JoshGlover: So we — yes, to clarify, in the last quarter, we saw 40% of our new logos committing to more than one solution on one day. We’ve seen an increase on that across the full product portfolio as well. We’re now looking at 27% of our platform customers using more than one solution. That’s a year-over-year increase as well.
GregOrenstein: And that excludes nIQ. You’re talking pure platforms.
JoshGlover: 27% of pure platform, 49% if you include one — at least one nIQ solution.
CrisKennedy: Thank you.
Operator: And, thank you. And one moment for our next question. And our next question comes from Joe Vruwink from Baird. Your line is now open.
JoeVruwink: Okay. Great. Thanks. Hi, everyone. Pierre, you mentioned in a previous answer, just wanting to be appropriately resourced so that you maintain leadership in core commercial, but then certainly exploit and pursue the other areas. Can you maybe just go into a bit more detail on what that all means just relative to the previous long-term operating model and some of the expense ratios and margin targets you’ve outlined? And does it suggest that maybe expense ratios could counterbalance higher over the midterm time frame, just relative to what’s obviously been a great expense leverage this year?
Pierre Naude: Yes. No, what I would say is I wanted to make sure that people understand, we are still investing in that commercial product, and we still see a massive global opportunity. To remind you, we’ve returned 400 accounts in the U.S. There’s over 2,000 that we’re targeting right now, but there’s over 4,300 banks. There’s over 5,000 credit unions. We’ve got the mortgage product now that goes after IMBs as well, it’s over 4,000 institutions. So you’re talking about over 10,000 institutions that we can target, okay? Obviously, commercial does not go after IMBs. But with this deal in the Middle East, we’re opening a new front where we are going outside of our core countries, along with our SIs to sell these on what I would call named account deals.
So we’ve got a list of accounts globally we’re targeting. And those are very exciting deals And it shows you how we can take that thing and take it across borders and it doesn’t need much changing to actually run in these countries. And that’s why I want to make sure people understand we will continue to invest not only in the product itself, but into nIQ elements around the credit underwriting and the driving of efficiency in the commercial base. That is the profit center of many, many of these banks. The second profit center if we go outside the U.S. is the mortgage balance sheet. They keep all those mortgages on balance sheet because it’s a variable rate product with a great piece of collateral attached, which is your house, which you don’t want to lose and so you keep on paying.
So I think we are well positioned to actually address the core issues that banking has in the foreseeable future, drive efficiency and a heavy load of self-service. And so from that perspective, I wanted to make sure there’s a balanced view of commercial growth, maintaining market leadership because we work hard to get there. And then as these other products mature, they’re all coming up to pull their weight down.
GregOrenstein: Yes. And Joe, just to add, all of this is part of our plan. Again, we’ve made a lot of investments over the last couple of years, both in expanding geographically as well as expanding our product portfolio whether it’s retail or again, everyone is talking about AI. We’ve been investing in AI now for four years in machine learning and analytics. And so this is all part of continued execution versus any net new investments if I heard your question.
JoeVruwink: Yes. No, that’s good. Thank you. And then on the careful approach being taken by the U.S. enterprise segment. When that spending comes back, do you think it comes back in the product areas where decisions have maybe been put on a bit of a pause? Or just given some of the strategic things you’ve been speaking of today, thinking about focus on net interest margin, ESG, credit quality portfolio, visibility, what’s on the books? Do you think engagement and the scope of what a bank might consider nCino for changes for better or worse when that spending comes back?
JoshGlover: We think we’re just going to see them with a more dedicated focus to providing that robust set of products so they can use to fulfill a variety of customer needs. So they’re always going to want to do their commercial and business purpose lending well because, obviously, that’s really important to their business, and it’s where a lot of other assets sit. But we see increased engagement in the other offerings as well. And then within all of our solutions, they’re going to want to look to leverage intelligence at the point of execution as well as they can to take that optimized process and make it even better.
Pierre Naude: I’ve been traveling around the country to meet with customers. And there is clearly a rethinking of the old strategy. For the longest time in banking, I’ve always had, we love consumer deposits — and I’m talking about the U.S. now, we love consumer deposits, but we like commercial lending. Now if you look at deposit trends across the banking sector, a lot of these deposits and consumer accounts moved to the big four, which has been for years a problem, but it wasn’t as magnified as we’ve seen lately. And one customer commented to me that there was always a big benefit for them to have these low interest rate, big customer deposits that were seen as an asset. And when Silicon Valley Bank happened, all of a sudden, the atmosphere around that change and people said, you should have consumer deposits.
And what that is doing now is that people are rethinking their relationship with the customer, okay? And they realize that if you want a good relationship with a consumer customer, you need to provide the technology, the self-service and the ease of use that you can expect from companies with big brands like JPMorgan, National Bank of America, where they have a brand around their technology. And then nCino can fill that void because we’re so client-centric. We provide the account opening, we provide the low origination, et cetera, from consumer up to the small business and all the way up to commercial. And I think that is what’s going to drive that IT simplification and that renewed strategy and focus on the customer as opposed to the siloed way of going to market inside these banks.
And I’ve heard that echoed as I traveled around the country.
JoeVruwink: That’s great. Thank you very much.
Operator: And, thank you. And one moment for our next question. And our next question comes from Alex Sklar from Raymond James. Your line is now open.
