15 Best Small Cap AI Stocks to Buy Right Now

Page 7 of 13

7. nCino, Inc. (NASDAQ:NCNO)

Number of Hedge Fund Holders: 33

​nCino, Inc. (NASDAQ:NCNO) is a financial technology company that provides a cloud-based operating system for banks and credit unions, aimed at improving efficiency, compliance, and customer experience. Built on the Salesforce platform, NCNO’s solutions cover loan origination, account opening, deposit operations, credit analysis, and portfolio management. The company supports digital transformation in financial services by automating workflows, integrating data, and enhancing transparency. NCNO incorporates AI and machine learning through its nCino IQ offering, enabling predictive analytics, risk assessment, and process automation to drive smarter, faster decision-making in banking operations.

nCino, Inc. (NASDAQ:NCNO) has evolved significantly since its IPO in 2020, expanding from primarily a commercial lending platform to building a comprehensive single platform across banking services. The company demonstrated strong performance in recent quarters, with significant bottom-line overperformance and successful signing of major deals, including their largest customer in Japan and a top 40 bank in the US for commercial services. The company’s international business currently represents 21% of overall revenue, with an established presence in key markets including the UK, Canada, and New Zealand.

nCino, Inc. (NASDAQ:NCNO) is implementing a new platform pricing model, moving away from seat-based pricing to asset-based pricing for consumer lending and loan-based pricing for mortgage services, which is expected to provide opportunities for in-contract revenue growth. The company has demonstrated strong margin performance, achieving a 20% margin threshold in Q3, while maintaining focus on growth opportunities within their $19 billion SAM. Despite challenges in the mortgage market, the company has positioned itself for long-term success through product expansion, geographic growth, and technological advancement with initiatives like banking adviser and Gen AI integration.

Page 7 of 13