Q1 2027 nCino Inc Earnings Call

May 27, 2026

Operator: Good day, and thank you for standing by. Welcome to the nCino Q1 Fiscal Year 2027 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. I would now like to hand the conference over to your speaker today, Harrison Masters, Vice President, Investor Relations.

Speaker #1: Good day, and thank you for standing by. Welcome to the nCino First Quarter Fiscal Year 2027 Financial Results Conference Call. At this time, all participants are in a listen-only mode.

Speaker #1: Please be advised that today's conference is being recorded. After the speakers' presentations, there will be a question-and-answer session. To ask a question, please press *11 on your telephone and wait for your name to be announced.

Speaker #1: To withdraw your question, please press star one one again. I would now like to hand the conference over to your speaker today, Harrison Masters, Vice President of Investor Relations.

Speaker #2: Good afternoon, and welcome to nCino's first quarter fiscal 2027 earnings call. With me on today's call are Sean Desmond, nCino's Chief Executive Officer, and Greg Orenstein, nCino's Chief Financial Officer.

Harrison Masters: Good afternoon, and welcome to nCino's Q1 fiscal 2027 Earnings Call. With me on today's call are Sean Desmond, nCino's Chief Executive Officer, and Greg Orenstein, nCino's Chief Financial 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, 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. nCino disclaims any obligation to update or revise any forward-looking statements. 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: 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.

Speaker #2: This entails certain assumptions made as of today's date and is subject to various risks and uncertainties described in our SEC filings and other publicly available documents.

Speaker #2: The financial services industry and global economic conditions. nCino disclaims any obligation to update or revise any forward-looking statements. 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 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.

Harrison Masters: 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.ncino.com. With that, I will turn the call over to Sean.

Speaker #2: As well as the earnings presentation on our investor relations website at investor.ncino.com. With that, I will turn the call over to Sean.

Speaker #3: Thank you, Harrison, and welcome, everyone. Before we turn to highlights from our strong first quarter, I want to take a moment to remind you of nCino's mission in the market.

Sean Desmond: Thank you, Harrison, and welcome everyone. Before we turn to highlights from our strong Q1, I want to take a moment to remind you of nCino's mission in the market. nCino was founded to help financial institutions across the globe digitize, automate, and streamline their business processes, boosting efficiencies and creating better banking experiences. nCino serves as the system of record for the operational processes and resulting decisions that drive revenue growth and mitigate risk for our customers. We serve some of the largest financial institutions in the world as well as regional and community banks, credit unions, and independent mortgage banks, helping them more efficiently and effectively onboard clients, make loans, monitor portfolios, and open accounts through a single unified platform powered by AI.

Speaker #3: nCino was founded to help financial institutions across the globe digitize, automate, and streamline their business processes, boosting efficiencies and creating better banking experiences. nCino serves as the system of record for the operational processes and resulting decisions that drive revenue growth and mitigate risk for our customers.

Speaker #3: We serve some of the largest financial institutions in the world, as well as regional and community banks, credit unions, and independent mortgage banks—helping them more efficiently and effectively onboard clients, make loans, monitor portfolios, and open accounts through a single unified platform powered by AI.

Speaker #3: Our depth and breadth of customer relationships, unique data set, and history of technology innovation—built on almost a decade and a half of deep domain expertise inside the highly regulated world of banking—uniquely positions nCino to lead the AI-based transformation of the financial services industry.

Sean Desmond: Our depth and breadth of customer relationships, unique data set, and history of technology innovation built on almost a decade and a half of deep domain expertise inside the highly regulated world of banking uniquely positions nCino to lead the AI-based transformation of the financial services industry. Turning to Q1. We delivered a great start to the year, outperforming guidance across all key metrics, including accelerating subscription revenues growth to 12% and improving our non-GAAP operating margin to 28%, achieving the Rule of 40. The entire organization continued to execute with focus and discipline across the strategic initiatives instituted in fiscal 2026, and I couldn't be more proud of their hard work and efforts.

Speaker #3: Turning to the first quarter, we delivered a great start to the year, outperforming guidance across all key metrics, including accelerating subscription revenues growth to 12%, and improving our non-GAAP operating margin to 28%.

Speaker #3: Achieving the rule of 40. The entire organization continued to execute with focus and discipline, across the strategic initiatives instituted in fiscal '26, and I couldn't be more proud of their hard work and efforts.

Speaker #3: Customer conversations continue to reinforce that every financial institution is thinking about how they can leverage AI to be more efficient. And they are recognizing that, to make AI work for their organization, they need a trusted partner like nCino.

Sean Desmond: Customer conversations continue to reinforce that every financial institution is thinking about how they can leverage AI to be more efficient. They are recognizing that to make AI work for their organization, they need a trusted partner like nCino. We help our customers harness AI specifically for banking by providing the context and data needed to deliver reliable outcomes, while also providing the governance infrastructure required to satisfy legal, risk, and regulatory requirements. Every AI interaction on our platform is auditable, traceable, and governed by the same standards our customers apply to their human workforce. Because in banking, intelligence without accountability isn't intelligence, it's a liability. Banking Advisor is the first expression of our agentic operating system, the intelligent layer that orchestrates AI across the full range of banking operations that we unveiled two weeks ago at nSight, our annual customer conference.

Speaker #3: We help our customers harness AI specifically for banking by providing the context and data needed to deliver reliable outcomes, while also providing the governance infrastructure required to satisfy legal, risk, and regulatory requirements.

Speaker #3: Every AI interaction on our platform is auditable, traceable, and governed by the same standards our customers apply to their human workforce. Because in banking, intelligence without accountability isn't intelligence.

Speaker #3: It's a liability. Banking Advisor is the first expression of our agentic operating system, the intelligent layer that orchestrates AI across the full range of banking operations.

Speaker #3: That we unveiled two weeks ago at Insight, our annual customer conference. Our digital partners' purpose-built AI agents for distinct banking roles—from executive strategy to loan processing to client engagement—represent the next wave of capabilities built on this infrastructure.

Sean Desmond: Our Digital Partners purpose-built AI agents for distinct banking roles, from executive strategy to loan processing to client engagement, represent the next wave of capabilities built on this infrastructure. This isn't a single chatbot. It's a platform designed to embed nCino intelligence into every workflow a financial institution runs. Customers that want to leverage nCino's AI capabilities must first adopt our new platform pricing model that correlates our business model to our clients' outcomes. At the end of Q1, over 40% of our ACV has already transitioned to this pricing model, which we believe demonstrates the heightened urgency in the market to embrace nCino's AI technology. We generally monetize our platform with platform fees and also through the sale of AI token bundles, which we call intelligence units. Customers use these intelligence units to execute various AI tasks on our platform.

Speaker #3: This isn't a single chatbot. It's a platform designed to embed nCino intelligence into every workflow a financial institution runs. Customers that want to leverage nCino's AI capabilities must first adopt our new platform pricing model, which correlates our business model to our clients' outcomes.

Speaker #3: As of the end of Q1, over 40% of our ACV has already transitioned to this pricing model, which we believe demonstrates the heightened urgency in the market to embrace nCino's AI technology.

Speaker #3: We generally monetize our platform with platform fees and also through the sale of AI token bundles, which we call intelligence units. Customers use these intelligence units to execute various AI tasks on our platform.

Speaker #3: Some tasks are as simple as chat usage, where users can ask a question like, "Is this borrow in compliance with their covenants?" While others are more complex and compute-intensive, like agents that continuously monitor the credit performance of an entire loan portfolio.

Sean Desmond: Some tasks are as simple as chat usage, where users can ask a question like, "Is this borrower in compliance with their covenants?" While others are more complex and compute intensive, like agents that continuously monitor the credit performance of an entire loan portfolio. As of the end of Q1, over 200 of our customers have their initial bundle of intelligence units. We've been very intentional about how we package these initial bundles of intelligence units, as our near-term strategic goal is to maximize and accelerate the adoption of our AI features. To this end, we thoughtfully sized initial bundles to provide enough room for customers to comfortably experiment with, deploy, and ultimately build reliance on a core group of AI capabilities without worrying they will exceed their initial allotment and get saddled with unexpected invoice for overages.

Speaker #3: As of the end of Q1, over 200 of our customers have their initial bundle of intelligence units. We've been very intentional about how we package these initial bundles of intelligence units, as our near-term strategic goal is to maximize and accelerate the adoption of our AI features.

Speaker #3: To this end, we thoughtfully sized initial bundles to provide enough room for customers to comfortably experiment with, deploy, and ultimately build reliance on a core group of AI capabilities, without worrying they will exceed their initial allotment and get saddled with unexpected invoice for overages.

Speaker #3: Our customers span a wide continuum of readiness and enthusiasm to adopt these AI features, and depending on how widely they initially deploy the technology across their institution, and how many AI capabilities they start off using, an average customer might have their initial bundles last them about a year.

Sean Desmond: Our customers span a wide continuum of readiness and enthusiasm to adopt these AI features. Depending on how widely they initially deploy the technology across their institution and how many AI capabilities they start off using, an average customer might have their initial bundles last them about a year. Our strong point of view is that by taking this deliberate approach, rather than prioritizing near-term revenue opportunities, customers will be able to more quickly and easily realize the value of our AI technology. We expect as customers get more accustomed to this value and become more reliant on the benefits it provides them, they'll adopt even more of our AI capabilities and purchase more bundles of intelligence units.

Speaker #3: Our strong point of view is that, by taking this deliberate approach rather than prioritizing near-term revenue opportunities, customers will be able to more quickly and easily realize the value of our AI technology.

Speaker #3: We expect that as customers become more accustomed to this value and increasingly rely on the benefits it provides, they'll adopt even more of our AI capabilities and purchase more bundles of intelligence units.

Speaker #3: Additionally, as more compute-intensive, agentic capabilities—like continuous portfolio monitoring, agentic deal creation, and agentic multi-step loan origination workflows—are adopted, we expect the number of intelligence units consumed per task and workflow to increase meaningfully.

Sean Desmond: Additionally, as more compute-intensive agentic capabilities like continuous portfolio monitoring, agentic deal creation, and agentic multi-step loan origination workflows are adopted, we expect the number of intelligence units consumed per task and workflow to increase meaningfully, creating natural expansion and consumption beyond simple user growth. We are already starting to see signs of this in the field. Consumption of intelligence units has continued to inflect higher month over month, with Banking Advisor usage up over 38 times so far in the month of May from October, with a few business days still left for additional usage this month. This gives us tremendous confidence in our ability to optimize subscription revenues growth from intelligence unit consumption over the medium and long term.

Speaker #3: Creating natural expansion in consumption beyond simple user growth. We are already starting to see signs of this in the field. Consumption of intelligence units has continued to inflect higher month-over-month, with Banking Advisor usage up over 38 times so far in the month of May from October.

Speaker #3: With a few business days still left for additional usage this month, this gives us tremendous confidence in our ability to optimize subscription revenue growth from Intelligence Unit consumption over the medium and long term.

Speaker #3: While some of our customers are just getting started experimenting with nCino's AI technology, others are more advanced in their journey, including those that want to run in front of the pack by welcoming our team of forward-deploy engineers on-site to help them embrace our Banking Advisor and agentic capabilities.

Sean Desmond: While some of our customers are just getting started experimenting with nCino's AI technology, others are more advanced in their journey, including those that want to run in front of the pack by welcoming our team of forward deploy engineers on site to help them embrace our Banking Advisor and agentic capabilities. Several of these customers were on stage with us at nSight, where we welcomed over 1,600 attendees, representing an nSight user conference record of over 300 customers and prospects to Charlotte, North Carolina, for what has evolved from a software user conference to a symposium for intelligent banking. Frank Sorrentino III, CEO of ConnectOne Bank, shared the stage with me to discuss his bank's experience to date with Banking Advisor, and notably referenced his plan to reclaim half of his team's time for revenue-generating activities by leveraging nCino's AI capabilities.

Speaker #3: Several of these customers were on stage with us at Insight, where we welcomed over 1,600 attendees—representing an Insight user conference record of over 300 customers and prospects to Charlotte, North Carolina, for what has evolved from a software user conference to a symposium for intelligent banking.

Speaker #3: Frank Sorrentino, CEO of ConnectOne, shared the stage with me to discuss his bank's experience to date with Banking Advisor and notably referenced his plan to reclaim half of his team's time for revenue-generating activities by leveraging nCino's AI capabilities.

Speaker #3: ConnectOne, a $14 billion institution in the Northeast and an nCino customer since 2017 that already boasts one of the best efficiency ratios in banking, contracted for their first bundle of Intelligence Units and began their Banking Advisor rollout in the fourth quarter of fiscal '26.

Sean Desmond: ConnectOne, a $14 billion institution in the Northeast and an nCino customer since 2017 that already boasts one of the best efficiency ratios in banking, contracted for their first bundle of intelligence units and began their Banking-Advisor rollout in Q4 of fiscal 2026. The bank engaged with our team of forward deploy engineers in March for a quick win engagement to assess current benchmarks with our Operations Analytics functionality and pinpoint friction points they could quickly address with Banking-Advisor. This initial forward deploy engineering engagement put foundational Banking Advisor capabilities in the hands of all the bank's nCino users, and they couldn't be more excited about the time they're getting back. As a simple example of this, rather than manually creating relationship records, the banker tells Banking Advisor to do it for them.

Speaker #3: The bank engaged with our team of forward deploy engineers in March for a quick-win engagement to assess current benchmarks with our operations analytics functionality and pinpoint friction points they could quickly address with Banking Advisor.

Speaker #3: This initial forward deploy engineering engagement put foundational banking advisor capabilities in the hands of all the banks' nCino users. And they couldn't be more excited about the time they're getting back.

Speaker #3: As a simple example of this, rather than manually creating relationship records, the banker tells Banking Advisor to do it for them. As compared to the tedious one-by-one process of creating and updating collateral records, Banking Advisor does it on demand, in mass.

Sean Desmond: As compared to the tedious one-by-one process of creating and updating collateral records, Banking Advisor does it on demand in mass. nCino's forward deploy engagements serve a dual purpose. They accelerate value for our most ambitious customers while simultaneously informing our product roadmap with real-world application of our agentic and other AI solutions that we can then scale across our entire customer base. We are already planning a follow-on FDE engagement at ConnectOne to raise the bar even further with our Digital Partners, nCino's series of persona-based AI agents. Our forward deploy engineering team is fully utilized with engagements spanning the spectrum of our customer base, including a $5 billion community bank, an $80 billion regional bank, and a top four enterprise bank in the US, as well as customers in EMEA and APAC.

Speaker #3: nCino's forward deploy engagements serve a dual purpose. They accelerate value for our most ambitious customers, while simultaneously informing our product roadmap with real-world application of our agentic and other AI solutions that we can then scale across our entire customer base.

Speaker #3: We are already planning a follow-on FDE engagement at ConnectOne to raise the bar even further with our digital partners: nCino series of persona-based AI agents.

Speaker #3: Our forward deploy engineering team is fully utilized, with engagement spanning the spectrum of our customer base, including a $5 billion community bank, an $80 billion regional bank, and a top four enterprise bank in the US, as well as customers in EMEA and APAC.

Speaker #3: I would like to highlight another development on the AI strategy front. I'm especially proud of it, given my heritage in customer success. We are seeing the returns on investments we've made in our professional services organization over the past year, developing AI tooling and methodologies that are already compressing professional services hours per engagement by over 40%.

Sean Desmond: I would like to highlight another development on the AI strategy front I'm especially proud of given my heritage in customer success. We are seeing the returns on investments we've made in our professional services organizations over the past year, developing AI tooling and methodologies that are already compressing professional services hours per engagement by over 40%. As Greg will elaborate on shortly, it was great to see this show up in our professional services gross margins this quarter. Beyond the positive gross margin impact, I believe the bigger return will be materially shorter implementations and lower program costs for our customers that will ultimately drive better pipeline conversions for nCino. We are enabling customers and system integrator partners with the same tools to help them continually optimize their deployments and prepare their environments for our latest innovations.

Speaker #3: As Greg will elaborate on shortly, it was great to see this show up in our professional services gross margins this quarter. But beyond the positive gross margin impact, I believe the bigger return will be materially shorter implementations and lower program costs for our customers, which will ultimately drive better pipeline conversions for nCino.

Speaker #3: We are enabling customers and system integrator partners with the same tools to help them continually optimize their deployments and prepare their environments for our latest innovations.

Speaker #3: On the product development and engineering front, we're seeing development cycles that used to extend beyond a year now compress to under 90 days, with teams operating approximately 34% more efficiently over the past year with AI. This allows us to invest more aggressively in agentic and other AI capabilities while continuing to fulfill foundationally functional commitments to our customers.

Sean Desmond: On the Product Development and Engineering front, we're seeing development cycles that used to extend beyond a year now compress under 90 days, with teams operating approximately 34% more efficiently over the past year with AI, which allows us to invest more aggressively in agentic and other AI capabilities while continuing to fulfill foundationally functional commitments to our customers. In the Q1 of fiscal 2026, about 21% of our code was written with AI assistance. That percentage increased to approximately 57% as of the Q1 of fiscal 2027. Writing more code is not the goal. The goal is to be faster in the entire product life cycle from idea to production. We estimate writing code represents roughly 30% of the work it actually takes required to ship a product.

Speaker #3: In the first quarter of fiscal '26, about 21% of our code was written with AI assistance. That percentage increased to approximately 57% as of the first quarter of fiscal '27.

Speaker #3: But writing more code is not the goal. The goal is to be faster in the entire product lifecycle, from idea to production. We estimate that writing code represents roughly 30% of the work actually required to ship a product.

Speaker #3: The rest is product definition, quality assurance, security reviews, compliance validation, and the coordination required to deliver tier-one, mission-critical software to financial institutions of all sizes.

Sean Desmond: The rest is product definition, quality assurance, security reviews, compliance validation, and the coordination required to deliver tier 1 mission-critical software to financial institutions of all sizes. We believe there is no better blend of technical talent and financial services domain expertise anywhere in the industry than right here at nCino. These tools and efficiency gains are exciting enablers of product development velocity and potential leverage on our path to sustaining the Rule of 40 and beyond. In summary, I'm extremely proud of the way the team is executing our strategy, excited by the tenor of conversations coming out of nSight and eager to build on the momentum from Q1 to continue helping financial institutions around the world turn AI ambition into measurable outcomes.

Speaker #3: We believe there is no better blend of technical talent and financial services domain expertise anywhere in the industry than right here at nCino. And these tools and efficiency gains are exciting enablers of product development velocity and potential leverage on our path to sustaining the Rule of 40 and beyond.

Speaker #3: In summary, I'm extremely proud of the way the team is executing our strategy. I'm excited by the tenor of conversations coming out of Insight and eager to build on the momentum from Q1 to continue helping financial institutions around the world turn AI ambition into measurable outcomes.

Speaker #3: As one of our stockholders noted in an April white paper on the rise of AI, companies with mission-critical workflows, deeply embedded customer relationships, regulatory complexity that serves as a moat rather than a burden, and the free cash flow generation required to absorb and accelerate through the transition will not be victims of AI.

Sean Desmond: As one of our stockholders noted in an April white paper on the rise of AI, companies with mission-critical workflows, deeply embedded customer relationships, regulatory complexity that serves as a moat rather than a burden, and the free cash flow generation required to absorb and accelerate through the transition will not be victims of AI. They will be AI's next beneficiaries. We believe that statement accurately reflects nCino's strategic positioning and reinforces our confidence that nCino is uniquely positioned to be an AI beneficiary and to lead the financial services industry into the world of AI-powered banking. The reason we are confident is straightforward. Our AI capabilities are shaped by almost 15 years of operational banking data across global, regional, and community banks, credit unions, and Independent Mortgage Banks embedded in the actual workflows where loans get made, risk gets managed, and compliance gets enforced.

Speaker #3: They will be AI's next beneficiaries. We believe that statement accurately reflects nCino's strategic positioning and reinforces our confidence that nCino is uniquely positioned to be an AI beneficiary and to lead the financial services industry into the world of AI-powered banking.

Speaker #3: The reason we are confident is straightforward. Our AI capabilities are shaped by almost 15 years of operational banking data across global, regional, and community banks, credit unions, and independent mortgage banks, embedded in the actual workflows where loans get made, risk gets managed, and compliance gets enforced.

Speaker #3: This combination of domain-specific intelligence, regulatory trust, and workflow integration is not something that can easily be replicated by a general-purpose AI provider or easily assembled from scratch.

Sean Desmond: This combination of domain-specific intelligence, regulatory trust, and workflow integration is not something that can easily be replicated by a general-purpose AI provider or easily assembled from scratch. With that, I will turn the call over to Greg.

Speaker #3: And with that, I will turn the call over to Greg.

Speaker #2: Thanks, Sean. And thank you all for joining us today. Please note that all numbers referenced in my remarks, other than revenues, are on a non-GAAP basis unless otherwise stated.

Greg Orenstein: Thanks, Sean. Thank you all for joining us today. Please note that all numbers referenced in my remarks other than revenues 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. In Q1, total revenues were $159.4 million, an increase of 11% year over year. Subscription revenues were $140.9 million, an increase of 12% year over year or 11% in constant currency. Note that Q1 represented a significant sequential dollar increase in subscription revenues at approximately $7.5 million.

Speaker #2: In Q1, total revenues were $159.4 million, an increase of 11% year over year. Subscription revenues were $140.9 million, an increase of 12% year over year or 11% in constant currency.

Speaker #2: Note that the first quarter represented a significant sequential dollar increase in subscription revenues at approximately $7.5 million. This was enabled by a record gross bookings performance in Q4 of fiscal '26, with earlier deal closing timing in the fourth quarter and straight-line revenue recognition under our new pricing model, yielding more subscription revenues relative to the prior quarter than we have generally seen historically.

Greg Orenstein: This was enabled by a record gross bookings performance in Q4 of fiscal 2026, with earlier deal closing timing in the Q4 and straight-line revenue recognition under our new pricing model yielding more subscription revenues relative to the prior quarter than we have generally seen historically. As noted on slide 14 of our earnings presentation, subscription revenues over-performance included a foreign currency tailwind of approximately $1.3 million, favorability of approximately $500,000 from US mortgage, and approximately $200,000 of execution-based over-performance. US mortgage subscription revenues were $19.7 million in the Q1, up 4% year over year. Professional services revenues were $18.5 million, flat year over year.

Speaker #2: As noted on slide 14 of our earnings presentation, subscription revenues overperformance included a foreign currency tailwind of approximately $1.3 million, favorability of approximately $500,000 from US mortgage, and approximately $200,000 of execution-based overperformance.

Speaker #2: US mortgage subscription revenues were $19.7 million in the first quarter, up 4% year over year. Professional services revenues were $18.5 million, flat year over year.

Speaker #2: As I have previously highlighted, we believe our progress with professional services is best measured by looking at the growth in professional services gross profit dollars rather than professional services revenues, as we continue to apply and refine new implementation methodologies leveraging AI to reduce project timelines.

Greg Orenstein: As I have previously highlighted, we believe our progress with professional services is best measured by looking at the growth in professional services gross profit dollars rather than professional services revenues, as we continue to apply and refine new implementation methodologies leveraging AI to reduce project timelines. Non-US total revenues were $36.4 million, up 15% year over year or 11% in constant currency. Non-US subscription revenues were $31.3 million, up 21% year over year or 16% in constant currency. Non-GAAP operating income was $44.5 million or 28% of total revenues, an increase of 79% year over year. Non-GAAP professional services gross margin improved meaningfully in Q1 to 10%, up 1,100 basis points year over year, contributing approximately $1 million to the non-GAAP operating income over-performance in the quarter.

Speaker #2: Non-US total revenues were $36.4 million, up 15% year over year or 11% in constant currency. Non-US subscription revenues were $31.3 million, up 21% year over year or 16% in constant currency.

Speaker #2: Non-GAAP operating income was $44.5 million, or 28% of total revenues, an increase of 79% year over year. Non-GAAP professional services gross margin improved meaningfully in the first quarter to 10%, up 1,100 basis points year over year, contributing approximately $1 million to the non-GAAP operating income overperformance in the quarter.

Speaker #2: Approximately $1.7 million of the overperformance of non-GAAP operating income was from delayed timing of expenses, including various marketing activities that we thought would occur in Q1 but now expect to incur later in the year.

Greg Orenstein: Approximately $1.7 million of the over-performance of non-GAAP operating income was from the delayed timing of expenses, including for various marketing activities that we thought would occur in Q1 but now expect to incur later in the year. The balance of the over-performance was from the gross profit resulting from subscription revenues over-performance, as noted on slide 14 of our earnings presentation. Free cash flow was $80.8 million in Q1, up 54% year over year. As a reminder, Q1 is typically our largest free cash flow quarter of the year, following seasonally high bookings in Q4 of the prior year. Turning to an update on our share repurchase programs.

Speaker #2: And the balance of the overperformance was from the gross profit resulting from subscription revenues overperformance, as noted on slide 14 of our earnings presentation.

Speaker #2: Free cash flow was $80.8 million in the first quarter, up 54% year over year. As a reminder, the first quarter is typically our largest free cash flow quarter of the year, following seasonally high bookings in the fourth quarter of the prior year.

Speaker #2: Turning to an update on the first quarter, we repurchased approximately 6.1 million shares of our outstanding common stock under the December 2025 stock repurchase program and the March 2026 accelerated share repurchase program at an average price of $15.20 per share, totaling $93.1 million.

Greg Orenstein: In Q1, we repurchased approximately 6.1 million shares of our outstanding common stock under the December 2025 stock repurchase program and the March 2026 accelerated share repurchase program at an average price of $15.20 per share, totaling $93.1 million. This includes 5.5 million shares received upfront as part of the $100 million ASR program announced in March. We expect to receive the remaining shares in Q2. $65 million remains available for future repurchases under the December 2025 stock repurchase program. Turning to guidance. For Q2 of fiscal 2027, we expect total revenues of $157.75 to $159.75 million, with subscription revenues of $140.25 to $142.25 million, an increase of 7% and 8% year-over-year respectively, at the midpoint of the ranges. Excluding US mortgage, our Q2 subscription revenues guidance assumes constant currency subscription revenues growth of 9% to 11%.

Speaker #2: This includes 5.5 million shares received upfront as part of the $100 million ASR program announced in March, and we expect to receive the remaining shares in the second quarter.

Speaker #2: $65 million remains available for future repurchases under the December 2025 stock repurchase program. Turning to guidance, for the second quarter of fiscal '27, we expect total revenues of $157.75 million to $159.75 million, with subscription revenues of $140.25 million to $142.25 million, an increase of 7% and 8% year over year, respectively, at the midpoint of the ranges.

Speaker #2: Excluding U.S. mortgage, our second quarter subscription revenues guidance assumes constant currency subscription revenues growth of 9% to 11%. You will recall the second quarter of fiscal '26 included U.S. mortgage subscription revenues growth of 22%.

Greg Orenstein: You will recall the Q2 of fiscal 2026 included US mortgage subscription revenues growth of 22%. Our Q2 guidance assumes elevated mortgage rates suppressed the seasonal benefit we realized last year, making for a difficult year-over-year compare for our US mortgage business, and we are forecasting -2% year over year subscription revenues growth for US mortgage in the Q2, as noted at the bottom of slide 10 in our earnings presentation. non-GAAP operating income in the Q2 is expected to be $35.5 million to $37.5 million. Our annual user conference and other marketing activities are expected to contribute approximately $3 million sequential increase to sales and marketing expenses in the Q2, with timing of expenses in our annual merit process contributing the rest of the increase in operating expenses assumed by our non-GAAP operating income guidance.

Speaker #2: Our second quarter guidance assumes elevated mortgage rates suppress the seasonal benefit we realized last year, making for a difficult year-over-year compare for our US mortgage business. We are forecasting negative 2% year-over-year subscription revenue growth for US mortgage in the second quarter, as noted at the bottom of slide 10 in our earnings presentation.

Speaker #2: Non-GAAP operating income in the second quarter is expected to be $35.5 million to $37.5 million. Our annual user conference and other marketing activities are expected to contribute approximately a $3 million sequential increase to sales and marketing expenses in the second quarter, with the timing of expenses in our annual merit process contributing the rest of the increase in operating expenses assumed by our non-GAAP operating income guidance.

Speaker #2: We are very excited about the size and quality of our sales pipeline, and the sales momentum and activity we see across our business. For fiscal '27, we continue to expect net additions to ACV of $60 million to $65 million on a constant currency basis, representing cumulative ACV of $662.5 million to $667.5 million, up 10% over fiscal '26 ending ACV at the midpoint of the range.

Greg Orenstein: We are very excited about the size and quality of our sales pipeline and the sales momentum and activity we see across our business. For fiscal 2027, we continue to expect net additions to ACV of $60 million to $65 million on a constant currency basis, representing cumulative ACV of $662.5 million to $667.5 million, up 10% over fiscal 2026 ending ACV at the midpoint of the range. As a reminder, the Q1 is historically our smallest gross bookings quarter of the year, and the Q4 is our largest. For fiscal 2027, we now expect total revenues of $642 million to $646 million, up from our prior guidance range of $639 million to $643 million, representing approximately 8% growth at the midpoint of the range. For fiscal 2027, we are extrapolating the approximately $200,000 execution-based subscription revenues over performance through our full-year guidance.

Speaker #2: As a reminder, the first quarter is historically our smallest gross bookings quarter of the year, and the fourth quarter is our largest. For fiscal 2027, we now expect total revenues of $642 million to $646 million, up from our prior guidance range of $639 million to $643 million, representing approximately 8% growth at the midpoint of the range.

Speaker #2: For fiscal '27, we are extrapolating the approximately $200,000 execution-based subscription revenues overperformance through our full-year guidance. In keeping with our guidance philosophy for mortgage that we established last year, we are not extrapolating the first quarter overperformance in U.S. mortgage subscription revenues.

Greg Orenstein: In keeping with our guidance philosophy for mortgage that we established last year, we are not extrapolating the Q1 over performance in US mortgage subscription revenues. For fiscal 2027, we now expect subscription revenues of $571.5 to $575.5 million, up from our prior guidance of $569 to $573 million, representing 10% growth or 9% in constant currency at the midpoint of our range. Our updated guidance continues to assume annual US mortgage subscription revenues growth of approximately 1% and assumes subscription revenues growth excluding US mortgage of 11% to 12% year over year. Our updated guidance does not assume any additional currency tailwind beyond the Q1. We are raising our non-GAAP operating income guidance and now expect fiscal 2027 non-GAAP operating income to be $166 to $171 million, up from a prior range of $165 to $170 million.

Speaker #2: For fiscal 27, we now expect subscription revenues of $571.5 million to $575.5 million up from our prior guidance of $569 million to $573 million representing 10% growth or 9% in constant currency at the midpoint of our range.

Speaker #2: Our updated guidance continues to assume annual U.S. mortgage subscription revenues growth of approximately 1%, and assumes subscription revenues growth excluding U.S. mortgage of 11% to 12% year over year.

Speaker #2: Our updated guidance does not assume any additional currency tailwind beyond the first quarter. We are raising our non-GAAP operating income guidance and now expect fiscal 2027 non-GAAP operating income to be $166 million to $171 million, up from a prior range of $165 million to $170 million.

Speaker #2: This represents an approximately 30% increase over fiscal '26 at the midpoint. You will note we did not pass all of the Q1 non-GAAP operating income overperformance through, in light of the shift in timing of expenses, as well as the desire to maintain some operating flexibility at this early point in the fiscal year, similar to the approach we took last year.

Greg Orenstein: This represents an approximately 30% increase over fiscal 2026 at the midpoint. You will note we did not pass all of the Q1 non-GAAP operating income over performance through in light of the shift in timing of expenses, as well as a desire to maintain some operating flexibility at this early point in the fiscal year, similar to the approach we took last year. We continue to remain focused on driving the Rule of 40 mix in future quarters more towards subscription revenues growth than non-GAAP operating margin. We are also raising our free cash flow guidance for fiscal 2027 to be $135 million to $140 million, up from the prior range of $132 million to $137 million. We expect Q2 to contribute a majority of the remaining annual free cash flow represented by our guidance. With that, I will open the line for questions.

Speaker #2: We continue to remain focused on driving the Rule of 40 mix in future quarters more towards subscription revenue growth than non-GAAP operating margin. We are also raising our free cash flow guidance for fiscal '27 to be $135 million to $140 million, up from the prior range of $132 million to $137 million.

Speaker #2: We expect the second quarter to contribute a majority of the remaining annual free cash flow represented by our guidance. With that, I'll open the line for questions.

Speaker #1: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again.

Operator: Thank you. As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Our first question comes from Adam Hotchkiss with Goldman Sachs. You may proceed.

Speaker #1: And our first question comes from Adam Hotchkiss with Goldman Sachs. You may proceed.

Speaker #3: Great, thanks so much for taking the questions. I wanted to start, Sean, with your comment around the AI efficiencies you're seeing in the Professional Services segment, particularly the engagement costs being down—engagement-per-hour costs being down by over 40%.

Adam Hotchkiss: Great. Thanks so much for taking the questions. I wanted to start, Sean, with your comment around the AI efficiencies you're seeing in the professional services segment, particularly the engagement per hour cost being down by over 40%. Just talk a little bit about what exactly is driving that. To what extent What is it within your business that you're seeing drive that so quickly? I think that's a pretty precipitous move given the time since you've started to implement some of these AI changes. Maybe just go into a little bit more detail around some of those drivers.

Speaker #3: Just talk a little bit about what exactly is driving that. To what extent do you—what is it within your business that you're seeing drive that so quickly?

Speaker #3: I think that's a pretty precipitous move, given the time since you've started to implement some of these AI changes. So maybe just go into a little bit more detail around some of those drivers.

Sean Desmond: Sure. Thanks for the question. Firstly, I would say the most important AI efficiencies that our forward deploy engineering teams are delivering are the outcomes for our customers, and that's what I'm most excited about. That's what I believe we're most focused on. At the same time, we have been on a journey, that I've been communicating to you all for some time to increase the velocity with which we deploy our solutions. It might seem like that's been overnight, but we started on this journey beginning of last year. As our forward deploy engineering teams are lockstep in alignment with our Product Development & Engineering teams, we are really looking at the entire life cycle from how we build our software to how we deploy our software and get it into our customers' hands quickly so they can receive outcomes.

Speaker #4: Sure, and thanks for the question. Personally, I would say the most important AI efficiencies that our forward-deployed engineering teams are delivering are the outcomes for our customers.

Speaker #4: And that's what I'm most excited about, and that's what I believe we're most focused on. At the same time, we have been on a journey that I have been communicating to you all for some time—to increase the velocity with which we deploy our solutions.

Speaker #4: And so, it might seem like that's been overnight, but we started on this journey at the beginning of last year. And as our forward-deploy engineering teams are in lockstep alignment with our product development and engineering teams, we are really looking at the entire lifecycle—from how we build our software to how we deploy our software and get it into our customers' hands quickly, so they can receive outcomes.

Speaker #4: And that's why Banking Advisor is being deployed in a matter of weeks versus months. And we're seeing the efficiencies that we're seeing. And it's also translating to the bottom line.

Sean Desmond: That's why Banking Advisor is being deployed in a matter of weeks versus months, and we're seeing the efficiencies that we're seeing, and it's also translating to the bottom line.

Speaker #3: Okay, great. Really helpful. And then, Greg, just on the mortgage revenue point, I know we saw a pretty large pickup in industry refi volumes over the last six to nine months.

Adam Hotchkiss: Okay, great. Really helpful. Greg, just on the mortgage revenue point, I know we saw a pretty large pickup in industry refi volumes over the last 6 to 9 months. I am just curious how investors should think about that within the context of mortgage revenues. It looks like the mortgage revenues are a little bit more seasonal and in line with purchase mortgage trends, maybe rather than refi mortgage trends. Just as we think about the business moving more towards some of the volume exposed pricing model that I know is newer for you guys. How should investors think about tracking that with some of the KPIs that we see out there? Thanks so much.

Speaker #3: I'm just curious how investors should think about that within the context of mortgage revenues. It looks like the mortgage revenues are a little bit more seasonal and in line with purchase mortgage trends, maybe, rather than refi mortgage trends.

Speaker #3: Just as we think about the business moving more towards some of the volume-exposed pricing models, which I know are newer for you guys, how should investors think about tracking that with some of the KPIs that we see out there?

Speaker #3: Thanks so much.

Speaker #4: Thanks for the question, Adam. As we look back at the quarter, I think in the first half of the quarter, we did see nice volumes coming through.

Greg Orenstein: Thanks for the question, Adam. As we look back at the quarter, I think in the first half of the quarter, we did see nice volumes coming through as rates went up. As the quarter proceeded, we saw some of the impact from that. Basically, we're just kind of looking at run rates from April, and extrapolating those through, again, being consistent with the, let's call it prudent, guidance philosophy we took to mortgage last year and just continuing to take that approach. Again, we see the industry data, and it's calling for higher numbers, which would be great. Again, we want to be prudent as we go through the year and hopefully continue to surprise on the upside for mortgage.

Speaker #4: As rates went up as the quarter proceeded, we saw some of the impact from that. And so, basically, we're just kind of looking at run rates from April.

Speaker #4: And extrapolating those through, again, being consistent with the—I'll call it the prudent guidance philosophy—we took to mortgage last year, and just continuing to take that approach.

Speaker #4: And so, again, we see the industry data, and it's calling for higher numbers, which would be great. But again, we want to be prudent as we go through the year and hopefully continue to surprise on the upside for mortgage.

Speaker #3: Great. Thank you both.

Adam Hotchkiss: Great. Thank you both.

Speaker #1: Thank you. Our next question comes from Ryan Tomasello with KBW. You may proceed.

Operator: Thank you. Our next question comes from Ryan Tomasello with KBW. You may proceed.

Speaker #5: Thanks, everyone. I wanted to ask about the evolution of the AI offering I guess now that you're potentially seeing more renewals of your early platform pricing cohorts, what evidence are you seeing within that of customers expanding their intelligence unit allocations beyond the initial bundles?

Ryan Tomasello: Thanks, everyone. I wanted to ask about the evolution of the AI offering. I guess now that you're potentially seeing more renewals of your early platform pricing cohorts, what evidence are you seeing within that of customers expanding their intelligence unit allocations beyond the initial bundles? Then more broadly, what have you learned so far about the monetization uplift at renewal that might be able to help us size the incremental revenue opportunity tied to these AI consumption units? Thanks.

Speaker #5: And then more broadly, what have you learned so far about the monetization uplift at renewal that might be able to help us size the incremental revenue opportunity tied to these AI consumption units?

Speaker #5: Thanks.

Speaker #4: Sure. Thanks, Ryan. And listen, if you think about the evolution of our AI strategy, you heard me talk last year about the three pillars being banking advisor, agents, and our integration gateway.

Sean Desmond: Sure. Thanks, Ryan. Listen, if you think about the evolution of our AI strategy, you heard me talk last year about the three pillars being Banking Advisor agents and our Integration Gateway. That all converging at this year's nSight event a couple of weeks ago, and the unveiling of the AOS for nCino. The momentum is real, and the customer feedback is really strong in terms of how we're partnering with customers to imagine agents exponentially proliferating within the customer base. Specific to the initial bundles that we provision to our customers, what I think is really exciting to share on this call and is new news, is that we have had our first customers reach the limit in their bundles.

Speaker #4: And that all converging at this year's insight event a couple of weeks ago in the unveiling of the AOS, for NCino. So the momentum is real and the customer feedback is really strong in terms of how we're partnering with customers.

Speaker #4: To imagine agents exponentially proliferating within the customer base, specific to the initial bundles that we provision to our customers, what I think is really exciting to share on this call and is new news is that we have had our first customers reach the limit in their bundles.

Speaker #4: And so they have proven that we're delivering outcomes, and they're consuming the intelligence units that we are tying to the value proposition we provide with our five core digital partners.

Sean Desmond: They have proven that we're delivering outcomes, and they're consuming the intelligence units that we are tying to the value proposition we provide with our five core Digital Partners. Right. So long as we continue doing that, while this whole industry is finding its footing, there's nothing in the model that we've put in here. I am fully confident that by the time we get to the end of this year, we will monetize by re-upping the customers that are reaching their limits. That's exciting new news from nCino.

Speaker #4: Right? And so long as we continue doing that, while this whole industry is finding its footing, there's nothing in the model that we've put in here but I am fully confident that by the time we get to the end of this year, we will monetize by reupping the customers that are reaching their limits.

Speaker #4: So that's exciting new news from NCino.

Speaker #5: Great. And then sticking on the AI topic, I wanted to ask about how you frame the opportunity set between US and international. I guess on the AI side, are there different use cases or adoption curves?

Ryan Tomasello: Right. Sticking on the AI topic, wanted to ask about how you frame the opportunity set between US and international. I guess on the AI side, are there different use cases or adoption curves and maybe monetization dynamics that meaningfully differ across geographies? How, in general, is that influencing how you're prioritizing your go-to-market investments on the AI front internationally? Thanks.

Speaker #5: And maybe monetization dynamics that meaningfully differ across geographies? And how, in general, is that influencing how you're prioritizing your go-to-market investments on the AI front internationally?

Speaker #5: Thanks.

Speaker #4: Yeah. Listen, I would say on the zoom out sort of exec summary, we're solving the same problems the world over with our solutions. When you think about the value we deliver across onboarding, loan origination, portfolio monitoring, the conversations are pretty similar across geographies.

Sean Desmond: Yeah. Listen, I would say on a zoom out sort of exec summary, we're solving the same problems the world over with our solutions. When you think about the value we deliver across onboarding, loan origination, portfolio monitoring, the conversations are pretty similar across geographies. Yes, there are some nuances, both culturally and from a regulatory perspective that we need to contemplate. Some of that shows up in the governance conversations we have with our customers around compliance. We need to kind of build that locally, and that's exactly why we have a global PDE team with local presence in EMEA and Asia Pacific.

Speaker #4: Yes, there are some nuances, both culturally and from a regulatory perspective, that we need to contemplate. Some of that shows up in the governance conversations we have with our customers around compliance.

Speaker #4: And we need to kind of build that locally. And that's exactly why we have a global PDE team with local presence in EMEA and Asia-Pac.

Speaker #4: But the framework we have in place, the strategy we have in place, the vision for the agentic operating system, the technology infrastructure partners that we have thoughtfully chosen to go-to-market with, scale globally, and we're largely solving the same problems with the same technology.

Sean Desmond: The framework we have in place, the strategy we have in place, the vision for the agentic operating system, the technology infrastructure partners that we have thoughtfully chosen to go to market with scale globally, and we're largely solving the same problems with the same technology.

Ryan Tomasello: Great. Thank you.

Speaker #5: Great. Thank you.

Speaker #4: Thank you.

Sean Desmond: Thank you.

Speaker #1: Thank you. Our next question comes from Saket Khalil with Barclays. You may proceed.

Operator: Thank you. Our next question comes from Saket Kalia with Barclays. You may proceed.

Speaker #3: Okay. Great. Hey, guys. Thanks for taking my questions here. Sean, maybe for you, maybe hey, guys. Sean, maybe for you, I'd love to zoom out a little bit.

Saket Kalia: Okay, great. Hey, guys. Thanks for taking my questions here. Sean, maybe for you-

Sean Desmond: Hey, Saket.

Saket Kalia: Hey, guys. Sean, maybe for you, I'd love to zoom out a little bit and maybe get a state of the union on your commercial banking customers in particular. Sean, the question's for you because I know you spend a lot of time with customers. What are they saying as we sort of get deeper here into calendar 2026, and how do you maybe feel about just demand in kind of US commercial banking here?

Speaker #3: And maybe get a state of the union on your commercial banking customers in particular. And so, Sean, the question is for you because I know you spend a lot of time with customers.

Speaker #3: What are they saying as we sort of get deeper here into calendar '26? And how do you maybe feel about demand in U.S. commercial banking here?

Speaker #4: Yeah. As you know, Saket, that's a core part of our heritage. Our flagship solution in commercial loan origination remains a very fundamental part of our business.

Sean Desmond: Yeah. As you know, Saket, that's a core part of our heritage. Our flagship solution in commercial loan origination remains a very fundamental part of our business, and we still see strong demand in expansion across some of the largest customers that we have. We still see new logo opportunities in this space. We still see opportunities from a geographic standpoint internationally in commercial loan origination with a lot of room for upside. That's showing up in our readout in our revenue growth. What I'm also seeing that I think is exciting is that some of these banks now have commercial lending leaders that are working in concert with folks that have been appointed within their institutions to play specific AI leadership roles. Right.

Speaker #4: And we still see strong demand and expansion across some of the largest customers that we have, and we still see new logo opportunities in this space.

Speaker #4: And we still see opportunities from a geographic standpoint internationally in commercial loan origination with a lot of room for upside. And that's showing up in our readout in our revenue growth.

Speaker #4: What I'm also seeing that I think is exciting is that some of these banks now have commercial lending leaders that are working in concert with folks that have been appointed within their institutions to play specific AI leadership roles.

Speaker #4: Right? So some of our largest enterprise banks will have somebody who's responsible for the adoption of AI across the bank that's working directly with the head of the commercial bank to provide the right governance framework in place.

Sean Desmond: Some of our largest enterprise banks will have somebody who's responsible for the adoption of AI across the bank that's working directly with the head of the commercial bank to provide the right governance framework in place. Those folks are reaching out directly to nCino to ensure that we can comply with those standards, and those conversations are going very well.

Speaker #4: And those folks are reaching out directly to nCino to ensure that we can comply with those standards, and those conversations are going very well.

Speaker #3: Got it. Got it. That's great to hear. Greg, maybe for you, just to pick up a little bit on that topic, I think we said that there was something like a 38x increase in usage in Banking Advisor, I think, May versus October.

Saket Kalia: Got it. That's great to hear. Greg, maybe for you just to pick up a little bit on that topic. I think we said that there was something like 38x increase in usage in Banking Advisor, I think May versus October. You correct me there if I'm wrong. Maybe the question is, how do you think about Banking Advisor maybe contributing to the business here this year or over the next couple of years? Understanding it's early, I think we're seeing customers go beyond their usage limits. How do you sort of think about the revenue or ACV opportunity here with Banking Advisor specifically?

Speaker #3: And you correct me there if I'm wrong. But maybe the question is, how do you think about banking advisor maybe contributing to the business here this year or over the next couple of years?

Speaker #3: Understanding it's early, I think we're seeing customers go beyond their usage limits. But how do you sort of think about the revenue or ACV opportunity here with Banking Advisor specifically?

Speaker #4: Yeah. Thanks for the question, Saket. I think, again, it's exciting times. And again, Sean being able to highlight that and that trend continuing month over month of usage growing up into the right.

Greg Orenstein: Thanks for the question, Saket. I think again, it's exciting times, and again, Sean being able to highlight that and that trend continuing month-over-month of usage growing up into the right. It's great to see that. Going back to Sean's comments, we continue to focus on near-term adoption. Again, we expect if we do the adoption thing right, that will lead to long-term top-line subscription revenue growth from leveraging our AI and our intelligence units. There's nothing in the model for this year for that would be upside. Again, our focus this year is making sure that we execute on the adoption front and it contributes next year and beyond. I think the trends we're seeing are incredibly encouraging. The feedback we got at our nSight user conference 2 weeks ago was also very encouraging and exciting.

Speaker #4: So it's great to see that. But going back to Sean's comments, I mean, we continue to focus on near-term adoption. And again, we expect if we do the adoption thing right, that will lead to long-term top-line subscription revenue growth from leveraging our AI and our intelligence units.

Speaker #4: And so there's nothing in the model for this year for that that would be upside. But again, our focus this year is making sure that we execute on the adoption front and it contributes next year and beyond.

Speaker #4: And I think the trends we're seeing are incredibly encouraging. I think the feedback we got at our Insight User Conference two weeks ago was also very encouraging and exciting.

Speaker #4: And again, I think we feel like we're really uniquely positioned to drive this new world of AI-powered banking in the financial services industry on a global basis.

Greg Orenstein: Again, I think we feel like we're really uniquely positioned to drive this new world of AI-powered banking in the financial services industry on a global basis for banks, credit unions, IMBs of all sizes. It's an exciting time. Ultimately, again, I think from a model perspective and a forecasting perspective, we are taking a prudent approach this year, but setting ourselves up for next year and beyond.

Speaker #4: For banks, credit unions, IMBs of all sizes. And so it's an exciting time. And ultimately, again, I think from a model perspective and a forecasting perspective, we are taking a prudent approach this year but setting ourselves up for next year and beyond.

Speaker #3: Yeah. And Saket, if I could just jump in here as well. On the one hand, yes, I'm excited to share that our first customers are consuming their entire bundles, because that's a question you all have been asking.

Sean Desmond: Saket, if I could just jump in here as well. On the one hand, yes, I'm excited to share that our first customers are consuming their entire bundles because that's a question you all have been asking, and I'm happy to be able to share that news. More importantly, make no mistake, intelligence unit consumption is the future of this company. Right? While we have steadily re-accelerated growth on our asset-based model, plus intelligence units, not even having that baked in, and the upside with customers getting the outcomes you've heard from our forward deploy engineering teams just gives us nothing but cause for optimism here on that front.

Speaker #3: And I'm happy to be able to share that news. But more importantly, make no mistake, Intelligence Unit consumption is the future of this company.

Speaker #3: Right? And while we have steadily re-accelerated growth on our asset-based model plus Intelligence Units, not even having that baked in on the upside with customers getting the outcomes you've heard from our forward-deploy engineering teams just gives us nothing but cause for optimism here on that front.

Speaker #4: Yeah, and just to touch upon that a little further, if you think about the model change that we've gone through—put the IU opportunity aside—changing from the fixed seat-based pricing to asset, that's separate and apart from AI and the IU opportunity.

Greg Orenstein: Yeah, just to touch upon that a little further, if you think about the model change that we've gone through, put the IU opportunity aside, right? Changing from the fixed seat-based pricing to asset, that's separate and apart from AI and the IU opportunity. Again, I think that set us up for growth that we didn't have intra-contract previously. I think that model change from a foundational standpoint is exciting, and again, points us in the right direction. Incrementally on top of that, we have now added this IU opportunity as well. To Sean's point about where we're going, I think the overall model that we've evolved to, I think sets us up well for continuing re-acceleration of growth with the opportunities that we have in front of us that we just need to keep executing on to capitalize.

Speaker #4: Again, I think that set us up for growth that we didn't have intra-contract previously. So I think that model change from a foundational standpoint is exciting.

Speaker #4: And again, points us in the right direction. And then incrementally on top of that, we have now added this IU opportunity. As well. And so to Sean's point about where we're going, I think the overall model that we've evolved to, I think, sets us up well for continuing re-acceleration of growth with the opportunities that we have in front of us that we just need to keep executing on to capitalize.

Speaker #3: Super helpful, guys. Thank you.

Saket Kalia: Super helpful, guys. Thank you.

Speaker #4: Thanks, Saket.

Greg Orenstein: Thanks, Saket.

Speaker #2: Thank you. Our next question comes from Alex Sklar with Raymond James. You may proceed.

Operator: Thank you. Our next question comes from Alexander Sklar with Raymond James. You may proceed.

Speaker #5: Great, thanks, Sean. Maybe I'll follow up on some of these banking advisor questions here. But you showed some of the dashboarding at Insight around operations analytics.

Alexander Sklar: Great. Thanks. Sean, maybe I'm going to follow up on some of these Banking Advisor questions here, but you showed some of the dashboarding at nSight around Operations Analytics. Where do you stand today in some of those early adopters realizing measurable ROIs? As it relates to those FDE engagements you spoke to, how are you going to go about replicating kind of the before and after improvements that your customers are seeing with the customers being able to get it out of the box? Thanks.

Speaker #5: Where do you stand today in terms of some of those early adopters realizing measurable ROIs? And then, as it relates to those FDE engagements you spoke to, how are you going to go about replicating the kind of before-and-after improvements that your customers are seeing, without the customers being able to get it out of the box?

Speaker #5: Thanks.

Speaker #4: Sure. Thanks, Alex. Listen, the outcomes that I've talked about being first and foremost—in our mind, when we can stand side by side with a customer who's articulating that, in the world of the traditional 20/80 rule in terms of available hours in the year, he's saving 1,000 hours per employee that he can direct toward higher-value activities, directly attributed to the Banking Advisor solutions—that's something we're proud of.

Sean Desmond: Sure. Thanks, Alex. Listen, the outcomes that I've talked about being first and foremost in our mind when we can stand side by side with a customer who's articulating that in the world of the traditional 20/80 rule in terms of available hours in a year, he's saving 1,000 hours per employee that he can direct them toward higher value activity directly attributed to the Banking Advisor solutions. That's something we're proud of. When our credit analyst agent is delivering 60% or more efficiency on credit reviews, that's something we're proud of. How do we replicate that? We've got some of our best and brightest at the company, at the tip of the spear on this forward deploy engineering team that are not only out there deploying Banking Advisor, but then packaging up how we unwrap it for the next customer and making that repeatable and scalable.

Speaker #4: When our credit analyst agent is delivering 60% or more efficiency on credit reviews, that's something we're proud of. How do we replicate that?

Speaker #4: We've got some of our best and brightest at the company at the tip of the spear on this forward-deployed engineering team. They are not only out there deploying Banking Advisor, but also packaging up how we unwrap it for the next customer and making that repeatable and scalable.

Speaker #4: In some cases, we wouldn't necessarily need to be on-site to do that, right? We could do this all remotely, all digitally. In other cases, I will share candidly that sometimes I chuckle and think that the term 'forward-deploy engineer' is just a fancy word for what we've called consultants for years, right?

Sean Desmond: In some cases that we wouldn't necessarily need to be on-site to do that, right? We could do this all remotely, all digitally. In other cases, I will share candidly that sometimes I chuckle and think that the term forward deploy engineer is just a fancy word for what we've called consultants for years. Right? It's folks who sit side by side with bankers and help them solve business problems with our technology and deploy it in a way that makes sense. All this is working really well. I think the big force multiplier for us is and always has been the partner and system integrator ecosystem. You know that's been a big story for us from day one. The largest system integrators in the world have helped us build and scale this company.

Speaker #4: It's folks who sit side by side with bankers and help them solve business problems with our technology and deploy it in a way that makes sense.

Speaker #4: And so all this is working really well. I think the big force multiplier for us is and always has been the partner and system integrator ecosystem.

Speaker #4: You know that's been a big story for us from day one. And the largest system integrators in the world have helped us build and scale this company.

Speaker #4: In the early days, the paradigm was to configure an open, flexible, configurable solution for our customers. And that paradigm has simply shifted to deploying agents everywhere.

Sean Desmond: In the early day, the paradigm was configure an open, flexible configurable solution for our customers. That paradigm has simply shifted to deploying agents everywhere, agents in our swim lanes where we play an onboarding account opening loan origination and portfolio monitoring, and then agents that are going to exist in the banking landscape side by side with ours and connect to those. We think that's a tremendous opportunity for the SI ecosystem to be highly utilized and profitable and doing that with nCino. We're busy training on that model today.

Speaker #4: Agents in our swim lanes, where we play in onboarding, account opening, loan origination, and portfolio monitoring. And then agents that are going to exist in the banking landscape, side by side with ours, and connect to those—and we think that's a tremendous opportunity for the SI ecosystem.

Speaker #4: To be highly utilized and profitable and doing that within CNO. So we're busy training on that model today.

Speaker #5: Okay. I appreciate that. Great answer there. Maybe just a follow-up, Sean. Just on credit unions, you had your largest new logo win this quarter.

Alexander Sklar: Okay. I appreciate that and a great answer there. Maybe just a follow-up, Sean. Just on credit unions, you had your largest new logo win this quarter. It felt like a big uptick in credit unions attending nSight this month. What are you seeing from that part of the market in terms of moving from adoption of Portfolio Analytics to kind of broader platform adoption? Maybe just a quick follow-up for Greg, how should we think about the mix of kind of those smaller singles and doubles in the pipeline this year versus larger enterprise deals as it relates to the ACV outlook? Thanks.

Speaker #5: It felt like a big uptick, and credit unions attending Insight this month—what are you seeing from that part of the market in terms of moving from adoption of portfolio analytics to kind of broader platform adoption?

Speaker #5: And maybe just a quick follow-up for Greg. How should we think about the mix of kind of those smaller singles and doubles in the pipeline this year versus larger enterprise deals as it relates to the ACV outlook?

Speaker #5: Thanks.

Speaker #4: Yeah. In the credit union market, our solutions, in our opinion, have always resonated very well in terms of the problems that we solve for that segment of the market. I do think that, a year in now from activating that go-to-market credit union team—one that culturally speaks the same language to that community—we're seeing positive results.

Sean Desmond: Yeah. In the credit union market, our solutions, in our opinion, have always resonated very well in terms of the problems that we solve for that segment of the market. I do think that a year in now from activating that go-to-market credit union team, one that culturally speaks the same language to that community, and we've got many members of that team that come from the credit union space, and I met with several of those customers with those teams in Charlotte a few weeks ago, is starting to pay off. Right? I think that people realize that, again, those same problems we're solving the world over for financial services institutions resonate with our credit union customers, and that's showing up in the logos that we're signing as well as the expansion.

Speaker #4: And we've got many members of that team that come from the credit union space. And I met with several of those customers with those teams in Charlotte a few weeks ago. It is starting to pay off, right?

Speaker #4: I think that people realize that, again, those same problems we're solving the world over for financial services institutions resonate with our credit union customers.

Speaker #4: And that's showing up in the logos that we're signing, as well as the expansion. Portfolio Analytics has always been a very powerful sort of point solution in its original heritage.

Sean Desmond: Portfolio Analytics has always been a very powerful sort of point solution in its original heritage, us integrating that fully into the platform is enabling us to actually imagine a pipeline of products and services we can deliver to the credit union market that you'll hear more from us about in the future.

Speaker #4: But us integrating that fully into the platform is enabling us to actually imagine a pipeline of products and services we can deliver to the credit union market that you'll hear more from us about in the future.

Greg Orenstein: Yeah. Alex, just to your comment, we really like that credit union business just like we really like our C&I business, and we like all of our businesses. Those are nice singles and doubles, if you will, just in terms of overall deal size compared to our average. Again, advancing runners around the base, that's good business for us. We think we've got great offering for credit unions. Ultimately, again, standing up that team so we could focus very much exclusively on them with that team, I think is paying dividends for us.

Speaker #4: And Alex, just to your comment, we really like that credit union business, just like we really like our C&R business. I mean, we like all of our businesses.

Speaker #4: But those are nice singles and doubles, if you will, just in terms of overall deal size compared to our average. And so, again, advancing runners around the bases.

Speaker #4: That's good business for us. We think we've got a great offering for credit unions. And ultimately, again, standing up that team so we could focus very much exclusively on them with that team, I think, is paying dividends for us.

Speaker #5: All right. Great. Thank you both.

Alexander Sklar: All right. Great. Thank you both.

Speaker #6: Thank you. Our next question comes from Chris Kennedy with William Blair. You may proceed.

Operator: Thank you. Our next question comes from Cristopher Kennedy with William Blair. You may proceed.

Speaker #4: Yeah. Good afternoon. Thanks for taking the questions. On the last call, you talked about how the new Chief Revenue Officer could help accelerate subscription revenue growth.

Cristopher Kennedy: Yeah. Good afternoon. Thanks for taking the questions. On the last call, you talked about how the new chief revenue officer could help accelerate subscription revenue growth. Can you just give an update on kind of his key priorities and areas of focus?

Cris Kennedy: Yeah. Good afternoon. Thanks for taking the questions. On the last call, you talked about how the new chief revenue officer could help accelerate subscription revenue growth. Can you just give an update on kind of his key priorities and areas of focus?

Speaker #4: Can you just give an update on kind of his key priorities and areas of focus?

Speaker #6: Sure. First and foremost, revenue. Keith and I spent some time earlier today, and the pipeline momentum that we have continues under his leadership.

Sean Desmond: Sure. First and foremost, revenue. Keith and I spent some time earlier today, and the pipeline momentum that we have continues under his leadership. He brings a unique lens from having operated in this ecosystem in other areas and is injecting some new ideas and thinking to the team as well. As we continue on the momentum that we've been reading out with our pipeline year-over-year, Keith comes in, and I think he also starts to bring ideation around how we think about that partner ecosystem I talked about expanding from not only SIs and traditional tech partners but to the hyperscalers in the industry where he has deep roots and connections.

Speaker #6: He brings a unique lens from having operated in this ecosystem in other areas and is injecting some new ideas and thinking to the team as well.

Speaker #6: But as we continue on the momentum that we've been reading out with our pipeline year over year, Keith comes in and I think he also starts to bring ideation around how we think about that partner ecosystem I talked about expanding from not only SIs and traditional tech partners, but to the hyperscalers.

Speaker #6: In the industry where he has deep roots and connections, and has a great nose for the balance of functionally positioning our problem-solving for customers, but also letting our demos shine.

Sean Desmond: Has a great nose for the balance of functionally positioning our problem-solving for customers, but also letting our demos shine, and from a technical presale standpoint, doing that in the most efficient and elegant way that we possibly can. Those are some areas that he's looking, but he's making the rounds globally. He's already been over to see our European team. We're excited that we seemingly haven't missed a beat with Keith stepping in as a true veteran into this role. Seems like he's been here a long time already, and it's only been a few months.

Speaker #6: And from a technical pre-sale standpoint, doing that in the most efficient and elegant way that we possibly can. So, those are some areas that he's looking at.

Speaker #6: But he's making the rounds globally. He's already been over to CR European team, and we're excited that we seemingly haven't missed a beat with Keith stepping in as a true veteran into this role.

Speaker #6: Seems like he's been here a long time already, and it's only been a few months.

Speaker #5: Great, thanks for that. And then, it's great to hear about the uptake in Intelligence Units. Can you just remind us of how you're thinking about managing the costs of tokens as this business continues to grow?

Cristopher Kennedy: Great. Thanks for that. It's great to hear about the uptake in intelligence units. Can you just remind us of how you're thinking about managing the cost of tokens as this business continues to grow? Thanks for taking the questions.

Cris Kennedy: Great. Thanks for that. It's great to hear about the uptake in intelligence units. Can you just remind us of how you're thinking about managing the cost of tokens as this business continues to grow? Thanks for taking the questions.

Speaker #5: Thanks for taking the questions.

Speaker #6: Yeah, it's a big part of the equation, no doubt. And we're paying close attention as we see some of the largest names in the industry sharing that they've consumed all of their tokens year to date.

Sean Desmond: Yeah. It's a big part of the equation, no doubt, and we're paying close attention as we see some of the largest names in the industry sharing that they've consumed all of their tokens year to date, and we're not even halfway through the year. We are not in that position, but we are watching carefully. As we think about the usage that we have for everything from leveraging Claude Code to leveraging tokens internally for every job and every function at nCino, we have revenue dashboards for IU consumption, and we have cost dashboards that we need to correlate. I would say right now I'm comfortable that we're calibrating that appropriately, and we're not too far out over our skis.

Speaker #6: And we're not even halfway through the year. We are not in that position, but we are watching carefully. And so as we think about the usage that we have for everything from leveraging Claude code to leveraging tokens internally for every job and every function, adding CNO, we have revenue dashboards for IU consumption and we have cost dashboards.

Speaker #6: That we need to correlate. I would say right now I'm comfortable that we're calibrating that appropriately, and we're not too far out over our skis.

Speaker #6: But we certainly are leaning into the opportunity and encouraging our folks to leverage the most efficient technology to solve problems. And we'll calibrate the spend over time.

Sean Desmond: We certainly are leaning into the opportunity and encouraging our folks to leverage the most efficient technology to solve problems, and we'll calibrate the spend over time. Achieving the Rule of 40 in an era where we are already leveraging AI to do our jobs is something I'm super proud of. It did not take us sideways on achieving that goal.

Speaker #6: Achieving the Rule of 40 in an era where we are already leveraging AI to do our jobs is something I'm super proud of. It did not take us sideways on achieving that goal.

Speaker #4: Yeah. And Chris, one more thing just to add as we think about IUs, or our intelligence units, and the cost. Not all of our intelligence units require LLMs.

Greg Orenstein: Yeah, Chris, one more thing just to add. As we think about IUs or our intelligence units, and the cost, not all of our intelligence units require LLMs. We have our own models, we have our own math, we have our own analytics, and so from a cost standpoint, again, there's a different cost equation depending on the skill that we're leveraging, versus again, each IU being dependent upon some type of third-party LLM.

Speaker #4: And so we have our own models, we have our own math, we have our own analytics. And so, from a cost standpoint, again, there's a different cost equation depending on the skill that we're leveraging.

Speaker #4: Versus, again, each IU being dependent upon some type of third-party LLM.

Speaker #5: Great. Thanks for taking the questions.

Cristopher Kennedy: Great. Thanks for taking the questions.

Cris Kennedy: Great. Thanks for taking the questions.

Speaker #4: Thanks, Chris.

Greg Orenstein: Thanks, Chris.

Speaker #6: Thank you. Our next question comes from Aaron Kimpson with Citizens. You may proceed.

Operator: Thank you. Our next question comes from Aaron Kimson with Citizens. You may proceed.

Aaron Kimson: Great. Thank you. Sean, nCino helped move financial institutions' lending operations to the cloud. You're helping move them into an AI world. Can you compare and contrast financial institutions' relative urgency and pace of adoption with AI today versus what you saw at a comparable point of financial institutions adopting cloud solutions?

Speaker #5: Great, thank you. Sean, nCino helped move financial institutions' lending operations to the cloud. Now you're helping move them into an AI world. Can you compare and contrast financial institutions' relative urgency and pace of adoption with AI today versus what you saw at a comparable point of financial institutions adopting cloud solutions?

Sean Desmond: Love to. That's a topic that we discuss often around here because, to a certain degree, the more things change, the more they stay the same, right? There is a different technology imperative at this point in time. There is the same psychological trepidation around adopting that new technology, and it all revolves around security, it revolves around scalability, compliance, regulation, and comes back to the industry that we serve, right? In this industry vertical, having a deep understanding and contextual data that helps inform how we serve up these experiences to our customers, I think really reinforces the confidence they have in a partner like nCino. I still stand before you and share that I don't talk to any CEOs in our customer base that are eager to automate their business on public cloud data alone.

Speaker #4: Love to. That's a topic that we discuss often around here because, to a certain degree, the more things change, the more they stay the same, right?

Speaker #4: There is a different technology imperative at this point in time, but there is the same psychological trepidation around adopting that new technology. And it all revolves around security.

Speaker #4: It revolves around scalability, compliance, regulation, and comes back to the industry that we serve. And in this industry vertical, having a deep understanding and contextual data that helps inform how we serve up these experiences to our customers, I think, really reinforces the confidence they have in a partner like nCino.

Speaker #4: I still stand before you and share that I don't talk to any CEOs in our customer base that are eager to automate their business on public cloud data.

Speaker #4: Alone, they're looking for a trusted partner who's navigated transformations like this in the past, whether they be technology shifts or cultural transformations. At the end of the day, we are changing the way people do their jobs.

Sean Desmond: They're looking for a trusted partner who's navigated transformations like this in the past, whether they be technology shifts or cultural transformations. At the end of the day, we are changing the way people do their jobs. That's what we've always done. Now we're simply injecting the dual workforce methodology into our customer base. That's a different change. It requires the same sort of sense of urgency that we would push and be provocative in terms of how our banks understand that there will be first-mover advantages. The folks that embrace the change will separate from the pack, and the folks who want to be last are probably certainly susceptible to acquisition. That hasn't changed at all.

Speaker #4: That's what we've always done. Now we're simply injecting the dual workforce methodology into our customer base, and so that's a different change. But it requires the same sort of sense of urgency that we would push and be provocative in terms of how our banks understand that there will be first-mover advantages.

Speaker #4: And the folks that embrace the change will separate from the pack. And the folks who want to be last are probably certainly susceptible to acquisition.

Speaker #4: So that hasn't changed at all.

Speaker #5: Got it. And then, as a follow-up, you're now up to more than 40% of ACV on the updated pricing model, versus 38% at the end of January.

Aaron Kimson: Got it. As a follow-up, you're now up to more than 40% of ACV on the updated pricing model versus 38% at the end of January. Has there been any slowdown in early renewals, or is it just seasonal? Is there any give and take between duration and pricing on early renewals that investors should be aware of? Thank you.

Speaker #5: Has there been any slowdown in early renewals, or is it just seasonal? And is there any give and take between duration and pricing on early renewals that investors should be aware of?

Speaker #5: Thank you.

Speaker #4: Yeah, Aaron, I'd say nothing to note. Q4 is always our biggest quarter, and I think we've noted on the call, Q1 is generally our lightest bookings quarter.

Greg Orenstein: Yeah. Aaron, I'd say nothing to note. Q4 is always our biggest quarter, and I think as we noted on the call, Q1 is generally our lightest bookings quarter. I think we feel good about where we are one quarter into the year. Yeah, nothing new from what we've talked about over the last quarter or two in terms of the appetite to renew, as well as the step-up that we've been targeting and achieving as part of that renewal.

Speaker #4: So I think we feel good about where we are one quarter into the year. And yeah, nothing new from what we've talked about over the last quarter or two in terms of the appetite to renew.

Speaker #4: As well as the step-up that we've been targeting and achieving as part of that renewal.

Speaker #6: Thank you. Our next question comes from Charles Newman with Stevens. You may proceed.

Operator: Thank you. Our next question comes from Charles Nabhan with Stephens. You may proceed.

Speaker #4: Good afternoon, and thank you for taking my question. I have a couple of quick ones on mortgage. As we think about the cadence of revenue for the full year, I think you said second quarter would be up around 2%, which would imply something in the down 3% range for the back half—which I could appreciate has a degree of conservatism.

Charles Nabhan: Good afternoon. Thank you for taking my question. Couple quick ones on mortgage for me. As we think about the cadence of revenue for the full year, I think you said Q2 would be up around 2%, which would imply something in the down 3% range for the H2, which I could appreciate has a degree of conservatism. Is it fair to think about Q3 as the trough, given I think 13% revenue growth last year? Secondly, within that business, are you seeing more of your clients operating above their contractual minimums? Which I guess would position you potentially to capitalize on volume overages within that part of the book.

Speaker #4: Is it fair to think about the third quarter as the trough, given, I think, 13% revenue growth last year? And then, secondly, within that business, are you seeing more of your clients operating above their contractual minimums?

Speaker #4: Which would, I guess, position you potentially to capitalize on volume overages within that part of the book? Yeah. Thanks for the question, Chuck.

Greg Orenstein: Yeah. Thanks for the question, Charles. From a comp perspective, Q2 and Q3, which I think would be fairly flattish between the two, is something that we've assumed as part of the guidance that we've provided. You look at Q4, remember Q4 is generally seasonally a slower quarter for mortgage if you think about the holidays, and just the buying cycles for homes. We came into the year forecasting about a 1% increase in mortgage for the year. We reiterated that this year, noting that from a linearity perspective, it would kind of play out with Q2 and Q3 being more trough versus last year. Again, Q4 having more of the seasonal flavor to it. In terms of folks exceeding their minimum commitments, again, it really varies from customer to customer. You see some that are.

Speaker #4: Yeah. From a comp perspective, Q2 and Q3, which I think would be fairly split-ish between the two, is something that we've assumed as part of the guidance that we've provided.

Speaker #4: As you look at Q4, remember, Q4 is generally seasonally a slower quarter for mortgage. If you think about the holidays, and just the buying cycles for homes.

Speaker #4: So, we came into the year forecasting about a 1% increase in mortgage for the year, and we reiterated that this year. Noting that, from a linearity perspective, it would kind of play out with Q2 and Q3 being more of a trough versus last year.

Speaker #4: And again, Q4 having more of the seasonal flavor to it. In terms of folks exceeding their minimum commitments, again, it really varies from customer to customer.

Speaker #4: And you see some that are, again, we highlighted a nice expansion that we did with a customer as part of the press release—getting more under contract. Which, again, we think is great and provides more visibility for us.

Greg Orenstein: Again, we highlighted a nice expansion that we did with a customer as part of the press release, right? Getting more under contract. Which again, we think is great and provides more visibility for us. It really is customer by customer. Some folks may be a little bit more heavy on refi than purchase, and so as refi ticked up earlier quarter and then maybe calmed down a little bit as rates popped up. You can see some impact there. That really hasn't changed as we've talked about that you really need to go customer by customer, and see where they are and frankly how aggressively they are operating in the market.

Speaker #4: And so it really is customer by customer. Some folks may be a little bit more heavy on refi than purchase, and so as refi ticked up earlier in the quarter and then maybe calmed down a little bit as rates popped up, you can see some impact there.

Speaker #4: But that really hasn't changed, as we've talked about. You really need to go customer by customer and see where they are and, frankly, how aggressively they are operating in the market.

Speaker #5: Got it. And as a follow-up, I wanted to touch on international. Pretty strong performance, up 21% year over year. And I know you've made some changes at the management level.

Charles Nabhan: Got it. As a follow-up, I wanted to touch on international. Pretty strong performance, up 21% year over year. I know you've made some changes on the management level. I was wondering if you could expand on some of the drivers of that business in the quarter, specifically where you're seeing strength from a geographic standpoint and any of the initiatives that you've implemented under new management that are particularly contributing to that outperformance or that strength.

Speaker #5: I was wondering if you could expand on some of the drivers of that business in the quarter, specifically where you're seeing strength from a geographic standpoint.

Speaker #5: Are there any of the initiatives that you've implemented under new management that are particularly contributing to that outperformance or that strength?

Speaker #4: Yes. We are seeing strength on continental Europe, seeing strength in our Japanese market, and the opportunity in Southeast Asia is one we're leaning into.

Sean Desmond: Yes. We're seeing strength on continental Europe. We're seeing strength in our Japanese market, the opportunity in Southeast Asia is one we're leaning into. I would say in terms of what is driving that, in addition to having new leaders in place for some time that have now retooled their teams and re-energized the field, we also have some imperatives around expanding our data partnerships to lean into the opportunity around onboarding and full client lifecycle management, which is a big part of the conversation in continental Europe. We're starting to see some of the larger financial institutions in that region come our way. The active conversations there, I was over there just about a month ago, a little more, I'm spending a lot more time on the continent than I am just in the UK and Ireland these days.

Speaker #4: And I would say, in terms of what is driving that, in addition to having new leaders in place for some time that have now retooled their teams and re-energized the field, we also have some imperatives around expanding our data partnerships to lean into the opportunity around onboarding and full client lifecycle management, which is a big part of the conversation in continental Europe.

Speaker #4: And so we're starting to see some of the larger financial institutions in that region come our way. The active conversations there—I was over there just about a month ago, a little more.

Speaker #4: And I'm spending a lot more time on the continent than I am just in the UK and Ireland these days. And that's where we have a lot of the pipeline movement.

Sean Desmond: That's where we have a lot of the pipeline movement.

Speaker #5: Got it. Appreciate all the callers. Thank you.

Charles Nabhan: Got it. Appreciate all the color. Thank you.

Speaker #4: Thanks, Chuck.

Greg Orenstein: Thanks, Chuck.

Speaker #6: Thank you. Our next question comes from Michael Infante with Morgan Stanley. You may proceed.

Operator: Thank you. Our next question comes from Michael Infante with Morgan Stanley. You may proceed.

Michael Infante: Hi guys. Thanks for taking my question. I wanted to ask on nCino Integration Gateway, particularly just given AI deployments require the integrated access both across core systems and data, how is the growth there, and the attach rate as you see customers sort of standardize more of their AI and automated workflows on nCino?

Speaker #5: All right. Thanks for taking my question. I wanted to ask about nCino Integration Gateway, particularly since the AI deployments require integrated access across both core systems and data.

Speaker #5: How is the growth there, and the attach rate, as you see customers sort of standardize more of their AI and automated workflows on nCino?

Speaker #4: Yeah, the growth is strong. I mean, listen, the customers cannot fully take advantage of the offering—the AI offerings we have—without having connectivity to the data.

Sean Desmond: Yeah, the growth is strong. Listen, the customers cannot fully take advantage of the AI offerings we have without having connectivity to the data. Right. When we think about the foundational infrastructure traversing our data layer all the way to the MCP layer, LLMs in play sometimes, some not, as Greg talked about earlier. All of this connectivity matters is exactly why we made the strategic acquisition of Sandbox Banking, and that is now serving as the framework for the agentic operating system that we're evolving into. Integration Gateway is just part of our platform, and I don't think in the future we'll talk about it separately.

Speaker #4: Right? So, when we think about the foundational infrastructure, traversing our data layer to all the way to the MCP layer, LLMs in place—sometimes, some not, as Greg talked about earlier—all of this connectivity matters.

Speaker #4: That's exactly why we made the strategic acquisition of Sandbox Banking, and that is now serving as the framework for the agentic operating system that we're evolving into.

Speaker #4: So integration gave us just part of our platform, and I don't think in the future we'll talk about it separately.

Michael Infante: Makes sense. Just to circle back on Chris's question regarding some of the compute costs, I just wanted to understand how pervasive the adoption behavior of some of those compute-intensive agentic capabilities are versus some of the more standardized chat capabilities, and if there's really any context that you can provide based on the sort of cost that you're seeing today as to how you're thinking about both the near and medium-term gross margin profile of the Banking Advisor product. Thanks, guys.

Speaker #5: Makes sense. And then, just to circle back on Chris's question regarding some of the compute costs, I just wanted to understand how pervasive the adoption and behavior of some of those compute-intensive agentic capabilities are versus some of the more standardized chat capabilities.

Speaker #5: And if there's really any context that you can provide based on the sort of cost that you're seeing today, as to how you're thinking about both the near- and medium-term gross margin profile of the Banking Advisor product.

Speaker #5: Thanks, guys.

Speaker #4: Yeah, to your point, they're not all created equal in terms of how we consume the cost on our side, so we are watching carefully.

Sean Desmond: To your point, they're not all created equal in terms of how we consume the cost on our side, so we are watching carefully. In general, the cost we've been able to manage, and we're certainly outrunning the cost with the consumption of the intelligence units. In some of the more heavy, when you think about Automated Spreading, which is one of our more mature capabilities, we're having really good success on the adoption and the results we're delivering to our customers and keeping the cost well under control. As we roll out more skills, we'll calibrate that, and we're really putting in a place to kind of rationalize spend across the board so we don't have to manage that separately within each individual skill down to each intelligence unit. That way they'd be on a common framework that we can manage the cost.

Speaker #4: In general, the cost we've been able to manage, and we're certainly outrunning the cost with the consumption of the intelligence units. But in some of the more heavy—when you think about auto spreading, which is one of our more mature capabilities—we're having really good success on the adoption and the results we're delivering to our customers, and keeping the cost well under control.

Speaker #4: So as we roll out more skills, we'll calibrate that. And we're really putting in a place to kind of rationalize spend across the board so we don't have to manage that separately within each individual skill, down to each intelligence unit, that they'd be in a common framework that we can manage the cost.

Speaker #5: Yeah. And the other thing, Michael, you continue to hear us talk about outcomes. And again, I think as we look at some of the capabilities that we are providing, as we think about the value that drives how we're charging for it as well—making sure, again, we keep the cost in mind, but really focusing on the value that we're driving with the functionality and the technology that we're providing with our AI and banking advisor skills.

Greg Orenstein: Yeah. The other thing, Michael, you'll continue to hear us talk about outcomes. Again, I think as we look at some of the capabilities that we are providing as we think about the value, that drives how we're charging for it as well, making sure, again, we keep the cost in mind, but really focusing on the value that we're driving with the functionality and the technology that we're providing with our AI and Banking Advisor skills.

Sean Desmond: Just one more thing to add. I would say with respect to the overall anxiety that is out there in the market and the things we read every day about the hype cycle around consumption of AI outrunning forecasts, I am proud of our engineering teams and pleasantly surprised that the cost relatively is low here at nCino compared to what I read out there in the general ether.

Speaker #4: Just one more thing to add. I would say, with respect to the overall anxiety that's out there in the market and the things we read every day about the hype cycle around consumption of AI outrunning forecasts, I am proud of our engineering teams and pleasantly surprised that the cost is relatively low here at nCino compared to what I read out there in the general ether.

Speaker #5: Thank you. Our next question comes from Ella Smith with JPMorgan. You may proceed.

Operator: Thank you. Our next question comes from Ella Smith with J.P. Morgan. You may proceed.

Speaker #7: Good evening. Thank you for taking my questions. So first, because financial institutions are notoriously risk-averse, I want to ask—I understand that much of your customer base is full steam ahead on AI and already consuming their entire token bundles.

Ella Smith: Good evening. Thank you for taking my questions. First, because financial institutions are notoriously risk-averse, I want to ask, I understand that much of your customer base is full steam ahead on AI and already consuming their entire token bundles, what are the concerns they're voicing to you and the guardrails they want established as they venture on their AI transformation with you?

Speaker #7: But what are the concerns they're voicing to you, and the guardrails they want established as they venture on their AI transformation with you?

Speaker #4: Yeah, they want to make sure that we are adherent to the policies that they have established internally. You have to remember, some of these banks have tens of thousands of employees.

Sean Desmond: Yeah. They want to make sure that we are in adherence to the policies that they have established internally. You have to remember, some of these banks have tens of thousands of employees. Right. If you were to think of each individual employee in each individual role experimenting with a different AI provider, and then bringing those ideas up to the top of the house, that's absolute chaos. Right? They need to put in some sort of governing structure that gives guidance on how people should think about using AI within their jobs. They're looking to not necessarily reinvent the wheel. They're looking for folks. When I give the example of the credit analyst agent, the banks don't necessarily want all their credit analysts experimenting in how they could build their own agent when nCino already serves that up very straightforward and elegantly.

Speaker #4: Right? And if you were to think of each individual employee and each individual role experimenting with a different AI provider, right, and then bringing those ideas up to the top of the house, that's absolute chaos.

Speaker #4: Right? So they need to put in some sort of governing structure that gives guidance on how people should think about using AI within their jobs, and then they're looking to not necessarily reinvent the wheel.

Speaker #4: They're looking for folks. When I give the example of the credit analyst agent, the banks don't necessarily want all their credit analysts experimenting on how they could build their own agent, when nCino already serves that up very straightforwardly and elegantly.

Speaker #4: And so those policies are typically documented. They'll be served up in documentation packs that, oftentimes, these banks provide external links to that we can then sit down with our engineering teams and—it typically comes down to, in summary, building a few APIs.

Sean Desmond: Those policies are typically documented. They'll be served up in documentation packs that oftentimes these banks provide external links to that we can then sit down with our engineering teams, and it typically comes down to, in summary, building a few APIs.

Speaker #5: Yeah, I don't think we can emphasize enough the importance of the trust and governance factor. Besides the regulatory framework our customers live under, again, they can't afford a hallucination.

Greg Orenstein: Yeah, Ella, I don't think we can emphasize enough the importance of the trust and governance factor. Besides the regulatory framework our customers live under, again, they can't afford a hallucination, right? They can't take that risk, right? That risk could have millions and millions and millions of dollars of exposure on top of potential regulatory risk. Again, I think we, just as we did with the cloud, getting back to an earlier question and how we transitioned our customers from on-prem to the cloud and got them comfortable doing that, we're holding their hands along this path for AI as well.

Speaker #5: Right? They can't take that risk, right? That risk could have millions and millions and millions of dollars of exposure, on top of potential regulatory risk.

Speaker #5: And so again, I think just as we did with the cloud—getting back to an earlier question and how we transitioned our customers from on-prem to the cloud and got them comfortable doing that—we're holding their hands along this path for AI as well.

Speaker #5: And again, I think we are uniquely positioned to do that. And it does come down to, I think, the history that we have of supporting them, of scaling with them, and supporting them and appreciating the regulatory environment and the governance framework that they have to operate in in order to comply with the obligations that are placed on them.

Greg Orenstein: Again, I think we are uniquely positioned to do that, and it does come down to, I think, the history that we have of supporting them, of scaling with them and supporting them, and appreciating the regulatory environment and the governance framework that they have to operate in order to comply with the obligations that are placed on them.

Speaker #7: Great, thank you. Very clear. And for a quick follow-up, can you tell us more about the current competitive landscape, and how, and if, it's evolved in the past few quarters?

Ella Smith: Great. Thank you. Very clear. For a quick follow-up, can you tell us more about the current competitive landscape and how and if it's evolved in the past few quarters? Do you see any new players, AI native players, or any sort of shift in intensity from existing vendors?

Speaker #7: Do you see any new players—AI-native players—or any sort of shift in intensity from existing vendors?

Speaker #4: What I would tell you is that the platform continues to win in the market. And in the AI era, we don't have a single competitor that has the breadth and scale that nCino does with respect to the things that we do and where we do them.

Sean Desmond: What I would tell you is that the platform continues to win in the market, and in the AI era, we don't have a single competitor that has the breadth and scale that nCino does with respect to the things that we do and where we do them, the solutions we serve up across lines of business and across the globe. We continue to see a healthy, competitive dynamic out there, and competition is good. Whether those are some of the old-time, long-time competitors or new entrants, they are all point solutions that largely focus on one of the things that we do, but not serve up a platform experience connected by 15 years of data across customers giving consent to participate in a pool that serves up insights in real time at the point of production.

Speaker #4: The solutions we serve up across lines of business and across the globe. So, we continue to see a healthy competitive dynamic out there, and competition is good. Whether those are some of the old-time, long-time competitors, or new entrants, they are all point solutions.

Speaker #4: They largely focus on one of the things that we do, but do not serve up a platform experience connected by 15 years of data across customers, giving incentive to participate in a pool that serves up insights in real time at the point of production.

Speaker #4: So the landscape, I would say, while maybe a little more crowded, is certainly similar in terms of point solutions versus platforms.

Sean Desmond: The landscape, I would say, while maybe a little more crowded, is certainly similar in terms of point solution versus platform.

Ella Smith: Very clear. Thank you so much.

Speaker #7: Very clear. Thank you so much.

Speaker #4: Thanks, Ella.

Sean Desmond: Thanks, Ella Smith.

Greg Orenstein: Thank you.

Speaker #5: Thank you. Our next question comes from Ken Trkoski with Autonomous Research. You may proceed.

Operator: Our next question comes from Kenneth Suchoski with Autonomous Research. You may proceed.

Speaker #8: Hey, good afternoon. Thanks for taking the question. You guys talked about some customers going beyond their usage limits on IU, and I think the thinking earlier this year was, once they hit those limits, salespeople are going to have conversations with those customers.

Kenneth Suchoski: Hey, good afternoon. Thanks for taking the question. You guys talked about some customers going beyond their usage limits on IU, and I think the thinking earlier this year was once they hit those limits, salespeople are going to have conversations with those customers. What happens to those customers that have consumed their units before year-end? Are you granting them the same number of units that they received originally, or are you starting to have conversations with them about potential pricing and contracts? Presumably those are more super users that are getting more value out of that offering. Thank you.

Ken Suchoski: Hey, good afternoon. Thanks for taking the question. You guys talked about some customers going beyond their usage limits on IU, and I think the thinking earlier this year was once they hit those limits, salespeople are going to have conversations with those customers. What happens to those customers that have consumed their units before year-end? Are you granting them the same number of units that they received originally, or are you starting to have conversations with them about potential pricing and contracts? Presumably those are more super users that are getting more value out of that offering. Thank you.

Speaker #8: So, what happens to those customers that have consumed their units before year-end? Are you granting them the same number of units that they received originally, or are you starting to have conversations with them about potential pricing and contracts? Presumably, those are more super users that are getting more value out of that offering.

Speaker #8: Thank you.

Speaker #4: Yeah. The conversations are very active, not only with our sales teams in the field, but I'm personally involved in these conversations. My product leaders are involved in these conversations as well.

Sean Desmond: Yeah, the conversations are very active, not only with our sales teams in the field, but I'm personally involved in these conversations. My product leaders are involved in these conversations. We're certainly learning, and I would share with you candidly that the first customers we talked about that have consumed their bundles, we have customers that have addendums in front of them today to re-up their units. That's exciting. We also have the reality that in some cases, we feel like we underestimated the intelligence units they needed because they started using more skills than anticipated on day one. There really is a case-by-case reality. When you think about some of the customers that have been on the journey with nCino for quite some time, we are absolutely applying some discretion to those conversations.

Speaker #4: And we're certainly learning. And I would share with you candidly that the first customers we talked about that have consumed their bundles—we have customers that have addendums in front of them today.

Speaker #4: To re-up their units, and so that's exciting. And we also have the reality that, in some cases, we feel like we underestimated the intelligence units they needed, because they started using more skills than anticipated on day one.

Speaker #4: So there really is a case-by-case reality. I mean, you think about some of the customers that have been on the journey with nCino for quite some time.

Speaker #4: We are absolutely applying some discretion to those conversations. And most important to me is, if we can directly line-read the outcomes, then we certainly have customers that are willing to pay a premium for re-upping those bundles.

Sean Desmond: Most importantly to me is if we can direct line read the outcomes, then we certainly have customers that are willing to pay a premium for re-upping those bundles. It's imperative on us to partner with our customers and deliver the outcomes. When we do, there's nothing but upside.

Speaker #4: And it's imperative for us to partner with our customers and deliver the outcomes. And when we do, there's nothing but upside.

Speaker #5: No, that makes a lot of sense. That's really clear. You could be flexible on timing there. Maybe just on international—and I think Chuck might have asked about this, but maybe just following up there—the 16% FX-neutral revenue growth, I think that's all organic.

Kenneth Suchoski: No, that makes a lot of sense. That's really clear. You could be flexible on timing there. Maybe just on international, and I think Chuck might have asked about this, but maybe just following up there, like the 16% FX neutral revenue growth, I think that's all organic. I know fiscal Q4 had a bit of a tougher comp and maybe that was low double digit sort of normalized growth. It does seem like the international business on an organic FX neutral subscription revenue growth basis is accelerating. It does feel like the comps get a little bit easier throughout the year. Is the thinking that we should expect that international subscription line to continue to accelerate for the balance of the year and be above this sort of mid-teens type of range?

Ken Suchoski: No, that makes a lot of sense. That's really clear. You could be flexible on timing there. Maybe just on international, and I think Chuck might have asked about this, but maybe just following up there, like the 16% FX neutral revenue growth, I think that's all organic. I know fiscal Q4 had a bit of a tougher comp and maybe that was low double digit sort of normalized growth. It does seem like the international business on an organic FX neutral subscription revenue growth basis is accelerating. It does feel like the comps get a little bit easier throughout the year. Is the thinking that we should expect that international subscription line to continue to accelerate for the balance of the year and be above this sort of mid-teens type of range?

Speaker #5: I know fiscal fourth quarter you had a bit of a tougher comp, and maybe that was low double-digit sort of normalized growth. But it does seem like the international business, on an organic FX-neutral subscription revenue growth basis, is accelerating.

Speaker #5: And it does feel like the comps get a little bit easier throughout the year. So is the thinking that we should expect that international subscription line to continue to accelerate for the balance of the year and be above this sort of mid-teens type of range?

Speaker #4: Yeah, thanks, Ken. I think the output that you're seeing in Q1 reflects the good end of the year that the international team had—a very solid end of the year—which gave us our largest quarter.

Greg Orenstein: Thanks, Ken. I think the output that you're seeing in Q1 reflects the good end of the year that the international team had. Very solid end of the year, which gave us our largest quarter of gross bookings ever in what was our largest year of gross bookings ever. Ultimately, it's just around keeping the momentum up. I did say on the last call that we did expect our international subscription growth to be accretive to our overall growth this year. Again, I think we feel real good about the sales pipeline and the level of activity that we see. As Sean mentioned, he was over in Europe not too long ago, and also noted that Keith Catell, our new CRO, has already been there. It's exciting opportunities outside of the US as well, and we're seeing the activity here.

Speaker #4: ...of gross bookings ever, and what was our largest year of gross bookings ever. And so ultimately, it's just about keeping the momentum up. But I did say on the last call that we did expect our international subscription growth to be accretive.

Speaker #4: To our overall growth this year. And again, I think we feel really good about the sales pipeline and the level of activity that we see.

Speaker #4: As Sean mentioned, he was over in Europe not too long ago, and also noted that Keith Cattella, our new CRO, has already been there. And so, there are exciting opportunities outside of the US.

Speaker #4: As well as, we're seeing the activity here.

Speaker #5: Great. Thanks, Greg. Thanks, Sean.

Kenneth Suchoski: Great. Thanks, Greg. Thanks, Sean.

Ken Suchoski: Great. Thanks, Greg. Thanks, Sean.

Speaker #4: Thanks, Ken.

Sean Desmond: Thanks, Ken.

Operator: Thank you. Our next question comes from Andrew Schmidt with KeyBanc Capital Markets. You may proceed.

Speaker #5: Thank you.

Speaker #8: Thank you. Our next question comes from Andrew Schmidt with KeyBank Capital Markets. You may proceed.

Speaker #6: Hey, Sean. Hey, Greg. Thanks for having me on the call here. I wanted to ask about win rates. Maybe you could talk about just how win rates are trending across the business.

Andrew Schmidt: Hey, Sean. Hey, Greg. Thanks for having me on the call here. I wanted to ask about win rates. Maybe you could talk about just how win rates are trending across the business. I know it's early, but obviously we have the assumption embedded in ACV that win rates are going to be lower versus what you realized in FY2026. I'm curious just how you're trending to start the year, even though it's early. Thanks so much.

Speaker #6: I know it's early, but obviously we have the assumption embedded in ACV that win rates are going to be lower than what you realize in FY26.

Speaker #6: I'm curious just how you're trending to start the year, even though it's early. Thanks so much.

Speaker #4: Yeah. Thanks, Andrew. It is early, but we feel good. We feel good about what we're seeing in the market, getting back to my prior response.

Greg Orenstein: Yeah. Thanks, Andrew. It is early, but we feel good. We feel good about what we're seeing in the market. Getting back to my prior response, the level of sales activity on a global basis. The ACV guide, yes, we did take I think a prudent approach where we guided above or below our win rates of last year, but above what we assumed last year. There's nothing new to report. I think we feel good about the activity, and we just need to keep executing.

Speaker #4: The level of sales activity on a global basis—the ACV guide—yes, we did take, I think, a prudent approach. Where we guided above or below our win rates of last year, but above what we assumed last year.

Speaker #4: But there's nothing new to report. I think we feel good about the activity, and we just need to keep executing.

Speaker #8: Perfect. Understood, Greg. And if I could follow up—just a two-parter—on the agentic strategy. The first one: if I interpret the comments about AOS correctly from the user conference, it sounds like there are obviously ambitions beyond lending.

Andrew Schmidt: Perfect. Understood, Greg. If I could follow up, just a two-parter on the agentic strategy. Just the first one, if I interpret the comments about AOS correctly from the user conference, it sounds like there's obviously ambitions beyond lending. I heard treasury deposit. Maybe talk about your ability to execute sort of beyond core lending ops. Then just as a secondary question, obviously, you're rolling out your own agents, which makes a lot of sense. Does it make sense at some point to allow third-party agents or bank-run agents also participate in the platform as well, and have nCino be the governance platform for nCino agents and then third-party agents as well? Thank you very much.

Speaker #8: I heard "treasury deposit." Maybe talk about your ability to execute sort of beyond core lending ops. And then just as a secondary question, obviously you're rolling out your own agents, which makes a lot of sense.

Speaker #8: Does it make sense at some point to allow third-party agents, or bank-run agents, to also participate in the platform as well? And have you seen if it would be the governance platform for nCino agents and then third-party agents as well?

Speaker #8: Thank you very much.

Speaker #4: The answer is yes. It absolutely does. And that is the absolute vision for the AOS with nCino. While we do want to serve up prepackaged and easily deployable agents for the core business that we focus on, and the solutions that we have the most investment in, we fully recognize that our customer base, as well as the SI ecosystem, is going to want to build agents around those.

Sean Desmond: The answer is yes, it absolutely does, and that is the absolute vision for the AOS with nCino. While we do want to serve up prepackaged and easily deployable agents for the core business that we focus on and the solutions that we have the most investment in, we fully recognize that our customer base as well as the SI ecosystem is going to want to build agents around those. Build agents, even things that are outside those lanes, like even call center and contact center and service side of the business. Think of those agents needing to not only communicate with the agents that we're serving up, but also tap into that same data layer that we talk about as being a differentiator. While we build the agents, the customers are consuming intelligence units, and we're monetizing that.

Speaker #4: And build agents, even things that are outside those lanes, like even call center and contact center and service side of the business. Think of those agents needing to not only communicate with the agents that we're serving up, but also tap into that same data layer that we talk about as being a differentiator.

Speaker #4: And so, while we build the agents, the customers are consuming intelligence units and we're monetizing that. While the customer or the partner builds the agents, we're actually monetizing that through the data layer.

Sean Desmond: While the customer or the partner builds the agents, we're actually monetizing that through the data layer.

Speaker #8: Perfect. Thank you, Sean. Very helpful.

Andrew Schmidt: Perfect. Thank you, Sean. Very helpful.

Speaker #4: Thank you.

Sean Desmond: Thank you.

Speaker #8: Thank you. Our next question comes from Hannah Rudolph with Piper Sandler. You may proceed.

Operator: Thank you. Our next question comes from Hannah Rudoff with Piper Sandler. You may proceed.

Speaker #9: Hi guys, thanks for squeezing me in. Two quick ones. Sean, it was really encouraging to hear about the record attendance at Insight. I just wanted to hear if there was anything that really surprised you coming out of the event.

Hannah Rudoff: Hi, guys. Thanks for squeezing me in. Two quick ones. Sean, it was really encouraging to hear about the record attendance at nSight. I just wanted to hear if there was anything that really surprised you coming out of the event. For Greg, as the conference becomes more of a symposium you guys have talked about and AI adoption becomes increasingly relevant, I guess I'd imagine there are more prospects that are coming to the conference. Would love to hear any color around pipeline build specifically resulting from nSight and maybe how that compared to prior years.

Speaker #9: And then for Greg, as the conference becomes more of this symposium— you guys have talked about it— and as AI adoption becomes increasingly relevant, I’d imagine there are more prospects that are coming to the conference.

Speaker #9: Would love to hear any color around pipeline build, specifically compared to prior years.

Speaker #4: Yeah, I'll tell you my biggest surprise coming out of the event, and I'll remind you that I'm a CEO who comes from a customer success heritage.

Sean Desmond: Yeah. I will tell you my biggest surprise coming out of the event. I'll remind you that I'm a CEO comes from the customer success heritage, and I wake up in the morning making sure we deliver outcomes and have strong NPS and customer satisfaction scores. I spend a lot of time talking to my customer base as well as our employees that while we're excited about the future and the AOS and the agentic possibilities and the entire market is involved in the hype cycle, we simply need to fulfill the existing commitments we've made to our customers. What I would tell you is that it was very few and far between at our biggest event of the year, where we have thousands of folks and 300 unique customers, that people pulled me aside to say that we weren't fulfilling those commitments.

Speaker #4: I wake up in the morning making sure we deliver outcomes and have strong NPS and customer satisfaction scores. I spend a lot of time talking to my customer base, as well as our employees, and while we're excited about the future and the AOS and the agentic possibilities—and the entire market is involved in the hype cycle—we simply need to fulfill the existing commitments we made to our customers.

Speaker #4: And what I would tell you is that it was very few and far between at our biggest event of the year, where we have thousands of folks and 300 unique customers, that people pulled me aside to say that we weren't fulfilling those commitments.

Speaker #4: This is a tough business, right? We're solving difficult problems for customers, and I'm really proud that the teams are actually fulfilling all those expectations while innovating at the pace we are.

Sean Desmond: This is a tough business, right? We're solving difficult problems for customers, and I'm really proud that the teams are actually fulfilling on all those expectations while innovating at the pace we are. That was a surprise to me. That's the first thing that comes to mind when you ask that question.

Speaker #4: And that was a surprise to me. That's the first thing that comes to mind when you ask that question.

Speaker #5: And Hannah, in terms of prospects—which is relatively new over the last couple of years, inviting prospects versus customers—as that's evolved, I'd say probably around 10% of those 300 were prospects, which would be a record for us.

Greg Orenstein: In terms of prospects, which is relatively new over the last couple of years, inviting prospects versus customers as that's evolved, I'd say probably around 10% of those 300 were prospects, which would be a record for us. What was great to see for folks who walked around is it was a global conference. There were folks from all over the world there. The fact that they take the time and incur the expense to come, I think, says a lot about them and their commitment to nCino and going on this journey with us, particularly as we focus on AI banking. To me, I always judge those conferences by our sales folks and how they're feeling, and I left there very encouraged and excited by the conversations I had with our sales team post nSight.

Speaker #5: And what was great to see for folks who walked around is, it was a global conference, and so there were folks from all over the world there.

Speaker #5: And the fact that they take the time and incur the expense to come, I think, says a lot about them and their commitment to nCino and going on this journey with us, particularly as we focus on AI banking.

Speaker #5: So, to me, I always judge those conferences by our sales folks and how they're feeling. And I left there very, very encouraged and excited by the conversations I had with our sales team post-Insight.

Speaker #9: Super helpful. Thank you.

Hannah Rudoff: Super helpful. Thank you.

Speaker #4: Thank you.

Greg Orenstein: Thank you.

Speaker #8: Thank you. Our next question comes from Terry Tillman with Truist. You may proceed.

Operator: Thank you. Our next question comes from Terry Tillman with Truist. You may proceed.

Speaker #10: Hey, guys. John Carlo on for Terry here. Thank you for taking the question. I just wanted to ask, what are some of the differences between customers who are using a high amount of credits versus some customers that might be spending a lower amount?

[Analyst] (Truist): Hey, guys. It's Giancarlo on for Terry here. Thank you for taking the question. I just wanted to ask, what are some of the difference between customers who are using a high amount of credits for some customers that might be having a lower amount being spent, and what could explain that delta, and what are the strategies, I guess, to get that lower end up? Thanks.

Speaker #10: And what could explain that delta? And what are the strategies, I guess, to get that lower end up? Thanks.

Speaker #4: Yeah. I would tell you that the number one correlation between our customers that are most aggressively adopting intelligence units is the posture of the leaders in those institutions.

Sean Desmond: Yeah. I would tell you that the number 1 correlation between our customers that are most aggressively adopting intelligence units is the posture of the leaders in those institutes. They need to set the tone and create the space and the conditions to adopt new technology, right? Those are the folks that we run toward with our forward deploy engineering teams. Those are the folks that are eager to have those conversations on-site and innovate together and understand while we're deploying agents, they're already thinking about the art of the possible with the AOS. A lot of this is about change management and leadership posture.

Speaker #4: They need to set the tone and create the space and conditions to adopt new technology, right? And then those are the folks that we run toward with our forward-deployed engineering teams.

Speaker #4: And those are the folks that are eager to have those conversations on site, and innovate together, and understand while we're deploying agents, they're already thinking about the art of the possible with the AOS.

Speaker #4: So, a lot of this is about change management and leadership posture.

Speaker #5: Got it. Thanks.

[Analyst] (Truist): Got it. Thanks.

Speaker #8: Thank you. I would now like to turn the call back over to Sean Desmond for any closing remarks.

Operator: Thank you. I would now like to turn the call back over to Sean Desmond for any closing remarks.

Speaker #4: Thank you all for your interest in the continued momentum here at nCino this afternoon. We appreciate it, and have a great evening.

Sean Desmond: Thank you all for your interest in the continued momentum here at nCino this afternoon. We appreciate it. Have a great evening.

Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

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