw strength in sales activity across all parts of our business.

Pierre Naude: And we certainly saw that with second quarter sales up 22% year over year. Our solid results mirror what we are hearing from customers. The US banking industry has largely stabilized with the liquidity crisis behind us. Essentially banks have caught their breath and most have refocused on their long term strategy, which includes optimizing their technology infrastructure and providing a superior customer experience. The Encino platform was architected for just these purposes. It provides banks and credit unions of all sizes, a 360 degree view of the customer, allowing them to create their personalized, differentiated experience on a single platform.

Speaker 3: One upsell deal with the top 100 mortgage originator of this quarter involves adding these analytics offerings to round out the mortgage suite for an existing simple nexus point of sale customer increasing ACV by over 50% for that account.

Speaker Change: We said last quarter that we expected a recovery in the second quarter, and we certainly saw that with second quarter sales up 22% year over year. Our solid results mirror what we are hearing from customers.

One upsell deal with a top 100 mortgage originated this quarter involve adding these analytics offerings to round out the mortgage suite from existing simple Nexus point of sale customer.

Speaker Change: The US banking industry has largely stabilized with the liquidity crisis behind us. Essentially banks have caught their breath and most have refocused on their long-term strategy, which includes optimizing their technology infrastructure and providing a superior customer experience. The Encino platform was architected for just these purposes.

Increasing HCV by over 50% for that account.

Speaker 3: But this is just one area where our data and Linux expertise is called to our product roadmap.

But this is just one area.

Data analytics expertise is core to our product roadmap.

Speaker 3: I'd be spending the minute reviewing our ongoing mixed strategy around intelligence, including AI, machine learning.

Let me spend a minute reviewing our ongoing nick's strategy around intelligence, including AI.

Pierre Naude: Leveraging this holistic view of the customer, Ncino facilitates gathering deposits, originating any loan product, onboarding customers, and portfolio management all from one platform. In addition, our unique products, such as commercial pricing and profitability, allow financial institutions to broaden their customer relationships, cross sell, and optimize for profitability. This, of course, ultimately enhances their ability to successfully compete in an evolving market by balancing risk and reward. With high interest rates still in effect, financial institutions are seeing pressure on net interest margins.

Speaker Change: It provides banks and credit unions of all sizes, a 360 degree view of the customer, allowing them to create their personalized, differentiated experience on a single platform. Leveraging this holistic view of the customer, Ncino facilitates gathering deposits, originating any loan product, onboarding customers and portfolio management all from one platform.

Machine learning and analytics.

Speaker 3: With our single platform, we process vast amounts of data, including customer onboarding, low-neurigination, account opening, and bank customer financial information. And we continue to invest to further automate every stage of production across the platform.

With our single platform reprocessed vast amounts of data <unk>.

<unk> customer Onboarding loan origination account opening and bank customer financial information and we continue to invest to further automate every stage of production across the platform.

Speaker 3: As we've done with order spreading, where we remove layers of manual work to accelerate the underwriting process for loans, we'll continue to develop solutions to help bankers make faster, more informed decisions.

As we've done with the auto spreading while we removed layers of manual work to accelerate the underwriting process for loans will continue to develop solutions to help bankers make faster more informed decisions.

Speaker Change: In addition, our unique products, such as commercial pricing and profitability, allow financial institutions to broaden their customer relationships, cross sell and optimize for profitability.

Speaker 3: our team has deep-drained expertise in banking and is hard at work developing thoughtful solutions to the most complex issues our customers face.

Our team has deep domain expertise in banking and is hard at work developing thoughtful solutions to the most complex issues our customers face.

Speaker Change: This, of course, ultimately enhances their ability to successfully compete in an evolving market by balancing risk and reward.

Speaker 3: Recent internal demonstrations highlighted numerous use cases, including interactive virtual assistance and automated portfolio reviews.

Recent internal demonstrations highlighted numerous use cases, including interactive virtual assistance and automated portfolio reviews.

Speaker Change: With high interest rates still in effect, financial institutions are seeing pressure on net interest margins. The most effective way to offset margin compression while maintaining credit quality is by driving greater efficiency.

Pierre Naude: The most effective way to offset margin compression while maintaining credit quality is by driving greater efficiency. Ncino's platform was both a driver efficiency, while the automation at the core of the platform helps accelerate the industry's move to increased self-service. Bowling out the capabilities of the platform has always been a key growth driver. With many of our new products now reaching maturity, we are pleased by the increased number of products utilized for customer.

Speaker 3: With our philosophy of an open ecosystem and able by our API strategy, we are also attracting an impressive group of partners that are augmenting their insinu customer experience. Together, we are developing thoughtful solutions powered by AI, data and analytics to automate an increasing number of workflows with any our single platform allowing financial institutions to eliminate the lines on legacy point solutions and become more and more efficient.

With our philosophy of an open ecosystem enabled by our API strategy. We're also attracting an impressive group of partners that are augmenting the encino customer experience together, we are developing thoughtful solutions powered by AI and data and analytics to automate an increasing number of workflows within.

Speaker Change: Ncino's platform was both a driver efficiency while the automation at the core of the platform helps accelerate the industry's move to increased self-service.

Speaker Change: Bowling out the capabilities of the platform has always been a key growth driver.

Speaker Change: With many of our new products now reaching maturity, we are pleased by the increased number of products utilized for customer.

Many of our single platform, allowing financial institutions to eliminate the reliance on legacy point solutions and become more and more efficient.

Pierre Naude: In fact, over 40% of bank operating system new logo deals in the second quarter included more than one solution. Another focus has been building out our footprint with current customers. This quarter, over 60% of sales will cross sell and upsell within the installed base. As we continue to expand the functionality of the platform, I can't overstate the value of our satisfied and the referenceable installed customer base. We are also seeing this expanding footprint reflected in our sales pipeline.

Speaker Change: In fact, over 40 percent of bank operating system new logo deals in the second quarter included more than one solution.

Speaker 3: We were pioneers when bankers were reluctant to embrace the cloud. We proved that value proposition and today, cloud banking is considered the industry standard.

We were pioneers where bankers were reluctant to embrace the cloud.

We prove that value proposition and today Todd banking is considered the industry standard.

Speaker Change: Another focus has been building out our footprint with current customers.

Speaker 3: Our original vision continues driving the evolution of financial services as we anticipated demand for AI and data when we launched our Nick and his stiff over four years ago. It is exciting to see the industry embracing this technology as we continue on our journey to embed intelligence throughout our platform and change the financial services industry once more.

Our original vision continues driving the evolution of financial services as we anticipated the demand for AI and data when we launched our <unk> initiative over four years ago.

Speaker Change: This quarter, over 60 percent of sales will cross sell and upsell with India installed base.

Speaker Change: As we continue to expand the functionality of the platform, I can't overstate the value of our satisfied and the referenceable installed customer base.

It is exciting to see the industry embracing this technology as we continue on our journey to embed intelligence throughout our platform and change the financial services industry once more.

Speaker Change: We are also seeing this expanding footprint reflected in our sales pipeline.

Speaker 3: To quote one of the characters, Ron Nix, CTO and Vera Banks.

To quote one of your customers broadening.

Speaker Change: As of the end of the second quarter, more than 50 percent of the pipeline is for products other than commercial lending.

Pierre Naude: As of the end of the second quarter, more than 50% of the pipeline is for products other than commercial lending. Let me reiterate that point. Retail, small business, treasury, mortgage, and nick. All of the products we have created to supplement our additional commercial lending business. Now represent over 50% of sales opportunities in the pipeline. I cannot tell you how excited we are to reach this level of demand for Enciner's technology beyond commercial lending.

CTO at <unk> Bank.

Speaker 3: What's important for technology vendors is not to evaluate your needs today.

What's important for technology vendors is not to evaluate your needs today.

Speaker Change: Let me reiterate that point.

Speaker 3: But to predict where you are going to be in five years.

But to predict where you are going to be in five years.

Speaker Change: Retail, small business, treasury, mortgage and nick.

Speaker 3: We know in five years and Sino is going to be at the forefront of lending and we'll be right there with them.

We know in five years, and <unk> is going to be at the forefront of lending and we will be right there with them.

Speaker Change: All of the products we have created to supplement our additional commercial lending business.

Speaker Change: Now represent over 50 percent of sales opportunities in the pipeline.

Speaker 3: Vera Bank, a community bank headquartered in Henderson, Texas, partnered with Henshinau to modernize its lending processes and streamline employee and customer experience.

We are a bank a community bank headquartered in Henderson, Texas partnered with Encino to modernize its lending processes and streamline employee and customer experiences.

Speaker Change: I cannot tell you how excited we are to reach this level of demand for Enciner's technology beyond commercial lending.

Speaker 3: The bank has taken a full platform approach, adopting deposit account opening, portfolio analytics, retail lending, and commercial lending, including order spreading.

The bank has taken a full platform approach adopting deposit account opening portfolio analytics retail lending and commercial lending including order spreading.

Pierre Naude: As a reminder, the same outside of commercial is twice as large, so we have a significant opportunity ahead. But Enciner, we diversified beyond products and customers. We are also diversified geographically. This has been particularly important with the uneven macro recovery. For example, in the second quarter, we saw solid demand in MIA and APEC, including adding another large ESG customer, in this case, a UK-based global bank. While many of the challenges bankers face outside the US are universal, our ability to develop products specific to the needs of respective regions has been a key differentiator.

Speaker Change: As a reminder, the same outside of commercial is twice as large, so we have a significant opportunity ahead.

Speaker Change: But Enciner we diversified beyond products and customers.

Speaker 3: We see them as a textbook example of how an senior could be adopted across an organization to drive operational efficiency and we appreciate their trust in our vision for where the industry is headed.

We see them as a textbook example of how <unk> could be adopted across an organization to drive operational efficiency and we appreciate the trust in our vision for where the industry is headed.

Speaker Change: We are also diversified geographically.

Speaker Change: This has been particularly important with the uneven macro recovery.

Speaker Change: For example, in the second quarter, we saw solid demand and MBA and APEC, including adding another large ESG customer, in this case a UK-based global bank.

Speaker 3: The makeup of our sales pipeline proves that in continuous influence now extends far beyond commercial length.

The makeup of our sales pipeline proves that <unk> influence now extends far beyond commercial lending.

Speaker 3: With a continued expansion and maturity of our platform, we are poised to extend our market leadership to retail, small business, mortgage, data, analytics, and AI. Matching our success in commercial loan originates.

The continued expansion and maturity of our platform. We are poised to extend our market leadership to retail small business mortgage data analytics and AI matching our success in commercial loan origination.

Speaker Change: While many of the challenges bankers face outside the US are universal, our ability to develop products specific to the needs of respective regions has been a key differentiator.

Pierre Naude: Switching to the US, and in particular, our continued progress with the Enciner mortgage suite. The integration of the Enciner and Simple Nexus teams continues to accelerate the penetration of the banking channels. This quarter, we saw seven cross-cells in addition to six competitor takeaways. We also closed the number of large pipeline deals we noted last quarter, including a seven-figure upsell deal with a top ten mortgage lenders. We ended the second quarter with another strong pipeline of mortgage deals, as mortgage lenders understand the need to become more efficient in order to compete in this market.

Speaker Change: Switching to the US and in particular our continued progress with the Enciner mortgage suite.

Speaker 3: Our progress and positioning reinforce our optimism for the second half of fiscal 2024 and the years to come.

Our progress and positioning reinforce our optimism for the second half of fiscal 2024.

Speaker Change: The integration of the Enciner and Simple Nexus teams continues to accelerate our penetration of the bank each other.

And the years to come.

Speaker 3: Now let me turn the call to just to provide specific examples of our solid execution in the second group.

Now, let me turn the call to just to provide specific examples of our solid execution in the second quarter.

Speaker Change: This quarter, we saw seven cross-cells in addition to six competitor takeaways.

Speaker Change: We also closed a number of large pipeline deals we noted last quarter, including a seven-figure up-cell deal with a top ten mortgage lenders.

Speaker 4: Thank you, Pierre. We're very pleased with our second quarter results. In the United States, we saw customers coming back to the table with the renewed focus on digital transformation projects.

Thank you Pierre we are very pleased with our second quarter results in the United States, we saw customers coming back to the table with the renewed focus on digital transformation projects.

Speaker Change: We ended the second quarter with another strong pipeline of mortgage deals, as mortgage lenders understand the need to become more efficient in order to compete in this market.

Speaker 2: One such example is an expansion within a top four US bank who added additional users for small business wins.

One such example is an expansion within the top four U S Bank, who added additional users for small business lending.

Speaker 2: This feels a great example of the white space we see in even our largest accounts to add additionalized the business and to expand user bases within our existing foot.

This deal is a great example of the white space, we see and even our largest accounts to add additional lines of business and to expand user basis within our existing footprint.

Speaker Change: I couldn't be prouder of the mortgage team for their continuous revenue growth. Again, both year over year and quarter over quarter in this difficult and volatile mortgage market.

Pierre Naude: I couldn't be prouder of the mortgage team for their continuous revenue growth. Again, both year over year and quarter over quarter in this difficult and volatile mortgage market. I will let just provide additional details around U.S, mortgage. But first, I want to highlight our data capture and analytics capabilities are key differentiators for our mortgage offering when surfaced through our compensate and nexus vision products. One upsell deal with a top hundred mortgage originator this quarter, involve adding these analytics offerings to round out the mortgage suite for an existing simple nexus point of sale customer, increasing ACV by over 50% for that account.

Speaker 2: We close a retail lending add-on and conjunction with the merger of equals between two community banks.

We closed our retail lending add on in conjunction with the merger of equals between two community banks. The combined bank will standardize on <unk> for retail and commercial lending deployment will also include auto spreading.

Speaker 2: The combined bank will standardize an Encino for retail and commercial lending. Their deployment will also include auto spreading, deposit account opening, and treasury onboarding.

Speaker Change: I will let just provide additional details around U.S, mortgage, but first, I want to highlight our data capture and ladies' capabilities are key differentiators for our mortgage offering, when surfaced through our compensate and nexus vision products.

<unk> account opening and Treasury Onboarding.

As we have experienced.

Speaker 2: With many past M&A transactions within our customer base, is CNO platform's ability to extend across multiple products and lines of business while scaling with the bank as it grows will combine the lending operations for the new bank.

With many past M&A transactions within our customer base is snow platform's ability to extend across multiple products and lines of business, while scaling with the bank as it grows we'll combine that lending operations for the new Bank <unk>.

Speaker Change: One up-cell deal with the top hundred mortgage originators this quarter involve adding these analytics offerings to round out the mortgage suite for an existing simple nexus point of sale customer, increasing ACV by over 50% for that account.

Speaker 2: Integrating credit cultures and portfolio management are key to the success of a bank merger. And we're proud to see another growth-minded bank leveraging in Seno to help with these mission critical merger activities. We believe in the market is validated that financial institutions using a single platform have the tools to grow more efficiently while also delivering great differentiated customer experience.

Integrating credit cultures and portfolio management are key to the success of a bank merger and we're proud to see another growth minded bank leveraging <unk> to help with these mission critical merger activities. We beliefs in the market is validated that financial institutions using a single platform had the tools to grow more efficiently while also delivering great differentiated customer.

Speaker Change: But this is just one area where our data analytics expertise is called to our product roadmap.

Pierre Naude: But this is just one area where our data analytics expertise is called to our product roadmap. Let me spend a minute reviewing our ongoing nix strategy around intelligence, including AI, machine learning and analytics. With our single platform, we process vast amounts of data, including customer onboarding, loan origination, account opening and bank customer financial information, and we continue to invest to further automate every stage of production across the platform. As we've done with auto spreading, where we remove layers of manual work to accelerate the underwriting process for loans, we'll continue to develop solutions to help bankers make faster, more informed decisions.

Speaker Change: Let me spend a minute reviewing our ongoing niche strategy around intelligence, including AI, machine learning, and analytics.

<unk> for example, one of our regional bank customers say, 291% increase in average monthly new deposit accounts opened online after implementing in Sina.

Speaker 2: For example, one of our regional bank customers saw a 291% increase in average monthly new deposit accounts open online after implementing and seeing it.

Speaker Change: With our single platform, we process vast amounts of data, including customer onboarding, loan origination, account opening, and bank customer financial information, and we continue to invest to further automate every stage of production across the platform.

Speaker 2: An expansion opportunity in over $10 billion bang that added retail and commercial lending provided another proof point of our single platform strategy.

An expansion opportunity and over $10 billion bank that added retail and commercial lending.

Provided another proof point of our single platform strategy.

Speaker 2: These products join in existing small business lending deployment, bringing all the banks lending operations onto one platform within Sina.

These products join an existing small business lending deployment, bringing all the banks lending operations onto one platform with Athena.

Speaker Change: As we've done with auto spreading, where we remove layers of manual work to accelerate the underwriting process for loans, we'll continue to develop solutions to help bankers make faster, more informed decisions.

Speaker 2: The state of Colorado was quite good to us this quarter. And Sina was selected by yet another foreign credit institution for commercial lending. And we did an expansion within a community bank for deposit account opening and treasury on.

The state of Colorado was quite good to us this quarter.

<unk> was selected by yet another farm credit institution for commercial lending and we did an expansion within a community bank for deposit account opening and Treasury Onboarding.

Speaker Change: Our team has deep domain expertise in banking and is hard at work developing thoughtful solutions to the most complex issues our customers face. Recent internal demonstrations highlighted numerous use cases, including interactive virtual assistance and automated portfolio reviews.

Pierre Naude: Our team has deep domain expertise in banking and is hard at work developing thoughtful solutions to the most complex issues our customers face. Recent internal demonstrations highlighted numerous use cases, including interactive virtual assistance and automated portfolio reviews. With our philosophy of an open ecosystem enabled by our API strategy, we are also attracting an impressive group of partners that are augmenting the in senior customer experience. Together, we are developing thoughtful solutions powered by AI, data and analytics to automate an increasing number of workflows with any our single platform allowing financial institutions to eliminate the lines on legacy point solutions and become more and more efficient.

Speaker 2: This Colorado Community Bank already used NCO for commercial lending and for the mortgage home buying journey.

This Colorado community Bank already Houston for commercial lending and for the mortgage home buying journey.

Speaker 2: As peer noted, our U.S. mortgage business continues to benefit from and seen as well-established brands and market presidents within financial institutions.

As Peter noted our U S mortgage business continues to benefit from <unk>, well established brand and market presence within financial institutions are 19, new mortgage logos in the quarter were primarily with depository institutions proving the value of our approach.

Speaker 2: Our 19 new mortgage logos in the quarter were primarily with depository institutions, proving the value of our approach.

Speaker Change: With our philosophy of an open ecosystem enabled by our API strategy, we are also attracting an impressive group of partners that are augmenting the Encino customer experience. Together, we are developing thoughtful solutions powered by AI, data, and analytics to automate an increasing number of workflows with any our single platform allowing financial institutions to eliminate the lines on legacy point solutions and become more and more efficient.

Speaker 2: We're particularly pleased by two NetNU logo deals where a mortgage suite was included in Greenfield bank operating system deals.

We are particularly pleased by two net new logo deals where mortgage suite was included in Greenfield Bank operating system deals.

Speaker 2: The first was a community bank retail lending deal that included portfolio analytics and mortgage.

As a community bank retail lending deal that included portfolio analytics and mortgage.

Speaker 2: The second was a community bank committing to in CNO for commercial lending, portfolio analytics and mortgage. We're excited to hear customers look to in CNO as the single trusted vendor across all their business lines. As they also incorporate our mixed solutions to accelerate the value they receive from our product.

The second was a community bank committing to encino for commercial lending portfolio analytics and mortgage we're excited to see our customers look to <unk> as the single trusted vendor across all their business lines as they also incorporate our Nic solutions to accelerate the value they receive from our products.

Speaker Change: We were pioneers, when bankers were reluctant to embrace the cloud, we proved that value proposition and today cloud banking is considered the industry standard.

Pierre Naude: We were pioneers, when bankers were reluctant to embrace the cloud, we proved that value proposition and today cloud banking is considered the industry standard. Our original vision continues driving the evolution of financial services as we anticipated demand for AI and data when we launched our Nick and his step over four years ago. It is exciting to see the industry embracing this technology as we continue our journey to embed intelligence throughout our platform and change the financial services industry once more.

Speaker 2: You'll continue to see our product strategy focus on the value and senior delivers across three pillars of intelligence, automation and experience.

To see our product strategy focused on the value and senior delivers across three pillars of intelligent automation and experience. These.

Speaker Change: Our original vision continues driving the evolution of financial services as we anticipated demand for AI and data when we launched our NIC in a step over four years ago.

Speaker 2: These multi-solution greenfield bills illustrate the impact that strategy is providing prancinous customers.

These multi solution greenfield deals illustrate the impact that strategy is providing for <unk> customers.

Speaker 2: Our global footprint continues to provide stability to our growth profile. This corner we added another new logo in Australia. This time a top 10 Australian bank that will be deploying Seno's market leading commercial lending solution. Seno was selected to help the bank simplify their operating model, reduce cycle times, and improve the customer experience.

Our global footprint continues to provide stability to our growth profile. This quarter. We added another new logo in Australia. This time, a top 10 Australian bank that will be deploying <unk> market, leading commercial lending solution casino was selected to help the bank simplify their operating model reduce cycle times and improve the customer experience.

Speaker Change: It is exciting to see the industry embracing this technology as we continue our journey to embed intelligence throughout our platform and change the financial services industry once more.

Speaker Change: To quote one of your customers, Ron Nix, CTO and Vera Bank.

Pierre Naude: To quote one of your customers, Ron Nicks, CTO and Vera Bank. What's important for the technology vendors is not to evaluate your needs today, but to predict where you are going to be in five years. We know in five years and Cino is going to be at the forefront of lending and will be right there with them. Vera Bank, a community bank headquartered in Henderson, Texas, partnered with Ncino to modernize its lending processes and streamline employee and customer experiences.

Speaker 2: I'm particularly excited to note that this greenfield commercial loan origination deal also included NICS commercial pricing and profitability solution.

I'm, particularly excited to note that this greenfield commercial loan origination deal also included nixed commercial pricing and profitability solution. This.

Speaker Change: What's important for the technology vendors is not to evaluate your needs today, but to predict where you are going to be in five years.

Speaker 2: This is yet another proof point of the opportunity for this solution in banks worldwide.

This is yet another proof point of the opportunity for this solution and banks worldwide.

Ron Nix: We know in five years, and Cino is going to be at the forefront of lending and will be right there with them. Vera Bank, a community bank headquartered in Henderson, Texas, partnered with Ncino to modernize its lending processes and streamline employee and customer experiences. The bank has taken a full platform approach, adopting deposit account opening, portfolio analytics, retail lending, and commercial lending, including auto spreading.

Speaker 2: Another recent area of focus for us has been addressing demand from the world's top 500 peaceful systems.

Another recent a area of focus for US has been addressing demand from the world's top 500 financial institutions beyond <unk> established geographic footprint with great partnership from Accenture are emerging markets team signed one of the largest banks in the UAE and our first customer in the middle East for commercial lending our global partner ecosystem is a true force.

Speaker Change: We see them as a textbook example of how Ncino could be adopted across an organization to drive operational efficiency, and we appreciate their trust in our vision for where the industry is headed.

Speaker 2: Great partnership from Accenture our emerging markets team signed one of the largest banks in the UAE and our first customer in the Middle East for commercial lending. Our global partner ecosystem is a true force multiplier, not only in delivering customer success, but also in our go-to market effort.

Pierre Naude: The bank has taken a full platform approach, adopting deposit account opening, portfolio analytics, retail lending, and commercial lending, including auto spreading. We see them as a textbook example of how Ncino could be adopted across an organization to drive operational efficiency and we appreciate their trust in our vision for where the industry is headed. The makeup of our sales pipeline proves that in Cino's influence now extends far beyond commercial lending. With a continued expansion and maturity of our platform, we are poised to extend our market leadership to retail, small business, mortgage, data, analytics and AI, matching our success in commercial loan origination.

Multi player not only in delivering customer success, but also in our go to market efforts system integrator ecosystems unique combination of global reach and local relationships is helping encino uncover sales opportunities in both new and emerging markets.

Speaker 2: System Integrator ecosystems unique combination of global reach and local relationships, it's helping in, you know, uncover sales opportunities and both new and emerging markets.

Speaker 2: Expansion within existing customers made a strong contribution to Encinos' international success in the second quarter. An enterprise bank in the Netherlands expanded their adoption of our commercial lending solution and renewed their agreement with Encino for another five years.

Expansion within existing customers made a strong contribution to <unk> international success in the second quarter.

Speaker Change: The makeup of our sales pipeline proves that in Cino's influence now extends far beyond commercial lending.

And enterprise bank in the Netherlands expanded their adoption of our commercial lending solution and renew their agreement with Encino for another five years.

Speaker Change: With a continued expansion and maturity of our platform, we are poised to extend our market leadership to retail, small business, mortgage, data, analytics, and AI, matching our success in commercial loan origination.

Speaker 2: Also, beyond the borders of the continental U.S., we had an over $10 billion asset, Caribbean subsidiary of a global bank for commercial lending. We also assigned a community bank in the U.S. territory for retail lending, portfolio analytics, and for the mortgage home buying journey. An exciting bull...

Also beyond the borders the Continental U S. We had an over $10 billion asset Caribbean subsidiary of a global bank for commercial lending.

We also signed a community bank in the U S territory for retail lending portfolio analytics and for the mortgage home buying journey and.

Speaker Change: Our progress and positioning reinforce our optimism for the second half of fiscal 2024 and the years to come.

Pierre Naude: Our progress and positioning reinforce our optimism for the second half of fiscal 2024 and the years to come.

An exciting multi solution deal.

Speaker 2: Sustain success in any market requires happy, referenceable customers.

Sustained success in any market requires happy referenced Apple customers. We're pleased to take another early customer from the Japanese market lives when it snows commercial lending solution.

Josh Glover: Now, let me turn the call to just to provide specific examples of our solid execution in the second quarter. Thank you, Pierre. We're very pleased with our second quarter results. In the United States, we saw customers coming back to the table with renewed focus on digital transformation projects. One such example is an expansion within a top four US bank who added additional users for small business lending. This deals a great example of the white space we see in even our largest accounts to add additional lives of business and to expand user bases within our existing footprint.

Speaker Change: Now let me turn the call to just to provide specific examples of our solid execution in the second quarter.

Speaker 2: We are pleased to take another early customer from the Japanese market lives on its to

Speaker 2: We are appreciative of the opportunity early adopters have provided us in Japan, and we look forward to highlighting more examples of success in that work.

We are appreciative of the opportunity early adopters have provided us in Japan, and we look forward to highlighting more examples of success in that market.

Speaker Change: Thank you, Pierre.

Speaker Change: We're very pleased with our second quarter results. In the United States, we saw customers coming back to the table with a renewed focus on digital transformation projects. One such example is an expansion within a top four US bank who added additional users for small business lending.

Speaker 2: We also proudly celebrated GoLive milestones in other markets for commercial, retail, small business, commercial pricing and profitability, and deposit account of.

We also proudly celebrated go live milestones in other markets for commercial retail small business commercial pricing and profitability and deposit account opening.

Speaker Change: This deals a great example of the white space we see in even our largest accounts to add additional lives of business and to expand user bases within our existing footprint.

Speaker 2: As a customer-focused organization, we have continued appreciation for client feedback. We're extremely proud in the second quarter to receive the highest NTS score in company history. An average score of...

As a customer focused organization, we have continued appreciation for client feedback we're extremely proud in the second quarter to receive the highest NPS score in company history.

Speaker Change: We close a retail lending add-on in conjunction with the merger of equals between two community banks.

Josh Glover: We close a retail lending add-on in conjunction with the merger of equals between two community banks. The combined bank will standardize Ncino for retail and commercial lending. Their deployment will also include auto spreading, deposit account opening and treasury onboarding. As we've experienced with many past M&A transactions within our customer base, Ncino platform's ability to extend across multiple products and lines of business while scaling with the bank as it grows will combine the lending operations for the new bank.

Speaker Change: The combined bank will standardize Ncino for retail and commercial lending. Their deployment will also include auto spreading, deposit account opening, and treasury onboarding.

An average score of 74%.

Speaker 2: In addition to the talented customer success teams, we fielded around the globe, the maturity and stability of our single platforms are yielding demonstrable business value. And our recent investments in the challenge and usage analytics are allowing Encinos customers to benchmark and accelerate their own success. Greg?

In addition to the talented customer success teams, we feel around the globe.

The maturity and stability of our single platforms are yielding demonstrable business value and.

Speaker Change: As we've experienced with many past M&A transactions within our customer base, Ncino platforms ability to extend across multiple products and lines of business while scaling with the bank as it grows will combine the lending operations for the new bank.

And our recent investments in intelligent usage analytics are allowing <unk> customers to benchmark and accelerate their own success Greg.

Greg over to you for the financials.

Speaker 2: Thank you Josh and thanks everyone for joining us this afternoon to review our second quarter fiscal 24 financial result.

Thank you, Josh and thanks to everyone for joining US this afternoon to review our second quarter fiscal 'twenty four financial results.

Speaker Change: Integrating credit cultures and portfolio management are key to the success of bank merger.

Josh Glover: Integrating credit cultures and portfolio management are key to the success of bank merger. We're proud to see another growth-minded bank leveraging Ncino to help with these mission critical merger activities. We believe in the market as validated that financial institutions using a single platform have the tools to grow more efficiently while also delivering great differentiated customer experiences. For example, one of our regional bank customers saw a 291% increase in average monthly new deposit accounts open online after implementing Ncino.

Speaker 2: Please note that all numbers referenced in my remarks are only non-gap basis unless otherwise stated. A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website and is an exhibit to the form 8K furnished with the FCC just before this call.

Please note that all numbers referenced in my remarks are on a non-GAAP basis, unless otherwise stated.

Speaker Change: We're proud to see another growth-minded bank leveraging Ncino to help with these mission critical merger activities.

A reconciliation to comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8-K furnished with the SEC just before this call.

Speaker Change: We believe that the market has validated that financial institutions using a single platform have the tools to grow more efficiently while also delivering great differentiated customer experiences. For example, one of our regional bank customers saw a 291% increase in average monthly new deposit accounts open online after implementing Ncino.

Speaker 2: Total revenues for the second quarter of fiscal 24 were 117.2 million, an increase of 18% year over year.

Total revenues for the second quarter of fiscal 'twenty, four were $117 2 million, an increase of 18% year over year.

Speaker Change: An expansion opportunity in over $10 billion bank that added retail and commercial lending provided another proof point of our single platform strategy.

Josh Glover: An expansion opportunity in over $10 billion bank that added retail and commercial lending provided another proof point of our single platform strategy. Technology. These products joined an existing small business lending deployment, bringing all the banks lending operations onto one platform with Ncino. The state of Colorado was quite good to us this quarter. Ncino was selected by yet another farm credit institution for commercial lending, and we did an expansion within a community bank for deposit account opening and treasury onboarding.

Speaker 2: Subscription revenues for the second quarter were 99.9 million, also an increase of 18% year over year in Representing 85% of total revenue

Subscription revenues for the second quarter were $99 9 million also an increase of 18% year over year and representing 85% of total revenues.

Speaker Change: Chief.

Speaker Change: These products joined an existing small business lending deployment, bringing all the banks lending operations onto one platform with Ncino.

Speaker 2: Subscription revenues benefited from strong sales in the quarter with some of those deals contributing to revenues in the quarter.

Subscription revenues benefited from strong sales in the quarter with some of those deals contributing to revenues in the quarter.

Speaker Change: The state of Colorado was quite good to us this quarter.

Speaker 2: Professional services revenues were 17.3 million in the quarter, growing 14% year over year.

Professional services revenues were $17 $3 million in the quarter growing 14% year over year.

Speaker Change: Ncino was selected by yet another farm credit institution for commercial lending, and we did an expansion within a community bank for deposit account opening and treasury onboarding. This Colorado community bank already used Ncino for commercial lending and for the mortgage home buying journey.

Speaker 2: Prevenue growth outside the United States accelerated this quarter as a result of increased sales momentum that began in the second half of last year.

Revenue growth outside the United States accelerated this quarter as a result of increased sales momentum that began in the second half of last year.

Josh Glover: This Colorado community bank already used Ncino for commercial lending, and for the mortgage home buying journey. As Pierre noted, our US mortgage business continues to benefit from Ncino's well-established brands and market presence within financial institutions. Our 19 new mortgage logos in the quarter were primarily with depository institutions, proving the value of our approach. We are particularly pleased by two net new logo deals where mortgage suite was included in Greenfield bank operating system deals.

Speaker 2: Non-US revenues were $21.9 million or 19% of total revenues in the second quarter of 47% year over year or 48% in constant current.

Non U S revenues were $21 9 million or 19% of total revenues in the second quarter up 47% year over year or 48% in constant currency.

Speaker Change: As Pierre noted, our U.S, mortgage business continues to benefit from Ncino's well-established brand and market presence within financial institutions. Our 19 new mortgage logos in the quarter were primarily with depository institutions, proving the value of our approach. We are particularly pleased by two net new logo deals where mortgage suite was included in Greenfield Bank operating system deals. The first was a community bank retail lending deal that included portfolio analytics and mortgage.

Speaker 2: Non-GAP gross profit for the second quarter of fiscal 24 was $76.5 million, an increase of 18% year over year.

non-GAAP gross profit for the second quarter of fiscal 'twenty, four was $76 5 million, an increase of 18% year over year.

Speaker 2: Nine Gap Gross Margin was 65% compared to 65% in the second quarter of fiscal 23.

non-GAAP gross margin was 65% compared to 65% in the second quarter of fiscal 'twenty three.

Speaker Change: The second was a community bank committing to Ncino for commercial lending.

Josh Glover: The first was a community bank retail lending deal that included portfolio analytics and mortgage. The second was a community bank committing to Ncino for commercial lending, portfolio analytics, and mortgage. We're excited to see our customers look to Ncino as the single trusted vendor across all their business lines, as they also incorporate our Nick Solutions to accelerate the value they receive from our products. They'll continue to see our product strategy focused on the value in senior delivers across three pillars of intelligence, automation, and experience.

Speaker 2: Non-GAP operating income for the second quarter of fiscal 24 was $11.2 million compared with a $2.8 million loss in the second quarter of fiscal 23.

non-GAAP operating income for the second quarter of fiscal 'twenty, four was $11 2 million compared with a $2 $8 million loss in the second quarter of fiscal 'twenty three.

Speaker Change: We're excited to see our customers look to Ncino as the single trusted vendor across all their business lines.

Speaker Change: As they also incorporate our NIC solutions to accelerate the value they receive from our products.

Speaker 2: Our non-gap operating margin for the second quarter was positive 10% compared with negative 3% in the second quarter of fiscal 23.

Our non-GAAP operating margin for the second quarter was positive, 10% compared with negative 3% in the second quarter of fiscal 'twenty three.

Speaker Change: They'll continue to see our product strategy focused on the value and senior delivers across three pillars of intelligence, automation and experience.

Speaker 2: We exceeded non-GAP operating income guidance with continued solid execution against expense budgets and from our revenue performance.

We exceeded non-GAAP operating income guidance with continued solid execution against expense budgets and from our revenue performance.

Speaker Change: These multi-solution Greenfield deals illustrate the impact that strategy is providing for Ncino's customers.

Josh Glover: These multi-solution Greenfield deals illustrate the impact that strategy is providing for Ncino's customers. Our global footprint continues to provide stability to our growth profile. This quarter, we added another new logo in Australia. This time a top 10 Australian bank that will be deploying Ncino's market leading commercial lending solution. Ncino was selected to help the bank simplify their operating model, reduce cycle times, and improve the customer experience. I'm particularly excited to note that this Greenfield commercial loan origination deal also included Nick's commercial pricing and profitability solution.

Speaker 2: Non-GAP Net Income, attributable to Encino for the second quarter of fiscal 24, was $9.9 million or $9 per diluted share compared to a net loss of $4.9 million or negative for cents per basic and diluted share in the second quarter of fiscal 23.

non-GAAP net income attributable to Encino for the second quarter of fiscal 'twenty, four was $9 $9 million or <unk> <unk> per diluted share compared to a net loss of $4 9 million or negative <unk> <unk> per basic and diluted share in the second quarter of fiscal 'twenty three.

Speaker Change: Our global footprint continues to provide stability to our growth profile.

Speaker Change: This quarter we added another new logo in Australia. This time a top 10 Australian bank that will be deploying Ncino's market leading commercial lending solution. Ncino was selected to help the bank simplify their operating model, reduce cycle times and improve the customer experience.

Speaker Change: I'm particularly excited to note that this Greenfield commercial loan origination deal also included NIC's commercial pricing and profitability solution.

Speaker 2: Our remaining performance obligation or RPO increased to $928.6 million as of July 31st, 2023, up 2% over $907.4 million as of July 31st, 2022, with $636.2 million in the less than 24 months category, up 8% from $588.8 million as of July 31st, 2022.

Our remaining performance obligation or <unk> increased to $928 6 million as of July 31, 2023 up 2% over $907 4 million as of July 31, 2022, with $636 2 million in the less than 20.

Josh Glover: This is yet another proof point of the opportunity for this solution in banks worldwide. Another recent area of focus for us has been addressing demand from the world's top 500 financial institutions beyond Ncino's established geographic footprint. With great partnership from Accenture, our emerging markets team signed one of the largest banks in the UAE and our first customer in the Middle East for commercial lending. Our global partner ecosystem is a true force multiplier not only in delivering customer success, but also in our go-to-market efforts.

Speaker Change: This is yet another proof point of the opportunity for this solution in banks worldwide.

Speaker Change: Another recent area of focus for us has been addressing demand from the world's top 500 financial institutions beyond Ncino's established geographic footprint.

Four months category up 8% from $588 8 million as of July 31, 2022.

Speaker Change: With great partnership from Accenture, our emerging markets team signed one of the largest banks in the UAE and our first customer in the Middle East for commercial lending.

Speaker 2: In addition to a strong sales quarter, RPO also benefited from a solid renewal quarter.

In addition to a strong sales quarter.

<unk> also benefited from a solid renewal quarter.

Speaker Change: Our global partner ecosystem is a true force multiplier not only in delivering customer success but also in our go-to-market efforts.

Speaker 2: As Josh noted, there were significant expansions, meaning an increase in annualized subscription revenues that accompanied several annules.

As Josh noted there were significant expansions, meaning an increase in annualized subscription revenues that accompanied several renewals.

Josh Glover: System integrator ecosystems unique combination of global reach and local relationships is helping Ncino uncover sales opportunities and both new and emerging markets. Expansion within existing customers made a strong contribution to Ncino's international success in the second quarter. An enterprise bank in the Netherlands expanded their adoption of our commercial lending solution and renewed their agreement with Ncino for another five years. Also, beyond the borders of the continental U.S., we had an over $10 billion asset Caribbean subsidiary of a global bank for commercial lending. We also signed a community bank in U.S, territory for retail lending, portfolio analytics, and for the mortgage home buying journey, an exciting multi-solution deal.

Speaker Change: System integrator ecosystems unique combination of global reach and local relationships is helping Ncino uncover sales opportunities and both new and emerging markets.

Speaker 2: As we regularly highlight, we do not manage the business to RPO, but I do want to reinforce what Pierre mentioned earlier. It was a strong sales quarter with sales achievement up 22% year over year.

As we regularly highlight we do not manage the business to <unk>, but I do want to reinforce with Pierre mentioned earlier. It was a strong sales quarter with sales achievement up 22% year over year.

Speaker Change: Expansion within existing customers made a strong contribution to Ncino's international success in the second quarter. An enterprise bank in the Netherlands expanded their adoption of our commercial lending solution and renewed their agreement with Ncino for another five years.

Speaker 2: Note that sales in the second quarter were greater in June and July , so some corresponding buildings were occur in the third quarter.

Note that sales in the second quarter were greater in June and July so some corresponding billings will occur in the third quarter.

Speaker 2: We ended the quarter with cash and cash equivalents of $103.4 million, including restricted cash.

We ended the quarter with cash and cash equivalents of $103 4 million, including restricted cash.

Speaker Change: Also beyond the borders of the continental U.S., we had an over $10 billion asset Caribbean subsidiary of a global bank for commercial lending.

Speaker 2: Netcash provided by operating activities was $12 million compared to $9.5 million in the second quarter of fiscal 23.

Net cash provided by operating activities was $12 million compared to $9 $5 million in the second quarter of fiscal 'twenty three.

Speaker Change: We also signed a community bank in U.S, territory for retail lending, portfolio analytics and for the mortgage home buying journey and exciting multi-solution deal.

Speaker 2: Capital expenditures were $859,000 in the quarter, resulting in free cash flow of $11.1 million for the second quarter.

Capital expenditures were $859000 in the quarter.

<unk> and free cash flow of $11 1 million for the second quarter.

Speaker Change: Sustain success in any market requires happy referenceable customers.

Josh Glover: Sustain success in any market requires happy, referenceable customers. Masters. We are pleased to take another early customer from the Japanese market lies on a Cino's commercial lending solution. We are appreciative of the opportunity early adopters have provided us in Japan, and we look forward to highlighting more examples of success in that market. We also proudly celebrated, go live milestones in other markets for commercial retail, small business, commercial pricing and profitability, and deposit account opening.

Speaker 2: Please note that we expect to generate positive free cash flow through the balance of the fiscal year.

Please note that we expect to generate positive free cash flow through the balance of the fiscal year.

Speaker Change: Masters.

Speaker Change: We are pleased to take another early customer from the Japanese market lives on its CNO's commercial lending solution.

Speaker 2: Also note that we repaid the outstanding balance of $15 million on our $50 million revolving credit facility and have no amounts outstanding there under.

Also note that we repaid the outstanding balance of $15 million on our $50 million revolving credit facility and have no amounts outstanding they are under.

Speaker Change: We are appreciative of the opportunity early adopters have provided us in Japan, and we look forward to highlighting more examples of success in that market.

Speaker Change: We also proudly celebrated GoLive milestones in other markets for commercial, retail, small business, commercial pricing and profitability, and deposit account opening.

Speaker 2: Finally, please note that in July through mediation, the company and the plaintiff and a Peter Diff class action complaint filed on March 12, 2021 in the United States District Court for the Eastern District of North Carolina, reached a settlement agreement in principle of approximately $2.2 million that remained subject to court approval.

Finally, please note that in July through mediation, the company and the plaintiff and a punitive class action complaint filed on March 12, 2021 in the United States District Court for the Eastern District of North Carolina reached a settlement agreement in principal of approximately $2 2 million that remains subject to <unk>.

Speaker Change: As a customer-focused organization, we have continued appreciation for client feedback.

Josh Glover: As a customer focused organization, we have continued appreciation for client feedback. We are extremely proud in the second quarter to receive the highest NTS score in company history, an average score of 74%. In addition to the talented customer success teams, we fielded around the globe, the maturity and stability of our single platforms are yielding demonstrable business value, and our recent investments in a tellage and usage analytics are allowing Ncino's customers to benchmark and accelerate their own success.

Speaker Change: We are extremely proud in the second quarter to receive the highest NTS score in company history, an average score of 74 percent.

Quarter approval.

Speaker 2: The company has accrued for the proposed settlement agreement, which is included in accrued expenses and other liabilities as of July 31st, 2023, when the company's unaudited condensed consolidated balance.

The company has accrued for the proposed settlement agreement, which is included in accrued expenses and other liabilities as of July 31, 2023 on the company's unaudited condensed consolidated balance sheets.

Speaker Change: In addition to the talented customer success teams we fielded around the globe, the maturity and stability of our single platforms are yielding demonstrable business value, and our recent investments in the teleg and usage analytics are allowing Ncino's customers to benchmark and accelerate their own success.

Speaker 2: We have excluded this expense from our non-gap results as it is outside the ordinary course of our business. We have excluded this expense from our non-gap results as it is outside the ordinary course of our business.

We have excluded this expense from our non-GAAP results as it is outside the ordinary course of our business.

Greg Orenstein: Greg, over to you for the financials.

Speaker Change: Greg, over to you for the financial.

Now turning to guidance.

Speaker 2: For the third quarter of fiscal 24, we expect total revenues of $120 million to $121 million, with subscription revenues of $102.5 million to $103.5 million.

For the third quarter of fiscal 'twenty, four we expect total revenues of $120 million to $121 million.

Greg Orenstein: Thank you, Josh, and thanks everyone for joining us this afternoon to review our second quarter fiscal 24 financial results.

Greg Orenstein: Thank you, Josh, and thanks everyone for joining us this afternoon to review our second quarter fiscal 24 financial results. Please note that all numbers reference to my remarks are on a non-gap basis unless otherwise stated.

Speaker Change: Please note that all numbers reference to my remarks are on a non-gap basis unless otherwise stated. A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8K, furnished with the SEC just before this call.

Subscription revenues of $102 5 million to $103 5 million.

Speaker 2: This guidance assumes your over-year subscription growth of 17% at the midpoint of our range.

Greg Orenstein: A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website, and as an exhibit to the form 8K, furnished with the SEC just before this call. Total revenues for the second quarter of fiscal 24 were 117.2 million, an increase of 18% year over year. Subscription revenues for the second quarter were 99.9 million, also an increase of 18% year over year, and representing 85% of total revenues.

This guidance assumes year over year subscription growth of 17% at the midpoint of our range.

Speaker 2: Non-GAP operating income is expected to be approximately 13 million to 15 million dollars. And non-GAP net income attributable to Encino per share to be 10 cents to 12 cents for the third quarter.

non-GAAP operating income is expected to be approximately 13 million to $15 million and non-GAAP net income attributable to <unk> per share to be 10 to 12 for the third quarter.

Speaker Change: Total revenues for the second quarter of fiscal 24 were 117.2 million, an increase of 18 percent year over year. Subscription revenues for the second quarter were 99.9 million, also an increase of 18 percent year over year in representing 85 percent of total revenues. Subscription revenues benefited from strong sales in the quarter with some of those deals contributing to revenues in the quarter.

Speaker 2: This is based upon a weighted average of approximately 115 million diluted shares outstanding.

This is based upon a weighted average of approximately $115 million diluted shares outstanding.

Speaker 2: Turn in the second quarter was in line with our expectations, but we are conscious that the IMB segment of our US mortgage customer base continues to navigate the heightened interest rate environment.

Churn in the second quarter was in line with our expectations, but we are conscious that the IMT segment of our U S mortgage customer base continues to navigate the heightened interest rate environment.

Greg Orenstein: Subscription revenues benefited from strong sales in the quarter, with some of those deals contributing to revenues in the quarter. Professional services revenues were 17.3 million in the quarter, growing 14% year over year. Revenue growth outside the United States accelerated this quarter as a result of increased sales momentum that began in the second half of last year. Non-US revenues were 21.9 million dollars or 19% of total revenues in the second quarter of 47% year over year or 48% in constant currency.

Speaker 2: Accordingly, we intend to be prudent with full your expectations by raising the low end of our revenue guidance for both total and subscription revenues while maintaining the top end of our guidance for both.

Accordingly, we intend to be prudent with full year expectations by raising the low end of our revenue guidance for both total and subscription revenues, while maintaining the top end of our guidance for both.

Speaker Change: Professional services revenues were 17.3 million in the quarter, growing 14 percent year over year. Revenue growth outside the United States accelerated this quarter as a result of increased sales momentum that began in the second half of last year.

Speaker 2: Despite this conservatism, our strong performance in the second quarter, the market stabilizing following the liquidity concerns earlier this year, and the opportunities we see in our pipeline drive our optimism for the second half of the year.

Despite this conservatism our strong performance in the second quarter the market stabilizing following the liquidity concerns earlier this year and the opportunities we see in our pipeline drive our optimism for the second half of the year.

Speaker Change: Non-US revenues were 21.9 million dollars or 19 percent of total revenues in the second quarter of 47 percent year over year or 48 percent in constant currency.

Speaker 2: For fiscal 24, we expect total revenues of $475 million to $478.5 million with subscription revenues of $406 million to $409 million.

For fiscal 'twenty four we expect total revenues of 475 million to $478 $5 million with subscription revenues of $406 million to $409 million.

Speaker Change: Non-gap growth profit for the second quarter of fiscal 24 was 76.5 million dollars, an increase of 18 percent year over year.

Greg Orenstein: Non-gap growth profit for the second quarter of fiscal 24 was 76.5 million dollars, an increase of 18% year over year. Non-gap growth margin was 65% compared to 65% in the second quarter of fiscal 23. Non-gap operating income for the second quarter of fiscal 24 was 11.2 million dollars, compared with a 2.8 million dollar loss in the second quarter of fiscal 23. Our non-gap operating margin for the second quarter was positive 10% compared with negative 3% in the second quarter of fiscal 23.

Speaker 2: This fully your guidance assumes your over-year subscription growth of 18% at the midpoint of our range.

Speaker Change: Non-gap growth margin was 65 percent compared to 65 percent in the second quarter of fiscal 23. Non-gap operating income for the second quarter of fiscal 24 was 11.2 million dollars compared with a 2.8 million dollar loss in the second quarter of fiscal 23.

This full year guidance assumes year over year subscription growth of 18% at the midpoint of our range.

Speaker 2: We are increasing both the low-end top end of our non-GAP operating income guidance for fiscal 24 to 51 million to 54 million dollars.

We are increasing both the low end top end of our non-GAAP operating income guidance for fiscal 'twenty, four to 51 million to $54 million.

Speaker 2: Non-GAP Net Income, attributable to Encino per share, is expected to be between 38 cents to 41 cents based upon a weighted average of approximately 115 million diluted shares outstanding.

non-GAAP net income attributable to Encino per share is expected to be between 38 to <unk> 41.

Speaker Change: Our non-gap operating margin for the second quarter was positive 10 percent compared with negative 3 percent in the second quarter of fiscal 23.

Based upon a weighted average of approximately 115 million diluted shares outstanding.

Greg Orenstein: We exceeded non-gap operating income guidance with continued solid execution against expense budgets and from our revenue performance. Non-gap net income attributable to Encino for the second quarter of fiscal 24 was 9.9 million dollars or 9 cents per diluted share compared to a net loss of 4.9 million or negative 4 cents per basic and diluted share in the second quarter of fiscal 23. Our remaining performance obligation or RPO increased to $928.6 million as of July 31st, 2023, up 2% over $907.4 million as of July 31st, 2022, with $636.2 million in the less than 24 months category, up 8% from $588.8 million as of July 31st, 2022.

Speaker Change: We exceeded non-gap operating income guidance with continued solid execution against expense budgets and from our revenue performance.

Speaker 2: The top end of our subscription revenues and non-gap operating income guidance reflects our continued commitment to the Rule of 30 objective for the full fiscal year. With that, I'll open the line for.

The top end of our subscription revenues and non-GAAP operating income guidance reflects our continued commitment to the rule of 30 objective for the full fiscal year.

Speaker Change: Non-gap net income attributable to Encino for the second quarter of fiscal 24 was 9.9 million dollars or 9 cents per diluted share compared to a net loss of 4.9 million or negative 4 cents per basic and diluted share in the second quarter of fiscal 23.

With that I'll open the line for questions.

And thank you.

Speaker 1: As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. So, withdraw your question, please press star 11 again. Please stand by where we compile the Q&A roster, and we do ask that you limit yourself to one question and one follow up. Again, that is one question and one follow up. And one moment for our first question.

As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster and we do ask that you limit yourself to one question and one follow up again that is one question and one follow.

Speaker Change: Our remaining performance obligation, or RPO, increased to $928.6 million as of July 31st, 2023, up 2% over $907.4 million as of July 31st, 2022, with $636.2 million in the less than 24 months category, up 8% from $588.8 million as of July 31st, 2022. In addition to a strong sales quarter, RPO also benefited from a solid renewal quarter. As Josh noted, there were significant expansions, meaning an increase in annualized subscription revenues that accompanied several renewals.

And one moment for our first question.

Speaker 1: And our first question comes from Terry Tillman, from Choose Securities, your line is now open.

And our first question comes from Terry Tillman from <unk> Securities. Your line is now open.

Speaker 5: Hi there, good afternoon. Usually on these calls when we have important new light health accounts in different regions but I try to say hi or some sort of greeting and local language. I've done it in German and French.

Hi, there good afternoon, usually on these calls when we have important new lighthouse accounts in different regions I try to say higher some sort of grading in local language I've done it in German and French.

Greg Orenstein: In addition to a strong sales quarter, RPO also benefited from a solid renewal quarter. As Josh noted, there were significant expansions, meaning an increase in annualized subscription revenues that accompanied several renewals. As we regularly highlight, we do not manage the business to RPO, but I do want to reinforce what Pierre mentioned earlier. It was a strong sales quarter with sales achievement up 22% year over year. Note that sales in the second quarter were greater in June and July, so some corresponding billings were occur in the third quarter.

Speaker 5: Arabic, I don't know if it's Hulan, but I tried my best, but great to see the UAE win. Maybe the first question here.

Arabic I don't know if the tone, but I tried my best but great to see the UAE UAE win.

The first question.

Speaker 5: Hey there. For Pierre or Josh, is 22% sales growth, I'd like to unpack that a little bit more. Is that like an HCV bookings? And do you think that coming out of the falling out that the business can keep picking up momentum versus two Q sales activity, talking about the second half of the year and then I had to follow up for as well. Thank you.

Hey, there.

For peer Josh is 22% sales growth I'd like to unpack that a little bit more is that like an ACB bookings and do you think that coming out of the falling out.

Speaker Change: As we regularly highlight, we do not manage the business to RPO, but I do want to reinforce what Pierre mentioned earlier.

Speaker Change: It was a strong sales quarter with sales achievement up 22% year over year.

Speaker Change: Note that sales in the second quarter were greater in June and July, so some corresponding billings were occur in the third quarter.

The business can keep picking up momentum versus <unk> sales activity I'm talking about the second half of the year and then I had a follow up for.

Speaker Change: We ended the quarter with cash and cash equivalents of $103.4 million, including restricted cash. Net cash provided by operating activities was $12 million, compared to $9.5 million in the second quarter of fiscal 23. Capital expenditures were $859,000 in the quarter, resulting in free cash flow of $11.1 million for the second quarter.

Greg Orenstein: We ended the quarter with cash and cash equivalents of $103.4 million, including restricted cash. Net cash provided by operating activities was $12 million, compared to $9.5 million in the second quarter of fiscal 23. Capital expenditures were $859,000 in the quarter, resulting in free cash flow of $11.1 million for the second quarter. Please note that we expect to generate positive free cash flow through the balance of the fiscal year. Also note that we repaid the outstanding balance of $15 million on our $50 million revolving credit facility and have no amounts outstanding there under.

Well thank you.

Speaker 3: Very thanks for that question. Yeah, just to remind that 22% is year over year. Okay, and not quarter over quarter, which makes it more remarkable. I think it shows the paint up demand, and I'd also show the momentum we see in the market. As I look at the global markets, including the US, I would say the only place where people are still careful is the US enterprise market.

Barry Thanks for that question.

Yes, just a reminder, that 22% is year over here, okay and.

And not quarter over quarter, which makes it more remarkable I think it shows the pent up demand and it also shows the momentum we see in the market as I look at the global markets, including the U S. I would say the only place where people are still careful is the U S enterprise market.

Speaker Change: Please note that we expect to generate positive free cash flow through the balance of the fiscal year. Also note that we repaid the outstanding balance of $15 million on our $50 million revolving credit facility and have no amounts outstanding there under. Finally, please note that in July through mediation, the company and the plaintiff and a petitive class action complaint filed on March 12, 2021 in the United States District Court for the Eastern District of North Carolina reached a settlement agreement in principle of approximately $2.2 million that remained subject to court approval. The company has accrued for the proposed settlement agreement, which is included in accrued expenses and other liabilities as of July 31, 2023, when the company's unaudited condensed consolidated balance sheets.

Speaker 3: where the regional and big banks are strategically aligned and moving forward, but very careful to buy.

The regional and big banks.

Our strategically aligned and moving forward, but very careful Dubai.

Speaker 3: Apart from that, the rest of the segments community regionally US is strong demand and internationally we see very strong interest.

From that and the rest of the segments community regional in the U S. We see strong demand.

And internationally, we see very strong interest.

Greg Orenstein: Finally, please note that in July, through mediation, the company and the plaintiff and a petitive class action complaint filed on March 12, 2021 in the United States District Court for the Eastern District of North Carolina reached a settlement agreement in principle of approximately $2.2 million that remains subject to court approval. The company has accrued for the proposed settlement agreement, which is included in accrued expenses and other liabilities as of July 31, 2021 on the company's unaudited condensed consolidated balance sheets. We have excluded this expense from our non-gap results as it is outside the ordinary course of our business.

Speaker 3: I believe the current economic environment to net interest modern squeezes is truly a driver for a view to efficiency. And as we mentioned, we've got the platform and that's being reconfirmed as we visit customers in drive-around. Just anything to add? Yeah, nothing else to that.

I believe the current economic environment with net interest margin squeezes.

Truly a driver for review to efficiency and as we mentioned.

We've got the platform, that's being reconfirmed as we visited customers and drive around Josh anything to add another measure that.

Speaker 5: It's great to hear. And I guess maybe the follow up question for Greg. Greg, I mean, I think what you said is that some of the activity in June and July

That's great to hear and I guess, maybe as a follow up question for Greg Greg I mean, I think what you said is that some of the activity in June and July.

Speaker 5: You know, really doesn't show up much in our PO. You know, but then you did talk about the sales activity up year over year. People are going to be thinking about, you know, what you've done year to date and then what might happen in the second half of the year is we start the 4-Tel help, you know, revenue looks next year.

Really doesn't show up much in <unk>, but then you did talk about the sales activity up year over year people are going to be thinking about what you've done year to date, and then what might happen in the second half of the year as we start to <unk> revenue looks next year, but I'm just kind of curious as it relates to the metric because we do look at it the <unk> do you feel like based on what.

Speaker Change: We have excluded this expense from our non-gap results as it is outside the ordinary course of our business.

Speaker 5: But I'm just kind of curious is it related to the metric because we do look at it, the RPO or CRPO. Do you feel like based on what you see, just those reported metrics?

Speaker Change: Now turning to guidance.

Greg Orenstein: Now turning to guidance. For the third quarter of fiscal 24, we expect total revenues of $120 million to $121 million with subscription revenues of $102.5 million to $103.5 million. This guidance assumes year-over-year subscription growth of 17% at the midpoint of our range.

Speaker Change: For the third quarter of fiscal 24, we expect total revenues of $120 million to $121 million with subscription revenues of $102.5 million to $103.5 million. This guidance assumes year-over-year subscription growth of 17% at the midpoint of our range.

You see just those reported metrics, our troughs and <unk> and they could start perking up in the second half of the year. Thank you.

Speaker 5: are dropping in 2Q and they could start parking up in the second half of the year. Thank you.

Speaker 2: Secretary, my comment around the activity and the heightened activity towards the end of the quarter was related to buildings where we got some deal sign that would have been reflected in RPO but openly from a billing standpoint that would have happened post quarter end.

Hey, Terry my comment around the activity and the heightened activity towards the end of the quarter was related to billings, where we got some deals signed that would have been reflected in our apio, but ultimately from a billing standpoint that would have happened post quarter end.

Speaker Change: Non-gap operating income is expected to be approximately $13 million to $15 million, and non-gap net income attributable to Encino per share to be $0.10 to $0.12 for the third quarter. This is based upon a weighted average of approximately 115 million diluted shares outstanding.

Greg Orenstein: Non-gap operating income is expected to be approximately $13 million to $15 million in non-gap net income attributable to Encino per share to be $0.10 to $12 cents for the third quarter. This is based upon a weighted average of approximately 115 million diluted shares outstanding. Turn in the second quarter was in line with our expectations, but we are conscious that the IMV segment of our US mortgage customer base continues to navigate the heightened interest rate environment. Accordingly, we intend to be prudent with full your expectations by raising the low end of our revenue guidance for both total and subscription revenues while maintaining the top end of our guidance for both.

Speaker 2: You know, but overall to Pierce comments and what you heard in our prepared remarks, you know, we definitely saw momentum pick up as the quarter progressed and, you know, going back to my comments when I was kind of on the investor's circuit last quarter. You know, we said that we expected second quarter to be better than first quarter and obviously we demonstrated that and we expected the second half of the year from a sales, you know, slash bookings perspective to be better than the first half. And momentum we're seeing right now reinforces that belief. That's great. Good job on the quarter. Thank you.

But overall to pierre's comments and what you heard in our prepared remarks, we definitely saw momentum pick up as the quarter progressed and going back to my comments when I was kind of on the Investor Circuit last quarter.

We said that we expected second quarter to be better than first quarter, and obviously, we demonstrated that and we expected the second half of the year from a sales slash bookings perspective to be better than the first half.

Speaker Change: Turn in the second quarter was in line with our expectations, but we are conscious that the IMB segment of our US mortgage customer base continues to navigate the heightened interest rate environment.

Momentum, we're seeing right now reinforces that belief.

Speaker Change: Accordingly, we intend to be prudent with full your expectations by raising the low end of our revenue guidance for both total and subscription revenues while maintaining the top end of our guidance for both.

That's great good job on the quarter. Thank you.

Thanks, Erin and thank you.

Speaker 1: And one moment for our next question.

And one moment for our next question.

Speaker Change: Despite this conservatism, our strong performance in the second quarter, the market stabilizing following the liquidity concerns earlier this year, and the opportunities we see in our pipeline, drive our optimism for the second half of the year.

Greg Orenstein: Despite this conservatism, our strong performance in the second quarter, the market stabilizing following the liquidity concerns earlier this year, and the opportunities we see in our pipeline drive our optimism for the second half of the year. For fiscal 24, we expect total revenues of $475 million to $478.5 million with subscription revenues of $406 million to $409 million. This full year guidance assumes year over year subscription growth of 18% at the midpoint of our range.

Speaker 1: And our next question comes from Charles Nabam from Steven Jarline Bell.

And our next question comes from Charles <unk> from Stephens. Your line is now open.

Speaker 6: Good afternoon and thank you for taking my question. It's good to see the momentum in the mortgage business cross selling into the FI customer base, but I'm just curious, given the recent uptick in rates, if you're seeing any stabilization in turn within the legacy IMD base for simple next.

Good afternoon, and thank you for taking my question.

It's good to see the momentum in the mortgage business cross selling into the <unk> customer base, but.

Speaker Change: For fiscal 24, we expect total revenues of $475 million to $478.5 million, with subscription revenues of $406 million to $409 million. This full year guidance assumes year over year subscription growth of 18% at the midpoint of our range.

Just curious given the recent uptick in rates Youre.

You are seeing any stabilization in churn within the legacy IMD base for simple nexis.

Speaker 2: Yeah, we again, as I mentioned in my remarks, the turn was in line in second quarter with our expectations. We're not seeing increases.

Yes.

Again as I mentioned in my remarks, the churn was in line in the second quarter with our expectations.

Speaker Change: We are increasing both the low end top end of our non-gap operating income guidance for fiscal 24 to $51 million to $54 million. Non-gap net income attributable to Ncino per share is expected to be between $0.38 to $0.41 based upon a weighted average of approximately 115 million diluted shares outstanding.

Greg Orenstein: We are increasing both the low end top end of our non-gap operating income guidance for fiscal 24 to $51 million to $54 million. Non-gap net income attributable to Ncino per share is expected to be between $0.38 to $0.41 based upon a weighted average of approximately 115 million diluted shares outstanding.

We're not seeing increased churn.

Speaker 2: From a forecasting or guidance perspective, we did really roll some of our overperformance, not through really to account for, I'd say, unexpected turn in a second half of the year.

From a forecasting our guidance perspective, we did really roll some of our over performance.

Not through really to account for I'd say unexpected churn in the second half of the year.

Speaker 2: There's nothing as we sit here today that leads us to believe that we'll have heightened sure and beyond our forecast but ultimately just in this market going back to your comments.

There's nothing as we sit here today that has us leads us to believe that we will have heightened churn beyond our forecast, but ultimately just in this market going back to your comments around mortgage rates. We wanted to take a conservative view I think what's amazing about that businesses. Despite the.

Speaker Change: The top end of our subscription revenues and non-gap operating income guidance reflects our continued commitment to the rule of 30 objective for the full fiscal year.

Greg Orenstein: The top end of our subscription revenues and non-gap operating income guidance reflects our continued commitment to the rule of 30 objective for the full fiscal year.

Speaker 2: around mortgage rates we wanted to take a conservative view. I think what's amazing about that business is despite the challenge of the mortgage market.

The challenge of the mortgage market. The fact that they've continued to grow year over year and quarter over quarter. Since we acquired the business and I think that positions us incredibly well when the market ultimately does stabilize and then ultimately rebounds, particularly as we've aligned with a lot of.

Speaker 2: The fact that they continue to grow year over year and quarter over quarter since we acquired the business.

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

Operator: With that, I'll open the line for questions. And thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. When we draw your question, please press star 11 again. Please stand by when we compile the Q&A roster. And we do ask that you limit yourself to one question and one follow up. Again, that is one question and one follow up. And one moment for our first question.

Speaker Change: And thank you.

Speaker 2: And I think that positions us incredibly well when the market ultimately does stabilize and then ultimately rebounds, particularly as we've aligned with a lot of the larger, better capitalized INBs.

Speaker Change: As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced.

Speaker Change: When we draw your question, please press star 11 again.

Of the larger better capitalized <unk> and as we've had additional sales into the encino.

Speaker 2: And as we've had additional sales into the Encino Financial Institution customer base.

Speaker Change: Please stand by where we compile the Q&A roster, and we do ask that you limit yourself to one question and one follow-up.

<unk> institution customer base, so I think while we're focused a little bit on churn now I think as we think into the future as things settle down I think that's going to be a significant opportunity for us from a growth standpoint.

Speaker 2: So I think while we're focused a little bit on turn now, I think as we think into the future, as things settle down, I think that's going to be a significant opportunity for us from a growth standpoint.

Speaker Change: Again, that is one question and one follow-up.

Speaker Change: And one moment for our first question.

Terry Tillman: And our first question comes from Terry Tillman from Choose Securities. Your line is now open. Hi there. Good afternoon. Usually on these calls, when we have important new light health accounts in different regions, but I try to say hi or some sort of greeting and local language. I've done it in German and French Arabic. I don't know if it's hold on, but I tried my best, but great to see the UAE win.

Speaker Change: And our first question comes from Terry Tillman from Choose Security.

Speaker 5: And as a follow up, just looking at the full year guide for 23, looks like you're well on track to hit that rule of 30 target exiting the year. But you've also talked about hitting the rule of 40 at some point as well. So my question is, given the shift in the pipeline away from commercial and momentum and cross-selective,

Got it.

And as a follow up just looking at the full year guide for 'twenty three it looks like your <unk>.

Terry Tillman: Your line is now open.

Terrell Frederick Tillman: Hi there, good afternoon.

Well on track to hit that rule of 30 target exiting the year, but you've also talked about hitting the rule of 40 at some point as well. So my question is.

Speaker Change: Usually on these calls, when we have important new light health accounts in different regions, but I try to say hi or some sort of greeting and local language.

Speaker Change: I've done it in German and French.

Speaker Change: Arabic, I don't know if it's Hollan, but I tried my best, but great to see the UAE win.

Given the shift in the pipeline away from commercial air.

And momentum in cross sell activity I'm curious, how we should think about the long term trajectory of the margin.

Speaker Change: Maybe the first question here.

Terry Tillman: Maybe the first question here. Hey there for Pierre or Josh is 22% sales growth. I'd like to unpack that a little bit more. Is that like an ACV booking? And do you think that coming out of the falling out that, you know, the business can keep picking up momentum versus two Q sales activity talking about the second half of the year and then I had to follow up for. As well. Thank you.

Speaker 5: I'm curious how we should think about the long-term trajectory of the margin of, you know, just progress towards that rule of 40 and how we should think about that from both a margin and a revenue standpoint.

Speaker Change: Hey there.

Speaker Change: For Pierre or Josh is 22% sales growth.

Just progress towards that rule of 40, and how we should think about that from both a margin and a revenue standpoint.

Speaker Change: I'd like to unpack that a little bit more.

Speaker Change: Is that like an ACV booking?

Speaker Change: And do you think that coming out of the falling out that, you know, the business can keep picking up momentum versus two Q sales activity.

Speaker 3: Yeah, we look forward to share our future models at our investor day and actually explain how we see the future. It's been three years since we've been public. The business mix has changed. We made some acquisitions and all those impact the models. I can just tell you from purely looking at.

Yes, we look forward to share our future models at our Investor day, and actually explain how we see the future.

Speaker Change: I'm talking about the second half of the year and then I had a follow-up for as well.

It's been three years since we've been public.

The business mix have changed we made some acquisitions in all of those impact the models.

Speaker Change: Thank you.

Pierre Naude: Very thanks for that question. Yeah, just a reminder that 22% is year over here. Okay. And not quarter over quarter, which makes it more remarkable. I think it shows the pent up demand and I'd also show the momentum we see in the market. As I look at the global markets, including US, I would say the only place where people are still careful is the US enterprise market. Where the regional and big banks are strategically aligned and moving forward but very careful to buy a part from that and the rest of the segments community regionally US, which is strong demand and internationally we see very strong interest.

Speaker Change: Very thanks for that question.

I can just tell you from purely looking at.

Speaker Change: Yeah, just to remind that 22% is year over here.

Speaker 3: sales activity and performance as well as

Sales activity and performance.

Speaker Change: Okay.

Speaker Change: And not quarter over quarter, which makes it more remarkable. I think it shows the pent up demand and I'd also show the momentum we see in the market.

As well as.

Speaker 3: The pipeline size is also the pipeline mix, which to me is very interesting. I want to make sure that they saw a pullback in commercial. It's more of the adoption of new York products across the platform as well. So we are foll speed there to maintain our market leadership in commercial while we are rolling out the additional platform products which is really showing up now in our sales as well as in our customer base.

The pipeline size is also pipeline mix, which to me is really interesting.

Speaker Change: As I look at the global markets, including the US, I would say the only place where people are still careful.

I want to make sure that they saw a pullback in commercial it's more of the adoption of newer products across the platform as well. So we are full speed ahead to maintaining our market leadership in commercial while we are rolling out the <unk> platform products, which is really showing up now in our sales as well as.

Speaker Change: Is the US enterprise market where the regional and big banks are strategically aligned and moving forward but very careful to buy.

Speaker Change: Apart from that and the rest of the segments community region, the US is a strong demand and internationally we see very strong interest.

And our customer base.

Just for clarification and Chuck just one other thing to add again, we said rule of 30 was kind of a stake in the ground. This year, but the expectation should be that will increase that.

Speaker 2: Yeah, and Chuck just one other thing to add again, we said rule of 30 was kind of a stake in the ground this year, but the expectations should be that we'll increase that. You know, as the years progressed to get to rule of 40 and beyond. And so from our perspective, this is really the first step in that journey, we begin to put that stake in the ground this year. And you know, kudos to the whole team in terms of how we've been executing through, you know, what's been a difficult first half of the year from an end customer standpoint.

Speaker Change: I believe the current economic environment for net interest modern squeezes is truly a driver for a view to efficiency.

Pierre Naude: I believe the current economic environment for net interest modern squeezes is truly a driver for a view to efficiency. And as we mentioned, we've got the platform and that's being reconfirmed as we visit customers and drive around just anything to add. That's great to hear.

Speaker Change: And as we mentioned, we've got the platform and that's being reconfirmed as we visit customers and drive around.

As the years progress to get the rule of 40 and beyond and so from our perspective. This is really the first step.

Speaker Change: Just anything to add?

Speaker Change: No, nothing out of that.

In that journey, we can put that stake in the ground this year and.

Speaker Change: That's great to hear.

Speaker Change: And I guess maybe the follow-up question for Greg.

Greg Orenstein: And I guess maybe the follow-up question for Greg. Greg, I mean, I think what you said is that some of the activity in June and July, you know, really doesn't show up much in RPO, you know, but then you did talk about the sales activity up year over year. People are going to be thinking about, you know, what you've done year to date, and then what might happen in the second half of the year is we start to foretell how, you know, revenue looks next year.

Kudos to the whole team in terms of how we've been executing through what's been a difficult first half of the year from a customer standpoint.

Speaker Change: Greg, I mean, I think what you said is that some of the activity in June and July, you know, really doesn't show up much in RPO, you know, but then you did talk about the sales activity up year over year.

Speaker 5: Got it. Appreciate the color guys and look forward to hearing more of the analyst. Thank you. Thank you. And thank you.

Got it.

Speaker Change: People are going to be thinking about, you know, what you've done year to date and then what might happen in the second half of the year is we start to foretell how, you know, revenue looks next year.

The color guys and look forward to hearing more at the analyst day. Thank you.

Thank you Anne and thank you.

Speaker Change: But I'm just kind of curious, is it related to the metric because we do look at it, the RPO or CRPO, do you feel like based on what you see?

Greg Orenstein: But I'm just kind of curious as it relates to the metric because we do look at it, the RPO or CRPO, do you feel like based on what you see? Just those reported metrics are dropping in 2Q, and they could start purking up in the second half of the year. Thank you. Terry, my comment around the activity and the heightened activity towards the end of the quarter was related to billing where we got some deal sign that would have been reflected in RPO, but ultimately from a billing standpoint, that would have happened post quarter end.

And one moment for our next question.

Speaker 1: And our next question comes from James Fawcetti from Morgan Stanley . Your line is now open.

Okay.

And our next question comes from James Faucette from Morgan Stanley. Your line is now open.

Speaker Change: Just those reported metrics are dropping in 2Q and they could start purking up in the second half of the year.

Thank you very much.

Speaker Change: Thank you.

Yes.

Speaker 7: I guess, you know, for me, I'm looking at kind of this cross cell.

Speaker Change: Terry, my comment around the activity and the heightened activity towards the end of the quarter was related to buildings where we got some deals signed that would have been reflected in RPO, but ultimately from a billing standpoint, that would have happened post quarter end.

I guess for me I'm looking at kind of this cross sell and in some of these activities.

Speaker 7: activities, you know, and you mentioned that you've had increasing customers that are adopting more than one product. Historically, Nick modulate adoption tends to result in around 20% up with a

And you mentioned that you have had an increase in customers that are adopting more than one product historically Nick modulus.

Speaker Change: But overall, it appears comments in what you heard in our prepared remarks, you know, we definitely saw momentum pick up as the quarter progressed and you know, going back to my comments when I was kind of on the investor's circuit last quarter.

Greg Orenstein: But overall, it appears comments in what you heard in our prepared remarks, you know, we definitely saw momentum pick up as the quarter progressed. And you know, going back to my comments when I was kind of on the investor's circuit last quarter. You know, we said that we expected second quarter to be better than first quarter, and obviously we demonstrated that. And we expected the second half of the year from a sales slash bookings perspective to be better than the first half. And momentum we're seeing right now reinforces that belief.

Adoption tends to result in around 20% uplift to ACB and an existing commercial customer.

Speaker 7: existing commercial customer. Given the potential for difference in fee count and pricing between commercial and retail, I'm curious to learn if you've run similar math on ACV uplift if the existing commercial customer adopts retail. Just trying to get a sense of potential leverage there on that cross selling.

Given the potential for different soon seat count in pricing between commercial and retail I'm curious to learn if your front similar math on ACD uplift if the existing commercial customer adopts retail I'm, just trying to get a sense of potential leverage there on that cross selling opportunity.

Speaker Change: You know, we said that we expected second quarter to be better than first quarter and obviously we demonstrated that and we expected the second half of the year from a sales, you know, slash bookings perspective to be better than the first half. And momentum we're seeing right now reinforces that belief.

Speaker Change: That's great.

Speaker 2: We've not disclosed or really commented previously on that. Again, I think as we gear up for our first investor day at the end of September , our intent is to provide different cuts of the business and provide additional details so that you guys can have a better understanding of how this platform story is truly playing out. And really the white space we have within our customer base and beyond.

Yes, Bob.

Not disclosed or really commented previously on on that again I think as we gear up for our first Investor day at the end of September.

Terry Tillman: That's great. Good job on the quarter. Thank you. And thank you.

Speaker Change #100: Good job on the quarter.

Operator: And one moment for our next question.

Speaker Change #101: Thank you.

Speaker Change #102: And thank you.

Speaker Change #102: And one moment for our next question.

Our intent is to provide different cuts of the business and provide additional detail. So that you guys can have a better understanding of how this platform story is truly playing out.

Speaker Change #103: And our next question comes from Charles and the bomb from Stephen.

Charles Nabhan: And our next question comes from Charles and the bomb from Steven, your line is now open. Good afternoon, and thank you for taking my question. It's good to see the momentum in the mortgage business cross selling into the FI customer base.

Speaker Change #104: Your line is now open.

And really the white space, we have within our customer base and beyond.

Speaker Change #105: Good afternoon and thank you for taking my question.

Speaker Change #106: It's good to see the momentum in the mortgage business cross selling into the FI customer base, but I'm just curious, given the recent uptick in rates, if you're seeing any stabilization in turn within the legacy, I am debase for simple Nexus.

Okay.

Got it and then.

Speaker 7: quickly on, you know, kind of a large deal impacts. One of your European competitors is spoken about improvement in large deals.

Greg Orenstein: But I'm just curious, given the recent uptick in rates, if you're seeing any stabilization in turn within the legacy, I am debase for simple Nexus. Yeah, we again, as I mentioned in my remarks, the turn was in line in second quarter with our expectations. We're not seeing increased turn from a forecasting or guidance perspective. We did really roll, you know, some of our overperformance. You know, not through really to account for I'd say unexpected turn in a second half of the year.

Quickly on.

Kind of large deal impacts as one of your European competitors spoken about improvements in large deals.

Speaker 7: How would you characterize the demand environment in those larger asset spaces and opportunities, particularly given the lumpiness in the RPO metric for large deals and renewals? Just wondering how that could be impacting and how you're thinking about that.

How would you characterize the demand environment.

Speaker Change #107: Yeah, we again, as I mentioned in my remarks, the turn was in line in second quarter with our expectations.

Those larger asset bases and opportunities, particularly given the lumpiness in the RPM metric for large deals and renewals just wondering how that could be impacting and how youre thinking about that going forward.

Speaker Change #108: We're not seeing increased turn from a forecasting or guidance perspective.

Speaker Change #109: We did really roll, you know, some of our overperformance, you know, not through really to account for I'd say unexpected turn in a second half of the year.

Speaker 4: As a suggestion, we're pleased with the engagement that we're seeing and we called out a few exciting larger opportunities that we formalize.

As this is Josh we're pleased with the engagement that we're seeing and we called out a few exciting larger opportunities that we that we formalized this last quarter and those span a variety of geographies you had.

Speaker Change #110: There's nothing as we sit here today that has us or leads us to believe that we'll have heightened charm beyond our forecast, but ultimately just in this market going back to your comments around mortgage rates.

Greg Orenstein: There's nothing as we sit here today that has us or leads us to believe that we'll have heightened churn beyond our forecast, but ultimately just in this market going back to your comments around mortgage rates. We wanted to take a conservative view. I think what's amazing about that business is despite the challenge of the mortgage market. The fact that they continue to grow year over year and quarter over quarter since we acquired the business.

Speaker 4: last quarter in those spanned a variety of geographies. You had a nice win in Australia and one of their top 10 bank.

Nice win in Australia in one of their top 10 banks, we had a nice expansion in our global bank with our ESG solution out of the U K.

Speaker 4: We had a nice expansion in a global bank with our ESG solution out of the UK. We had that win in the Middle East. So we're pleased with where we are. We also had an expansion within a large account in the Netherlands. You know, we saw that market impacted last year kind of early. They came back early and those proof points show the continuous engagement and momentum that we're seeing there.

Speaker Change #110: We wanted to take a conservative view.

Speaker Change #111: I think what's amazing about that business is despite the challenge of the mortgage market, the fact that they continue to grow year over year and quarter over quarter since we acquired the business.

That win in the Middle East. So we're pleased with where we are.

<unk> had an expansion within a large.

In the Netherlands so.

Speaker Change #112: And I think that positions us incredibly well when the market ultimately does stabilize. And then ultimately rebounds, particularly as we've aligned with, you know, a lot of the larger, better capitalized IMBs.

Greg Orenstein: And I think that positions us incredibly well when the market ultimately does stabilize. And then ultimately rebounds, particularly as we've aligned with, you know, a lot of of the larger better capitalized IMBs. And as we've had additional sales into the Encino financial institution customer base.

We saw that market impacted last year kind of early they came back early and those proof points show that continued engagement and momentum that we're seeing there.

Got it thanks, so much.

Speaker Change #112: And as we've had additional sales into the Encino financial institution customer base.

Thank you.

Speaker 1: And thank you. And one moment for our next question.

Thank you.

And one moment our next question.

Speaker Change #112: So I think while we're focused a little bit on turn now, I think as we think into the future, as things settle down, I think that's going to be a significant opportunity for us from a growth standpoint.

Charles Nabhan: So I think while we're focused a little bit on turn now, I think as we think into the future, as things settle down, I think that's going to be a significant opportunity for us from a growth standpoint. Got it. And as a follow up, just looking at the full year guide for 23 looks like you're well on track to hit that rule of 30 target exiting the year, but you've also talked about hitting the rule of 40 at some point as well.

Speaker 1: And our next question comes from Nick Altman from Scotia Bank. Your line is now open.

And our next question comes from Nick Altmann from Scotiabank. Your line is now open.

Speaker Change #112: Got it.

Speaker Change #112: And as a follow up, just looking at the full year guide for 23, it looks like you're well on track to hit that rule of 30 target exiting the year.

Speaker 8: Awesome. Thanks guys. I wanted to ask a quick clarification question on the 22% sales achievement growth on a year-over-year basis. Is that quota attainment? Is that net new ACV? Can you just maybe comment on what you mean by that 22% number?

Awesome, Thanks, guys I wanted to ask.

A quick clarification question on the 22% sales achievement.

Speaker Change #113: But you've also talked about hitting the rule of 40 at some point as well.

Growth on.

Speaker Change #114: So my question is, given the shift in the pipeline away from commercial and momentum and cross sell activity, I'm curious how we should think about the long term trajectory of the margin of, you know, just progress towards that rule of 40 and how we should think about that from both a margin in revenue standpoint.

The year over year basis.

Charles Nabhan: So my question is given the shift in the pipeline away from commercial and momentum and cross sell activity. I'm curious how we should think about the long term trajectory of the margin of, you know, just progress towards that rule of 40 and how we should think about that from both a margin in revenue standpoint.

Is that quota attainment is that net new HCV can you just maybe comment on what you mean by that 22% number.

Speaker 4: So that's a 22% increase in bookings year over year as we look at the Q2 compare. And is that on the Q2?

That's a 22% increase in bookings year over year as we look at the Q2 compare.

And is that.

You bet.

And.

Yeah on an ACB basis.

Speaker Change #115: Yeah, we look forward to share our future models at our investor day and actually explain how we see the future in three years since we've been public.

Pierre Naude: Yeah, we look forward to share our future models at our investor day and actually explain how we see the future. It's been three years since we've been public. The business mix have changed, we made some acquisitions and all those impact the models. This is also pipeline mix, which to me is very interesting. I want to make sure that they sort of pull back in commercial. It's more of the adoption of newer products across the platform as well.

Okay.

Speaker 5: Okay, and then I guess my second question is, I think you had mentioned 60% of the bookings in the quarter were profils.

Okay and then.

I guess my second question is I think you had mentioned 60% of the bookings in the quarter were cross sells.

Speaker Change #115: The business mix have changed. We made some acquisitions and all those impact the models.

Speaker 5: I guess when you look at the pipeline for the second half, how much of the pipeline is sort of met new versus existing?

When you look at the pipeline for the second half how much of the pipeline is sort of net new versus existing.

Speaker Change #116: I can just tell you from purely looking at sales activity and performance as well as the pipeline size is also pipeline mix, which to me is very interesting.

Speaker 5: And then just as a follow up, you mentioned 50% of the pipeline is for products outside of commercial lending. So can maybe to talk about whether retail and an SMB is acting more of a front door in terms of your pipeline or these sort of more expansion oriented deals. Thanks.

And then just as a follow up you mentioned, 50% of the pipeline is for products outside of commercial lending. So can you maybe just talk about whether retail and F&B is acting more of a front door in terms of your pipeline or are these sort of more expansion oriented deals. Thanks.

Speaker Change #116: I want to make sure that they sort of pull back in commercial.

Speaker Change #116: It's more of the adoption of newer products across the platform as well.

Speaker 2: I'll get the first question, Josh, if you want to take a second. Yeah, from a pipe perspective, there's a healthy mix between new and leveraging current customers.

Yes, I'll get the first question Josh is going to take the second yeah from a from a pipe perspective.

Speaker Change #117: So we are Faucette to maintain our market leadership in commercial while we are rolling out the digital platform products, which is really showing up now in our sales as well as in our customer base.

Pierre Naude: So we are full speed ahead to maintain our market leadership in commercial, while we are rolling out the digital platform products, which is really showing up now in our sales as well as in our customer base.

There is a healthy mix between between new and.

Leveraging current customers are selling back into the base. So we're excited about that.

Speaker 2: going back into the bass. So we're excited about that, that mix.

That mix, which we think is important.

Speaker 2: We think it's important, but as peer-noted in this comments, our customer base is an incredible asset. And as our newer products continue to mature, and we see them adopt more, there's a tremendous amount of opportunity we have there in addition to going to net new customers.

Speaker Change #117: Just that's a clarification.

Charles Nabhan: Just that's a clarification. Yeah, and Chuck just one other thing to add. Again, we said rule of 30 was kind of a stake in the ground this year, but the expectations should be that will increase that, you know, as the years progressed to get to rule of 40 and beyond. And so from our perspective, this is really the first step in that journey, we can put that stake in the ground this year.

Peer noted in his comments our customer base is an incredible asset and as our newer products continue to mature and we see them adopt more theres a tremendous.

Speaker Change #117: Yeah, and Chuck just one other thing to add.

Speaker Change #118: Again, we said rule of 30 was kind of a stake in the ground this year, but the expectation should be that we'll increase that.

The amount of opportunity we have there in addition to go into net new net new customers in.

Speaker Change #119: You know, as the years progressed to get to rule of 40 and beyond.

Speaker 2: And that commercial customer base obviously being where we started for a while, that would be the entry point. We would try to add other solutions like retail or deposit account opening, the solutions have matured. And so we're seeing situations where if a customer's priority is to start with retail or account opening or something else, they're able to do so and we get them live with confidence.

Speaker Change #120: And so from our perspective, this is really the first step in that journey, we can put that stake in the ground this year.

That commercial customer base, obviously being where we started for a while that would be the entry point and we would try to add other solutions like retail or deposit account opening the solutions have matured and so we're seeing situations, where if a customer's priorities to start with retail or account opening or something else, they're able to do so and we get them live with.

Charles Nabhan: And, you know, kudos to the whole team in terms of how we've been executing through, you know, what's been a difficult first half of the year from an end customer standpoint. Got it. Appreciate the color guys and look forward to hearing more of the analysts. Thank you.

Speaker Change #120: And you know, kudos to the whole team in terms of how we've been executing through, you know, what's been a difficult first half of the year from an end customer standpoint.

Operator: And thank you.

Speaker Change #120: Got it.

Speaker Change #121: Appreciate the color guys and look forward to hearing more of the analysts.

Speaker 2: You still see some accounts we spoke about Vera, in prior quarters. We talked about Johnson Financial Group for those accounts who make a large multi-solution commitment. Obviously those are quite exciting. It's our job to present the solutions, show the broad single platform vision, and then we're going to show a customer a path to success based on what makes sense for them at the time. We'll bet on Encino, we'll bet on our ecosystem, we'll get them live, and then hopefully expand with the other solutions later.

You still see some accounts we spoke about Vera.

Speaker Change #121: Thank you.

Speaker Change #121: And thank you.

In prior quarters, we've talked about Johnson financial group for those accounts you make a large multi solution commitment obviously those are quite exciting, but it's our job to present. The solution showed the broad single platform vision and then we're going to show a customer a path to success based on what makes sense for them at the time, we will better in Athena will bet on our ecosystem.

Speaker Change #121: And one moment for our next question.

James Faucette: And one moment for our next question. And our next question comes from James Fawcetti from Morgan Stanley. Your line is now open. Thank you very much. I guess, you know, for me, I'm looking at kind of this cross cell and some of these activities. And you mentioned that you've had increasing customers that are adopting more than one product. Historically, Nick modular adoption tends to result in around 20% up with the ACV in an existing commercial customer.

Speaker Change #121: And our next question comes from James Faucetti from Morgan Stanley.

Speaker Change #122: Your line is now open.

Speaker Change #123: Thank you very much.

Speaker Change #124: Um, I guess, you know, for, for me, I'm looking at kind of this cross sell and some of these activities, you know, and history.

James Faucette: Given the potential for difference in seat count and pricing between commercial and retail, I'm curious to learn if you've run similar math on ACV uplift if the existing commercial customer adopts retail. Just trying to get a sense of potential leverage there on that cross selling opportunity.

We will get them live.

And hopefully expand with the other solutions later.

Speaker 9: Yeah, and with the maturing of the products, our ability to enter anywhere to Josh's point that the bank has an issue that they're trying to address.

With the maturing of the products our ability to enter anywhere to Josh <unk> point that the bank has an issue that they're trying to address.

Speaker Change #125: And you mentioned that you've had an increase in customers that are adopting more than one product.

Speaker Change #126: Historically, Nick module adoption tends to result in around 20% up with the ACV in an existing commercial customer.

Speaker 9: you know we think is really exciting as we look forward. On the other side of the liquidity reality from earlier in the year though we do see these banks.

We think is really exciting as we look forward on the other side of the liquidity reality from earlier in the year, though we do see these banks coming back to the idea that the best most stable path for the future to grow and to grow.

Speaker Change #127: Given the potential for difference in fee count and pricing between commercial and retail, I'm curious to learn if you've run similar math on ACV uplift at the existing commercial customer adopts retail, just trying to get a sense of potential leverage there on that cross selling opportunity.

Speaker 2: Coming back to the idea that the best most stable paths for the future to grow and to grow in an efficient manner is to provide a broad set of products that fulfill a variety of customer needs to fulfill them very well across multiple channels. And that brings you back to a single platform vision and we're seeing that continue to be adopted by the market. Really excited about that step, that peer reference where we have 40% of new logos.

In an efficient manner is to provide a broad set of products that fulfill a variety of customer needs.

To fulfill them very well across multiple channels and that brings you back to a single platform vision and we're seeing that continue to be.

Speaker Change #128: We've, um, we've not disclosed or really commented previously on on that again.

Josh Glover: We've not disclosed or really commented previously on on that again, I think as we gear up for our first investor day at the end of September. You know, our intent is to provide different cuts of the business and provide additional details so that you guys can have a better understanding of how this platform stories truly playing out. And really the white space we have within our customer base and beyond.

Speaker Change #129: I think as we gear up for our first investor day at the end of September, you know, our intent is to provide different cuts of the business and provide additional details so that you guys can have a better understanding of how this platform stories truly playing out.

Be adopted by the market really excited about that stat that Pierre referenced where we have 40% of new logos committed to more than one solution on day, one, but we believe that's not just a validation of our product maturity, but really us being nicely aligned towards some bankers minds today.

James Faucette: Got it.

Speaker 2: committed to more than one solution on day one. But we believe that's not just a validation of our product maturity, but really us being nicely aligned to what some bankers minds today.

Speaker Change #129: And really the white space we have within our customer base and beyond.

And thank you.

Speaker Change #129: Got it.

Speaker Change #129: And then, um, quickly on, you know, kind of large deal impacts is one of your European competitors is spoken about improvements in large deals.

Josh Glover: And then quickly on, you know, kind of large deal impacts is one of your European competitors is spoken about improvements in large deals. How would you characterize demand environment in those larger asset bases and opportunities, particularly given the lumpiness in the RPO metric for large deals and renewals, just wondering how that could be impacting and how you're thinking about that. Going forward. Yeah, this is Josh. We're pleased with the engagement that we're seeing.

And one moment our next question.

Speaker 1: And our next question comes from Chris Kennedy, the William Blair. Your line is now open.

And our next question comes from Chris Kennedy with William Blair. Your line is now open.

Speaker Change #130: How would you characterize the demand environment in those larger asset bases and opportunities, particularly given the lumpiness in the RPO metric for for large deals and renewals.

Speaker 5: Thanks for taking the questions. Just going back to the pipeline comment, over 50% of the pipeline is outside of commercial lending. Can you just rank order the importance, whether it's Nick, Treasury, Retail, etc.?

Great. Thanks for taking the questions just going back to the pipeline comment over 50% of the pipeline.

Speaker Change #130: Just wondering how that could be impacting and how you're thinking about that.

Outside of commercial lending can you just rank order the importance, whether it's Nick treasury retail et cetera.

Speaker Change #130: Going forward.

Speaker Change #130: As this is Josh, we're pleased with the engagement that we're seeing.

Josh Glover: We called out a few exciting larger opportunities that we formalized this last quarter in those span of variety of geographies. You had a nice win in Australia and one of their top 10 banks. We had a nice expansion in a global bank with our ESG solution out of the UK. We had that win in the Middle East. So we're pleased with where we are. We also had an expansion within a large account in the Netherlands. So, you know, we saw that market impacted last year, kind of early. They came back early and those proof points show that continues engagement momentum that we're seeing there.

Speaker Change #131: We called out a few exciting larger opportunities that we formalized this last quarter in those span of variety of geographies.

Speaker 2: So we're pleased with the volume of pipe that we see in the consumer side of these banks that maybe retail, it may be account opening, or it may be our mortgage solution. When you see the stat 19 new logos for simple Nexus, I commented on it, but more than half of those were actually in depositories. So that's really resonating well, so lining nicely with the accounts that we've worked hard.

So we're pleased with the volume of pipe that we see in the consumer side of these banks that may be retail it may be account opening or it may be our mortgage solution. When you. When you see the stat 19, new logos for simple Nexus I commented on it but more than half of those were actually in depository. So.

Speaker Change #132: You had a nice win in Australia and one of their top 10 banks.

Speaker Change #133: We had a nice expansion in a global bank with our ESG solution out of the UK.

Speaker Change #133: We had that win in the Middle East.

Speaker Change #133: So we're pleased with where we are.

Now that's really resonating well, it's aligning nicely with the with the accounts that we've worked hard to sign and show a path to success over the years that brand that we built there.

Speaker Change #133: We also had an expansion within a large account in the Netherlands.

Speaker 2: to sign and show a path to success over the years the brand that we built there. So it's a mix of those. I would say at a high level, the most significant components of the pipe.

Speaker Change #133: So, you know, we saw that market impacted last year, kind of early. They came back early and those proof points show that continues engagement momentum that we're seeing here.

It's a mix of those I would say at a high level. The most significant components of the pipe in the consumer side of our product portfolio, our retail lending and simple Nexus then also account opening.

Speaker Change #133: Got it.

Speaker 2: in the consumer side of our product portfolio, our retail lending, and simple next assessment also accounted.

Speaker Change #133: Thanks so much.

James Faucette: Got it. Thanks so much. Thank you. And thank you.

Speaker Change #133: Thanks.

Speaker Change #133: Thank you.

Speaker Change #133: And thank you.

Speaker Change #134: And one moment for our next question.

Nick Altmann: And one moment for our next question. And our next question comes from Nick Altman from Scotia Bank. Your line is now open. Awesome. Thanks guys. I wanted to ask a quick clarification question on the 22% sales achievement. Is that quote a attainment? Is that not new ACV? Can you just maybe comment on what you mean by that 22% number? That's a 22% increase in bookings your over a year as we look at the Q2 compare.

Okay. Thank you and then just a follow up you just mentioned that 40% of new logos are using more than one solution. How has that trended over time, what was that statistic, maybe a year or two years ago. Thank you.

Speaker 5: Thank you. And then just to follow up, you've just mentioned that 40% of new blogos are using more than one solution. How has that trended over time? What was that statistic maybe a year or two years ago? Thank you.

Speaker Change #134: And our next question comes from Nick Altman from Scotia Bank.

Nick Altmann: And is that. Yeah, on an ACV basis. Okay. And then I guess my second question is I think you had mentioned 60% of the bookings in the quarter were profils. I guess when you look at the pipeline for the second half, how much of the pipeline is sort of net new versus existing. And then just as a follow up, you mentioned 50% of the pipeline is for products outside of commercial lending. So can maybe just talk about whether retail and an SMB is acting more of a front door in terms of your pipeline or are these sort of more expansion oriented deals. Thanks.

Nick Altman: Your line is now open.

Nick Altman: Awesome.

Speaker Change #136: Thanks, guys.

Speaker 2: So we had to clarify in the last quarter, we saw 40% of our new logos committing to more than one solution on one day. We've seen an increase on that across the full product portfolio as well. We're now looking at 27% of our platform customers using more than one solution. That's a year over year increase as well. Yeah, and that excludes Nick, you're talking pure platforms. 27% of pure platform, 49% if you include at least one Nick solution. Thank you.

Speaker Change #137: I wanted to ask a quick clarification question on the 22% sales achievement growth on a year-over-year basis.

So yeah to clarify in the last quarter, we saw a 40% of our new logos committing to more than one solution on one day.

We've seen an increase on that across the full product portfolio as well, we're now looking at 27% of our platform customers using more than one solution that's year over year increase as well and that excludes Nick youre talking to peer platforms, 2027% and pure platform, 49%. If you include one at least one Nic solution.

Speaker Change #138: Is that quote attainment?

Speaker Change #139: Is that new ACB?

Speaker Change #140: Can you just maybe comment on what you mean by that 22% number?

Speaker Change #140: That's a 22% increase in bookings year-over-year as we look at the Q2 compare.

Speaker Change #140: And is that on an ACB basis?

Okay. Thank you.

And thank you.

Speaker Change #140: Okay.

Speaker Change #141: And then I guess my second question is I think you had mentioned 60% of the bookings in the quarter were cross-ells.

And one moment for our next question.

Speaker 1: And our next question comes from Joe Rwink from Bayard. Your line is now open.

And our next question comes from Joe for Wink from Baird. Your line is now open.

Speaker Change #141: I guess when you look at the pipeline for the second half, how much of the pipeline is sort of net new versus existing?

Okay.

Speaker 5: Oh, great, thanks, everyone. Here, you mentioned in a previous answer, just wanting to be appropriately researched so that you maintain leadership and core commercial, but then certainly exploit and pursue the other areas.

Great. Thanks, Hi, everyone.

Peter you mentioned in a previous answer just wanting to be appropriately resource. So that you maintain leadership in core commercial but that certainly exploit in pursuit of the other areas.

Speaker Change #141: And then just as a follow-up, you mentioned 50% of the pipeline is for products outside of commercial lending.

Speaker Change #141: So can maybe just talk about whether retail and an SMB is acting more of a front door in terms of your pipeline or are these sort of more expansion oriented deals.

Speaker 5: You may be just going to a bit more detail on what that all means, just relative to the previous long-term operating model and some of the expense ratios and margin targets you outline. And does it suggest that maybe expense ratios could counterbalance higher over the midterm timeframe, just relative to what's obviously been great expense leverage this year?

Can you maybe just go into a bit more detail on what that all means just relative to the previous long term operating model in some of the expense ratios and margin targets you've outlined.

Speaker Change #141: Thanks.

Speaker Change #142: Yeah, I'll get the first question, Josh, if you want to take a second.

Josh Glover: Yeah, I'll get the first question. Josh, you want to take a second. Yeah, from a from a pipe perspective. There's a healthy mix between between new and you know, leveraging current customers are selling back into the base. So we're excited about that. That mix. We think it's important, but is peer-notedness comments are customer bases an incredible asset. And as our newer products continue to mature and we see them adopt more. There's a tremendous amount of opportunity we have there in addition to going to net new customers in that commercial customer base.

Speaker Change #143: Yeah, from a pipe perspective, there's a healthy mix between between new and you know, leveraging current customers are selling back into the base.

Does that suggest that maybe expense ratios.

Our balance higher over the midterm timeframe just relative to what's obviously been great expense leverage this year.

Speaker Change #144: So we're excited about that that mix.

Speaker Change #145: We think it's important, but is peer-notedness comments or customer base is an incredible asset.

Speaker 3: But yeah, what I would say is, I wanted to make sure that people understand we are still investing in that commercial product and we still see a massive global opportunity. To remind me, we've just overfought the accounts in the US. There's over 2,000 that we're targeting right now, but there's over 4,300 banks. There's over 5-

Yes, no what I would tell you is.

Speaker Change #146: And as our newer products continue to mature and we see them adopt more, there's a tremendous amount of opportunity we have there in addition to going to net new customers.

I wanted to make sure that people understand we are still investing in that commercial product and we still see a massive global opportunity.

To remind me.

Speaker Change #146: And that commercial customer base, obviously being where we started for a while, that would be the entry point.

We've charged just over 400 accounts in the U S. There's over 2000 that we're targeting right now, but there is over 4300 banks.

Josh Glover: Obviously being where we started for a while. That would be the entry point. We would try to add other solutions like retail or deposit account opening the solutions have matured. And so we're seeing situations where if a customer's priorities to start with with retail or account opening or something else, they're able to do so and we get them live with confidence. You still see some accounts. We spoke about Vera and prior quarters.

Speaker Change #146: We would try to add other solutions like retail or deposit account opening the solutions of matured.

There is over 5000 credit unions, we've got the mortgage product now that goes out through <unk> as well it's over 4000 institutions. So you're talking about over 10000 institutions that we can target. Okay. Obviously commercial does not go after <unk>.

Speaker Change #146: And so we're seeing situations where if a customer's priority is to start with with retail or account opening or something else, they're able to do so and we get them live with confidence.

Speaker 3: We've got the mortgage product now that goes after IMBs as well. It's over 4,000 institutions. So you're talking about over 10,000 institutions that we can target. Okay. Obviously commercial does not go after IMBs. But with this deal in the middle of the east, we're opening a new front.

Speaker Change #147: You still see some accounts we spoke about Vera and prior quarters, we talked about Johnson financial group for those accounts who make a large multi solution commitment.

But with this deal in the Middle East, we're opening a new front, where we are going outside of your core countries along with our size to sell these on what I would call named account deals. So we've got a list of accounts globally, we're targeting.

Josh Glover: We talked about Johnson financial group for those accounts who make a large multi solution commitment. Obviously those are quite exciting, but it's our job to present the solution show the broad single platform vision. And then we're going to show a customer a path to success based on what makes sense for them at the time. We'll bet on Encina. We'll bet on our ecosystem. We'll get them live and then hopefully expand with the other solutions later.

Speaker 3: where we are going outside of our core countries, along with our SIs, to sell these on what I would call named the Count Deals. So we've got a list of accounts globally with targeting. And those are very exciting deals. And it shows you how we can take that thing and take it across borders. And it doesn't need much changing to actually run in these countries.

Speaker Change #147: Obviously those are quite exciting, but it's our job to present the solution show the broad single platform vision.

Speaker Change #147: And then we're going to show a customer a path to success based on what makes sense for them at the time.

And those are very exciting deals and it shows you all we can take that.

Speaker Change #148: We'll better on Encino, we'll better on our ecosystem, we'll get them live and then hopefully expand with the other solutions later.

And take it across borders and it doesn't need much changing to actually run in these countries.

Speaker 3: And that's why I want to make sure people understand we will continue to invest not only in the product itself But into unique elements around the credit underwriting and the driving of efficiency in the commercial base

Josh Glover: Yeah, and with the maturing of the products, our ability to enter anywhere to Josh's point that the bank has an issue that they're trying to to address. You know, we think is really exciting as we look forward on the other side of the liquidity reality from earlier in the year, though, we do see these banks coming back to the idea that the best most stable paths for the future to grow and to grow in an efficient manner is to provide a broad set of products that fulfill a variety of customer needs to fulfill them very well across multiple channels.

Speaker Change #149: Yeah, and with the maturing of the products, our ability to enter anywhere to Josh's point that the bank has an issue that they're trying to address, you know, we think is really exciting as we look forward.

And that's why I want to make sure people understand we will continue to invest not only in the product itself.

Two nic elements around the credit underwriting and driving efficiency in the commercial base.

Speaker Change #150: On the other side of the liquidity reality from earlier in the year, though, we do see these banks coming back to the idea that the best most stable paths for the future to grow and to grow in an efficient manner is to provide a broad set of products that fulfill a variety of customer needs to fulfill them very well across multiple channels.

Speaker 3: That is the profit center of many, many of these banks. The second profit center that we go outside the US is the mortgage balance sheet. They keep all those mortgages unbalanced because it's a variable rate product with a great piece of collateral attached to it. This is your house, which you don't wanna lose and so you keep on paying. So I think we are well positioned.

That is the profit center of many many of these banks the second profit trends, but if you go outside the U S.

The mortgage balance sheet, they keep all those mortgages on balance sheet, because it's a variable rate product with a great piece of collateral effects would reduce your house, which you don't want to lose and so you just keep on paying.

Speaker Change #151: And that brings you back to a single platform vision, and we're seeing that continue to to be adopted by the market, really excited about that step that peer reference where we have 40% of new logos committed to more than one solution on day one.

Josh Glover: And that brings you back to a single platform vision. And we're seeing that continue to be adopted by the market really excited about that step that peer reference where we have 40% of new logos committed to more than one solution on day one. But we believe that's not just a validation of our product maturity, but really us being nicely aligned to what some bankers minds today. And thank you.

So I think we are well positioned.

Speaker 3: to actually address the core issues that banking has in the foreseeable future, drive efficiency, and the heavy load of self-service.

Josh Glover: And one moment by our next question.

To actually address the core issues that banking has in the foreseeable future to drive efficiency and the heavy load of self service.

Speaker 3: And so from that perspective, I wanted to make sure there's a balanced view of...

And so from that perspective, I wanted to make sure there's a balanced view of <unk>.

Speaker Change #152: But we believe that's not just a validation of our product maturity, but really us being nicely aligned to what some bankers minds today.

Speaker 3: commercial growth maintaining market leadership because we work hard to get there. And then as these other products mature, they're all coming up to pull their weight down. Yeah, and Joe, just add, all this is part of our plan. Again, we've made a lot of investments over the last couple of years, both in expanding geographically.

Commercial growth maintaining market leadership, because we worked hard to get there and then as these other products mature they are all coming up to pull their weight down.

Speaker Change #152: And thank you.

And Joe just to add all of this is part of our plan.

A lot of investments over the last couple of years post both an expanding geographically.

Speaker Change #152: And one moment by our next question.

Speaker 2: as well as expanding our product portfolio, whether it's retail or again, you know, everyone's talking about AI, we've been investing in AI now for four years and machine learning and analytics. So this is all part of continued execution versus any net new investments if I heard your question.

As well as expanding our product portfolio.

Speaker Change #153: And our next question comes from Chris Kennedy, William Blair, your line is not open.

Chris Kennedy: And our next question comes from Chris Kennedy, William Blair, your line is not open. Thanks for taking the questions. Just going back to the pipeline comment, over 50% of the pipeline is outside of commercial lending.

Whether it's retail or again.

I was talking about AI, we've been investing in AI now for four years in machine learning and analytics and so this is all part of continued execution versus any net new investments if I if I heard your question.

Speaker Change #154: Thanks for taking the questions.

Speaker Change #155: Just going back to the pipeline comment, over 50% of the pipeline is outside of commercial lending.

Speaker Change #156: Can you just rank order the importance, whether it's Nick, Treasury, retail, etc.

Josh Glover: Can you just rank order the importance, whether it's Nick, Treasury, retail, etc. So we're pleased with the volume of pipe that we see in the consumer side of these banks, that that may be retail, it may be account opening, or it may be our mortgage solution. When you see the stat 19 new logos for simple Nexus, I commented on it, but more than half of those were actually in depositories. So that's really resonating well to lining nicely with the account that we've worked hard to sign and show a path to success over the years, the brand that we built there.

Speaker 5: Yep, no, that's good. Thank you. And then on the careful approach being taken by the US Enterprise segment.

Yes.

Thank you.

And then on.

Careful approach being taken by the U S Enterprise segment.

Speaker Change #157: So we're pleased with the volume of pipe that we see in the consumer side of these banks, that that may be retail, it may be account opening, or it may be our mortgage solution.

Speaker 5: When that spending comes back, do you think it comes back in the product areas where decisions have maybe been put on a bit of a pause or just given some of the strategic things you've been speaking of today, thinking about focus on that interest margins, ESG, credit quality, portfolio, visibility, what's on the book.

When that spending comes back do you think it comes back in the product areas, where decisions have maybe been put on a bit of a pause or.

Speaker Change #158: When you see the stat 19 new logos for simple Nexus, I commented on it, but more than half of those were actually in depositories.

<unk> given some of the strategic things you've been speaking of today are thinking about that focus on net interest margins ESG credit quality portfolio visibility what's on the books do think engagements and the scope of what a bank might consider and keno.

Speaker Change #159: So that's really resonating well, so lining nicely with the account that we've worked hard to sign and show a path to success over the years, the brand that we built there.

Speaker 5: Do you think engagement and the scope of what a bank might consider in China for changes for better or worse when that funding comes back?

Speaker Change #159: So it's a mix of those.

Josh Glover: So it's a mix of those. I would say at a high level, the most significant components of the pipe in the consumer side of our product portfolio are retail lending and simple Nexus and then also account opening.

Speaker Change #159: I would say at a high level, the most significant components of the pipe in the consumer side of our product portfolio, our retail lending, and simple Nexus then also account opening.

For changes for better or worse when that spending comes back.

Speaker 4: We think we're just going to see them with a more dedicated focus providing that robust set of products that they can use to fulfill a variety of customer needs. So they're always going to want to do their commercial and business purpose lending well because obviously that's really important to their business and this is where a lot of other assets sit. But we see increased engagement in the other offerings as well. And then within all of our solutions, they're going to want to look to leverage intelligence to the point of execution as well as they can to take that optimized process and make it easier.

We think we're just going to see them with a more dedicated focus to providing that robust set of products that they can use to fulfill a variety of customer needs. So they're always going to want to do their they are commercial and business purpose lending well, because obviously, that's really important to their business and as we.

Speaker Change #159: Okay.

Speaker Change #159: Thank you.

Josh Glover: Okay. Thank you. And then just to follow up, you just mentioned that 40% of new logos are using more than one solution. How has that trended over time? What was that statistic maybe a year or two years ago?

A lot of other asset set that we see increased engagement in the other offerings as well and then within all of our solutions, they're going to want to look to leverage intelligence to the point of execution as well as they can to take that optimize process and make it even better.

Speaker Change #159: And then just to follow up, you just mentioned that 40% of new logos are using more than one solution.

Josh Glover: Thank you. So we had to clarify in the last quarter, we saw 40% of our new logos committing to more than one solution on one day. We've seen an increase on that across the full product portfolio as well. We're now looking at 27% of our platform customers using more than one solution that's a year over year increase as well.

Speaker Change #159: How has that trended over time?

Speaker Change #159: What was that statistic maybe a year or two years ago?

I've been traveling around the country to meet with customers and there is clearly a rethinking of the old strategy.

Speaker Change #159: Thank you.

Speaker Change #160: So we had to clarify in the last quarter, we saw 40% of our new logos committing to more than one solution on one day. We've seen an increase on that across the full product portfolio as well.

Josh Glover: Yeah. And that excludes Nick, you're talking pure platforms. 27% of pure platform, 49% if you include at least one Nick solution. Thank you. And thank you.

Speaker Change #160: We're now looking at 27% of our platform customers using more than one solution. That's a year over year increase as well.

For the longest time in banking I've always had we love consumer deposits and I am talking about the U S. Now.

Love consumer deposits, but we like commercial lending.

Speaker Change #160: Yeah.

Operator: And one moment for our next question.

Speaker 3: Now, if you look at deposit trends across the banking sector, a lot of these deposits and consumer accounts moved to the big four, which has been for years a problem, but it wasn't as magnified as...

Now if you look at deposit trends across the banking sector a lot of these deposits and consumer accounts move to the big four which has been for years a problem, but it wasn't as.

Speaker Change #161: And that excludes Nick, you're talking pure platforms.

Joe Verwink: And our next question comes from Joe Verwink from Bayard. Your line is now open. Oh, great. Thanks. Hi, everyone. And here you mentioned in a previous answer just wanting to be appropriately resource so that you maintain leadership and core commercial, but then certainly exploits and pursue the other areas. Can you maybe just go in a bit more detail on what that all means, just relative to the previous long term operating model and some of the expense ratios and margin targets you outline.

Magnified as we've seen lately.

Speaker 3: And one customer commented to me that it was always a big benefit to have these low interest rate, big customer deposits that were seen as an asset. And when Silicon Valley Bank happened, all of a sudden, the atmosphere around that change that people said, you should have consumer deposits.

One customer commented to me that it was always a big benefit to them to have these low interest rate big customer deposits that were seen as an asset.

Speaker Change #162: 27% of pure platform, 49% of you include at least one next solution.

When Silicon Valley Bank happened all of a sudden.

The atmosphere around that changed some people said you shouldn't have consumer deposits.

Speaker Change #162: Thank you.

Joe Verwink: And does it suggest that maybe expense ratios could counterbalance higher over the midterm timeframe, just relative to what's obviously been great expense leverage this year. But yeah, no, what I would say is, I wanted to make sure that people understand we are still investing in that commercial product and we still see a massive global opportunity to remind me. We just over fond of the counts in the U.S. There's over 2000 that we're targeting right now, but there's over 4300 banks.

And what that is doing now is if people are rethinking their relationship with the customer okay and they realize that if you want a good relationship with the consumer customer you need to provide the technology self service and the ease of use that you can expect from companies with big brands like JP Morgan Chase Bank of America.

Speaker Change #162: And thank you.

Where they have a brand around the technology and then see no control that void because we are so client centric. We provide the account opening will provide the loaded generation et cetera from consumer up to the small business and all the way up to commercial.

Speaker 3: And Encino can fold that void because we're so client centric, we provide the account opening, we provide the low origination, et cetera, from consumer up to the small business and all the way up to commercial. And I think that is what's gonna drive with that IT simplification and that's a new strategy and focus on the customer as opposed to the siloed way of going to market inside these banks. And I've heard that echoed as I traveled around the country. whereas the companies languages are so much closer and more strange, not impressive, little do or not.

Speaker Change #162: And one moment for our next question.

I think that is what's going to drive for simplification.

Speaker Change #162: And our next question comes from Joe Roink from Bayard.

Patients and Thats renewed strategy and focus on the customer as opposed to the Siloed way of going to market inside these banks and I've heard that echoed as I've traveled around the country.

Speaker Change #163: Your line is now open.

Speaker Change #164: Oh, great.

Joe Verwink: Maxx, there's over 5,000 credit unions. We've got the mortgage product now that goes after IMBs as well, it's over 4,000 institutions. So you're talking about over 10,000 institutions that we can target, okay? Obviously commercial does not go after IMBs. But with this deal in the middle east, we're opening a new front where we are going outside of our core countries along with our SIs to sell these on what I would call name the count deals.

Speaker Change #164: Thanks.

Speaker Change #165: Hi, everyone.

That's great. Thank you very much.

And thank you.

Speaker 1: and one moment for our next question.

And one moment our next question.

Speaker 1: And our next question comes from Alex Quar from Raymond James, your line of know.

And our next question comes from Alex Sklar from Raymond James Your line is now open.

Speaker 10: Hi, this is Jessica on for Alex. Thanks for taking my question. Start off with, I was just wondering, when you're considering your R&D investments in product roadmap, what are your ongoing R&D priorities? For example, are you thinking about like for developing and enhancing and mix versus your other distinct or possibly new products? Other things.

Hi, This is Scott on for Alex Thanks for taking my question.

Joe Verwink: So we've got a list of accounts globally with targeting and those are very exciting deals. And it shows you how we can take that thing and take it across borders and it doesn't need much changing to actually run in these countries. And that's why I want to make sure people understand we will continue to invest not only in the product itself, but into unique elements around the credit underwriting and the driving of efficiency in the commercial base.

Start off with I was just wondering when you guys said during your R&D investments and product road map what are your ongoing R&D.

<unk> for example are you thinking about like for developing enhancing.

Nick Nick versus other existing or possibly new products.

Sure.

Speaker 3: Yeah, so, you know, if you look historically at the company, we went public in 2020. It's just three years ago. And these are probably materials. We spend $34 million on product.

Yes so.

If you look historically at the company, we went public in 2023.

Joe Verwink: That is the profit center of many, many of these banks. The second profit center that we go outside the U.S, is the mortgage balance sheet. They keep all those mortgages on balance sheet because it's a variable rate product with a great piece of collateral attached to it, which is your house, which you don't want to lose into is keep on paying. So I think we are well positioned to actually address the core issues that banking has in the foreseeable future drive efficiency and the heavy load of self service.

Three years ago, and these are probably materials, we spent $34 million on product.

Speaker 3: And this year, we spent around $100 million. So it's not that we need to incrementally spend a lot more now. We've literally bought up the situation so that we are ready, because remember, we've been doing league for four years. Okay, so this is not some new revelation to us that, oh, we said all of a sudden I have to move to intelligence. We've been working for years on the database.

And.

This year, we spent around $100 million.

So it's not that we need to incrementally spend a lot more now we've literally bulked up the situation. So that we are ready because remember we've been doing <unk> for years. Okay. So this is not some new regulation to us at all we sell all of a sudden they have to move to intelligently, we'd been working for years on.

On the daily basis, the analytics on acquiring companies.

Speaker 3: on acquiring companies to get us there faster. Okay. So what we're doing now is we always evaluate all the products reach. We look at customer needs broadening of the market.

Speaker Change #166: Here, you mentioned in a previous answer, just wanting to be appropriately resource so that you maintain leadership and core commercial, but then certainly exploits and pursue the other areas.

Joe Verwink: And so from that perspective, I wanted to make sure there's a balanced view of commercial growth maintaining market leadership because we work hard to get there. And then as these other products mature, they're all coming up to pull their weight down. And so just add, all this is part of our plan. Again, we've made a lot of investments over the last couple of years, both in expanding geographically, as well as expanding our product portfolio, whether it's retail or again, you know, everyone's talking about AI, we've been investing in AI now for four years and machine learning and analytics.

Get us there faster okay. So what we're doing now is we always evaluate older product suites, we look at customer needs broadening of the market.

Speaker Change #166: Can you maybe just go in a bit more detail on what that all means, just relative to the previous long term operating model and some of the expense ratios and margin targets you outline.

Speaker 3: Because when you launch these products, it may be a subset of customers who can use them. And then over time, as you add feature functions or integrations or different elements, you can broaden that customer appeal. And so what we're doing now is we evaluate the opportunity ahead of us, and we will shift money around. But there's clearly an emphasis on driving Nick because Nick and all those products underneath that intelligence umbrella will actually differentiate us to the point.

Because when you launch these products it may be a subset of customers who couldn't use it and then over time as you add feature functions or integration or different elements, you can broaden that customer appeal and so what we're doing now.

Speaker Change #167: And does it suggest that maybe expense ratios could counterbalance higher over the midterm timeframe, just relative to what's obviously been great expense leverage this year.

Speaker Change #168: But yeah, no, what I would say is, I wanted to make sure that people understand we are still investing in that commercial product and we still see a massive global opportunity.

The opportunity ahead of us.

Speaker Change #168: To remind me, we, we, we tried just over 400 accounts in the U.S.

We will shift money around.

It's clearly an emphasis on driving Nick because Nick and all of those products underneath that intelligence umbrella will exit differentiate us to the point, where it will be difficult to compete with us in the market. If you combine the intelligence with our platform and client centric approach.

Speaker Change #169: There's over 2000 that we're targeting right now, but there's over 4300 banks.

Speaker Change #169: Thanks.

Joe Verwink: And so this is all part of continued execution versus any net new investments if I if I heard your question. Yep, no, that's that's good. Thank you. And then on the careful approach being taken by the US enterprise segment, when that spending comes back, do you think it comes back in the product areas where decisions have maybe been put on a bit of a pause or just given some of the strategic things you've been speaking of today thinking about focus on that interest margin.

Speaker 3: where it will be difficult to compete with us in the market. If you combine the intelligence with a platform and client-centric approach, we feel pretty good with our competitive position.

Speaker Change #169: There's over 5,000 current unions.

Speaker Change #169: We've got the mortgage product now that goes after IMBs as well.

Speaker Change #169: There's over 4,000 institutions.

We feel pretty good about our competitive position.

Speaker 10: Got it. Thanks for that. And I've got a follow up question. We are looking at different lines of growth opportunities. Like it's been really great hearing about the big wins you've had nationally. What are you thinking at like where your most confident air business today? Is it more international? Again, as you said, was Nick the differentiation you have or does something else? Thanks.

Got it thanks for that and I've got a follow up question when Youre looking at the different lines of growth opportunity. It's been really great hearing about the big wins, you've had internationally. What do you think your ASIC, where you're most confident in your business today is it more international again as you said was negative the differentiation you have or do something.

Speaker Change #169: So you're talking about over 10,000 institutions that we can target, okay?

Joe Verwink: ESG, credit quality, portfolio, you know, visibility, what's on the books, do you think engagement and the scope of what a bank might consider and keynote for changes for better or worse when that's finding comes back. We think we're just going to see them with a more dedicated focus to providing that robust set of products that they can use to fulfill a variety of customer needs. So they're always going to want to do their their commercial and business purpose lending well because obviously that's really important to their business and this is where a lot of other assets sit.

Thanks.

Speaker 4: Yes, you think about the various markets that we serve in the United States is continuing to grow our single platform presence. We've thrown out a few stats earlier that show increased adoption of customers there. In some of our international markets, we're just focused on continuing to add logos and build that great customer base that we continue expanding and intelligence as part of the conversation in every market that we serve.

As you think about the various markets that we serve.

Speaker Change #170: Obviously commercial does not go out to IMBs.

United States is continuing to grow our single platform presence.

Don't add a few stats earlier that show increased adoption of customers there in.

In some of our international markets. We're just focused on continuing to add logos and build that great customer base that we continue expanding and intelligence as part of the conversation in every market that we serve.

Okay.

Thank you.

Sure.

And one moment our next question.

Joe Verwink: But we see increase engagement in the other offerings as well. And then within all of our solutions, they're going to want to look to leverage intelligence to the point of execution as well as they can to take that that optimized process and make it even better. You know, I've been traveling around the country to meet with customers, and there is clearly a rethinking of the old strategy. For the longest time in banking I've always had, we love consumer deposits, and I'm talking about the US now.

Speaker 1: And our next question comes from Brent Braseland from Piper Sandler. Your line is now up.

And our next question comes from Brent <unk> from Piper Sandler Your line is now open.

Thanks for taking the question. This is jr. Asking on behalf of Brent touching on CRP I. Once again, how should we think about 2024 growth rate with current ARPA growth of 10% in Q1 and 8% in Q2.

Speaker 11: Here's the question, this is JR asking on behalf of Brent. Touching on CRPO once again, how should we think about the 2024 growth rate with current RPO growth of 10% in Q1 and 8% in Q2? Is low double digit growth doable or could we be looking at high single digit?

Speaker Change #170: But with this deal in the middle east, we're opening a new front where we are going outside of our core countries, along with our size, to sell these on what I would call name the count deals.

Speaker Change #170: So we've got a list of accounts globally we're targeting.

Joe Verwink: We love consumer deposits, but we like commercial lending. Now if you look at the deposit trends across the banking sector, a lot of these deposits and consumer accounts move to the big four, which has been for years a problem, but it wasn't as magnified as we've seen lately. And one customer commented to me that it was always a big benefit to have these low interest rate, big customer deposits that were seen as an asset.

Speaker Change #170: And those are very exciting deals.

Low double digit growth doable or could we be looking at high single digit growth. Thank you.

Speaker Change #170: And it shows you how we can take that thing and take it across borders.

Speaker 3: Let me first like a comment about LPO. Remember, depending on the seasonality of bookings.

Yes, let me, let me first make a comment about the IPO.

Remember, depending on the seasonality of bookings renewals could play a significant distorting impact on <unk> in other words, we could have low bookings, but a big renewal.

Speaker 3: renewals could play a significant distorting impact on our p.o. In other words, we could have low bookings but a bigger new or quarter and all the sudden rp.o jumps 20%. So I will be very careful.

Speaker Change #171: And it doesn't need much changing to actually run in these countries.

Water and all of a sudden IPO jumped 20% so it would be very careful to two.

Speaker 3: to make too much of a deal about Alqew. It is to me an indicator.

To make too much of a deal about it is to me an indicator, but I think you should carefully listened to the additional comments and data that we provide you to actually come to a conclusion with that Greg do you have anything else to add I think again, we do try to consistently remind.

Joe Verwink: And when Silicon Valley Bank happened, all of a sudden, the atmosphere around that change that people said, you should have consumer deposits. And what that is doing now is that people are rethinking their relationship with a customer. And they realize that if you want a good relationship with a consumer customer, you need to provide the technology, the self service and the ease of use that you can expect from companies with big brands like JB Morgan, say, so Bank of America, where they have a brand around their technology.

Speaker 3: But I think you should careful listen to the additional comments and data we provide you to actually come to a conclusion with that. Greg, do you have anything else to add? Hi, I think again, we do try to consistently remind folks that we don't manage the business to RPO and again, there's a lot of moving parts in it. And really we point to the guidance that we provide with the visibility that we have in the model, both from the top and bottom line. And that's what we point you to JR. Sounds great. Thank you.

Joe Verwink: And then senior can fold that void because we're so client centric, we provide the account opening, we provide the low regeneration, et cetera, from consumer up to the small business and all the way up to commercial. And I think that is what's going to drive with that IT simplification and that renewed strategy and focus on the customer as opposed to the siloed way of going to market inside these banks. And I've heard that echoed as I traveled around the country. That's great. Thank you very much.

Pierre Naude: And thank you.

Folks that we don't manage the business to <unk> and again, there's a lot of moving parts in it.

And really we point to the guidance that we provide with the <unk>.

<unk> ability that we have in the model both from the top and bottom line and that's what we would point you to Jr.

Sounds great. Thank you.

Pierre Naude: And one moment for our next question.

And thank you. Thank you.

And one moment our next question.

And our next question comes from Jackson Ader from Moffett Nathanson. Your line is now open.

Speaker 1: And our next question comes from Jackson, Adder from Moppet, Nathanson. Your line is now open.

Speaker 6: Great. Hey guys, the first question is for you, Pierre, the rate environment.

Great Hey, guys.

First question is for you Pierre.

The rate environment.

Speaker 5: outside of the US America.

Outside of the U S.

Hey, guys.

Speaker 5: specifically in Europe . It's a little behind where we are in the state, but still I think maybe some room to go higher. And some just curious, if the US Enterprise segment at the moment.

Specifically in Europe.

It's a little behind where we are in the states, but still I think maybe some room to go higher and so I'm just curious it.

If the U S enterprise segment at the moment is kind of being the most caution as you look around.

Alex Guar: And our next question comes from Alex Guar from Raymond James. Your line is now open.

Speaker 5: What are your expectations maybe for how European banks will react once we get maybe to kind of a peak rate cycle in that, in that, um,

Jessica: Hi, this is Jessica on for Alex. Thanks for taking my question. Start off with I was wondering when you're considering your R&D investment and product roadmap, what are your ongoing R&D priorities? For example, are you thinking about like for developing and enhancing and mix versus your other distinct or possibly new products? Thanks. Yeah, so, you know, if you look historically at the company, we went public in 2020, it's just three years ago.

What are your expectations, maybe for how European banks will react once we get maybe to kind of the peak rate cycle in that in that geography.

Speaker Change #172: And that's why I want to make sure people understand we will continue to invest not only in the product itself, but into unique elements around the credit underwriting and the driving of efficiency in the commercial base.

Speaker 3: Yeah, I would always remind people that all problems are relative.

Speaker Change #172: That is the profit center of many, many of these banks.

Yes, I will.

I always remind people that all problems are relative.

Speaker 3: And if you look at the starting, the shock of the war last year, as well as the energy crisis, the rate complexity today looks like a Sunday school picnic compared to what they dealt with last year, okay? And then...

And if you look at the starting of the shock of the ward last year as well as the energy crisis.

Speaker Change #172: The second profit center that we go outside the US is the mortgage balance sheet.

The rate complexity today looks like Sunday school picnic compared to what they dealt with last year okay.

Speaker Change #173: They keep all those mortgages on balancing because it's a variable rate product with a great piece of collateral attached to it, which is your house, which you don't want to lose into is keep on paying.

Speaker Change #173: So I think we are well positioned to actually address the core issues that banking has in the foreseeable future drive efficiency and the heavy load of self service.

Jessica: And these are probably materials we spent $34 million on product. And this year, we spent around $100 million. So it's not that we need to incrementally spend a lot more now. We've literally bought up the situation so that we are ready because remember we've been doing league for four years. Okay, so this is not some new revelation to us that, oh, we said all of a sudden after move to intelligence. We've been working for years on the databases, the analytics on acquiring companies to get us there faster.

Speaker Change #173: And so from that perspective, I wanted to make sure there's a balanced view of commercial growth maintaining market leadership because we work hard to get there.

And then <unk>.

Speaker 3: You had the Swiss bank, you also had liquidity problems, and then got taken over. So what I would tell you is that it's relatively good.

The Swiss Bank, we also have liquidity problems and then got taken over so what I would tell you is that it's real.

Relatively good it's not <unk>.

Speaker 3: It's not ideal and everybody in banking would like to see the climbing rates coming forward again. But normally there's a cycle that you have to get through where your loan rates, in other words your income, can raise as well. Because your current portfolio sits there stable and the deposit rates go up, so that's a squeeze on it in this margins. But over time, as you renew those loans, you jack the rates up. As long as the economy stays healthy and you don't see a lot of problems in the credit books.

Speaker Change #173: And then as these other products mature, they're all coming up to pull their weight down.

Deal.

Everybody in banking, we'd like to see declining rates coming forward again.

But normally that's a cycle that you have to get through where your loan rates in other words your income.

Speaker Change #174: And Joe, just add, all this is part of our plan.

Speaker Change #175: Again, we've made a lot of investments over the last couple of years, both in expanding geographically, as well as expanding our product portfolio.

Kim raise as well because your current portfolio sits as stable and deposit rates go up so that's a squeeze on margins, but overtime as you renew those ranging Jack the rate up.

Speaker Change #175: Whether it's retail or again, you know, everyone's talking about AI.

Jessica: Okay, so what we're doing now is we always evaluate all the products we look at customer needs broadening of the markets. Because when you launch these products, it may be a subset of customers who can use them. And then over time, as you add feature functions or integrations or different elements, you can broaden that customer appeal. And so what we're doing now is we evaluate the opportunity ahead of us and we will shift money around.

Speaker Change #176: We've been investing in AI now for four years and machine learning and analytics.

As long as the economy stays healthy.

Speaker Change #177: And so this is all part of continued execution versus any net new investments, if I if I heard your question.

You don't see a lot of problems in the credit book.

Speaker 3: I think these banks will come through this fine. It's, I'm always amazed about how good bankers are to manage the credit site. I think the surprise was the liquidity angle, was a big surprise and came out of left field. As well as the ease of withdrawing money today in an internet enabled world versus the previous time they saw this.

Speaker Change #177: Yep, no, that's that's good.

I think these banks will come through this fine.

I'm always amazed about good bankers out to manage the credit side I think the surprise was the liquidity angle was a big surprise and it kicked out of left field as well as the ease of withdrawing money today in an internet enabled world versus the previous time they saw this.

Speaker Change #177: Thank you.

Speaker Change #177: And then on the careful approach being taken by the US enterprise segment, when that spending comes back, do you think it comes back in the product areas where decisions have maybe been put on a bit of a pause or just given some of the strategic things you've been speaking of today thinking about focus on that interest margin.

Jessica: But there's clearly an emphasis on driving Nick because Nick and all those products underneath that intelligence umbrella will actually differentiate us to the point where it will be difficult to compete with us in the market. If you combine the intelligence with a platform and client centric approach, we feel pretty good with our competitive position. Gotcha. Got it. Thanks for that.

Speaker Change #178: ESG, credit quality portfolio, you know, visibility what's on the books.

Speaker 3: You literally have a standing line to get your money and they go close the door, okay? So, but what we're hearing is there is a new focus on strategy and how they would like to move forward. I will also tell you that.

You literally have to stand in line to get your money and they could close the door okay.

So.

But what we're hearing is there is a renewed focus on strategy and how they would like to move forward I would also tell you that.

Speaker Change #178: Do you think engagement and the scope of what a bank might consider and keynote for changes for better or worse when that's finding comes back.

Speaker 3: As I mentioned before, in Europe there's a lot more regulation and government involvement in this bank.

As I mentioned before in Europe, there's a lot more regulation and government involvement in these banks.

Speaker 3: And that's why ESG is a great play for us there. As a matter of fact, I'm going over there to talk to some of the banks in September about this, understanding the industry better, where that's going to take us. But I'm still seeing significant interest in new technologies, and how could they can manage themselves better.

Josh Glover: And I've got a follow-up question. When you're looking at your different lines of growth opportunities, like it's been really great hearing about the big wins you've had nationally. What are you thinking at like where your most confident in your business today? Is it more international? Again, as you said, was Nick the differentiation you have or did something else? Thanks. Yes, you think about the various markets that we serve in the United States is continuing to grow our single platform presence.

And Thats why ESG is a great play for us there.

Speaker Change #179: We think we're just going to see them with a more dedicated focus to providing that robust set of products that they can use to fulfill a variety of customer needs.

As a matter of fact im going over there to talk to some of the banks.

In September about this understanding the industry, better where thats going to take us.

Speaker Change #179: So they're always going to want to do their their commercial and business purpose lending well because obviously that's really important to their business and this is where a lot of other assets sit.

Speaker Change #179: But we see increased engagement and the other offerings as well.

But I'm still seeing significant interest.

In new technologies, and how they can manage themselves better.

Speaker 5: Okay, all right, great. That is helpful context. One quick follow up for Greg, the linearity that you spoke about in the quarter, you know, the June and July impacting Billings may be moving into the next quarter, was there, was the quarter like more backend loaded from a bookings perspective, then you typically see in a second quarter or then you typically see in any given quarter.

Okay Alright, great.

Josh Glover: We've thrown out a few stats earlier that show increased adoption of customers there. In some of our international markets, we're just focused on continuing to add logos and build that great customer base that we continue expanding. And intelligence is part of the conversation in every market that we serve. Thank you.

For context, one quick follow up for Greg.

The linearity that you spoke about in the quarter. The June and July impacting billings may be moving into the next quarter was there.

Operator: And one moment for our next question.

Speaker Change #179: And then within all of our solutions, they're going to want to look to leverage intelligence to the point of execution as well as they can to take that that optimized process and make it even better.

Was the quarter was like more backend loaded from a bookings perspective than you typically see in the second quarter or than you typically see in any given quarter.

Speaker 2: now i think again just coming on the other side of the liquidity crisis we just saw the momentum billed as the quarter progressed and and things settle down jackson uh... i think that really more than anything would have been would be the thing to to note for q2

No I think again just coming on the other side of the liquidity crisis. We just saw the momentum build as the quarter progressed and things settle down Jackson.

Speaker Change #179: You know, I've been traveling around the country to meet with customers, and there is clearly a rethinking of the old strategy.

Brent Bracelin: And our next question comes from Brent Braseland from Piper Sandler.

I think that really more than anything would have been would be the thing to note for Q2.

Speaker Change #180: For the longest time in banking I've always had, we love consumer deposits, and I'm talking about the US now. We love consumer deposits, but we like commercial lending.

Greg Orenstein: Your line is now open. Thanks for sticking to the question. This is JR asking on behalf of Brent. Touching on CRPO once again, how should we think about the 2024 growth rate with current RPO growth of 10% in Q1 and 8% in Q2 is low double digit growth doable? Or could we be looking at high single digit growth?

Speaker 5: But I'm sorry, I just mean like, was it was it more or less back and loaded than than usual or like than you expect?

I'm, sorry, I, just mean like was it was it more or less backend loaded than unusual or like than you expected.

Speaker 2: No, I think it was in line with the expectations. And again, speaking in the middle of the quarter, and again talking to investors, we tried to highlight some of the momentum that we saw building. And the quarter came together nicely. Team did a great job. And it was nice to see. All right, awesome. Thank you. Thank you.

No I think it was in line with expectations and again.

Okay.

<unk> speaking.

In the middle of the quarter and again talking to investors.

<unk> tried to highlight some of the momentum that we saw building in the quarter came together nicely team did a great job.

Greg Orenstein: Thank you. Let me first make a comment about our PO. Remember, depending on the seasonality of bookings, renewals could play a significant distorting impact on RPO. In other words, we could have low bookings but a bigger renewal quarter and all the sudden RPO jumps 20%. So I would be very careful to make too much of a deal about RPO. It is to me an indicator, but I think you should careful listen to the additional comments and data we provide you to actually come to a conclusion with that.

And.

It was nice to nice to see.

Alright awesome. Thank you.

And thanks Jackson.

And one moment for our next question.

Speaker 1: And our next question comes from Adam Burjory from Bank of America. Your line is now...

And our next question comes from Adam <unk> from Bank of America. Your line is now open.

Speaker 8: Thank you, and good afternoon. So how's the balance between the focus for new logos versus the extension deals changes here so far? And how are you thinking about that balance when I go forward basis with liquidity crisis in the rear view mirror? Thank you.

Thank you and good afternoon.

So how does the balance between the focus for new logos and expansion deals changed this year, so far and how are you thinking about that balance I guess forward basis with liquidity crisis getting here. Thank you.

Greg Orenstein: Greg, do you have anything else to add? I think again, we do try to consistently remind folks that we don't manage the business to RPO. And again, there's a lot of moving parts in it. And really, we point to the guidance that we provide with the visibility that we have in the model both from the top and bottom line. That's what we point you to JR.

Brent Bracelin: Sounds great.

Operator: Thank you.

Speaker 4: The balance of our field focus hasn't changed. We make sure we have a team on the field out in the market to tell the story to new logos and we also make sure we're able to take care of our existing accounts. The reality is when things get challenging, the first thing that slows down is the green field conversations because it's just hard for folks to continue on due diligence with the new vendor, which is a good situation for us to be in because we have a great and happy referenceable customer base.

Is that the balance of our field focus hasn't changed we make sure we have a team on the field out in the market.

Jackson Adder: And thank you.

Greg Orenstein: And one moment for our next question.

To tell the story of the new logos and we also make sure we're able to take care of our existing accounts reality is when things get challenging the first thing that slows down as the Greenfield conversations because it's just hard for folks to continue on with due diligence with a new vendor.

Which is a good situation for us to be in because we have a great and happy reference full customer base.

Jackson Adder: And our next question comes from Jackson Adder from Moffit, Nathanson. Your line is now open. Great. I guess the first question is for you, Pierre, the rate environment outside of the US. And I guess, you know, specifically in Europe, it's a little behind where we are in the state, but still I think maybe some room to go higher. And I'm just curious if the US enterprise segment at the moment is kind of being the most cautious as you look around.

Speaker 4: So that will explain at some points when you see macroeconomic ups and downs why we may see a little bit heavier waiting of expansion bookings. So part of that is just the reality where the world is, but our market focus has not changed at all.

So that will explain at some points when you see macroeconomic ups and downs why we may see a little bit heavier weighting of expansion bookings. So part of that is just the reality of where the world is but our market focus has not changed at all.

Jackson Adder: What are your expectations maybe for how European banks will react once we get maybe to kind of the peak rate cycle in that in that. J.R. Yeah, I would always remind people that all problems are relative. And if you look at the starting, the shock of the war last year, as well as the energy crisis, the rate complexity today looks like a Sunday school picnic compared to what they dealt with last year.

Speaker Change #180: Now if you look at the deposit trends across the banking sector, a lot of these deposits and consumer accounts move to the big four, which has been for years a problem, but it wasn't as magnified as we've seen lately.

Speaker 8: Got it. And then between, kind of your good and marketing motions for domestic versus international, is it fairly consistent between the two as well in terms of new logo and through?

Got it and then between.

Kind of your go to market conditions for domestic versus international is it fairly consistent between the two as well in terms of new logos with extension. Thanks again.

Speaker 4: Thanks again. Consistent focus and consistent motions, just different maturity of markets and time and market, which leads to a different distribution of market penetration and customer base. Yep, thanks. Thanks.

Consistent focus and consistent motions, just different maturity of markets and time in market, which leads to a different distribution of market penetration in our customer base.

Yes makes sense.

Thanks.

And thank you.

And one moment for our next question.

Speaker 1: And our next question, comes from Saquette Kalea from Barclays. Your line is now open. Okay, great. Hey guys, thanks for fitting me out.

And our next question comes from <unk> <unk> from Barclays. Your line is now open.

Okay, Great Hey, guys. Thanks for fitting me in here I'll keep it quick with two housekeeping questions.

Speaker 1: Maybe the first one is for you Josh. You know, as you think about that 22%.

Maybe the first the first one is is for you Josh.

Jackson Adder: Okay. And then you had the Swiss bank, we also had liquidity problems and then got taken over. So, what I would tell you is that it's relatively good. It's not ideal. And everybody in banking would like to see declining rates coming forward again. But normally, there's a cycle that you have to get through where your loan rate, in other words, your income can raise as well, because your current portfolio sits there stable and the deposit rates go up.

As you think about that 22% sales achievement, which certainly was great to see and it sounded better.

Speaker 1: sales achievement, which certainly was great to see and sounded better. How do you sort of rank order the product areas that you felt like drove that growth? Was it still very much driven by commercial lending? Or do you feel like the pipeline composition, things like retail, things like Nick and others also drove a lot of that sales achievement as well? That's the first question.

<unk>.

How do you sort of rank order the product areas that you felt like drove that growth.

Speaker Change #181: And one customer commented to me that it was always a big benefit for them to have these low interest rate, big customer deposits that were seen as an asset.

But is it still very much driven by commercial lending or do you feel like like the pipeline composition things like like retail things like Nick and others also drove a lot of that sales achievement as well that's the first question.

Jackson Adder: So that's a squeeze on it in this margins. But over time, as you renew those lanes, you jack the rates up. As long as the economy stays healthy and you don't see a lot of problems in the credit book, I think these banks will come through this fine. It's I'm always amazed about good bankers out to manage the credit site. I think the surprise was the liquidity angle was a big surprise and came out of left field as well as the ease of withdrawing money today in an internet enabled world versus the previous time they saw this.

Speaker 4: It's nice to speak to you. No, we had a good mix of offerings here. We talked about 19 new logos on the simple next side.

Second as I speak to you know we had a good mix of offerings here, we talked to about 19, new logos in the simple next aside.

Speaker 4: One of the stats that we referenced is 40% of our new logos had multiple solutions. So you will see commercial or small business involved in those, but you also see things like retail, simple nexus and nick offerings.

One of the stats that we referenced is 40% of our new logos had multiple solutions. So you will see commercial or small business involved in those but you'll also see things like retail simple nexus and Nick offerings.

Speaker Change #182: And when Silicon Valley Bank happened, all of a sudden the atmosphere around that change that people said, you should have consumer deposits, and what that is doing now is that people are rethinking their relationship with the customer, okay, and they realize that if you want a good relationship with the customer, you need to provide the technology, the self service, and the ease of use, that you can expect from companies with big brands like JB Morgan, say, so Bank of America, where they have a brand around their technology.

Speaker 4: and involves, so from our perspective, look, we're very proud of that commercial product, and we take good care of it, we take care of our customers, but we continue to see expansion and new logos with those other solutions.

Involved so from our perspective look we're very proud of that commercial product and we take good care of that we take care of our customers, but we continue to see expansion in new logos with those other solutions as well.

Speaker Change #183: And Ncino can fold that void because we're so client centric, we provide the account opening, we provide the low regionation, et cetera, from consumer up to the small business and all the way up to commercial.

Jackson Adder: You literally have a stand in line to get your money and they could close the door. Okay. So, but what we're hearing is there is a new focus on strategy and highly would like to move forward. I will also tell you that. As I mentioned before, in Europe, there's a lot more regulation and government involvement in these banks. And that's why ESG is a great play for us there. As a matter of fact, I'm going over there to talk to some of the banks in September about this understanding the industry better where that's going to take us.

Speaker Change #184: And I think that is what's going to drive with that IT simplification and that's a new strategy and focus on the customer as opposed to the siloed way of going to market inside these banks.

Speaker 1: That's great, that's great to see that breadth. Maybe the follow up for you, Greg, is maybe a little bit of a longer term question, but that 50% pipeline point on, what I'll call commercial lending versus non-commercial lending. The question for you is, what does that mix look like in revenue terms today? And where do you think that mix can go over the next few years?

That's great that's great to see that breath.

Maybe the follow up for you Greg is maybe maybe a little bit of a longer term question, but that 50% pipeline point on.

Speaker Change #184: And I've heard that echoed as I traveled around the country.

What I'll call commercial lending versus noncommercial lending. The question for you is what does that mix look like in revenue terms today, and where do you think that mix can go over the next few years.

Speaker Change #184: That's great.

Speaker Change #184: Thank you very much.

Yeah.

Speaker 2: So from a market perspective, I think it appeared noted the market outside of commercials twice as big.

So from a from a.

Market perspective, <unk> I think your peer noted the the market outside of commercials twice as big.

Speaker Change #184: And thank you.

Jackson Adder: But I'm still seeing significant interest in new technologies and how could they can manage themselves better. Okay. All right. Great. It's helpful context. One quick follow up for Greg. The linearity that you spoke about in the quarter, you know, the June and July impacting buildings may be moving into the next quarter was there was the quarter like more back unloaded from a bookings perspective, then you typically see in a second quarter or then you typically see in any given quarter.

Speaker 2: And so we attacked commercial first, but again, we see a massive opportunity on the retail side with retail lending with our US mortgage business, with mortgage outside of the US. And so again, I think as we think about the opportunity we have, we think we're just getting started and ultimately just based on our SAM studies, that opportunity is twice as large as commercial. Very helpful. Thanks, guys. Thanks, Second.

And so we attack commercial first.

But again, we see a massive opportunity on on the retail side.

Speaker Change #184: And one moment for our next question.

Speaker Change #185: And our next question comes from Alex Quar from Raymond James, your line of now open.

Speaker Change #185: Hi, this is Jessica on for Alex.

Alex Quar: Thanks for taking my question.

With retail lending with our U S mortgage business.

With mortgage outside of the U S.

And so again I think as we think about the opportunity. We have we think we're just getting started and ultimately just based on our Sam studies.

That opportunity is twice as large as commercial.

Very helpful. Thanks, guys.

Thanks, Thanks Jakob.

And thank you.

Jackson Adder: No, I think again, just coming on the other side of the liquidity crisis, we just saw the momentum build as the quarter progressed and things settled down Jackson. I think that really more than anything would have been would be the thing to note for Q2. But I'm sorry, I just mean like was it was it more or less back unloaded than than usual or like than you expected. No, I think it was in line with the expectations and again, you know, you know, speaking, you know, in the middle of the quarter and again talking to investors, you know, we tried to highlight some of the momentum that we saw building and the quarter, you know, came together nicely, a team did a great job. And, you know, it was, it was nice to, nice to see. All right, awesome. Thanks. Thank you. And one moment for our next question.

And one moment our next question.

Speaker 12: And our next question comes from Ken Szachowski from Autonomous Research. Your line is now open.

And our next question comes from Ken Zaslow from Autonomous Research. Your line is now open.

Speaker 13: Hey, good afternoon. Thanks for taking the question. Maybe I'll ask another one on the pipeline and that 50% that's coming from the non commercial lending product.

Hey, good afternoon. Thanks for taking the question maybe I'll ask another one on the pipeline in that 50% that's coming from the non commercial lending products.

Speaker 9: When we talk to folks, I think what really stands out is your reputation on the commercial lending side. And Pierre, I think you've mentioned maintaining your market leadership in commercial lending.

When we talk to folks I think what really stands out as you referenced <unk> on the commercial lending side and Pierre I think you even mentioned.

Maintaining your market leadership in commercial lending. So can you talk about the competitive dynamic in your Mo I guess in the non commercial lending products.

Speaker 9: So can you talk about the competitive dynamic in your moh, I guess, in the non-commercial lend on products and your confidence in holding your own versus the competition just because it is a big part of the stamp? Thanks.

Your confidence in holding your own versus the competition just because it is a big part of the Japan. Thanks.

Speaker 3: Yeah, thank you. That's a great question. Look, our platform's Intricity as well as the customer focus. I think it's big differentiated for us.

Yes. Thank you that's a great question look our platform Centricity as well as the customer focus I think is big differentiator for us consumer is a much more simplistic.

Speaker Change #187: Start off with, I was wondering when you're considering your R&D investments in product roadmap, what are your ongoing R&D priorities?

Adam Bergere: And our next question comes from Adam Bergere from Bank of America. Your line is now open. Thank you. I'm good afternoon. So how's the balance between the focus for New Lagos versus Extension deals change this year so far? And how are you thinking about that balance? I go forward basis with liquidity crisis. Thank you. The balance of our field focus hasn't changed. We make sure we have a team on the field out in the market to tell the story to New Lagos.

Speaker 3: Consumer is a much more simplistic product set because your end user experience must be a lot more

Product set because your end user experience must be a lot more.

Speaker 3: simplistic and easy of use and instantaneous. However, because of all the regulations, it's a fairly difficult product to develop with only integrations to actually make it that simplistic to use. So it's a complex problem you're solving, but you have to make it simple to the end consumer. If you then look back at other people selling into that consumer or small business base.

Speaker Change #188: For example, are you thinking about like for developing and enhancing and mix versus your other distinct or possibly new products?

Simplicity and ease of use and instantaneous.

However, because of all the regulations.

Speaker Change #188: Thanks.

It's a fairly difficult product to develop with all the integrations to actually make it that simplistic to us. So it's a complex problem you're solving but you have to make it simple to the end consumer. If you then look back at other people selling into that consumer or small business base.

Speaker Change #188: Yeah.

Speaker Change #188: So, you know, if you look historically at the company, we went public in 2020.

Speaker Change #188: It's just three years ago.

Speaker Change #188: And these are probably materials.

Speaker Change #188: We spent $34 million on product. And this year, we spent around $100 million.

Speaker Change #188: So, it's not that we need to incrementally spend a lot more now.

Adam Bergere: And we also make sure we're able to take care of our existing accounts. The reality is when things get challenging, the first thing that slows down is the green field conversations because it's just hard for folks to continue on due diligence with the new vendor. Which is a good situation for us to be in because we have a great and happy reference for customer base. So that will explain at some points when you see macro economic ups and downs why we may see a little bit heavier waiting of expansion bookings.

Speaker 3: What you're basically seeing is a bunch of companies who developed software in the 80s and 90s.

You're basically seeing.

As a bunch of companies, who develop software a decent <unk>.

Speaker Change #189: We've literally bought up the situation so that we are ready because remember, we've been doing niggas for four years.

Speaker 3: And so we're coming out of the box here with a modern cloud-based solution that is part of a broader IT infrastructure and I don't see other people coming up trying to do the same thing here. So I do think this is back to that reputation thing. If we maintain the reputation in the biggest profit center of the bank.

And so we're coming out of the box here was a modern.

Cloud based solution that is part of a broader infrastructure.

Speaker Change #189: Okay.

And.

I don't see other people coming up trying to do the same thing here. So I do think this is back to that reputation thing if we maintain the reputation in the biggest profit center over the bank.

Adam Bergere: So part of that is just the reality where the world is but our market focus is not changed at all. Got it. And in between, you're going to market motions for domestic versus international. Is it fairly consistent between it too as well in terms of New Lagos for its expansion? Thanks again. Consistent focus and consistent motions just different maturity of markets and time and market which leads to a different distribution of market penetration and customer base. Yep. Thanks.

Speaker Change #189: So, this is not some new revelation to us that, oh, we said all of a sudden have to move to intelligence.

Speaker 3: We get the influence to go in there and get at least the opportunity. And then if you execute well, maintain the reputation, I think you're going to see exactly this playbook about the same momentum and the same market leadership in the other aspects of the platform. And that's what we're focused on here. And in the meetings I have outside of commercial around the country, I'm hearing similar stories. So I'm highly optimistic that strategy will play out.

We get the influence to go in there and get that leads to opportunity.

Josh Glover: And thank you.

Speaker Change #189: We've been working for years on the databases, the analytics on acquiring companies to get us there faster.

Speaker Change #189: Okay.

And then if you execute well maintain the reputation I think youre going to see exactly this playbook of about the same momentum in the same market leadership in the other aspects of the platform.

Speaker Change #189: So, what we're doing now is we always evaluate all the products reach.

Speaker Change #189: We look at customer needs broadening of the markets.

And that's what we're focused on here.

And then the meetings I have outside of commercial around the country I am hearing similar stories. So I'm highly optimistic this strategy will play out.

Speaker 9: Okay, great. And maybe just as my follow-up, maybe I'll ask about M&A. You know, there was some commentary out there a couple months ago stating the company might be exploring strategic options, including a potential sale. You know, so I was wondering how I guess you guys are thinking about the potential options for the company here, because we are getting a lot of questions on it. And I guess, is this a company that should be in the public market? I know you've talked about not disclosing certain metrics.

Okay, Great and maybe just as my follow up maybe I'll ask about M&A. There was some commentary out there a couple of months ago, stating.

Josh Glover: And one moment for our next question. And our next question comes from Saquette Kalea from Barclays. Your line is now open. Okay, great. Hey guys. Thanks for getting me in here. I'll keep it quick with kind of two housekeeping questions. Maybe the first the first one is is for you Josh, you know, as you think about that 22% sales achievement, which which certainly was great to see and sounded better. You know, how do you sort of rank order the product areas that you felt like drove that growth?

The company might be exploring strategic options, including a potential sale.

I was wondering how I guess you guys are thinking about the potential options for the company here because we are getting a lot of questions on it.

And I guess is this a company that should be in the public markets I know you've talked about not disclosing certain metrics due.

Josh Glover: I mean, you know, was it, was it still very much driven by commercial lending or do you feel like like the pipeline composition, you know, things like like retail things like Nick and others. Also drove a lot of that sales achievement as well.

Speaker Change #189: Because when you launch these products, it may be a subset of customers who can use them.

Speaker 9: due to competitive reasons, so we'd love to just get your latest thinking there. Thanks.

Due to competitive reasons, so would love to just get your latest thinking there. Thanks.

Speaker 2: I can't appreciate the question, but I'm sure you can appreciate we don't comment on rumor and speculation.

I can appreciate the question, but I'm sure you can appreciate we don't comment on rumors and speculation.

Speaker Change #189: And then over time, as you add features, functions or integrations or different elements, you can broaden that customer appeal.

Speaker 2: So, um, can't really address that any further. We love what we do. We do love what we do. All right, thanks, guys. Thank you.

So.

Speaker Change #189: And so, what we're doing now is we evaluate the opportunity ahead of us and we will shift money around.

Can't really address that any further.

We love what we do we do.

They love what we do.

Okay, Alright, thanks, guys.

Thank you.

Speaker Change #190: But there's clearly an emphasis on driving nigg because nigg and all those products underneath that intelligence umbrella will actually differentiate us to the point where it will be difficult to compete with us in the market.

And thank you.

Speaker Change #191: If you combine the intelligence with the platform and client centric approach, we feel pretty good with our competitive position.

Josh Glover: That's the first question. Hey, seconds. Nice to speak to you. No, we had a good mix of offerings here. We talked about 19 new logos on the simple next side. One of the stats that we referenced is 40% of our new logos had multiple solutions. So you will see commercial or small business involved in those, but you also see things like retail, simple nexus and nick offerings involved. So from our perspective, look, we were very proud of that commercial product and we take good care of it. We take care of our customers, but we continue to see expansion and new logos with those other solutions as well. That's great. That's great to see that breadth.

Speaker Change #191: Thank you.

And our last question there through one moment.

Speaker Change #191: Got it.

Speaker Change #191: Thanks for that.

Speaker 12: And our last question comes from Alex, Mark Raff from KBCM, your line is now.

Speaker Change #191: And I've got a follow-up question.

And our last question comes from Alex <unk> from KBC M. Your line is now open.

Speaker Change #191: When you're looking at your different lines of growth opportunities, like it's been really great hearing about the big wins you've had nationally, what are you thinking at like where your most confident in your business today?

Speaker 14: Hey, everyone, thanks for taking the question. Maybe just first on the Middle East, when you know, when you think about some of these opportunities and less penetrated international markets, just curious, maybe, Josh, for you, do you feel like all the pieces are in place here to kind of go full steam ahead with these types of opportunities?

Hey, everyone. Thanks for taking the question maybe just first on the Middle East when you know when you think about some of these opportunities and less penetrated international markets. Just curious maybe Josh for you do you feel like all the pieces are in place here to kind of go go full steam ahead with with these types of opportunities.

Speaker Change #191: Is it more international?

Speaker Change #191: Again, as you said, was Nick the differentiation you have or did something else?

Speaker Change #191: Thanks.

Okay.

Speaker 4: First of all, it's a reputation-based company. We're not going to make a commitment to a bank that we're not ready to follow through on. So when we go into a new market, we're excited to announce one of the largest banks in the UAE, and we're going to show them a great path to success. So the pieces are absolutely there. I have a high level of confidence in the distribution machine and teams on the ground in those markets to show those customers a path to success. And as we validize.

Greg Orenstein: Maybe the follow up for you Greg is maybe maybe a little bit of a longer term question, but, you know, that 50% pipeline point on, you know, what I'll call commercial lending versus non commercial lending. The question for you is, what does that mix look like in revenue terms today? And where do you think that mix can go over the next few years? Yeah. From a market perspective, Saket, I think, Pierre noted the market outside of commercials twice as big.

First of all it's the reputation based company, we're not going to make a commitment to a bank that we're not ready to follow through on so when we go into new market. We're excited to announce one of the one of the largest banks in the UAE and we're going to show them a great path to success of the pieces are absolutely. There are have a high level of confidence of the distribution machine and the teams on the ground in those mark.

So should those customers a path to success and as we validated in Europe, and APAC, and Japan, and Canada. The global system integrator ecosystem gives us unprecedented scalability.

Speaker Change #192: Yes, you think about the various markets that we serve in the United States is continuing to grow our single platform presence.

Greg Orenstein: And so, we attacked commercial first, but again, we see a massive opportunity on the retail side with retail lending, with our US mortgage business, with mortgage outside of the US. And so again, I think as we think about the opportunity we have, we think we're just getting started and ultimately, just based on our SAM studies, that opportunity is twice as large as commercial. Very helpful. Thanks, guys. Thanks, Saket.

Speaker 4: in Europe in a pack in japan in canada the global system in a greater ecosystem gives us unprecedented scalability uh... where if you remember several years ago we signed three toronto banks

Speaker Change #193: We've thrown out a few stats earlier that show increased adoption of customers there.

Greg Orenstein: And thank you.

Where if you remember several years ago, we signed three Toronto banks in one year and we showed them a path to success by leveraging the same ecosystem. So we're excited and we're proud and we're just getting started in those markets.

Speaker 4: in one year and we showed them a path to success by leveraging the same ecosystem. So we're excited and we're proud and we're just getting started in this market.

Speaker Change #194: In some of our international markets, we're just focused on continuing to add logos and build that great customer base that we continue expanding.

Speaker Change #194: And intelligence is part of the conversation in every market that we serve.

Speaker 14: Thanks for that. And maybe just one quick follow up on the second half. Just curious if there's any way for pre-ealt to kind of describe the renewal opportunity in the second half.

Thanks for that and maybe just one quick follow up on the second half just curious if there's any way for you all to kind of describe the renewal opportunity in the second half for us.

Speaker 2: from a customer, a current customer basis in terms of what the renewal forecasted flag is. Alex, yeah, yeah.

From a from a customer or a current customer basis in terms of what the renewal forecast slightly Alex yes.

Ken Zazowski: And one moment, our next question. And our next question comes from Ken Zazowski, from Autonomous Research. Your line is now open. Hey, good afternoon. Thanks for taking the question. Maybe I'll ask another one on the pipeline in that 50% that's coming from the non commercial lending products. I mean, when we talk to folks, I think what really stands out is your reputation on the commercial lending side. And Pierre, I think you even mentioned maintaining your market leadership in commercial lending.

Yeah Yeah.

Speaker 2: So we see a normal year there in seasonality. We don't really guide to that. And from our perspective, we're gonna keep taking care of those customers. Renew them as we have an opportunity. And hopefully formalize those partnerships for a long time.

So we see we see it a normal year, there and seasonality we don't we didn't really.

Speaker Change #194: Thank you.

Speaker Change #194: And one moment for our next question.

Guide to that and from our perspective, we're going to keep taking care of those customers renew unless we have an opportunity and hopefully formalize those partnerships for a long time.

Speaker Change #194: And our next question comes from Brent Braseland from Piper Sandler.

Speaker Change #195: Your line is now open.

Speaker Change #196: Thanks for sticking to the question.

Speaker 15: Yeah, I mean, contracts have terms, but again, as additional products become of interest to customers, that can accelerate a renewal as well. And so, we always see, you know, a new sales opportunity as an opportunity to expand. So, hard to predict that outside of kind of our normal cadence out.

Yes.

Tracts have terms, but again as additional products.

Speaker Change #196: This is JR asking on behalf of Brent, touching on CRPO once again, how should we think about the 2024 growth rate with current RPO growth of 10% in Q1 and 8% in Q2 is low double digit growth doable or could we be looking at high single digit growth?

They come with interested customers that can accelerate our renewal as well and so we always see you.

Speaker Change #196: Thank you.

Our new sales opportunities as an opportunity to expand.

Speaker Change #196: Let me first make a comment about our PO.

Ken Zazowski: So can you talk about the competitive dynamic in your low, I guess, in the non commercial lending products and your confidence in holding your own versus the competition, just because it is a big part of the stamp. Thanks. Yeah, thank you. That's a great question. Look, our platform's intensity as well as the customer focus. I think it's big difference. Read the first. Consumer is a much more simplistic product set because your end user experience must be a lot more simplistic and ease of use and instantaneous.

So hard to hard to predict that outside of kind of our normal cadence Alex.

Alright, thank you.

Speaker 12: Thank you. And thank you. I would now like to turn the call back over to Pierre Nadei for closing remarks.

Thank you and thank you I would now like to turn the call back over to Pierre not day for closing remarks.

Speaker Change #197: Remember, depending on the seasonality of bookings, renewals could play a significant distorting impact on RPO. In other words, we could have low bookings but a bigger renewal quarter and all the sudden RPO jumps 20%.

Speaker Change #198: So I would be very careful to make too much of a deal about RPO.

Speaker Change #198: It is to me an indicator, but I think you should careful listen to the additional comments and data we provide you to actually come to a conclusion with that.

Speaker Change #199: Greg, do you have anything else to add?

Speaker Change #200: Hi, I think again, we do try to consistently remind folks that we don't manage the business to RPO and again, there's a lot of moving parts in it and really we point to the guidance that we provide with the visibility that we have in the model both from the top and bottom line.

Speaker 3: Thank you all for joining us today. I want to thank the Encino employees around the world for their passion, focus, and execution, particularly over the past six months. Our Encino teammates have helped customers through a very difficult period, proving yet again that our culture and business values are through differentiators in the market.

Thank you all for joining us today I want to thank the <unk> employees around the world for their passion focus and execution.

Speaker Change #201: That's what we point you to JR.

Speaker Change #201: Sounds great.

Particularly over the past six months.

<unk> seen our teammates and customers through a very difficult period, proving yet again that our culture and business values are true differentiators in the market.

Speaker Change #201: Thank you.

Ken Zazowski: However, because of all the regulations, it's a fairly difficult product to develop with only integrations to actually make it that simplistic to use. So it's a complex problem you're solving, but you have to make it simple to the end consumer. If you then look back at other people selling into that consumer or small business base, what you basically seeing is a bunch of companies who developed software in the 80s and 90s.

Speaker Change #201: And thank you.

Speaker 3: We are excited to welcome many of you to our first investor day on September the 28th in Womiting North Carolina. We'll share updates on our product strategy and additional insight into our financial outlook among other topics. We look forward to seeing you then. Thank you so much for attending tonight.

We are excited to welcome any of you to our first Investor day on September.

Speaker Change #201: Thank you.

September 28th enrollment to North Carolina.

We will share updates on our product strategy and additional insight into our financial outlook. Among other topics. We look forward to seeing you then thank you so much for attending Tonight.

Speaker Change #202: And one moment for our next question.

Ken Zazowski: And so we're coming out of the box here was a modern cloud-based solution that is part of a broader IT infrastructure. And I don't see other people coming up trying to do the same thing here. So I do think this is back to that reputation thing if we maintain the reputation in the biggest profit center of the bank. We get the influence to go in there and get at least the opportunity.

Speaker Change #202: And our next question comes from Jackson Adder from Moffat, Nathanson.

Speaker 12: This concludes today's conference call. Thank you for participating. You may all disconnect.

This concludes today's conference call. Thank you for participating you may all disconnect.

Speaker Change #203: Your line is now open.

Ken Zazowski: And then if you execute well and maintain the reputation, I think you're going to see exactly this playbook about the same momentum and the same market leadership in the other aspects of the platform. And that's what we're focused on here. And in the meetings I have outside of commercial around the country, I'm hearing similar stories. So I'm highly optimistic that you will play out.

Speaker Change #203: Great.

Pierre Naude: Okay, Kristen.

Speaker Change #204: Hi, guys.

Okay.

Speaker Change #205: The first question is for you, Pierre, the rate environment outside of the US, America, specifically in Europe.

Yes.

Yes.

Ken Zazowski: And maybe just as my follow up, maybe I'll ask about M&A, you know, there was some commentary out there a couple months ago stating the company might be exploring strategic options, including a potential sale. So I was wondering how I guess you guys are thinking about the potential options for the company here because we are getting a lot of questions on it.

Pierre Naude: And I guess is this a company that should be in the public market? I know you've talked about not disclosing certain metrics due to competitive reason, so we'd love to just get your latest thinking there. I can't appreciate the question, but I'm sure you can appreciate, we don't comment on rumor and speculation. So, I can't really address that any further.

Okay.

Pierre Naude: We love what we do. We do love what we do. Okay. All right, thanks, guys.

Operator: Thank you. And thank you.

Alex Markgraff: And our last question, they are through one moment.

Alex Markgraff: And our last question comes from Alex Markgraff from KBCM.

Josh Glover: Your line is not open. Hey, everyone. Thanks for taking the question. Maybe just first on the middle east, when, you know, when you think about some of these opportunities and, you know, less penetrated international markets, just curious, maybe Josh, for you, do you feel like all the pieces are in place here to kind of go full, go full steam ahead with these types of things. First of all, it's a reputation based company.

Pierre Naude: It's a little behind where we are in the state, but still I think maybe some room to go higher.

Josh Glover: We're not going to make a commitment to a bank that we're not ready to follow through on. So when we go into a new market, we're excited to announce one of the largest banks in the UAE. We're going to show them a great path to success. So the pieces are absolutely there. Have a high level of confidence in the distribution machine and eats on the ground in those markets to show those customers a path to success.

Josh Glover: And as we validated in Europe, in a pack in Japan, in Canada, the global system in a greater ecosystem gives us unprecedented scalability to where, if you remember, several years ago, we signed three Toronto banks in one year, and we showed them a path to success by leveraging the same ecosystem. So we're excited and we're proud.

Greg Orenstein: And if we just getting started in those markets. Thanks for that. And maybe just one quick follow up on the second half. Just curious if there's any way for you all to kind of describe the renewal opportunity in that the second half for us. From a customer, a current customer basis in terms of what the renewal forecasted. Alex, yeah, yeah. So we see a normal year there in seasonality. We don't really guide to that.

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Speaker Change #206: In some just curious, if the US enterprise segment at the moment is kind of being the most cautious as you look around, what are your expectations maybe for how European banks will react once we get maybe to kind of a peak rate cycle in that, in that J.I.

Yes.

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Speaker Change #206: Yeah, I would always remind people that all problems are relative.

Greg Orenstein: And from our perspective, we're going to keep taking care of those customers, renew them as we have an opportunity and hopefully formalize those partnerships for a long time. Yeah, I mean contracts have terms, but again, as additional products become of interest to customers that can accelerate a renewal as well. And so we always see you, you know, a new sales opportunities as an opportunity to expand. So hard to, hard to predict that outside of kind of our normal cadence Alex. Great. Thank you.

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Speaker 12: Good day and thank you for standing by. And welcome to in Cino's second quarter of this year, 2024, by an answer results conference call. At this time, I'll participate in some on a listen only mode. After the speaker's presentation, there'll be a question and answer session.

Okay.

Good day, and thank you for standing by and welcome to Encino second quarter fiscal year 2024 financial results Conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During this session you will need to press star one on your telephone you will then hear.

Speaker 1: To ask a question during the session, you'll need to press star 1 on your telephone.

Speaker 1: You will then hear an automated message, it buys in your hand as raised.

The automated message advising your hand is reyes towards draw. Your question. Please press star one again, please be advised that today's conference is being recorded I would like to introduce your host for today's call Harrison Masters Director of Investor Relations. Please go ahead.

Speaker 1: To draw your question, please press star 1-1 again. Please be advised that today's conference is-

Speaker 1: I would like to introduce your host for today's call, Harrison Masters, Director and Vester Relations. Please go ahead.

Speaker 2: Good afternoon and welcome to Encino's second quarter fiscal 2024 earnings call. With me on today's call, our Pierre Nadey and Encino's chairman and chief executive officer, Greg Ornstein, chief financial officer, and Josh Glover, president and chief revenue and?gue.

Good afternoon, and welcome to <unk> second quarter fiscal 2024 earnings call with me on today's call are Pierre Nowaday Encino, Encino is chairman and Chief Executive Officer, Greg Ornstein, Chief Financial Officer, and Josh Glover, President and Chief revenue Officer.

Speaker 2: During the course of this conference call, we will make for-looking statements regarding trends, strategies, and the anticipated performance of our business.

During the course of this conference call, we will make forward looking statements regarding trends strategies and the anticipated performance of our business.

Speaker 2: These forward-looking statements are based on management's current views and expectations until certain assumptions made as of today's date and are subject to various risk and uncertainties described in our FEC filings and other publicly available documents. The financial services industry and global economic conditions.

Forward looking statements are based on management's current views and expectations entail certain assumptions made as of today's date and are subject to various risks and uncertainties described in our SEC filings and other publicly available documents the financial services industry and global economic conditions Encino disclose.

Speaker 2: and CNU disclaims any application that data or revise any forward looking statement.

James any obligation to update or revise any forward looking statements.

Speaker 2: Further, on today's call, we will also discuss certain non-gap metrics that we believe aid in the understanding of our financial results.

Further on today's call. We will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results.

Speaker 2: A reconciliation to comparable GAT metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8K furnished with the SEC just before this call, as well as the earnings presentation on our investor relations website at investor.ncno.com. With that, I will now turn the call over to Pierre.

A reconciliation to comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8-K furnished with the SEC just before this call as well as the earnings presentation on our Investor Relations website at Investor <unk> Dot com.

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

Speaker 3: Thank you, Hadasin. And thank you for joining us this afternoon to read our second quarter fiscal 2024 performance.

Thank you Allison and thank you for joining us this afternoon to read our second quarter fiscal 2020 forward performance.

Speaker 3: We are very pleased with the results and the momentum we saw built throughout the quarter. Both total and subscription revenues increased 18%. While we again outperformed on profitability, posting a 10% non-gap operating income margin for the quarter.

We are very pleased with our results and the momentum we saw both throughout the quarter, both total and subscription revenues increased 18%, while we again outperformed on profitability posting a 10% non-GAAP operating income margin for the quarter.

Speaker 3: We saw strength in sales activity across all parts of the album.

We saw strength in sales activity across all parts of our business. We said last quarter, we expected a recovery in the second quarter and we certainly saw that with second quarter sales up 22% year over here.

Speaker 3: We said last quarter that we expected a recovery in the second quarter, and we certainly saw that with second quarter sales up 22% year over here.

Speaker 3: Our solar results mirror what we are hearing from customers. The US banking industry has largely stabilized with the liquidity crisis behind us. Essentially banks have caught their breath and most have refocused on their long-term strategy, which includes optimizing their technology infrastructure and providing a superior customer experience.

Our solid results mirror, what we are hearing from customers. The U S banking industry has largely stabilized with a liquidity crisis behind us.

Essentially banks have caught their breath and most have refocused on their long term strategy, which includes optimizing their technology infrastructure and providing a superior customer experience.

Speaker 3: The Encino platform was architected for just these purposes. It provides banks and credit unions of all sizes, a 360 degree view of the customer, allowing them to create their personalized, differentiated experience on a single platform.

<unk> platform was architected for just these purposes.

It provides banks and credit unions of all sizes, a 360 degree view of the customer, allowing them to create a personalized differentiated experience on a single platform.

Speaker 3: leveraging the holistic view of the customer and senior facilitates gathering deposits, originating any loan product, onboarding customers, and portfolio management all from one platform.

Leveraging this holistic view of the customer and senior facilitates gathering deposits originating any loan product onboarding customers and portfolio management all from one platform.

Speaker 3: In addition, our unique products, such as commercial pricing and profitability, allow financial institutions to broaden their customer relationships, cross-hell and optimize for profitability.

In addition, our <unk> products, such as commercial pricing and profitability allow financial institutions to broaden their customer relationships cross sell and optimize for profitability.

Speaker 3: This, of course, ultimately enhances their ability to successfully compete in an evolving market by balancing risk and reward.

This of course, ultimately enhances their ability to successfully compete in an evolving market by balancing risk and reward.

Speaker 3: With high interest rates still in effect, financial institutions are seeing pressure on net interest markets.

With high interest rates still in effect financial institutions are seeing pressure on net interest margins the.

Speaker 3: The most effective way to offset margin compression while maintaining credit quality is by driving greater efficient.

The most effective way to offset margin compression, while maintaining credit quality is by driving greater efficiency.

Speaker 3: And China's platform was both a driver-fricency, while the automation at the core of the platform helps accelerate the industry's move to increase self-service.

In CNS platform was both to drive efficiency, while the automation at the core of the platform helps accelerate the industry's move to increased self service.

Speaker 3: Voting out the capabilities of the platform has always been a key growth driver.

Building out the capabilities of the platform has always been a key growth driver.

Speaker 3: With many of our new products now reaching maturity, we are pleased by the increased number of products utilized for customers.

With many of our new products now reaching maturity. We are pleased by the increased number of products utilized per customer.

Speaker 3: In fact, over 40% of bank operating system new logo deals in the second quarter included more than one solution.

In fact over 40% of bank operating system, New logo deals in the second quarter included more than one solution.

Speaker 3: Another focus has been rolling out our footprint with current cuts.

Another focus has been building out our footprint with current customers.

Speaker 3: This quarter, over 60% of sales were cross-sell and upselled with Indian-stalled base.

This quarter over 60% of sales with cross sell and up sells with India installed base.

Speaker 3: As we continue to expand the functionality of the platform, I can't overstate the value of our satisfied and the Referenceable installed customer base.

As we continue to expand the functionality of the platform I cant overstate the value of our satisfied in the reference of all installed customer base.

Speaker 3: We are also seeing this expanding footprint affected in our sales pipeline.

We are also seeing this expanding footprint are affected in our sales pipeline.

Speaker 3: As of the end of the second quarter, more than 50% of the pipeline is for products other than commercial lending.

As of the end of the second quarter more than 50% of the pipeline is full products other than commercial lending.

Speaker 3: Let me reiterate that point. Retail, small business, treasury, mortgage, and Nick. All of the products we have created to supplement our additional commercial lending business. Now represent over 50% of sales opportunities in the pipeline.

Let me reiterate that point retail small business treasury mortgage and Nick all of the products. We have created to supplement our traditional commercial lending business now represents over 50% of sales opportunities in the pipeline.

Speaker 3: I cannot tell you how excited we are to reach this level of demand for Encinas Technology beyond commercial lending.

I cannot tell you how excited we are to reach this level of demand for <unk> technology beyond commercial lending.

Speaker Change #207: And if you look at the starting, the shock of the war last year, as well as the energy crisis, the rate complexity today looks like a Sunday school picnic compared to what they dealt with last year, okay.

Operator: And thank you.

Speaker 3: As a reminder, the SAM outside of commercial is twice as large, so we have a significant opportunity ahead.

As a reminder, the Sam outside of commercial is twice as large so we have a significant opportunity ahead.

Speaker 3: but in scenery diversified beyond products and customers.

But <unk> diversified beyond products and customers.

Speaker 3: We are also diversified geographically. This has been particularly important with the uneven macro recovery.

We are also diversified geographically.

This is being particularly important with the uneven macro recovery.

Speaker 3: For example, in the second quarter we saw solid demand in MIA and APEC, including adding another large ESG customer, in this case a UK-based global bank.

For example in the second quarter, we saw solid demand in EMEA and APAC, including adding another large ESG customer in this case, a UK based global bank.

Speaker 3: While many of the challenges bankers face outside the US are universal, our ability to develop products specific to the needs of respective regions has been a key differentiator.

While many of the challenges bankers outside the U S. Our universal our ability to develop products specific to the needs of our respective regions has been a key differentiator.

Speaker 3: switching to the U.S. and in particular our continued progress with the Encino mortgage suite. The integration of the Encino and Simple Nexus teams continues to accelerate our penetration of the banking channel.

Switching to the U S and in particular, our continued progress with the Encino mortgage suite the integration of the Encino and simple access teams continues to accelerate our penetration of the banking channel.

Speaker 3: This quarter we saw seven cross-cells in addition to six competitor takeaways.

This quarter, we saw seven cross sells in addition to six competitive takeaways.

Speaker 3: We also closed the number of large pipeline deals we noted last quarter, including a seven-figure upsell deal with a top 10 mortgage lander.

We also closed a number of large pipeline deals we noted last quarter.

Pierre Naude: I would now like to turn the call back over to Pierre Nade for closing remarks. Thank you for joining us today. I want to thank the Encino employees around the world for their passion, focus and execution, particularly over the past six months. Encino teammates have helped customers through a very difficult period proving yet again that our culture and business values are two differentiators in the market.

<unk>, a seven figure upsell deal with a top 10 mortgage Linda.

Pierre Naude: We are excited to welcome many of you to our first investor day on September the 28th in Wilmington, North Carolina. We'll share updates on our product strategy and the digital insight into our financial outlook among other topics. We look forward to seeing you then.

Speaker 3: We ended the second quarter with another strong pipeline of Morgi steels, as Morgi's lenders understand the need to become more efficient in order to compete in this market.

We ended the second quarter was another strong pipeline of mortgage deals as mortgage lenders understand the need to become more efficient in order to compete in this market.

Operator: Thank you so much for attending tonight. This concludes today's conference call. Thank you for participating. You may all disconnect. .

Speaker 3: I couldn't be prouder of the mortgage team for their continued revenue growth. Again, those year over year and quarter over quarter in this difficult and volatile mortgage market.

I couldnt be prouder of the mortgage team for their continued revenue growth again, both year over year and quarter over quarter.

Harrison Masters: Good afternoon, and welcome to Ncino's second quarter, fiscal 2024 earnings call.

This difficult and volatile mortgage market.

Speaker 3: I will let Josh provide additional details around U.S. mortgage, but first, I want to highlight our data capture and and release capabilities are key differentiators for our mortgage offering, with surface three hour compensated and Nexus vision product.

I will let John provide additional details around U S mortgage, but first I want to highlight our data capture and analytics capabilities are key differentiators for our mortgage offering.

Harrison Masters: With me on today's call, our Pierre Naude, Ncino's Chairman and Chief Executive Officer, Greg Orenstein, Chief Financial Officer, and Josh Glover, President and Chief Revenue Officer. During the course of this conference call, we will make forward-looking statements regarding trends, strategies, and the anticipated performance of our business. These forward-looking statements are based on management's current views and expectations, entailed certain assumptions made as of today's date, and are subject to various risk and uncertainties described in our FEC filings and other publicly available documents, the financial services industry, and global economic conditions.

Harrison Masters: Ncino disclaims any application's date or revise any forward-looking statements. Further, on today's call, we will also discuss certain non-gap metrics that we believe aid in the understanding of our financial results. A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website, and as an exhibit to the form 8K furnished with the SEC just before this call. As well as the earnings presentation on our investor relations website at investor.ncino.com.

Surfers threw our compensation and mixes vision products.

Speaker 3: One upsell deal with the top 100 mortgage originator of this quarter involves adding these analytics offerings to round out the mortgage suite for an existing simple Nexus point of sale customer. Increasing ACV by over 50% for that account.

One upsell deal with a top 100 mortgage originated this quarter involve adding these analytics offerings to round out the mortgage suite from existing simple access point of sale customer.

Pierre Naude: With that, I will now turn the call over to Pierre. Thank you, Harrison, and thank you for joining us this afternoon to read our second quarter fiscal 2024 performance. We are very pleased with the results, and the momentum we saw built throughout the quarter. Both total and subscription revenues increased 18%, while we again outperformed on profitability, posting a 10% non-gap operating income margin for the quarter. We saw strength in sales activity across all parts of our business.

Speaker Change #207: And then you had the Swiss bank, we also had liquidity problems and then got taken over.

Pierre Naude: We said last quarter that we expected a recovery in the second quarter, and we certainly saw that with second quarter sales up 22% year over here. Our solid results mirror what we are hearing from customers. The US banking industry has largely stabilized with the liquidity crisis behind us. Essentially, banks have caught their breath, and most have refocused on their long-term strategy, which includes optimizing their technology infrastructure and providing a superior customer experience.

Speaker Change #207: So, what I would tell you is that it's relatively good.

Increasing HCV by over 50% for that account.

Speaker 3: But this is just one area where our data and Linux expertise is called to our product roadmap.

But this is just one area.

Data analytics expertise is core to our product roadmap.

Pierre Naude: The Encino platform was architected for just these purposes. It provides banks and credit unions of all sizes, a 360 degree view of the customer, allowing them to create a personalized differentiated experience on a single platform. Leveraging this holistic view of the customer, Encino facilitates gathering deposits, originating any loan product, onboarding customers, and portfolio management all from one platform. In addition, our unique products, such as commercial pricing and profitability, allow financial institutions to broaden their customer relationships, cross-hell and optimize for profitability.

Speaker Change #207: It's not ideal.

Speaker 3: Let me spend a minute reviewing our ongoing mix strategy around intelligence, including AI, machine learning.

Let me spend a minute reviewing our ongoing nick's strategy around intelligence, including AI machine.

Machine learning and analytics.

Speaker 3: With our single platform, we process vast amounts of data, including customer onboarding, low-neurigination, account opening, and bank customer financial information. And we continue to invest to further automate every stage of production across the platform.

With our single platform reprocessed vast amounts of data, including customer Onboarding loans origination account opening and bank customer financial information and we continue to invest to further automate every stage of production across the platform.

Speaker 3: As we've done with order spreading, where we removed layers of manual work to accelerate the underwriting process for loans, will continue to develop solutions. Trial bankers make faster, more informed decisions.

As we've done with the auto spreading.

We removed layers of manual work to accelerate the underwriting process for loans.

Continue to develop solutions to our bankers make faster more informed decisions.

Pierre Naude: This, of course, ultimately enhances their ability to successfully compete in an evolving market by balancing risk and reward. With high interest rates still in effect, financial institutions are seeing pressure on net interest markets. The most effective way to offset margin compression while maintaining credit quality is by driving greater efficiency. Ncino's platform was built to drive efficiency while the automation at the core of the platform helps accelerate the industry's move to increase self-service.

Speaker 3: Our team has deep domain expertise in banking and is hard at work developing thoughtful solutions to the most complex issues our customers face.

Our team has deep domain expertise in banking and is hard at work developing thoughtful solutions through the most complex issues our customers face.

Speaker Change #207: And everybody in banking would like to see declining rates coming forward again.

Speaker 3: Recent internal demonstrations highlighted numerous use cases, including interactive virtual assistance and automated portfolio reviews.

Recent internal demonstrations highlighted numerous use cases, including interactive virtual assistance and automated portfolio reviews.

Speaker Change #207: But normally, there's a cycle that you have to get through, where your loan rates, in other words, your income can raise as well, because your current portfolio sits there stable, and the deposit rates go up.

Speaker 3: With our philosophy of an open ecosystem and able by our API strategy, we are also attracting an impressive group of partners that are augmenting their Encino customer experience. Together, we are developing thoughtful solutions powered by AI, data and analytics to automate an increasing number of workflows with any our single platform allowing financial institutions to eliminate the lines on legacy point solutions and become more and more efficient.

With our philosophy of an open ecosystem enabled by our API strategy. We're also attracting an impressive group of partners that are augmenting the encino customer experience together, we are developing thoughtful solutions powered by AI and data analytics to automate an increasing number of workflows within.

Speaker Change #207: So that's a squeeze on it in this margins.

Pierre Naude: Bowling out the capabilities of the platform has always been a key growth driver. With many of our new products now reaching maturity, we are pleased by the increased number of products utilized for customer. In fact, over 40% of bank operating system new logo deals in the second quarter included more than one solution. Another focus has been bowling out our footprint with current customers. This quarter over 60% of sales will cross sell and upsell within the installed base.

Speaker Change #207: But over time, as you renew those lanes, you jack the rates up.

Many of our single platform, allowing financial institutions to eliminate the reliance on legacy point solutions and become more and more efficient.

Speaker 3: We were pioneers when bankers were reluctant to embrace the cloud. We proved that value proposition and today, cloud banking is considered the industry standard.

We were pioneers where bankers were reluctant to embrace the cloud.

Prove that value proposition and today, Todd banking is considered the industry standard.

Speaker 3: Our original vision continues driving the evolution of financial services as we anticipated demand for AI and data when we launched our Nick and I stiff over four years ago. It is exciting to see the industry embracing this technology as we continue on our journey to embed intelligence throughout our platform and change the financial services industry once more.

Our original vision continues driving the evolution of financial services as we anticipated the demand for AI and data when we launched our <unk> initiative over four years ago.

Pierre Naude: As we continue to expand the functionality of the platform, I can't overstate the value of our satisfied and the referenceable installed customer base. We are also seeing this expanding footprint affected in our sales pipeline. As of the end of the second quarter, more than 50% of the pipeline is for products other than commercial lending.

It is exciting to see the industry embracing this technology as we continue on our journey to embed intelligence throughout our platform and trained the financial services industry once more.

Speaker 3: To quote one of the characters, Ronnik's CTO and Vera Banks.

To quote one of your customers broad mix CTO at <unk> Bank.

Speaker 3: What's important for technology vendors is not to evaluate your needs today.

What's important for technology vendors is not to evaluate your needs today.

Pierre Naude: Let me reiterate that point. Retail, small business, treasury, mortgage and nick. All of the products we have created to supplement our additional commercial lending business. Now represent over 50% of sales opportunities in the pipeline. I cannot tell you how excited we are to reach this level of demand for Encinas' technology beyond commercial lending. As a reminder, the same outside of commercial is twice as large, so we have a significant opportunity ahead.

Speaker 3: But to predict where you are going to be in five years.

But to predict where you are going to be in five years.

Speaker 3: We know in five years and Sino is going to be at the forefront of lending and we'll be right there with them.

We know in five years, and <unk> is going to be at the forefront of lending and we will be right there with them.

Speaker 3: Vera Bank, a community bank headquartered in Henderson, Texas, partnered with Henshinau to modernize its lending processes and streamline employee and customer experience.

We are a bank a community bank headquartered in Henderson, Texas partnered with Encino to modernize its lending processes and streamline employee and customer experiences.

Speaker 3: The bank has taken a full platform approach, adopting deposit account opening, portfolio analytics, retail lending, and commercial lending, including order spreading.

The bank has taken a food platform approach.

Adopting deposit account opening portfolio analytics retail lending and commercial lending including orders spreading.

Pierre Naude: But in scenery diversified beyond products and customers, we are also diversified geographically. This has been particularly important with the uneven macro recovery. For example, in the second quarter we saw solid demand in AMIA and APEC, including adding another large ESG customer in this case a UK-based global bank. While many of the challenges bankers face outside the US are universal, our ability to develop products specific to the needs of respective regions has been a key differentiator.

Speaker 3: We see them as a textbook example of how Encino could be adopted across an organization to drive operational efficiency. And we appreciate the trust in our vision for where the industry is headed.

We see them as a textbook example of how <unk> could be adopted.

Crossing the organization to drive operational efficiency and we appreciate the trust in our vision for where the industry is habit.

Speaker Change #207: As long as the economy stays healthy, and you don't see a lot of problems in the credit book, I think these banks will come through this fine.

Speaker Change #208: I'm always amazed about how good bankers are to manage the credit site.

Speaker 3: The makeup of our sales pipeline proves that in continuous influence now extends far beyond commercial length.

The makeup of our sales pipeline proves that <unk> influence now extends far beyond commercial lending.

Speaker 3: With the continued expansion and maturity of our platform, we are poised to extend our market leadership to retail, small business, mortgage, data, analytics, and AI, matching our success in commercial loan origination.

The continued expansion and maturity of our platform, we are poised to extend our market leadership to retail small business mortgage data.

Speaker Change #209: I think the surprise was the liquidity angle was a big surprise and came out of left field as well as the ease of withdrawing money today in an internet enabled world versus the previous time they saw this.

And AI.

Matching our success in commercial loan originations.

Speaker Change #210: You literally have to stand in line to get your money, and they could close the door, okay.

Pierre Naude: Switching to the US and in particular our continued progress with the Encino mortgage suite. The integration of the Encino and Simple Nexus teams continues to accelerate our penetration of the banking channel. This quarter we saw seven cross cells in addition to six competitor takeaways. We also closed the number of large pipeline deals we noted last quarter, including a seven figure upsell deal with a top ten mortgage lender. We ended the second quarter with another strong pipeline of mortgage deals, as mortgage lenders understand the need to become more efficient in order to compete in this market. I couldn't be prouder of the mortgage team for their continued revenue growth. Again, those year over year and quarter over quarter in this difficult and volatile mortgage market.

Speaker 3: Our progress and positioning reinforce our optimism for the second half of fiscal 2024 and the years to come.

Progress and positioning reinforce our optimism for the second half of fiscal 2024 and the years to come.

Speaker 3: Now let me turn the call to just to provide specific examples of our solid execution in the second report.

Now, let me turn the call to just to provide specific examples of our solid execution in the second quarter.

Speaker 16: Thank you, Pierre. We're very pleased with our second quarter results. In the United States, we saw customers coming back to the table with a renewed focus on digital transformation projects.

Thank you Pierre we're very pleased with our second quarter results.

Added states, we saw customers coming back to the table with a renewed focus on digital transformation projects. One. Such example is an expansion within the top four U S Bank, who added additional users for small business lending.

Speaker 4: One such example is an expansion within a top four US bank who added additional users for small business ones.

Speaker 4: This deals a great example of the white space we see in even our largest accounts to add additionalize the business and to expand user bases within our existing foot.

This deal is a great example of the white space, we see and even our largest accounts to add additional lines of business and to expand user basis within our existing footprint.

Speaker 2: We close a retail lending add-on and conjunction with the merger of equals between two community banks.

We closed our retail lending add on in conjunction with the merger of equals between two community banks. The combined bank will standardize and Encino for retail and commercial lending deployment will also include auto spreading.

Speaker 2: The combined bank will standardize an Encino for retail and commercial lending. Their deployment will also include auto spreading, deposit account opening, and treasury onboarding.

Pierre Naude: Garrett. I will let John's provide additional details around U.S, mortgage, but first, I want to highlight our data capture and analytics capabilities are key differentiators for our mortgage offering, when surfers through our compensate and nexus vision products. One upsell deal with the top 100 mortgage originated this quarter involve adding these analytics offerings to round out the mortgage suite for an existing simple nexus point of sale customer, increasing ACV by over 50% for that account. But this is just one area where our data analytics expertise is called to our product roadmap.

<unk> account opening and Treasury Onboarding.

Speaker 2: With many past M&A transactions within our customer base, is CNO platform's ability to extend across multiple products and lines of business while scaling with the bank as it grows will combine the lending operations for the new bank.

As we have experienced.

With many past M&A transactions within our customer base is seen our platform's ability to extend across multiple products and lines of business, while scaling with the bank as it grows we'll combine that lending operations for the new Bank <unk>.

Speaker 2: Integrating credit cultures and portfolio management are key to the success of a bank merger. And we're proud to see another growth-minded bank leveraging in Sino to help with these mission-critical merger activities. We believe in the market is validated that financial institutions using a single platform have the tools to grow more efficiently while also delivering great differentiated customer experience.

Integrating credit cultures and portfolio management are key to the success of a bank merger and we're proud to see another growth minded bank leveraging <unk> to help with these mission critical merger activities, we believe and the market is validated that financial institutions using a single platform have the tools to grow more efficiently while also delivering great differentiated customer.

Pierre Naude: Let me spend a minute reviewing our ongoing niche strategy around intelligence, including AI, machine learning and analytics. With our single platform, we process vast amounts of data, including customer onboarding, loan origination, account opening, and bank customer financial information. And we continue to invest to further automate every state of production across the platform. As we've done with auto spreading, where we remove layers of manual work to accelerate the underwriting process for loans, we'll continue to develop solutions to help bankers make faster, more informed decisions.

Speaker Change #210: So, but what we're hearing is there is a new focus on strategy and how they would like to move forward.

Speaker 2: For example, one of our regional bank customers saw a 291% increase in average monthly new deposit accounts open online after implementing and seeing it.

<unk> for.

For example, one of our regional bank customers say, 291% increase in average monthly new deposit accounts opened online after implementing and Sina and.

Speaker Change #211: I will also tell you that, as I mentioned before, in Europe, there's a lot more regulation and government involvement in these banks.

Speaker 2: An expansion opportunity in over $10 billion bang that added retail and commercial lending provided another proof point of our single platform strategy.

An expansion opportunity and over $10 billion bank that added retail and commercial lending.

Speaker Change #211: And that's why ESG is a great play for us there.

<unk> another proof point of our single platform strategy.

Speaker 2: These products join in existing small business lending deployment bringing all the banks lending operations onto one platform within Sina.

Products, joining existing small business lending deployment, bringing all the banks lending operations onto one platform with Athena.

Speaker Change #212: As a matter of fact, I'm going over there to talk to some of the banks in September about this understanding the industry better, where that's going to take us.

Speaker 2: The state of Colorado was quite good to us this quarter. And Sina was selected by yet another foreign credit institution for commercial lending. And we did an expansion within a community bank for deposit account opening and treasury on.

The state of Colorado was quite good to us this quarter.

<unk> was selected by yet another farm credit institution for commercial lending and we did an expansion within a community bank for deposit account opening and Treasury Onboarding.

Speaker Change #212: But I'm still seeing significant interest in new technologies, and how could they can manage themselves better.

Pierre Naude: Our team has deep domain expertise in banking and is hard at work developing thoughtful solutions to the most complex issues our customers face. Recent internal demonstrations highlighted numerous use cases, including interactive virtual assistance and automated portfolio reviews. With our philosophy of an open ecosystem enabled by our API strategy, we are also attracting an impressive group of partners that are augmenting their in senior customer experience. Together, we are developing thoughtful solutions powered by AI, data, and analytics to automate an increasing number of workflows with any single platform allowing financial institutions to eliminate the lines on legacy point solutions and become more and more efficient.

Speaker 2: This Colorado Community Bank already used Nascino for commercial lending and for the mortgage home buying journey.

This Colorado community Bank already used encino for commercial lending and for the mortgage home buying journey.

Speaker Change #212: Okay.

Speaker 2: As peer noted, our U.S. mortgage business continues to benefit from and senos well-established brands and market presidents within financial institutions.

As Peter noted our U S mortgage business continues to benefit from <unk>, well established brand and market presence within financial institutions are 19, new mortgage logos in the quarter were primarily with depository institutions proving the value of our approach.

Speaker 2: Our 19 new mortgage logos in the quarter were primarily with depository institutions, proving the value of our approach.

Speaker Change #212: All right.

Speaker 2: We're particularly pleased by two NetNU logo deals where a mortgage suite was included in Greenfield bank operating system deals.

We're particularly pleased by two net new logo deals where mortgage suite was included in Greenfield Bank operating system deals.

Speaker Change #212: Great.

Speaker 2: The first was a community bank retail lending deal that included portfolio analytics and mortgage.

As a community bank retail lending deal that included portfolio analytics and mortgage.

Speaker 2: The second was a community bank committing to NCNO for commercial lending, portfolio analytics and mortgage. We're excited to see our customers look to NCNO as the single trusted vendor across all their business lines. As they also incorporate our mixed solutions to accelerate the value they receive from our product.

The second was a community bank committing to encino for commercial lending portfolio analytics and mortgage we're excited to see our customers look to <unk> as the single trusted vendor across all their business lines as they also incorporate our Nic solutions to accelerate the value they receive from our products.

Pierre Naude: We were pioneers when bankers were reluctant to embrace the cloud. We proved that value proposition and today, cloud banking is considered the industry standard. Our original vision continues driving the evolution of financial services as we anticipated demand for AI and data when we launched our Nick and his stiff over four years ago. It is exciting to see the industry embracing this technology as we continue on our journey to embed intelligence throughout our platform and change the financial services industry once more.

Speaker Change #212: It's helpful context.

Speaker 2: You'll continue to see our product strategy focus on the value and senior delivers across three pillars of intelligence, automation and experience.

Speaker Change #212: One quick follow up for Greg.

To see our product strategy focused on the value and senior delivers across three pillars of intelligent automation and experience. These.

Speaker 2: These multi-solution greenfield bills illustrate the impact that strategy is providing prancinose custody.

These multi solution greenfield deals illustrate the impact that strategy is providing for <unk> customers.

Speaker 2: Our global footprint continues to provide stability to our growth profile. This corner we added another new logo in Australia. This time a top 10 Australian bank that will be deploying Seno's market leading commercial lending solution. Seno was selected to help the bank simplify their operating model, reduce cycle times, and improve the customer experience.

Our global footprint continues to provide stability to our growth profile. This quarter. We added another new logo in Australia. This time, a top 10 Australian bank that will be deploying <unk> market, leading commercial lending solution casino was selected to help the bank simplify their operating model reduce cycle times and improve the customer experience.

Pierre Naude: To quote one of our customers, Ron Nick's CTO and Vera bank. What's important for the technology vendors is not to evaluate your needs today. But to predict where you are going to be in five years. We know in five years and Sino is going to be at the forefront of lending and will be right there with them. Vera bank, a community bank headquartered in Henderson, Texas, partnered with Sino to modernize its lending processes and streamline employee and customer experience.

Speaker 2: I'm particularly excited to note that this Greenfield commercial loan origination deal also included NICS commercial pricing and profitability solution.

Yes.

I'm, particularly excited to note that this greenfield commercial loan origination deal also included next commercial pricing and profitability solution.

Speaker 2: This is yet another proof point of the opportunity for this solution in banks worldwide.

This is yet another proof point of the opportunity for this solution and banks worldwide.

Speaker 2: Another recent area of focus for us has been addressing demand from the world's top 500 financial institutions beyond as seen as established geographic foot.

Another recent area of focus for US has been addressing demand from the world's top 500 financial institutions beyond <unk> establish geographic footprint with great partnership from Accenture are emerging markets team signed one of the largest banks in the UAE and our first customer in the middle East for commercial lending our global partner ecosystem is a true force.

Speaker 2: With great partnership from Accenture, our emerging markets team signed one of the largest banks in the UAE and our first customer in the Middle East for commercial lending. Our global partner ecosystem is a true force multiplier, not only in delivering customer success but also in our go-to-market efforts.

Pierre Naude: Jesus. The bank has taken a full platform approach, adopting deposit account opening, portfolio analytics, retail lending, and commercial lending, including order spreading. We see them as a textbook example of how Ncino could be adopted across an organization to drive operational efficiency, and we appreciate their trust in our vision for where the industry is headed. The makeup of our sales pipeline proves that insinuous influence now extends far beyond commercial lending. With a continued expansion and maturity of our platform, we are poised to extend our market leadership to retail, small business, mortgage, data, analytics, and AI, matching our success in commercial loan origination.

Multi player not only in delivering customer success, but also in our go to market efforts system integrator ecosystems unique combination of global reach and local relationships is helping encino uncover sales opportunities in both new and emerging markets.

Speaker 2: System Integrator ecosystems unique combination of global reach and local relationships, it's helping in, you know, uncover sales opportunities and both new and emerging markets.

Speaker 2: Expansion within existing customers made a strong contribution to Encinos' international success in the second quarter. An enterprise bank in the Netherlands expanded their adoption of our commercial lending solution and renewed their agreement with Encino for another five years.

Expansion within existing customers made a strong contribution to <unk> international success in the second quarter.

And enterprise bank in the Netherlands expanded their adoption of our commercial lending solution and renew their agreement with <unk> for another five years.

Speaker 2: Also, beyond the borders of the continental U.S., we had an over $10 billion asset, Caribbean subsidiary of a global bank for commercial lending. We also assigned a community bank in the U.S. territory for retail lending, portfolio analytics, and for the mortgage home buying journey. An exciting bull...

Also beyond the borders the Continental U S. We had an over $10 billion asset Caribbean subsidiary of a global bank for commercial lending.

We also signed a community bank in the U S territory for retail lending portfolio analytics and for the mortgage home buying journey and.

Pierre Naude: Our progress and positioning reinforce our optimism for the second half of fiscal 2024 and the years to come.

An exciting multi solution deal.

Speaker 2: Sustain success in any market requires happy, referenceable customers.

Sustained success in any market requires happy referenced customers. We're pleased to take another early customer from the Japanese market lives when it snows commercial lending solution.

Josh Glover: Now, let me turn the call to just to provide specific examples of our solid execution in the second quarter. Thank you, Pierre. We're very pleased with our second quarter results. In the United States, we saw customers coming back to the table with a renewed focus on digital transformation projects. One such example is an expansion within a top four US bank who added additional users for small business lending. This deals a great example of the white space we see in even our largest accounts to add additional lives of business and to expand user bases within our existing footprint.

Speaker Change #213: The linearity that you spoke about in the quarter, you know, the June and July impacting buildings may be moving into the next quarter was there was the quarter like more back unloaded from a bookings perspective, then you typically see in a second quarter, or then you typically see in any given quarter.

Speaker 2: We are pleased to take another early customer from the Japanese market lives on its below earnings. those nights.

Speaker 2: We are appreciative of the opportunity early adopters have provided us in Japan. And we look forward to highlighting more examples of success in that work.

We are appreciative of the opportunity early adopters have provided us in Japan, and we look forward to highlighting more examples of success in that market.

Speaker Change #214: No, I think again, just coming on the other side of the liquidity crisis, we just saw the momentum build as the quarter progressed and things settled down Jackson.

Speaker Change #215: I think that really more than anything would have been would be the thing to note for Q2.

Speaker Change #216: But I'm sorry, I just mean like was it was it more or less back unloaded than than usual or like than you expected.

Speaker 2: We also proudly celebrated GoLive milestones in other markets for commercial, retail, small business, commercial pricing and profitability, and deposit account of.

We also proudly celebrated go live milestones in other markets for commercial retail small business commercial pricing and profitability and deposit account opening.

Speaker Change #217: No, I think it was in line with the expectations. And again, you know, you know, speaking in the middle of the quarter and again talking to investors, you know, we tried to highlight some of the momentum that we saw building.

Speaker 2: As a customer-focused organization, we have continued appreciation for client feedback. We're extremely proud in the second quarter to receive the highest NTS score in company history. Then average scores.

As a customer focused organization, we have continued appreciation for client feedback.

Josh Glover: We close a retail lending add-on in conjunction with the merger of equals between two community banks. The combined bank will standardize an escino for retail and commercial lending. Their deployment will also include auto spreading, deposit account opening, and treasury onboarding. As we have experienced, with many past M&A transactions within our customer base, escino platform's ability to extend across multiple products and lines of business while scaling with the bank as it grows will combine the lending operations for the new bank.

Extremely proud in the second quarter to receive the highest NPS score in company history.

An average score of 74%.

Speaker 2: In addition to the talented customer success teams, we fielded around the globe, the maturity and stability of our single platforms are yielding demonstrable business value. And our recent investments in the challenge and usage analytics are allowing and senos customers to benchmark and accelerate their own success. Greg?

In addition to the talented customer success teams, we feel around the globe.

The maturity and stability of our single platforms are yielding demonstrable business value and.

And our recent investments in intelligent usage analytics are allowing <unk> customers to benchmark and accelerate their own success.

Greg over to you for the financials.

Speaker 2: Thank you Josh and thanks everyone for joining us this afternoon to review our second quarter fiscal 24 financial result.

Thank you Josh and thanks, everyone for joining us this afternoon to review our second quarter fiscal 'twenty four financial results.

Josh Glover: Integrating credit cultures and portfolio management are key to the success of bank merger and we're proud to see another growth-minded bank leveraging escino to help with these mission critical merger activities. We believe in the market is validated that financial institutions using a single platform have the tools to grow more efficiently while also delivering great differentiated customer experiences. For example, one of our regional bank customers saw a 291 percent increase in average monthly new deposit accounts open online after implementing an escino.

Speaker 2: Please note that all numbers referenced in my remarks are only non-gap basis unless otherwise stated. A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8K furnished with the FCC just before this call.

Please note that all numbers referenced in my remarks are on a non-GAAP basis, unless otherwise stated.

A reconciliation to comparable GAAP metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8-K furnished with the SEC just before this call.

Speaker 2: Total revenues for the second quarter of fiscal 24 were 117.2 million, an increase of 18% year over year.

Total revenues for the second quarter of fiscal 'twenty, four were $117 2 million, an increase of 18% year over year.

Josh Glover: An expansion opportunity and over $10 billion bank that added retail and commercial lending provided another proof point of our single platform strategy. These products joined an existing small business lending deployment bringing all the banks lending operations onto one platform with Encina. The state of Colorado was quite good to us this quarter. Encina was selected by yet another farm credit institution for commercial lending. And we did an expansion within a community bank for deposit account opening and treasury onboarding. This Colorado community bank already used Encino for commercial lending and for the mortgage home buying journey. As peer noted, our US mortgage business continues to benefit from Encino's well-established brand and market presence within financial institutions.

Speaker 2: Subscription revenues for the second quarter were 99.9 million, also an increase of 18% year over year in Representing 85% of total revenue

Subscription revenues for the second quarter were $99 9 million also an increase of 18% year over year and representing 85% of total revenues.

Speaker 2: Subscription revenues benefited from strong sales in the quarter with some of those deals contributing to revenues in the quarter.

Subscription revenues benefited from strong sales in the quarter with some of those deals contributing to revenues in the quarter.

Speaker Change #217: And the quarter, you know, came together nicely, a team did a great job.

Speaker 2: Professional Services revenues were 17.3 million in the quarter, growing 14% year over year.

Professional services revenues were $17 3 million in the quarter growing 14% year over year.

Speaker Change #217: And, you know, it was, it was nice to, nice to see.

Speaker 2: Prevenue growth outside the United States accelerated this quarter as a result of increased sales momentum that began in the second half of last year.

Revenue growth outside the United States accelerated this quarter as a result of increased sales momentum that began in the second half of last year.

Speaker Change #217: All right, awesome.

Speaker 2: Non-US revenues were $21.9 million or 19% of total revenues in the second quarter of 47% year-over-year or 48% in constant current.

Non U S revenues were $21 $9 million or 19% of total revenues in the second quarter up 47% year over year or 48% in constant currency.

Speaker Change #217: Thanks.

Josh Glover: Editions. Our 19 new mortgage logos in the quarter were primarily with depository institutions, proving the value of our approach. We are particularly pleased by two net new logo deals where a mortgage suite was included in Greenfield Bank Operating System deals. The first was a community bank retail lending deal that included portfolio analytics and mortgage. The second was a community bank committing to Ncino for commercial lending, portfolio analytics and mortgage. We're excited to see our customers look to Ncino as the single trusted vendor across all their business lines, as they also incorporate our mixed solutions to accelerate the value they receive from our products. We'll continue to see our product strategy focus on the value in senior delivers across three pillars of intelligence, automation and experience. These multi-solution Greenfield deals illustrate the impact that strategy is providing for Ncino's customers.

Speaker 2: Non-GAP gross profit for the second quarter of fiscal 24 was $76.5 million, an increase of 18% year over year.

non-GAAP gross profit for the second quarter of fiscal 'twenty, four was $76 $5 million, an increase of 18% year over year.

Speaker 2: Non-Gap Gross Margin was 65% compared to 65% in the second quarter of fiscal 23.

non-GAAP gross margin was 65% compared to 65% in the second quarter of fiscal 'twenty three.

Speaker 2: Non-GAP operating income for the second quarter of fiscal 24 was $11.2 million compared with a $2.8 million loss in the second quarter of fiscal 23.

non-GAAP operating income for the second quarter of fiscal 'twenty, four was $11 $2 million compared with a $2 $8 million loss in the second quarter of fiscal 'twenty three.

Speaker Change #217: Thank you.

Speaker 2: Our non-gap operating margin for the second quarter was positive 10% compared with negative 3% in the second quarter of fiscal 23.

Our non-GAAP operating margin for the second quarter was positive, 10% compared with negative 3% in the second quarter of fiscal 'twenty three.

Speaker Change #217: And one moment for our next question.

Speaker 2: We exceeded non-GAP operating income guidance with continued solid execution against expense budgets and from our revenue performance.

We exceeded non-GAAP operating income guidance with continued solid execution against expense budgets and from our revenue performance.

Speaker 2: Non-GAP Net Income, attributable to Encino for the second quarter of fiscal 24, was $9.9 million or $9 per diluted share compared to a net loss of $4.9 million, or negative $4 per basic and diluted share in the second quarter of fiscal 23.

Josh Glover: Our global footprint continues to provide stability to our growth profile. This quarter we added another new logo in Australia. This time a top 10 Australian bank that will be deploying Ncino's market leading commercial lending solution. Ncino was selected to help the bank simplify their operating model, reduce cycle times and improve the customer experience. I'm particularly excited to note that this Greenfield commercial loan origination deal also included Nix commercial pricing and profitability solution. This is yet another proof point of the opportunity for this solution in banks worldwide.

non-GAAP net income attributable to <unk> for the second quarter of fiscal 'twenty, four was $9 $9 million or <unk> <unk> per diluted share compared to a net loss of $4 9 million or negative <unk> <unk> per basic and diluted share in the second quarter of fiscal 'twenty three.

Speaker 2: Our remaining performance obligation or RPO increased to $928.6 million as of July 31st, 2023, up 2% over $907.4 million as of July 31st, 2022, with $636.2 million in the less than 24 months category, up 8% from $588.8 million as of July 31st, 2022.

Our remaining performance obligation or <unk> increased to $928 6 million as of July 31, 2023 up 2% over $907 4 million as of July 31, 2022, with $636 2 million in the less than 20.

Josh Glover: Another recent area of focus for us has been addressing demand from the world's top 500 financial institutions beyond Ncino's established geographic footprint. With great partnership from Accenture, our emerging markets team signed one of the largest banks in the UAE and our first customer in the Middle East for commercial lending. Our global partner ecosystem is a true force multiplier not only in delivering customer success but also in our go-to market efforts. System integrator ecosystems unique combination of global reach and local relationships is helping Ncino uncover sales opportunities and both new and emerging markets.

Four months category up 8% from $588 $8 million as of July 31, 2022.

Speaker 2: In addition to a strong sales quarter, RPO also benefited from a solid renewal quarter.

In addition to a strong sales quarter <unk> also benefited from a solid renewal quarter.

Speaker 2: As Josh noted, there were significant expansions, meaning an increase in annualized subscription revenues that accompanied several annules.

As Josh noted there were significant expansions, meaning an increase in annualized subscription revenues that accompanied several renewals.

Speaker 2: As we regularly highlight, we do not manage the business to RPO, but I do want to reinforce what Pierre mentioned earlier. It was a strong sales quarter with sales achievement up 22% year over year.

As we regularly highlight we do not manage the business to <unk>, but I do want to reinforce with Pierre mentioned earlier. It was a strong sales quarter with sales achievement up 22% year over year.

Josh Glover: Expansion within existing customers made a strong contribution to Ncino's international success in the second quarter. An enterprise bank in the Netherlands expanded their adoption of our commercial lending solution and renewed their agreement with Ncino for another five years. Also, beyond the borders of the continental U.S., we had an over $10 billion asset Caribbean subsidiary of a global bank for commercial lending. We also signed a community bank in U.S, territory for retail lending, portfolio analytics, and for the mortgage home buying journey. An exciting multi-solution deal.

Speaker 2: Note that sales in the second quarter were greater in June and July . So some corresponding buildings were occur in the third quarter.

Note that sales in the second quarter were greater in June and July so some corresponding billings will occur in the third quarter.

Speaker 2: We ended the quarter with cash and cash equivalents of $103.4 million, including restricted cash.

We ended the quarter with cash and cash equivalents of $103 4 million, including restricted cash.

Speaker 2: Netcash provided by operating activities was $12 million compared to $9.5 million in the second quarter of fiscal 23.

Net cash provided by operating activities was $12 million compared to $9 $5 million in the second quarter of fiscal 'twenty three.

Speaker 2: Capital expenditures were $859,000 in the quarter, resulting in free cash flow of $11.1 million for the second quarter.

Capital expenditures were $859000 in the quarter.

<unk> and free cash flow of $11 $1 million for the second quarter.

Josh Glover: Sustained success in any market requires happy, referenceable customers. We are pleased to take another early customer from the Japanese market live on Ncino's commercial lending solution. We are appreciative of the opportunity early adopters have provided us in Japan and we look forward to highlighting more examples of success in that market. We also proudly celebrated go-wide milestones in other markets for commercial retail, small business, commercial pricing and profitability, and deposit account opening. As a customer-focused organization, we have continued appreciation for client feedback.

Speaker 2: Please note that we expect to generate positive free cash flow through the balance of the fiscal year.

Please note that we expect to generate positive free cash flow through the balance of the fiscal year.

Speaker 2: Also note that we repaid the outstanding balance of $15 million on our $50 million Revolving credit facility and have no amounts outstanding their under

Also note that we repaid the outstanding balance of $15 million on our $50 million revolving credit facility and have no amounts outstanding they are under.

Speaker 2: Finally, please note that in July through mediation, the company and the plaintiff and a peedative class action complaint filed on March 12, 2021 in the United States District Court for the Eastern District of North Carolina reached a settlement agreement in principle of approximately $2.2 million that remained subject to court approval.

Finally, please note that in July through mediation, the company and the plaintiff and a punitive class action complaint filed on March 12, 2021 in the United States District Court for the Eastern District of North Carolina reached a settlement agreement in principal of approximately $2 2 million that remains subject to <unk>.

Josh Glover: We are extremely proud in the second quarter to receive the highest NTS score in company history. Secretary, an average score of 74%. In addition to the talented customer success teams, we feel around the globe, the maturity and stability of our single platforms are yielding demonstrable business value, and our recent investments in the challenge and usage analytics are allowing Ncino's customers to benchmark and accelerate their own success.

Quarter approval.

Speaker 2: The company has accrued for the proposed settlement agreement, which is included in accrued expenses and other liabilities as of July 31st, 2023, when the company's unaudited condensed consolidated balance.

The company has accrued for the proposed settlement agreement, which is included in accrued expenses and other liabilities as of July 31, 2023 on the Companys unaudited condensed consolidated balance sheets.

Speaker 2: We have excluded this expense from our non-GAF results as it is outside the ordinary course of our business. We have excluded this expense from our non-GAF results as it is outside the ordinary course of our business.

We have excluded this expense from our non-GAAP results as it is outside the ordinary course of our business.

Greg Orenstein: Greg, over to you for the financials. Thank you, Josh, and thanks everyone for joining us this afternoon to review our second quarter fiscal 24 financial results. Please note that all numbers referenced in my remarks are on a non-gap basis unless otherwise stated. A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website and as an exhibit to the form 8K, furnished with the FCC just before this call.

Now turning to guidance.

Speaker 2: For the third quarter of fiscal 24, we expect total revenues of $120 million to $121 million with subscription revenues of $102.5 million to $103.5 million.

For the third quarter of fiscal 'twenty four we expect total revenues of $120 million to $121 million with subscription revenues of $102 5 million to $103 $5 million.

Speaker Change #217: And our next question comes from Adam Bergere from Bank of America.

Speaker Change #218: Your line is now open.

Speaker 2: This guidance assumes your over-year subscription growth of 17% at the midpoint of our range.

Speaker Change #219: Thank you and good afternoon.

This guidance assumes year over year subscription growth of 17% at the midpoint of our range.

Speaker 2: Non-GAP operating income is expected to be approximately $13 million to $15 million. And non-GAP net income attributable to Encino per share to be $0.10 to $0.12 for the third quarter.

non-GAAP operating income is expected to be approximately 13 million to $15 million and non-GAAP net income attributable to <unk> per share to be 10 to 12 for the third quarter.

Speaker Change #220: So how is the balance between the focus for New Lagos versus Extension deals changes here so far?

Greg Orenstein: Total revenues for the second quarter of fiscal 24 were 117.2 million, an increase of 18% year over year. Subscription revenues for the second quarter were 99.9 million, also an increase of 18% year over year in representing 85% of total revenues. Subscription revenues benefited from strong sales in the quarter with some of those deals contributing to revenues in the quarter. Professional services revenues were 17.3 million in the quarter, growing 14% year over year.

Speaker 2: This is based upon a weighted average of approximately 115 million diluted shares outstand.

This is based upon a weighted average of approximately $115 million diluted shares outstanding.

Speaker Change #220: And how are you thinking about that balance?

Speaker 2: Turn in a second quarter was in line with our expectations, but we are conscious that the IMB segment of our US mortgage customer base continues to navigate the heightened interest rate environment.

Churn in the second quarter was in line with our expectations, but we are conscious that the IMT segment of our U S mortgage customer base continues to navigate the heightened interest rate environment.

Speaker Change #220: I go forward basis with liquidity crisis.

Speaker 2: Accordingly, we intend to be prudent with full your expectations by raising the low end of our revenue guidance for both total and subscription revenues while maintaining the top end of our guidance for both.

Accordingly, we intend to be prudent with full year expectations by raising the low end of our revenue guidance for both total and subscription revenues, while maintaining the top end of our guidance for both.

Speaker Change #220: And we're doing here.

Greg Orenstein: Revenue growth outside the United States accelerated this quarter as a result of increased sales momentum that began in the second half of last year. Non-US revenues were 21.9 million dollars or 19% of total revenues in the second quarter of 47% year over year or 48% in constant currency. Non-Gap gross profit for the second quarter of fiscal 24 was 76.5 million dollars, an increase of 18% year over year. Non-Gap gross margin was 65% compared to 65% in the second quarter of fiscal 23.

Speaker Change #220: Thank you.

Speaker 2: Despite this conservatism, our strong performance in the second quarter, the market stabilizing following the liquidity concerns earlier this year, and the opportunities we see in our pipeline drive our optimism for the second half of the year.

Despite this conservatism our strong performance in the second quarter the market stabilizing following the liquidity concerns earlier this year and the opportunities we see in our pipeline drive our optimism for the second half of the year.

Speaker 2: For fiscal 24, we expect total revenues of $475 million to $478.5 million with subscription revenues of $406 million to $409 million.

For fiscal 'twenty four we expect total revenues of 475 million to $478 $5 million with subscription revenues of $406 million to $409 million.

Speaker 2: This fully your guidance assumes your over-year subscription growth of 18% at the midpoint of our range.

This full year guidance assumes year over year subscription growth of 18% at the midpoint of our range.

Speaker 2: We are increasing both the low-end top end of our non-GAP operating income guidance for fiscal 24 to 51 million to 54 million dollars.

We are increasing both the low end top end of our non-GAAP operating income guidance for fiscal 'twenty, four to 51 million to $54 million.

Greg Orenstein: Non-Gap operating income for the second quarter of fiscal 24 was 11.2 million dollars compared with a $2.8 million loss in the second quarter of fiscal 23. Our non-Gap operating margin for the second quarter was positive 10% compared with negative 3% in the second quarter of fiscal 23. We exceeded non-Gap operating income guidance with continued solid execution against expense budgets and from our revenue performance. Non-Gap net income attributable to Encino for the second quarter of fiscal 24 was 9.9 million dollars or 9 cents per diluted share compared to a net loss of 4.9 million or negative 4 cents per basic and diluted share in the second quarter of fiscal 23.

Speaker 2: Non-GAP Net Income, attributable to Encino per share, is expected to be between 38 cents to 41 cents based upon a weighted average of approximately 115 million diluted shares outstanding.

non-GAAP net income attributable to <unk> per share is expected to be between 38 to <unk> 41.

Based upon a weighted average of approximately $115 million diluted shares outstanding.

Speaker 2: The top end of our subscription revenues and non-gap operating income guidance reflects our continued commitment to the Rule of 30 objective for the full fiscal year. With that, I'll open the line for-

The top end of our subscription revenues and non-GAAP operating income guidance reflects our continued commitment to the rule of 30 objective for the full fiscal year.

With that I'll open the line for questions.

And thank you.

Speaker 1: As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster, and we do ask that you limit yourself to one question and one follow up. Again, that is one question and one follow up. And one moment for our first question.

As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster and we do ask that you limit yourself to one question and one follow up again that is one question and one follow.

Greg Orenstein: Our remaining performance obligation or RPO increased to $928.6 million as of July 31st, 2023, up 2% over $907.4 million as of July 31st, 2022, with $636.2 million in the less than 24 months category, up 8% from $588.8 million as of July 31st, 2022. In addition to a strong sales quarter, RPO also benefited from a solid renewal quarter. As Josh noted, there were significant expansions, meaning an increase in annualized subscription revenues that accompanied several renewals.

And one moment for our first question.

Speaker 1: And our first question comes from Terry Tillman, from Choose Securities, your line is now open.

And our first question comes from Terry Tillman from <unk> Securities. Your line is now open.

Speaker 17: Hi there, good afternoon. Usually on these calls when we have important new light health accounts in different regions but I try to say hi or some sort of greeting and local language. I've done it in German and French.

Hi, there good afternoon, usually on these calls when we have important new lighthouse accounts in different regions, but I try to stay higher some sort of grading in local language I've done it in German and French.

Speaker 17: Arabic, I don't know if it's Hulan, but I tried my best, but great to see the UAE win. Maybe the first question here.

Arabic I don't know if the tone, but I tried my best but great to see the UAE UAE win.

Maybe the first question.

Speaker 17: Hey there. For Pierre or Josh, is 22% sales growth, I'd like to unpack that a little bit more. Is that like an HCV booking? And do you think that coming out of the falling out that the business can keep picking up momentum versus two Q sales activity, talking about the second half of the year and then I had to follow up for as well. Thank you.

Hey, there.

Greg Orenstein: As we regularly highlight, we do not manage the business to RPO, but I do want to reinforce what Pierre mentioned earlier. It was a strong sales quarter with sales achievement up 22% year over year. Note that sales in the second quarter were greater in June and July, so some corresponding buildings were occur in the third quarter. We ended the quarter with cash and cash equivalence of $103.4 million, including restricted cash. Net cash provided by operating activities was $12 million, compared to $9.5 million in the second quarter of fiscal 23.

For peer or Josh is 22% sales growth I'd like to unpack that a little bit more is that like an ACB bookings and do you think that coming out of the falling out.

The business can keep picking up momentum versus <unk>.

<unk> activity.

I'm talking about the second half of the year and then I had a follow up for.

Well thank you.

Speaker 3: Very thanks for that question. Yeah, just to remind that 22% is year over year. Okay, and not quarter over quarter, which makes it more remarkable. I think it shows the paint up demand, and I'd also show the momentum we see in the market. As I look at the global markets, including the US, I would say the only place where people are still careful is the US enterprise market.

Barry Thanks for that question.

Yes, just a reminder, that 22% is year over here okay.

And not quarter over quarter, which makes it more remarkable I think it shows the pent up demand and it also shows the momentum we see in the market as I look at the global markets, including the U S. I would say the only place where people are still careful.

Greg Orenstein: Capital expenditures were $859,000 in the quarter, resulting in free cash flow of $11.1 million for the second quarter. Please note that we expect to generate positive free cash flow through the balance of the fiscal year. Also note that we repaid the outstanding balance of $15 million on our $50 million revolving credit facility and have no amounts outstanding their under.

Is the U S enterprise market.

Speaker 3: where the regional and big banks are strategically aligned and moving forward, but very careful to buy.

The regional and big banks.

Our strategically aligned and moving forward, but very careful Dubai apart from that and the rest of the segments community regional in the U S. We see strong demand and the Vaseline received very strong interest I believe the current economic environment with net interest margin squeezes is truly a driver for review to efficiency.

Speaker 3: Apart from that, in the rest of the segments, community region, the US, we see strong demand, and internationally we see very strong interest.

Greg Orenstein: Finally, please note that in July through mediation, the company and the plaintiff and a peterative class action complaint filed on March 12, 2021 in the United States District Court for the Eastern District of North Carolina reached a settlement agreement in principle of approximately $2.2 million that remained subject to court approval. The company has accrued for the proposed settlement agreement, which is included in accrued expenses and other liabilities as of July 31, 2023 when the company's unordered condensed consolidated balance sheets. We have excluded this expense from our non-gap results as it is outside the ordinary course of our business.

Speaker 3: I believe the current economic environment for net interest modern squeezes is truly a driver for a view to efficiency. And as we mentioned, we've got the platform and that's being reconfirmed as we visit customers in drive-around. Just anything to add? Yeah, nothing else to that.

And as we mentioned.

We've got the platform, that's being reconfirmed as we visit customers and drive around Josh anything to add no nothing to add to that.

Speaker 17: It's great to hear. And I guess maybe the follow up question for Greg. Greg, I mean, I think what you said is that some of the activity in June and July

That's great to hear and I guess, maybe as a follow up question for Greg Greg I mean, I think what you said is that some of the activity in June and July.

Speaker 17: you know, really doesn't show up much in our PO. You know, but then you did talk about the sales activity up year over year. People are gonna be thinking about, you know, what you've done year to date and then what might happen in the second half of the year is we start to foretell how, you know, revenue looks next year.

It really doesn't show up much in <unk>.

But then you did talk about the sales activity up year over year people are going to be thinking about what you've done year to date, and then what might happen in the second half of the year as we start to <unk> revenue looks next year, but I'm just kind of curious as it relates to the metric because we do look at it the <unk> do you feel like based on what you see just those reported <unk>.

Speaker 17: But I'm just kind of curious, is it related to the metric because we do look at it, the RPO or CRPO. Do you feel like based on what you see, just those reported metric?

Speaker Change #220: The balance of our field focus hasn't changed.

Greg Orenstein: Now turning to guidance. For the third quarter of fiscal 24, we expect total revenues of $120 million to $121 million, with subscription revenues of $102.5 million to $103.5 million. This guidance assumes year-over-year subscription growth of 17% at the midpoint of our range. Non-gap operating income is expected to be approximately $13 million to $15 million and non-gap net income attributable to Encino per share to be $0.10 to $0.12 for the third quarter. This is based upon a weighted average of approximately 115 million diluted shares outstanding.

Speaker Change #220: We make sure we have a team on the field out in the market to tell the story to New Lagos.

Speaker 6: are cropping in 2Q and they could start parking up in the second half of the year. Thank you.

<unk>, <unk> and <unk> and they could start perking up in the second half of the year. Thank you.

Speaker 2: Terry, my comment around the activity and the heightened activity towards the end of the quarter was related to buildings where we got some deal sign that would have been reflected in RPO but ultimately from a billing standpoint that would have happened post quarter end.

Hey, Terry my comment around the activity and the heightened activity towards the end of the quarter was related to billings, where we got some deals signed that would have been reflected in <unk>, but ultimately from a billing standpoint that would have happened post quarter end.

Speaker 2: You know, but overall to Pierce comments and what you heard in our prepared remarks, you know, we definitely saw momentum pick up as the quarter progressed and, you know, going back to my comments when I was kind of on the investor's circuit last quarter. You know, we said that we expected second quarter to be better than first quarter and obviously we demonstrated that and we expected the second half of the year from a sales, you know, slash bookings perspective to be better than the first half. And momentum we're seeing right now reinforces that belief. That's great. Good job on the quarter. Thank you.

But overall to pierre's comments and what you heard in our prepared remarks, we definitely saw momentum pick up as the quarter progressed.

Going back to my comments when I was kind of on the Investor Circuit last quarter we.

We said that we expected second quarter to be better than first quarter, and obviously, we demonstrated that and we expected the second half of the year from a sales slash bookings perspective to be better than the first half momentum we're seeing right now we enforces that belief.

Speaker Change #220: And we also make sure we're able to take care of our existing accounts reality is when things get challenging.

Greg Orenstein: Turn in the second quarter was in line with our expectations, but we are conscious that the IMB segment of our US mortgage customer base continues to navigate the heightened interest rate environment. Accordingly, we intend to be prudent with full your expectations by raising the low end of our revenue guidance for both total and subscription revenues while maintaining the top end of our guidance for both. Despite this conservatism, our strong performance in the second quarter, the market stabilizing following the liquidity concerns earlier this year, and the opportunities we see in our pipeline, drive our optimism for the second half of the year.

Speaker Change #221: The first thing that slows down is the green field conversations because it's just hard for folks to continue on due diligence with the new vendor, which is a good situation for us to be in because we have a great and happy reference will come.

That's great good job on the quarter. Thank you.

Thanks, Erin and thank you.

Speaker 1: And one moment for our next question.

And one moment for our next question.

Speaker Change #221: So that will explain at some points when you see macroeconomic ups and downs, why we may see a little bit heavier waiting of expansion bookings.

Speaker 1: And our next question comes from Charles Nabam from Steven. Charles, your line is now open.

And our next question comes from Charles <unk> from Stephens. Your line is now open.

Speaker 5: Good afternoon and thank you for taking my question. It's good to see the momentum in the mortgage business cross selling into the FI customer base, but I'm just curious, given the recent uptick in rates, if you're seeing any stabilization in turn within the legacy IMD base for simple next.

Good afternoon, and thank you for taking my question. It's good to see the momentum in the mortgage business cross selling into the <unk> customer base, but.

Greg Orenstein: 34. For fiscal 24, we expect total revenues of $475 million to $478.5 million with subscription revenues of $406 million to $409 million. This full year guidance assumes year-over-year subscription growth of 18% at the midpoint of our range. We are increasing both the low end top end of our non-gap operating income guidance for fiscal 24 to $51 million to $54 million. Non-gap net income attributable to Ncino per share is expected to be between $0.38 to $0.41 based upon a weighted average of approximately $115 million diluted shares outstanding. The top end of our subscription revenues in non-gap operating income guidance reflects our continued commitment to the rule of 30 objective for the full fiscal year.

Speaker Change #221: So part of that is just the reality where the world is, but our market focus is not changed at all.

Just curious given the recent uptick in rates Youre.

You are seeing any stabilization in churn within the legacy <unk> base for simple nexis.

Speaker Change #221: Got it.

Speaker 2: You know, we, again, as I mentioned in my remarks, the turn was in line in second quarter with our expectations. We're not seeing increases.

Yes.

Again as I mentioned in my remarks, the churn was in line in the second quarter with our expectations.

Speaker Change #221: And in between, kind of you're going to market motions for domestic versus international.

We're not seeing increased churn.

Speaker 2: From a forecasting or guidance perspective, we did really roll in some of our overperformance, not through really to account for, I'd say, unexpected turn in a second half of the year.

From a forecasting our guidance perspective, we did really roll some of our over performance.

Speaker Change #222: Is it fairly consistent between it too as well in terms of New Lagos for its expansion?

Not through really to account for I'd say unexpected churn in the second half of the year.

Speaker 2: There's nothing as we sit here today that leads us to believe that we'll have heightened sure and beyond our forecast, but ultimately just in this market going back to your comments.

There's nothing as we sit here today that has us leads us to believe that we will have heightened churn beyond our forecast, but ultimately just in this market going back to your comments around mortgage rates. We wanted to take a conservative view I think what's amazing about that businesses. Despite the.

Speaker Change #222: Thanks again.

Speaker 2: around mortgage rates we wanted to take a conservative view. I think what's amazing about that business is despite the challenge of the mortgage market.

The challenge of the mortgage market. The fact that they've continued to grow year over year and quarter over quarter. Since we acquired the business and I think that positions us incredibly well when the market ultimately does stabilize and then ultimately rebound, particularly as we've aligned with a lot of.

Speaker 2: The fact that they continue to grow year over year and quarter over quarter since we acquired the business.

Speaker Change #223: Consistent focus and consistent motions, just different maturity of markets and in time and market, which leads to a different distribution of market penetration and customer base.

Operator: With that, I'll open the line for questions. And thank you.

Speaker Change #223: Yep.

Speaker 2: And I think that positions us incredibly well when the market ultimately does stabilize and then ultimately rebounds, particularly as we've aligned with a lot of the larger, better capitalized INBs.

Speaker Change #223: Thanks.

Terry Tillman: As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. When we draw your question, please press star 11 again. Please stand by when we compile the Q&A roster, and we do ask that you limit yourself to one question and one follow-up. Again, that is one question and one follow-up.

Speaker Change #223: And thank you.

Of the larger better capitalized <unk> and as we've had additional sales into the encino.

Speaker 2: And as we've had additional sales into the Encino Financial Institution customer base.

Speaker Change #223: And one moment for our next question.

<unk> institution customer base, so I think while we're focused a little bit on churn now I think as we think into the future as things settle down I think that's going to be a significant opportunity for us from a growth standpoint.

Speaker 2: So I think while we're focused a little bit on turn now, I think as we think into the future, as things settle down, I think that's going to be a significant opportunity for us from a growth standpoint.

Terry Tillman: And one moment for our first question. And our first question comes from Terry Tillman from Choose Securities. Your line is not open. Hi there. Good afternoon. Usually on these calls, when we have important new lighthouse accounts in different regions, but I try to say hi or some sort of greeting and local language. I've done it in German and French. Arabic, I don't know if it's halon, but I tried my best but great to see the UAE win.

Speaker Change #223: And our next question comes from Saquette Kalea from Barclays.

Speaker 5: got it. And as a follow up, just looking at the full year guide for 23, looks like you're well on track to hit that rule of 30 target exiting the year. But you've also talked about hitting the rule of 40 at some point as well. So my question is, given the shift in the pipeline away

Got it and as a follow up just looking at the full year guide for 'twenty three it looks like you're well on track to hit that rule of 30 target exiting the year, but you've also talked about hitting the rule of 40 at some point as well. So my question is.

Speaker Change #224: Your line is now open.

Saquette Kalea: Okay, great.

Speaker Change #226: Hey guys.

Speaker Change #227: Thanks for getting me in here.

Given the shift in the pipeline.

Terry Tillman: Maybe the first question here. Hey there. For Pierre or Josh, is 22% sales growth? I'd like to unpack that a little bit more. Is that like an ACV booking? And do you think that coming out of the falling out that, you know, the business can keep picking up momentum versus 2Q sales activity? I'm talking about the second half of the year and then I had a follow-up for as well. Thank you.

Speaker Change #228: I'll keep it quick with kind of two housekeeping questions.

Speaker Change #229: Maybe the first, the first one is, is for you, Josh, you know, as you think about that 22% sales achievement, which, which certainly was great to see and sounded better.

Speaker Change #230: You know, how do you sort of rank order the product areas that you felt like drove that growth?

Speaker Change #231: I mean, you know, was it, was it still very much driven by commercial lending or do you feel like, like the pipeline composition, you know, things like, like retail, things like Nick and others.

Speaker Change #231: Also drove a lot of that sales achievement as well.

Speaker Change #231: That's the first question.

Speaker Change #232: Hey, Zach, it's nice to speak to you.

Terry Tillman: Terry, thanks for that question. Yeah, just to remind that 22% is year over here. Okay, an out quarter over quarter which makes it more remarkable. I think it shows the pent-up demand and I'd also show the momentum we see in the market. As I look at the global markets, including the US, I would say the only place where people are still careful is the US Enterprise market, where the regional and big banks are strategically aligned and moving forward, but very careful to buy.

Speaker Change #233: No, we had a good mix of offerings here.

Speaker Change #234: We talked about 19 new logos on the simple next slide.

Speaker Change #235: One of the stats that we referenced is 40% of our new logos had multiple solutions.

Speaker Change #236: So you will see commercial or small business involved in those, but you also see things like retail, simple nexus and nick offerings involved.

Speaker Change #236: So from our perspective, look, we're very proud of that commercial product and we take good care of it.

Speaker Change #236: We take care of our customers, but we continue to see expansion and new logos with those other solutions as well.

Terry Tillman: Apart from that and the rest of the segments, community region, the US, which is strong demand, and internationally we see very strong interest. I believe the current economic environment for net interest modern squeezes is truly a driver for a view to efficiency. And as we mentioned, we've got the platform and that's being reconfirmed as we visit customers and drive around. Just anything to add? No, nothing out of that. That's great to hear.

Speaker Change #236: That's great.

Speaker Change #236: That's great to see that breadth.

Speaker Change #237: Maybe the follow up for you, Greg, is maybe maybe a little bit of a longer term question, but, you know, that 50% pipeline point on, you know, what I'll call commercial lending versus non commercial lending.

Pierre Naude: And I guess maybe the follow-up question for Greg. Greg, I mean, I think what you said is that some of the activity in June and July, you know, really doesn't show up much in RPO, you know, but then you did talk about the sales activity up year over year. People are going to be thinking about, you know, what you've done year to date and then what might happen in the second half of the year is we start to foretell how, you know, revenue looks next year.

Speaker Change #238: The question for you is, what does that mix look like in revenue terms today?

Speaker Change #239: And where do you think that mix can go over the next few years?

Speaker Change #239: Yeah.

Pierre Naude: But I'm just kind of curious, is it related to the metric because we do look at it, the RPO or CRPO, do you feel like based on what you see? Just those reported metrics are dropping in 2Q and they could start purking up in the second half of the year. Thank you. Terry, my comment around the activity and the heightened activity towards the end of the quarter was related to buildings where we got some deals signed that would have been reflected in RPO, but ultimately from a billing standpoint, that would have happened post quarter end.

Pierre Naude: You know, but overall to peers comments and what you heard in our prepared remarks, you know, we definitely saw momentum pick up as the quarter progressed and, you know, going back to my comments when I was kind of on the investor's circuit last quarter, you know, we said that we expected second quarter to be better than first quarter and obviously we demonstrated that and we expected the second half of the year from a sales, you know, slash bookings perspective to be better than the first half momentum we're seeing right now reinforces that belief.

Speaker Change #239: So from a market perspective, Saket, I think, Pierre noted the market outside of commercials twice as big.

Speaker Change #240: And so we attacked commercial first.

Greg Orenstein: That's great. Good job on the quarter. Thank you. And thank you.

Terry Tillman: And one moment for our next question. And our next question comes from Charles and the bomb from Steven. Your line is now open. Good afternoon and thank you for taking my question. It's good to see the momentum in the mortgage business cross selling into the FI customer base, but. I'm just curious, given the recent uptick in rates, if you're seeing any stabilization in turn within the legacy, I am debase for simple Nexus.

Speaker Change #241: But again, we see a massive opportunity on the retail side with retail lending, with our US mortgage business, with mortgage outside of the US.

Speaker Change #242: And so again, I think as we think about the opportunity we have, we think we're just getting started and ultimately, just based on our sand studies, that opportunity is twice as large as commercial.

Terry Tillman: Yeah, we again, as I mentioned in my remarks, the turn was in line in second quarter with our expectations. We're not seeing increased turn from a forecasting or guidance perspective, we did really roll, you know, some of our overperformance, you know, not through really to account for I'd say unexpected turn in the second half of the year. There's nothing as we sit here today that has us or leads us to believe that we'll have heightened churn beyond our forecast, but ultimately just in this market going back to your comments around mortgage rates we wanted to take a conservative view.

Speaker Change #242: Very helpful.

Speaker Change #242: Thanks, guys.

Speaker Change #243: Thanks, Saket.

Speaker Change #243: And thank you.

Terry Tillman: I think what's amazing about that business is despite the challenge of the mortgage market, the fact that they continue to grow year over year and quarter over quarter since we acquired the business. And I think that positions us incredibly well when the market ultimately does stabilize and then ultimately rebounds, particularly as we've aligned with, you know, a lot of the larger, better capitalized I and Bs. And as we've had additional sales into the casino financial institution customer base, so I think while we're focused a little bit on turn now, I think as we think into the future as things settled down, I think that's going to be a significant opportunity for us from a gross standpoint.

Speaker Change #243: And one moment, our next question.

Speaker Change #243: And our next question comes from Kenneth Suchoski from Autonomous Research.

Speaker Change #244: Your line is now open.

Speaker Change #245: Hey, good afternoon.

Speaker Change #246: Thanks for taking the question.

Speaker Change #247: Maybe I'll ask another one on the pipeline in that 50% that's coming from the non commercial lending products.

Speaker Change #248: When we talk to folks, I think what really stands out is your reputation on the commercial lending side.

Speaker Change #247: And Pierre, I think you've mentioned maintaining your market leadership in commercial lending.

Greg Orenstein: Got it. And as a follow up, just looking at the full year guide for 23 looks like you're well on track to hit that rule of 30 target exiting the year. But you've also talked about hitting the rule of 40 at some point as well. So my question is, given the shift in the pipeline away.

Speaker Change #249: So can you talk about the competitive dynamic in your low, I guess, in the non commercial lending products and your confidence in holding your own versus the competition, just because it is a big part of the stamp.

Speaker Change #249: Thanks.

Speaker Change #249: Yeah, thank you.

Speaker Change #249: That's a great question.

Speaker Change #249: Look, our platform's intensity as well as the customer focus.

Speaker Change #249: I think it's big difference.

Speaker Change #250: Read the first consumer is a much more simplistic product set because your end user experience must be a lot more.

Speaker Change #250: Some plastic and ease of use and instantaneous.

Speaker Change #250: However, because of all the regulations, it's a fairly difficult product to develop with all the integrations to actually make it that simplistic to use.

Speaker Change #250: So it's a complex problem you're solving, but you have to make it simple to the end consumer.

Speaker Change #250: If you then look back at other people selling into that consumer or small business base.

Speaker Change #250: What you basically seeing is a bunch of companies who developed software in the 80s and 90s.

Speaker Change #250: And so we're coming out of the box here was a modern cloud-based solution that is part of a broader IT infrastructure.

Speaker Change #250: And I don't see other people coming up trying to do the same thing here.

Speaker Change #250: So I do think this is back to that reputation thing if we maintain the reputation in the biggest profit center of the bank.

Speaker Change #250: We get the influence to go in there and get at least the opportunity.

Speaker Change #250: And then if you execute well, maintain the reputation, I think you're going to see exactly this playbook about the same momentum and the same market leadership in the other aspects of the platform.

Speaker Change #250: And that's what we're focused on here.

Speaker Change #250: And in the meetings I have outside of commercial around the country, I'm hearing similar stories.

Speaker Change #250: So I'm highly optimistic that you will play out.

Speaker Change #250: Great.

Speaker Change #251: And maybe just as my follow-up, maybe I'll ask about M&A, there was some commentary out there a couple of months ago stating the company might be exploring strategic options, including a potential sale.

Speaker Change #252: So I was wondering how I guess you guys are thinking about the potential options for the company here because we are getting a lot of questions on it.

Speaker Change #253: And I guess this is the company that should be in the public market.

Speaker Change #254: I know you've talked about not disclosing certain metrics due to competitive reason.

Speaker Change #254: So we'd love to just get your latest thinking there.

Speaker Change #254: Thanks.

Speaker Change #255: I can't appreciate the question, but I'm sure you can appreciate we don't comment on rumor and speculation.

Speaker Change #256: So I can't really address that any further.

Speaker Change #256: We love what we do.

Speaker Change #256: We do love what we do.

Speaker Change #256: Okay.

Speaker Change #256: All right, thanks, guys.

Speaker Change #256: Thank you.

Speaker Change #256: And thank you.

Speaker Change #257: And our last question, they are through one moment.

Speaker Change #257: And our last question comes from Alex Markgraff from KBCM.

Speaker Change #258: Your line is not open.

Speaker Change #259: Hey, everyone.

Speaker Change #260: Thanks for taking the question.

Speaker Change #261: Maybe just first on the middle East, when, you know, when you think about some of these opportunities and, you know, less penetrated international markets, just curious, maybe Josh, for you, do you feel like all the pieces are in place here to kind of go full, go full steam ahead with these types of things?

Speaker Change #262: First of all, it's a reputation based company.

Speaker Change #263: We're not going to make a commitment to a bank that we're not ready to follow through on.

Speaker Change #264: So when we go into a new market, we're excited to announce one of the one of the largest banks in the UAE.

Speaker Change #265: Now we're going to show them a great path to success.

Speaker Change #265: So the pieces are absolutely there.

Speaker Change #265: Have a high level of confidence in the distribution machine and on the ground in those markets to show those customers of path to success.

Speaker Change #266: And as we validated in Europe, in a pack in Japan, in Canada, the global system in a greater ecosystem gives us unprecedented scalability to where if you remember several years ago, we signed three Toronto banks in one year and we showed them a path to success by leveraging the same ecosystem.

Speaker Change #266: So we're excited and we're proud and we're just getting started in those markets.

Speaker Change #266: Thanks for that.

Speaker Change #266: And maybe just one quick follow up on the second half.

Speaker Change #267: Just curious if there's any way for you all to kind of describe the renewal opportunity in that the second half for us.

Speaker Change #268: From a customer, a current customer basis in terms of what the renewal forecast applied Alex.

Speaker Change #268: Yeah, yeah.

Speaker Change #268: So we see we see a normal year there in seasonality.

Speaker Change #269: We don't we don't really guide to that.

Speaker Change #269: And from our perspective, we're going to keep taking care of those customers.

Speaker Change #269: We're doing this.

Speaker Change #269: We have an opportunity and hopefully formalizes partnerships for a long time.

Speaker Change #269: Yeah, I mean contracts have terms, but again, as additional products become of interest to customers that can accelerate a renewal as well.

Speaker Change #269: And so we always see you, you know, a new sales opportunities as an opportunity to expand.

Speaker Change #270: So hard to hard to predict that outside of kind of our normal cadence Alex.

Speaker Change #270: Great.

Speaker Change #270: Thank you.

Speaker Change #270: And thank you.

Speaker Change #271: I would now like to turn the call back over to Pierre Nade for closing remarks.

Pierre Nade: Thank you all for joining us today.

Speaker Change #273: I want to thank the Encino employees around the world for their passion, focus and execution, particularly over the past six months.

Speaker Change #274: Our Encino teammates have helped customers through a very difficult period proving yet again that our culture and business values are two differentiators in the market.

Speaker Change #274: We are excited to welcome many of you to our first investor day on September the 28th in Wilmington, North Carolina.

Speaker Change #274: We'll share updates on our product strategy and the digital insight into our financial outlook among other topics.

Speaker Change #274: We look forward to seeing you then.

Speaker Change #274: Thank you so much for attending tonight.

Speaker Change #275: This concludes today's conference call.

Speaker Change #275: Thank you for participating.

Speaker Change #276: You may all disconnect.

Speaker Change #277: Good afternoon, and welcome to Ncino's second quarter fiscal 2024 earnings call.

Speaker Change #277: With me on today's call are Pierre Naude, Ncino's Chairman and Chief Executive Officer, Greg Orenstein, Chief Financial Officer, and Josh Glover, President and Chief Revenue Officer.

Speaker Change #278: During the course of this conference call, we will make forward-looking statements regarding trends, strategies, and the anticipated performance of our business. These forward-looking statements are based on management's current views and expectations, entailed certain assumptions made as of today's date, and are subject to various risk and uncertainties described in our FEC filings and other publicly available documents, the financial services industry, and global economic conditions.

Speaker Change #279: Ncino disclaims any obligation to update or revise any forward-looking statements.

Speaker Change #280: Further, on today's call, we will also discuss certain non-gap measures that we believe aid in the understanding of our financial results. A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our website, and as an exhibit to the form 8K furnished with the SEC just before this call, as well as the earnings presentation on our investor relations website at investor.ncino.com.

Speaker Change #281: With that, I will now turn the call over to Pierre.

Pierre: Thank you, Harrison, and thank you for joining us this afternoon to read our second quarter fiscal 2024 performance. We are very pleased with the results, and the momentum we saw both throughout the quarter, both total and subscription revenues increased 18%, while we again outperformed on profitability, posting a 10% non-gap operating income margin for the quarter. We saw strength in sales activity across all parts of our business.

Speaker Change #283: We said last quarter that we expected a recovery in the second quarter, and we certainly saw that with second quarter sales up 22% year over here. Our solid results mirror what we are hearing from customers.

Speaker Change #284: The US banking industry has largely stabilized with the liquidity crisis behind us. Essentially, banks have caught their breath and most have refocused on their long-term strategy, which includes optimizing their technology infrastructure and providing a superior customer experience.

Speaker Change #285: The Encino platform was architected for just these purposes. It provides banks and credit unions of all sizes, a 360 degree view of the customer, allowing them to create their personalized, differentiated experience on a single platform. Leveraging this holistic view of the customer, Encino facilitates gathering deposits, originating any loan product, onboarding customers, and portfolio management all from one platform.

Speaker Change #286: In addition, our unique products such as commercial pricing and profitability allow financial institutions to broaden their customer relationships, cross-hell and optimize for profitability. This, of course, ultimately enhances their ability to successfully compete in an evolving market by balancing risk and reward.

Speaker Change #286: With high interest rates still in effect, financial institutions are seeing pressure on net interest markets. The most effective way to offset margin compression while maintaining credit quality is by driving greater efficiency.

Ncino: Ncino's platform was built to drive efficiency while the automation at the core of the platform helps accelerate the industry's move to increase self-service.

Ncino: Building out the capabilities of the platform has always been a key growth driver.

Ncino: With many of our new products now reaching maturity, we are pleased by the increased number of products utilized per customer.

Speaker Change #288: In fact, over 40% of bank operating system new logo deals in the second quarter included more than one solution.

Speaker Change #288: Another focus has been building out our footprint with current customers.

Speaker Change #288: This quarter over 60% of sales will cross sell and upsell within the installed base.

Speaker Change #288: As we continue to expand the functionality of the platform, I can't overstate the value of our satisfied and the referenceable installed customer base.

Speaker Change #288: We are also seeing this expanding footprint affected in our sales pipeline.

Speaker Change #288: As of the end of the second quarter, more than 50% of the pipeline is for products other than commercial lending.

Speaker Change #288: Let me reiterate that point.

Speaker Change #289: Retail, small business, treasury, mortgage, and nick.

Speaker Change #289: All of the products we have created to supplement our additional commercial lending business.

Speaker Change #289: Now represent over 50% of sales opportunities in the pipeline.

Speaker Change #290: I cannot tell you how excited we are to reach this level of demand for Enciner's technology beyond commercial lending.

Speaker Change #290: As a reminder, the same outside of commercial is twice as large so we have a significant opportunity ahead.

Speaker Change #291: But Enciner is diversified beyond products and customers.

Speaker Change #291: We are also diversified geographically.

Speaker Change #291: This has been particularly important with the uneven macro recovery.

Speaker Change #292: For example, in the second quarter we saw solid demand and AMIA and APEC, including adding another large ESG customer, in this case a UK-based global bank.

Speaker Change #293: While many of the challenges bankers face outside the US are universal, our ability to develop products specific to the needs of respective regions has been a key differentiator.

Speaker Change #294: Switching to the US and in particular our continued progress with the Enciner mortgage suite. The integration of the Enciner and simple access teams continues to accelerate our penetration of the banking channel.

Speaker Change #295: This quarter we saw seven car sales in addition to six competitor takeaways.

Speaker Change #296: We also closed the number of large pipeline deals we noted last quarter, including a seven figure upsell deal with a top ten mortgage lender.

Speaker Change #296: We ended the second quarter with another strong pipeline of mortgage deals as mortgage lenders understand the need to become more efficient in order to compete in this market.

Speaker Change #297: I couldn't be prouder of the mortgage team for their continued revenue growth.

Speaker Change #298: Again, those year over year and quarter over quarter in this difficult and volatile mortgage market.

Speaker Change #298: Garrett.

Speaker Change #298: I will let Josh provide additional details around U.S, mortgage, but first I want to highlight our data capture and analytics capabilities are key differentiators for our mortgage offering when surfaced through our compensate and nexus vision products.

Josh Glover: One upsell deal with the top hundred mortgage originators quarter involve adding these analytics offerings to round out the mortgage suite for an existing simple nexus point of sale customer, increasing ACV by over 50% for that account.

Josh Glover: But this is just one area where our data and analytics expertise is called to our product roadmap.

Josh Glover: Let me spend a minute reviewing our ongoing niche strategy around intelligence including AI, machine learning and analytics.

Speaker Change #300: With our single platform, we process vast amounts of data including customer onboarding, loan origination, account opening and bank customer financial information. And we continue to invest to further automate every state of production across the platform.

Speaker Change #300: As we've done with auto spreading where we remove layers of manual work to accelerate the underwriting process full loans, we'll continue to develop solutions throughout bankers make faster, more informed decisions.

Speaker Change #300: Our team has deep domain expertise in banking and is hard at work developing thoughtful solutions to the most complex issues our customers face.

Speaker Change #300: Recent internal demonstrations highlighted numerous use cases including interactive virtual assistance and automated portfolio reviews.

Speaker Change #301: With our philosophy of an open ecosystem and able by our API strategy, we are also attracting an impressive group of partners that are augmenting the in senior customer experience. Together, we are developing thoughtful solutions powered by AI, data and analytics to automate an increasing number of workflows within our single platform allowing financial institutions to eliminate the lines on legacy point solutions and become more and more efficient.

Speaker Change #301: We were pioneers when bankers were reluctant to embrace the cloud. We proved that value proposition and today cloud banking is considered the industry standard.

Speaker Change #302: Our original vision continues driving the evolution of financial services as we anticipated the man for AI and data when we launched our Nick and his stiff over four years ago. It is exciting to see the industry embracing this technology as we continue on our journey to embed intelligence throughout our platform and change the financial services industry once more.

Speaker Change #302: To quote one of our customers, Ron Nicks, CTO and Vera Bank.

Speaker Change #303: What's important for technology vendors is not to evaluate your needs today but to predict where you are going to be in five years.

Speaker Change #304: We know in five years and CTO is going to be at the forefront of lending and will be right there with them. Vera Bank, a community bank headquartered in Henderson, Texas, partnered with CTO to modernize its lending processes and streamline employee and customer experience. The bank has taken a full platform approach, adopting deposit account opening, portfolio analytics, retail lending, and commercial lending, including order spreading.

Speaker Change #305: We see them as a textbook example of how Ncino could be adopted across an organization to drive operational efficiency, and we appreciate their trust in our vision for where the industry is headed.

Speaker Change #306: The makeup of our sales pipeline proves that insinuous influence now extends far beyond commercial lending.

Speaker Change #307: With a continued expansion and maturity of our platform, we are poised to extend our market leadership to retail, small business, mortgage, data, analytics, and AI, matching our success in commercial loan origination.

Speaker Change #307: Our progress and positioning reinforce our optimism for the second half of fiscal 2024 and the years to come.

Speaker Change #308: Now let me turn the call to Joss to provide specific examples of our solid execution in the second quarter.

Joss: Thank you, Pierre.

Joss: We're very pleased with our second quarter results. In the United States, we saw customers coming back to the table with a renewed focus on digital transformation projects. One such example is an expansion within a top four US bank who added additional users for small business lending.

Speaker Change #310: This deals a great example of the white space we see in even our largest accounts to add additional lives of business and to expand user bases within our existing footprint.

Speaker Change #311: We close a retail lending add-on in conjunction with the merger of equals between two community banks.

Speaker Change #312: The combined bank will standardize in the CNO for retail and commercial lending. Their deployment will also include auto spreading, deposit account opening, and treasury onboarding.

Speaker Change #313: As we have experienced, with many past M&A transactions within our customer base, is CNO platform's ability to extend across multiple products and lines of business, while scaling with the bank as it grows, will combine the lending operations for the new bank.

Speaker Change #314: Integrating credit cultures and portfolio management are key to the success of bank merger, and we're proud to see another growth-minded bank leveraging in CNO to help with these mission critical merger activities.

Speaker Change #315: We believe in the market as validated that financial institutions using a single platform have the tools to grow more efficiently, while also delivering great differentiated customer experiences. For example, one of our regional bank customers saw a 291% increase in average monthly new deposit accounts open online after implementing in CNO.

Speaker Change #315: An expansion opportunity, an over $10 billion bank that added retail and commercial lending provided another proof point of our single platform strategy. These products joined an existing small business lending deployment, bringing all the banks lending operations onto one platform within CNO.

Speaker Change #315: The state of Colorado was quite good to us this quarter.

Speaker Change #316: In CNO was selected by yet another farm credit institution for commercial lending, and we did an expansion within a community bank for deposit account opening and treasury onboarding. This Colorado community bank already used in CNO for commercial lending, and for the mortgage home buying journey.

Speaker Change #317: As peer noted, our US mortgage business continues to benefit from in CNO's well-established brand and market presence within financial institutions.

Speaker Change #317: [inaudible] Portfolio Analytics, and Mortgage.

Speaker Change #318: We're excited to see our customers look to Ncino as the single trusted vendor across all their business lines, as they also incorporate our mixed solutions to accelerate the value they receive from our products.

Speaker Change #319: We'll continue to see our product strategy focus on the value in senior delivers across three pillars of intelligence, automation, and experience.

Speaker Change #319: These multi-solution greenfield bills illustrate the impact that strategy is providing for Ncino's customers.

Speaker Change #319: Our global footprint continues to provide stability to our growth profile.

Speaker Change #320: This corner we added another new logo in Australia, this time a top 10 Australian bank that will be deploying Ncino's market leading commercial lending solution. Ncino was selected to help the bank simplify their operating model, reduce cycle times, and improve the customer experience.

Speaker Change #320: I'm particularly excited to note that this greenfield commercial loan origination deal also included NICS commercial pricing and profitability solution.

Speaker Change #320: This is yet another proof point of the opportunity for this solution in banks worldwide.

Speaker Change #320: Another recent area of focus for us has been addressing demand from the world's top 500 financial institutions beyond Ncino's established geographic footprint.

Speaker Change #321: With great partnership from Accenture, our emerging markets team signed one of the largest banks in the UAE and our first customer in the Middle East for commercial lending.

Speaker Change #321: Our global partner ecosystem is a true force multiplier not only in delivering customer success but also in our go-to-market efforts.

Speaker Change #322: System integrator ecosystems unique combination of global reach and local relationships is helping Ncino uncover sales opportunities and both new and emerging markets.

Speaker Change #323: Expansion within existing customers made a strong contribution to Ncino's international success in the second quarter. An enterprise bank in the Netherlands expanded their adoption of our commercial lending solution and renewed their agreement with Ncino for another five years.

Speaker Change #324: Also, beyond the borders of the continental US, we had an over $10 billion asset Caribbean subsidiary of a global bank for commercial lending.

Speaker Change #324: We also signed a community bank in the US territory for retail lending, portfolio, and for the mortgage home buying journey, an exciting multi-solution deal.

Speaker Change #325: Sustained success in any market requires happy, referenceable customers.

Speaker Change #326: We are pleased to take another early customer from the Japanese market lives on Ncino's commercial lending solution. We are appreciative of the opportunity early adopters have provided us in Japan and we look forward to highlighting more examples of success in that market.

Speaker Change #326: We also proudly celebrated go live milestones in other markets for commercial retail, small business, commercial pricing and profitability and deposit account opening.

Speaker Change #326: As a customer-focused organization, we have continued appreciation for client feedback.

Speaker Change #327: We are extremely proud in the second quarter to receive the highest NTS score in company history.

Speaker Change #327: Secretary, an average score of 74%.

Speaker Change #327: In addition to the talented customer success teams we fielded around the globe, the maturity and stability of our single platforms are yielding demonstrable business value, and our recent investments in the challenge and usage analytics are allowing Ncino's customers to benchmark and accelerate their own success.

Speaker Change #327: Greg, over to you for the financials.

Greg Orenstein: Thank you, Josh, and thanks everyone for joining us this afternoon to review our second quarter fiscal 24 financial results.

Speaker Change #328: Please note that all numbers reference to my remarks are on a non-gap basis unless otherwise stated. A reconciliation to comparable gap metrics can be found in today's earnings release which is available on our website and as an exhibit to the form 8K furnished with the FCC just before this call.

Speaker Change #329: Total revenues for the second quarter of fiscal 24 were 117.2 million, an increase of 18% year over year. Subscription revenues for the second quarter were 99.9 million, also an increase of 18% year over year in representing 85% of total revenues. Subscription revenues benefited from strong sales in the quarter with some of those deals contributing to revenues in the quarter.

Speaker Change #329: Professional services revenues were 17.3 million in the quarter growing 14% year over year. Revenue growth outside the United States accelerated this quarter as a result of increased sales momentum that began in the second half of last year. Non-US revenues were 21.9 million dollars or 19% of total revenues in the second quarter of 47% year over year or 48% in constant currency.

Speaker Change #329: Non-gap gross profit for the second quarter of fiscal 24 was 76.5 million dollars, an increase of 18% year over year.

Speaker Change #329: Non-gap gross margin was 65% compared to 65% in the second quarter of fiscal 23.

Speaker Change #329: Non-gap operating income for the second quarter of fiscal 24 was 11.2 million dollars compared with a 2.8 million dollar loss in the second quarter of fiscal 23.

Speaker Change #329: Our non-gap operating margin for the second quarter was positive 10% compared with negative 3% in the second quarter of fiscal 23. We exceeded non-gap operating income guidance with continued solid execution against expense budgets and from our revenue performance.

Speaker Change #330: Non-gap net income attributable to Encino for the second quarter of fiscal 24 was 9.9 million dollars or 9 cents per diluted share compared to a net loss of 4.9 million or negative 4 cents per basic and diluted share in the second quarter of fiscal 23.

Speaker Change #330: Our remaining performance obligation or RPO increased to 928.6 million dollars as of July 31st, 2023, up 2% over 907.4 million dollars as of July 31st, 2022, with $636.2 million dollars in the less than 24 months category, up 8% from $588.8 million dollars as of July 31st, 2022. In addition to a strong sales quarter, RPO also benefited from a solid renewal quarter.

Speaker Change #331: As Josh noted, there were significant expansions, meaning an increase in annualized subscription revenues that accompanied several renewals.

Speaker Change #331: As we regularly highlight, we do not manage the business to RPO, but I do want to reinforce what Pierre mentioned earlier.

Speaker Change #332: It was a strong sales quarter with sales achievement up 22% year over year.

Speaker Change #332: Note that sales in the second quarter were greater in June and July, so some corresponding buildings were occur in the third quarter.

Speaker Change #333: We ended the quarter with cash and cash equivalents of $103.4 million, including restricted cash. Net cash provided by operating activities was $12 million, compared to $9.5 million in the second quarter of fiscal 23. Capital expenditures were $859,000 in the quarter, resulting in free cash flow of $11.1 million for the second quarter.

Speaker Change #334: Please note that we expect to generate positive free cash flow through the balance of the fiscal year. Also note that we repay the outstanding balance of $15 million on our $50 million revolving credit facility and have no amounts outstanding their under. Finally, please note that in July, through mediation, the company and the plaintiff and a petitive class action complaint filed on March 12, 2021 in the United States District Court for the Eastern District of North Carolina reached a settlement agreement in principle of approximately $2.2 million that remained subject to court approval. The company has accrued for the proposed settlement agreement, which is included in accrued expenses and other liabilities as of July 31, 2023, when the company's unaudited condensed consolidated balance sheets.

Speaker Change #334: We have excluded this expense from our non-gap results as it is outside the ordinary course of our business.

Speaker Change #334: Now turning to guidance.

Speaker Change #335: For the third quarter of fiscal 24, we expect total revenues of $120 million to $121 million, with subscription revenues of $102.5 million to $103.5 million. This guidance assumes year-over-year subscription growth of 17% at the midpoint of our range.

Speaker Change #335: Non-gap operating income is expected to be approximately $13 million to $15 million, and non-gap net income attributable to Encino per share to be $0.10 to $0.12 for the third quarter. This is based upon a weighted average of approximately 115 million diluted shares outstanding.

Speaker Change #336: Turn in the second quarter was in line with our expectations, but we are conscious that the IMB segment of our US mortgage customer base continues to navigate the heightened interest rate environment.

Speaker Change #337: Accordingly, we intend to be prudent with full your expectations by raising the low end of our revenue guidance for both total and subscription revenues while maintaining the top end of our guidance for both.

Speaker Change #338: Despite this conservatism, our strong performance in the second quarter, the market stabilizing following the liquidity concerns earlier this year, and the opportunities we see in our pipeline drive our optimism for the second half of the year.

Speaker Change #339: Fiscal 24, we expect total revenues of $475 million to $478.5 million, with subscription revenues of $406 million to $409 million. This full-year guidance assumes year-over-year subscription growth of 18% at the midpoint of our range.

Speaker Change #340: We are increasing both the low-end top end of our non-gap operating income guidance for fiscal 24 to $51 million to $54 million.

Speaker Change #341: Non-gap net income attributable to Ncino per share is expected to be between $0.38 to $0.41 based upon a weighted average of approximately 115 million diluted shares outstanding.

Speaker Change #341: The top end of our subscription revenues in non-gap operating income guidance reflects our continued commitment to the Rule of 30 objective for the full fiscal year.

Speaker Change #341: With that, I'll open the line for questions.

Speaker Change #341: And thank you.

Speaker Change #342: As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced.

Speaker Change #343: When we draw your question, please press star 11 again.

Speaker Change #344: Please stand by where we compile the Q&A roster and we do ask that you limit yourself to one question and one follow-up.

Speaker Change #344: Again, that is one question and one follow-up.

Speaker Change #344: And one moment for our first question.

Speaker Change #344: And our first question comes from Terry Tillman from Choose Securities.

Speaker Change #345: Your line is now open.

Terry Tillman: Hi there, good afternoon.

Speaker Change #346: Usually on these calls, when we have important new light health accounts in different regions, but I try to say hi or some sort of greeting and local language.

Speaker Change #347: I've done it in German and French.

Speaker Change #348: Arabic, I don't know if it's hold on, but I tried my best, but great to see the UAE win.

Speaker Change #348: Maybe the first question here.

Speaker Change #348: Hey there.

Speaker Change #349: For Pierre or Josh is 22% sales growth.

Speaker Change #349: I'd like to unpack that a little bit more.

Speaker Change #350: Is that like an ACV booking?

Speaker Change #351: And do you think that coming out of the falling out that, you know, the business can keep picking up momentum versus two Q sales activity, talking about the second half of the year and then I had to follow up for as well.

Speaker Change #351: Thank you.

Speaker Change #351: Very thanks for that question.

Speaker Change #352: Yeah, just a reminder that 22% is year over here.

Speaker Change #352: Okay.

Speaker Change #353: And not quarter over quarter, which makes it more remarkable. I think it shows the pent up demand and I'd also show the momentum we see in the market.

Speaker Change #354: As I look at the global markets, including the US, I would say the only place where people are still careful is the US enterprise market, where the regional and big banks are strategically aligned and moving forward, but very careful to buy.

Speaker Change #354: Apart from that and the rest of the segments community regionally US, which is strong demand.

Speaker Change #354: And internationally we see very strong interest.

Speaker Change #355: I believe the current economic environment for net interest modern squeezes is truly a driver for a view to efficiency.

Speaker Change #355: And as we mentioned, we've got the platform and that's being reconfirmed as we visit customers and drive around just anything to add.

Speaker Change #355: Yeah, nothing I do that.

Speaker Change #355: That's great to hear.

Speaker Change #355: And I guess maybe the follow-up question for Greg.

Speaker Change #355: Greg, I mean, I think what you said is that some of the activity in June and July, you know, really doesn't show up much in RPO, you know, but then you did talk about the sales activity up year over year.

Speaker Change #356: People are going to be thinking about, you know, what you've done year to date, and then what might happen in the second half of the year is we start to foretell how, you know, revenue looks next year.

Speaker Change #357: But I'm just kind of curious as it relates to the metric because we do look at it, the RPO or CRPO, do you feel like based on what you see?

Speaker Change #358: Just those reported metrics are dropping in 2Q and they could start purking up in the second half of the year.

Speaker Change #358: Thank you.

Speaker Change #359: Terry, my comment around the activity and the heightened activity towards the end of the quarter was related to billing where we got some deals signed that would have been reflected in RPO, but ultimately from a billing standpoint that would have happened post quarter end.

Speaker Change #360: You know, but overall to peers comments and what you heard in our prepared remarks, you know, we definitely saw momentum pick up as the quarter progressed and, you know, going back to my comments when I was kind of on the investor's circuit last quarter.

Speaker Change #361: You know, we said that we expected second quarter to be better than first quarter and obviously we demonstrated that and we expected the second half of the year from a sales, you know, slash bookings perspective to be better than the first half. And momentum we're seeing right now reinforces that belief.

Speaker Change #361: That's great.

Speaker Change #362: Good job on the quarter.

Speaker Change #362: Thank you.

Speaker Change #363: And thank you.

Speaker Change #363: And one moment for our next question.

Speaker Change #364: And our next question comes from Charles and the bomb from Stephen.

Speaker Change #365: Your line is now open.

Speaker Change #366: Good afternoon, and thank you for taking my question.

Speaker Change #367: It's good to see the momentum in the mortgage business cross selling into the FI customer base, but I'm just curious, given the recent uptick in rates, if you're seeing any stabilization in turn within the legacy, I am debase for simple Nexus.

Speaker Change #368: Yeah, we again, as I mentioned in my remarks, the turn was in line in second quarter with our expectations.

Speaker Change #369: We're not seeing increased turn from a forecasting or guidance perspective.

Speaker Change #370: We did really roll, you know, some of our overperformance, you know, not through really to account for I'd say unexpected turn in a second half of the year.

Speaker Change #371: There's nothing as we sit here today that has us or leads us to believe that we'll have heightened sure and beyond our forecast, but ultimately just in this market going back to your comments around mortgage rates.

Speaker Change #371: We wanted to take a conservative view.

Speaker Change #372: I think what's amazing about that business is despite the challenge of the mortgage market, the fact that they continue to grow year over year and quarter over quarter since we acquired the business.

Speaker Change #372: And I think that positions us incredibly well when the market ultimately does stabilize.

Speaker Change #372: And then ultimately rebounds particularly as we've aligned with, you know, a lot of the larger, better capitalized IMBs.

Speaker Change #372: And as we've had additional sales into the Encino financial institution customer base.

Speaker Change #372: So I think while we're focused a little bit on turn now, I think as we think into the future, as things settle down, I think that's going to be a significant opportunity for us from a growth standpoint.

Speaker Change #372: Got it.

Speaker Change #372: And as a follow up, just looking at the full year guide for 23, looks like you're well on track to hit that rule of 30 target exiting the year.

Speaker Change #372: But you've also talked about hitting the rule of 40 at some point as well.

Speaker Change #372: So my question is given the shift in the pipeline away.