nCino at Bank of America Conference: Strategic AI and Growth Focus

On Thursday, 05 June 2025, nCino (NASDAQ:NCNO) presented at the Bank of America Global Technology Conference 2025, outlining a robust strategic direction. The company reported strong quarterly results, exceeding revenue expectations and unveiling a new AI-focused strategy. However, challenges remain as nCino transitions its pricing model amid macroeconomic uncertainties.

Key Takeaways

• nCino exceeded Q1 revenue expectations, raising its annual subscription revenue guidance by $4 million.
• The company is transitioning to a platform-based pricing model, with 15% completion.
• nCino’s AI strategy includes Banking Advisor, AgenTic, and iPass, aiming to lead the AI banking sector.
• A $100 million stock buyback program was announced, highlighting confidence in financial stability.
• nCino is focusing on integrating recent acquisitions to enhance product offerings.

Financial Results

nCino reported a strong first quarter, surpassing expectations in both total and subscription revenues. The company outperformed the high end of its guidance by $1.8 million, with $800,000 attributed to mortgage overperformance. nCino raised its subscription revenue guidance by $4 million for the year. Additionally, the operating income guidance for the second half of the year was increased by $5 million, indicating a positive outlook for the remainder of 2025.

Operational Updates

The company is transitioning from a seat-based to a platform-based pricing model, aiming for better alignment with customer value. Currently, 15% of the customer base has transitioned, primarily in the mortgage sector. This transition is expected to complete over the next four years. nCino’s strategic initiatives include a unified platform for onboarding, loan origination, account opening, and portfolio management across various business lines.

Future Outlook

nCino is committed to achieving the "Rule of 40" target by fiscal Q4 of FY27, balancing growth with profitability and free cash flow generation. The company is also transitioning its ACV bookings towards a more predictable consumption revenue model. With a focus on integrating recent acquisitions, nCino is in "digestion mode" but remains open to future investments that drive long-term shareholder value.

Q&A Highlights

During the Q&A session, CFO Greg Ornstein highlighted the company’s pricing model transition and its impact on adoption rates. A dedicated credit union team has been formed to enhance targeted marketing and cross-selling opportunities. On AI readiness, Ornstein noted varying levels of customer readiness, with a focus on educating the market and sharing success stories.

For a deeper dive into nCino’s strategic plans and financial performance, readers are encouraged to review the full transcript below.

Full transcript - Bank of America Global Technology Conference 2025:

Koji Ikeda, Software Analyst, BofA: Everybody, my name is Koji Ikeda. I am, one of the software analysts here at BofA. I am super thrilled to have Encino CFO Greg Ornstein here for a fireside chat. Thank you so much for being here. We really, really appreciate it.

And so, yeah, I guess from a high level perspective, you know, for those in the room that are unfamiliar with nCino or those on the webcast that is unfamiliar with nCino, just to maybe spend a minute or two on what does nCino do, what is the opportunity, who is Greg? Sure.

Greg Ornstein, CFO, nCino: Well, pleasure to be here. The easier thing, Greg, been in Encino now for about ten years in multiple roles. I took over the CFO role in January of twenty twenty three and been selling software to banks for over twenty years, and so background in financial services software. In terms of nCino, really, you know, who are we? What do we do?

Why do we exist? Right? If you think about it, we help make banks more efficient. Banks are burdened by a whole bunch of legacy infrastructure, old on premise licenses, maybe some have shifted some parts into the cloud, very difficult to manage, very inefficient. I think this is gonna become even more of a problem trying to leverage data in the world of AI.

And so nCino comes in with a unified platform that we focus on four things. We focus on onboarding customers. We focus on originating loans, and that’s any type of loan. Focus on opening accounts, any type of an an account, and then portfolio management. And we do those four things across commercial line of business, which includes small business in this in this context, consumer, as well as mortgage.

And so that’s what we do. And at the end of the day, we are help we’re there to help banks, like I said, become more efficient, reduce expenses, drive revenues, but ultimately, make sure we help them transition into this new world of being able to interact with their customers and and do it in a more profitable and effective manner. Got it. You guys just reported earnings last week. Last week?

Last week.

Koji Ikeda, Software Analyst, BofA: Right? Yeah. Last week. Yeah. So what were some of the key takeaways from the quarter?

You know, maybe your highlights. And then what has been kind of the key debates as you’ve been speaking with investors, you know, post quarter?

Greg Ornstein, CFO, nCino: Yeah. We did have a a good first quarter, a good start to the year, and we felt good about that. We overperformed top line, both total revenues as well as subscription revenues as well as our operating income. And as part of that, we we also reiterated our our gross bookings, our ACV guidance, I should say, for the year. And so from a top line perspective for subscription revenues, we outperformed the top end of our guidance by $1,800,000.

About 800,000 of that we attributed to mortgage. We came into the year saying that we were gonna from a guidance philosophy perspective, we changed our guidance philosophy that we communicated two quarters ago. But for mortgage specifically, we were gonna keep it flat. You just manage expectations. So we didn’t flow that through, but the $1,000,000 overperformance in the core business outside of mortgage, we flowed through for the year and raised the subscription revenue guidance by 4,000,000.

On the bottom line, we raised the back half of guidance by 5,000,000 for operating income, so $10,000,000 on an annualized basis. And so good start to the year. I think we’re pleased and encouraged with the activity that we’re seeing in the pipe. And so really, it’s just about execution. Heads down, closing deals that we say we’re gonna close and closing them when we say we’re gonna close them, and that’s that’s the focus of the team.

Okay.

Koji Ikeda, Software Analyst, BofA: Okay. And then maybe on the investor front, you know, what what’s maybe the one or two most common question that you’ve been getting and how you’ve been answering it?

Greg Ornstein, CFO, nCino: Yeah. I think, you know, clearly, folks continue about macro and potential impacts from from tariffs or maybe some of our international business. And, you know, we feel so far comfortable reporting that, you know, we haven’t seen that be a a negative impact. I think there’s optimism in our customer base, banks and credit unions around potential deregulation, particularly with this administration over the coming years. I know there was some excitement about that, you know, in January.

I know the focus has been on tariffs, but I think that that opportunity, which our customers would would view as a positive looms out there. And so I think all in all, you know, from our market, the macros improved quite a bit from what we saw two or three years ago when they were dealing with, you know, a rapid rise in interest rates at an unprecedented level as well as dealing with the liquidity crisis. And so, again, I think that’s really where it’s been focused, a lot of macro stuff. And then for us, more specifically, you know, we have a new CEO in, Sean Desmond, who started in February. So questions about Sean and and how that transition’s taking place.

And so we’ve enjoyed discussing the impact that he’s already had in the organization and and some of the things that he’s making sure we’re focused on.

Koji Ikeda, Software Analyst, BofA: Okay. Okay. And you just hosted an Investor Day. And so maybe what were the key takes from the Investor Day? I know you’ve been pounding table a little bit on rule of 40, you know, sometime around the fiscal fourth quarter of next of ’27.

And so how do we think about, you know, kind of the key takes of the investor day and kind of that progression to that, you

Greg Ornstein, CFO, nCino: know, rule rule of 40 target? Absolutely. Yeah. We were excited to have our second Investor Day. This one we did at our annual user conference, which was important for us because in order, I think, to appreciate the optimism and excitement we have around the business and the growth opportunity in front of us, it’s important to get exposure to our customers.

And even more, I think beyond that is to see all the product strategy coming together. And so what we really unveiled at the conference where investor day was held was the culmination of a multiyear, multi product r and d initiative and where we’ve brought this unified platform together, again, across commercial, small business, consumer, and mortgage for the product lines that I said. And so I think that was the major highlight seeing that. And, again, I think trying to correlate, you know, those products and the opportunity with the optimism that we have that we would expect over time to flow through our financial results. It was also Sean’s first exposure really to the investment community.

And so I think that was also a highlight as people heard what he’s focused on. We did talk about rule of 40. We put that as a target out in q four. We purposely didn’t say it assumes x percent growth, right, versus we’re going to get there around the fourth quarter of next year. I think people have seen over the last couple of years a lot of good progress with our operating income progression, our operating margin progression.

And I think really the takeaway is that if we can focus on executing our sales with all the product that we’ve got now and with the coverage that we have in the field, we added about 14% sales capacity to the field this year, that we would expect a growth a reacceleration of growth for the top line, and that’s what we’re focused on executing on. Remind me, your rule of 40 composition is revenue growth plus non GAAP operating margins. Right? Correct. Subscription specific.

Koji Ikeda, Software Analyst, BofA: Subscription revenue growth, non GAAP operating margins. Why not a free cash flow margin target for rule of 40? I know a lot of software investors, you know, comp rule of 40 to to revenue growth plus free cash flow. And so why not free cash flow? And what is the relationship between operating income and free cash flow?

Yeah. So when Sean when he spoke on his first investor call, he

Greg Ornstein, CFO, nCino: said there’s three areas that he and we as a team are focused on. The first one is ACV growth. Right? The second one is hitting our rule of 40 targets out there, and the third one being free cash flow and more specifically free cash flow per share over time. And that hasn’t changed, Koji.

I think right now we are going through a pricing model transition. And at Investor Day and folks have heard us talk about, you know, particularly with new logos that sometimes you’ll see ramped pricing where I’ll use an example in a three year deal, maybe they’ll pay you a dollar in year one, $2 in year two, and $3 in year three. That approach has always worked for us because we expect these customers to be with us for ten, fifteen plus years. People always talk about being generational buying decisions with our software because of the sticky nature of it. And so we always like maximizing that exit rate.

But under that model that we evolved to, under rev rec, you actually recognize $2 you straight line that, you recognize $2 a year, but you’re still billing in year one, dollars one. Right? So there’s a little less upfront on the other side of the contract in the second half, you’re actually getting more than you’re recognizing. So we want a little bit more progress through this pricing transition. Yep.

And and then on the other side of that, I think it would be reasonable for us to kinda regroup in terms of free cash flow target.

Koji Ikeda, Software Analyst, BofA: Yeah. Yeah. Let’s talk about the the pricing model a little bit, the platform pricing model. You know, maybe for those that are unfamiliar with it, and I can always use a good refresher here is is what is the new pricing model change? How how far along are we in there, you know, with renewal process, etcetera, and and what does it essentially look like after you’re all done?

Greg Ornstein, CFO, nCino: Sure. Historically, we were a seat based pricing model, which I think particularly where we started on the commercial lending side or the commercial side of the bank made sense. Very much relationship driven. Right? So the seat model made sense.

But if you go back a couple years as we were building out our consumer lending offering, which we’re very excited about, we talked about 43 consumer lending deals last year, including over 20 in the fourth quarter. We realized that we have the opportunity to automate the entire consumer lending process, and therefore, you don’t need seats. Right? Now from a regulatory standpoint, I imagine there’s always a human in the loop. But ultimately, you know, appreciated that having a seat based model would not make sense for that.

And then I think right around that same time period, the mortgage market faced some challenges. Yeah. That was a seat based model. Some of our mortgage customers came to us and said, hey. You know, can you work with us and help us navigate these headwinds?

And we took a step back and and said, you know, them going out of business wasn’t good for either one of us. So, yes, of course, we’ll work with you guys as partners. And we started shifting to a platform model where for mortgage, you pay us a minimum fee per month. And for that minimum fee, you get a certain amount of loans. And as loan volumes come back and increase, we’ve got upside there.

So we’re excited about that. That was the first kind of step forward in the pricing model. And then subsequent to that, we’ve now, as of February first of this year, we have the rest of our business, our bank business, I would say, on the new pricing model, and you pay us a flat platform fee. It’s an annual fee, and it’s based on the assets that you have on our our platform. And then every year, we’ll go back and we’ll assess the growth in the assets that you have on the platform.

And to the extent you go from one tier to another tier, we’d be able to intra contract to raise your price to affect that increase. And I think it really it really has been well received by our customer because I think it aligns us much more from a value standpoint. Right? As they’re getting more values, they’re building assets on the on the platform, giving us a little piece of that. It feels good.

I think it feels good in terms of a true partnership that we have versus a vendor relationship. So we’re about 15% through the base in terms of that transition. A bulk of that is mortgage because that’s where we started. Seasonality wise, Q4 has historically been our biggest quarter. And so the big next cohort of customers to come through will be Q4 of this year, and then we’ll go from there.

Our average contract length is about four years. So in theory, it should take about that time period to get the whole base transition. But we definitely see opportunities as folks, maybe they’ve got us for consumer and they wanna come by commercial. So it comes back and buys a new line of business. We’ll use that as a pivot point to transition them to

Koji Ikeda, Software Analyst, BofA: the new pricing. Would it ever make sense for a customer to renew early on the pricing new pricing model and switch early?

Greg Ornstein, CFO, nCino: Usually, they we we that happens frequently. Yeah. And and usually, though, it’s because they’re buying something new. Okay. And so that would really be a catalyst for for that.

As I said, if they come and they wanna buy, you know, a new line of business, that will be on the new pricing, so we would use that as a transition point. So we think there’s opportunities to accelerate that from four years. Uh-huh. But in theory, that’s how long it would

Koji Ikeda, Software Analyst, BofA: So so not not a real big sales push to push for early renewals right now? No. Okay. Okay. Okay.

But a little bit of a micro question on on the mortgage origination pricing front. Strategies that it’s based on platform fee plus plus loan volume. Is it origination of the the the starting of the loan or the closing of the loan? Is it

Greg Ornstein, CFO, nCino: priced or is it We’re we’re the front end point of sale. Yeah. And while we’re an LOS, a loan origination system for everything else we do on a global basis, in The US, we’re just a point of sale on mortgage. Yeah. And then we’ll integrate with with a back end mortgage LOS.

Okay. So it is that origination that we go through. And and, yeah, as as volumes pick up, we would expect to see to see opportunity there. I think we have very unique offering in mortgage. It really is around getting the ecosystem to get a loan done together on a mobile, in an app, and you can do it online as well.

But where you’ve got the loan officer, you’ve got the borrower, you’ve got the appraiser, everyone working together to get that loan done quickly. And I think that’s one of the things that differentiates us in the market is because the customer wants to know, am I getting my mortgage and when am I going to get the money? Right? And to the extent you’re able to accelerate that, you know, that that is a competitive differentiator for us. And so the the mortgage business has obviously been challenged over the last couple of years, but our mortgage business has grown every year over the last three during this time period.

And so I think we’re very well positioned with the best technology out there for mortgage. I I recall you’ve given on an earnings call a way to think about rates and and volume or revenue upside. Could you remind us what that was, and has that changed at all? It’s not changed because volumes really haven’t, yeah, seen kind of a meaningful change in volumes. But we said based on the data that we have, you know, a 20% increase in volume should generate about a 10% increase Yeah.

In the mortgage customers that are on the new platform. And we also caveated that by saying to get more specific, we really wanna see per customer that volume flow. Okay. Right? Because it could impact some customers differently.

But that was just kind of a rule of thumb as a Okay. Okay. Starting point to think about.

Koji Ikeda, Software Analyst, BofA: No. Thank you for that. Yeah. Vertical software, I always like to ask the the TAM question. I’m gonna ask it in two different ways.

One from a target customer, you know, now now and into the future, and then maybe on a competition front. You know, like, what does that competition look like from the higher end and the lower end of the the customer base or target customer base? And so on the customer side, who is the target customer today? You know, how do you guys think about it? And what does that target customer look like, say, three years from now?

Greg Ornstein, CFO, nCino: Sure. So I think that’s one of the things that’s unique about nCino and our platform is with the same platform, we span community banks and credit unions in The US all the way up to Bank of America, which we are proud to say has been a long standing customer of ours, and that same platform globally as well. Right? We had a little over 20% of our business is outside of The US last quarter. And I think that’s very unique because when we talk about competition, Koji, it very much is concentrated down market in the community bank space in The United States.

And so we really are unique in our ability to scale. And so what’s also unique because we we’re the only ones truly with the platform across the bank. And so where we have competition isn’t an apples to apples. We’ll compete with point solution vendors really in each business line. So you’ll have a competitor down market for commercial.

You’ll have a different competitor down market for consumer. You’ll have a different competitor for mortgage, etcetera. And then certainly when you go overseas, you know, it’s a different group of competitors. Frankly, a lot more would be more build or leveraging some framework technology. And and I don’t and then also INBs, which is a has been a good market for us, notwithstanding the the headwinds.

So that that is the market. We’ve got just under a $20,000,000,000 SAM. We’ve doubled it since we went public in the summer of twenty twenty. So we think there’s plenty of run room runway, I should say. And, you know, I don’t think our our customer base will evolve more.

I think we service all of those customers. And what we’ve been very focused on doing is making sure we’re servicing them with the right teams. And to that end, for example, credit unions, which we’ve had some success in, historically, had the same salespeople who service banks, service credit unions. But credit unions, it it is a different market. And as our consumer lending prod product matured, we formed a separate credit union team to go take that more aggressively to market.

And so that’s how we’ve been trying to kind of break this massive opportunity we have down into kind of more digestible pieces to make sure we’re maximizing the sales that we can get.

Koji Ikeda, Software Analyst, BofA: Why why did the credit union opportunity require a different team?

Greg Ornstein, CFO, nCino: It’s a different it’s it’s a different customer. Okay. Right? They think about the market differently. You know, it’s very community orient oriented as other financial institutions and banks are, but very member driven.

Right? And so they speak a little bit different language, we want to make sure they appreciate that we understand some of those nuances, and we’re there to support them and make sure from an investment perspective, you know, that they are getting the best product for what they need to do. You know, and a perfect example of that, and I think this is where the platform play really resonates, is with credit unions. On our Q1 call, Sean talked about an $800,000,000 asset based credit union that had used us for a pretty small product that helped with some portfolio monitoring, a nice product that we’ve got. But from a cross sell perspective, they expanded again with the platform vision and story.

They bought commercial, they bought consumer, and they bought account opening. And that’s really where we see an opportunity, that platform play with those institutions. Okay. Okay.

Koji Ikeda, Software Analyst, BofA: Let’s move to AI. Yeah. Vertical AI, you know, we think at Bank of America is a very interesting opportunity, attractive opportunity, could be a very disruptive and one of the first places where we might see massive adoption of AI tools. Specialized data, lots of data, very specialized. And so what is the nCino strategy with AI, and how are you thinking about it as a a growth driver over the next few years?

And what are your customers asking for right now from an AI perspective? Or I mean, I guess the question is, are they ready for it, or are they just kinda still trying to figure out what

Greg Ornstein, CFO, nCino: to do? Well, since we do serve banks and credit unions, you know, generally a conservative group. Yep. And I think that actually plays incredibly well for nCino because those customers have trusted us with their data for over a decade. You know, when we started the company, Koji, they said that banks would never put their data in the cloud.

We created this segment called cloud banking. And I think we are uniquely positioned to create and be transition from being the worldwide leader in cloud banking to the worldwide leader in AI banking. And it’s for a few reasons. One is that trust. Right?

In some industries, again, maybe a startup, you know, maybe coming to sell you, you know, you can run your business with leveraging LLNs, and we can help you do that. You know, that’s not going to work in this highly regulated market, right? And so we are uniquely positioned to take them on the journey. We took them on the cloud journey. We can take them on the AI journey.

And we have a unique dataset. And we talked about this at our user conference. We launched a research institute where, again, because of the data that we’ve got access to with the consent of our customers to use, which is something that we’ve been focused on getting, we’re able to see stuff going on and help our banks become more efficient and ultimately able from a trending standpoint talk about it. So there’s three kind of pillars to our AI strategy. The first we call banking advisor, which is basically think about it as generative AI.

And these are things that you can do to help make tasks easier. You know, we had two in the market last year, knowledge and credit memo one that would actually help create credit memos, which is something you need to do to facilitate a commercial loan, automating that. And at our Insight Conference two weeks ago, we came up with 16 more. And in terms of some of our early adopters, we had a different top four bank up on stage talking about the efficiency gains that they’re already seeing with Banking Advisor, and that was before we came out with the 16 new capabilities. So we’re really excited about that.

We priced that where you pay us reasonable fee to get access to the technology, and then it’s on a consumption basis. Right? So you’ll get a minimum amount of consumption that you can use, and as you go over that consumption, we have opportunities for upside. We’ll see how that trends throughout the year. We don’t have any of that in our plans for this year from a modeling or guidance perspective, but we think that can be a great growth lever for nCino for years to come.

The second is AgenTic, right? And wrapping agents around what we do. Again, there, I think we’re uniquely positioned, but because we’ve built the workflow for banks, you know, now for about thirteen years, we know exactly how they operate. And so we know where to focus the agents to help automate more tasks, to make the software that’s already made them efficient even exponentially more efficient. And so I think AgenTic is going to be exciting for us.

We have some customers who, you know, large banks who’ve talked to us about co developing agents with us. And so that’ll be the second leg. And the third one is an iPass opportunity, integration, you know, as an integration platform as a service. We acquired a company called Sandbox Banking in February, and it really is a middleware layer, you know, where we can leverage APIs. We’ve got hooks not only into nCino, but also into a whole bunch of other data points.

And as we think about accessing data, it really is a gateway to access data. And at the end of the day, you know, AI is all about the data, and we think we have a a unique a unique dataset. Are your customers ready for AI? Yeah. How do you think about that?

Yeah. Great question. I think generally, they’re some are more ready than others. And again, to us, this is very much how we remember the the march to the cloud. Yeah.

You’ve got some early adopters, and then you’re gonna have some laggards. And really, it’s incumbent upon us to help educate the market as we’ve been doing to help some of our customers who are some of those early adopters like that top four bank that I mentioned up on stage, you know, have them tell the story and have them talk about why they’re comfortable going on this journey with Encino, why Encino is the right one to take them on this journey. And so, yeah, to us, it’s a very similar transformative opportunity. And so, like I said, I think some are more ready than others, but it’s inevitable. This is the path that we’re going down.

And and, again, I think we’re kind of at the the tip of the spear in terms of what we’re doing leading leading the the march down this path.

Koji Ikeda, Software Analyst, BofA: Maybe switching gears a little bit, going back to ACV, the relationship with bookings there, you know, and the ACV waterfall. As as a mod as I build models, I always get afraid of the waterfall term. And so so walk me through, you know, why why ACV bookings is the right metric here, and how does that play into revenue with that waterfall effect?

Greg Ornstein, CFO, nCino: Yeah. I think, actually, as we’ve transitioned pricing from the seat base where the waterfall was very relevant Yeah. Right, because people would buy seats or customers would buy seats, and only so many would turn on initially. And over time, that waterfall, as you know, the others would turn on. With the new model, there actually isn’t a waterfall, and you can accept there’s opportunities to accelerate revenue quicker.

Yeah. And so, again, you would take the term, you take the fees that are being paid, you’d straight line it, and you’d start recognizing revenue sooner than I think historically than we did.

Koji Ikeda, Software Analyst, BofA: So so over the next couple years, we might see a bit of a trans I don’t know if transition is the right word, but tailing off of legacy waterfall into a more predictable platform consumption revenue model?

Greg Ornstein, CFO, nCino: I think that’s well said, and we’re we’re well down that journey as a lot of the seats have been activated over over time. Yeah. So we’re I think we’re nicely down that that path. But, yeah, I think, you know, us, we had the waterfall model, which I think was very unique to nCino, not seats, but seats with delayed activation versus, again, this platform model, I think, much more familiar Gotcha. To to you guys and and investors.

Koji Ikeda, Software Analyst, BofA: Okay. Maybe in the last few minutes here, I wanna talk about m and a strategy. You know, you guys have bought some stuff over the years, a fair amount of stuff over the past year. And I know that in the last quarter or the quarter before calling out a little bit of a you know, taking a little bit more time on the integration, and and the customers were waiting for it. And so how do we think about I guess, two part question.

How do we think about the m and a strategy going forward from here, and how do we think about the integrations that still need to go with the acquisitions that you have recently done? Yep. So, yeah, a little over a year,

Greg Ornstein, CFO, nCino: we did four acquisitions. Yep. I can tell you we did not set out in years saying, hey, let’s do four acquisitions. Frequently, these things come your way when you’re not looking for them. But I think we feel great about the four deals that we did.

We did comment that right now we’re digestion mode. And so, you know, absent something kind of coming from left field that we just feel is incredibly compelling, you know, from a capital allocation perspective, we announced our first stock buyback as a company, dollars 100,000,000. In terms of how we’re allocating capital, we actually used a little over 40,000,000 up in the first quarter, you know, versus versus m and a. We’re still always looking. I wanna make sure we keep a pulse of the market, but but very focused on, as you said, integrating those, which I feel like we’ve we are substantially complete, including the onboarding one with DocVox, which we integrated that technology into the platform and really unveiled that integrated solution at our Insight user conference two weeks ago.

Sandbox, which is a company we’ve worked with for years, we’ve already integrated into them, very familiar with the team, the most recent one. And so I think as we sit back right now, we’ll continue to tweak and continue to find opportunities leverage and make sure we’re getting the return that we expect from those. But I think we feel real good about those assets. And as we take a step back and look at our product portfolio, I think we feel good about the breadth and depth of our product portfolio right now. So we have plenty of things to sell.

We have this unified unique, unified platform across business lines. And, really, again, it’s just about execution, and I think that’s what you’re gonna hear from us in the coming quarters is just about execution.

Koji Ikeda, Software Analyst, BofA: As you as execution continues, right, good execution continues and and maybe the the ability to do m and a comes back for you guys, or you’re more open to it, would you ever go something big? You know, is that would that be ever in the cards for you guys? I mean, I think I think more more or less the last four acquisitions have been more tuck in. Yeah. Would you go more something more transformative, enter a new category, or go something big to enter

Greg Ornstein, CFO, nCino: a new geographic region? Yeah. You know, tough to speculate on what that may may look like. You know, for us, everything we do, it’s really focused around shareholder value and how do you maximize that. And so that’s the driver.

You know, that would be the driver if an opportunity presented itself. But again, as I said, right now, I think we feel good about the assets. It’s been a difficult couple of years for our market, you know, particularly more on the larger bank side where I think we we have unique exposure versus some of the competitors that I mentioned earlier or referenced that are very much focused down market and community banks. And so so, no, I think we feel you know, we kept our head down. We fulfilled this product vision.

Pierre’s product vision we fulfilled, and now it’s just about going and and, you know, deploying that as broadly as we can on a global basis.

Koji Ikeda, Software Analyst, BofA: Sure. Last question for you, Greg. Yeah. Thank you for being here is maybe kinda going back to that rule of 40 target. And, you know, there is some time between that and then, and lots of things could happen.

Interest rates could go to zero all of a sudden. Right? We we we don’t know. Right? We don’t know.

And and would there ever be a trigger in the market that would signal maybe we should grow faster? Maybe we should invest more. Maybe we should abandon free cash flow generation, non GAAP operating income margin expansion for growth. Would that ever happen? And what sort of triggered what that look like?

Greg Ornstein, CFO, nCino: So look, we always want to on the side of growth. Yeah. And again, making sure we fulfilled from an investment perspective, this product vision was important because that sets us up for years to come in our minds to grow. And so we will always on the side of the growth, and I would I would much rather come to you and say, hey. We’ve had this opportunity.

It’s gonna cost us this. Here’s what we think the return is. We think this is the right thing for the business if that’s what makes sense for the long term, you know, value of the company and long term interest of our shareholders. So, you know, speculating, but sure that could be. I think right now, we feel very good about our product portfolio and about our path to that rule of 40.

Koji Ikeda, Software Analyst, BofA: Yeah. Yep. That makes sense. Greg, we’re out of time. Thank you so much for being here.

Pleasure. We really appreciate it. Thank you. Thanks, everyone.

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