nCino, Inc. (NASDAQ:NCNO) Q3 2023 Earnings Call Transcript

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Nicholas Altmann: Great! Thanks. And then just maybe one for Josh. Just given the challenging demand environment, how are you sort of thinking about making go-to-market tweaks heading to next year? Are there maybe plans in place to shift sales resources into the upsell side, you know given that new customer side of the equation might be a little bit more difficult or maybe kind of focused on smaller, higher velocity deals with shorter sales cycles. Just any commentary around you know go-to-market tweaks, maybe that you’re planning for heading into next year just given the macro backdrop would be really interesting. Thanks.

Josh Glover: Absolutely! And I would say €“ I’ll start with international. If you look at the proof points that we hit earlier, great wins in New Zealand, Go-Lives in Japan and Germany, expansion within London and Go-Lives in Canada. We are committed to the countries that we’re in. So we’re going to make sure we’re there to help those customers succeed and continue to €“ to continue running at the opportunity in those markets. Within the U.S., we don’t do Hunter-Farmer from our perspective. It makes sense to have one account executive that covers the account for the long run, sets us up for better expansion and longer term relationships. So we don’t intend to do any major changes there. We’re going to play the long game with those accounts and ensure that just as they are going to want to come out of the other side of any headwinds stronger, we’ll be there with them.

Pierre Naudé: Yes, I would like to emphasize that even as we’re going into a profitable growth company, our posture will always be to favor growth. We believe market share gains is important for our long term health, as well as long term profitability.

Josh Glover: When you look at our footprint in these strategic accounts, 23 of the top 50, a lot of those were conversations that have played out over time and we’re going to make sure we’re there for them.

Nicholas Altmann: Great! Thank you.

Operator: Thank you. One moment for our next question. And our next question comes from the line of Josh Beck from KeyBanc. Your question please.

Josh Beck: Thank you team for taking the question. You know I wanted just to ask a little bit the higher level about you know the visibility that you have going into the next fiscal year. Obviously you benefit from multiyear, time based milestone types of contracts. So I feel like in general that gives you pretty good visibility. However, you know the macro is very fluid. You certainly talked about European sales cycle, churn and SimpleNexus and FX. So I guess my question is like, as we go through Q4, you know what are going to be some of the really key items? You know is it U.S. sales cycles? Is it what happens with mortgage rates? You know what are going to be some of the key items that you’re tracking to kind of maybe get a little more precision about how fiscal Q2 could play out?

Pierre Naudé: I would say firstly, we’re in the planning stages and as you can imagine, we track all these various factors literally on a daily and a weekly basis, but the U.S. keep on performing. I would say, I would love to see FX stabilize and improve in our favor. That will be a great little bonus. Secondly, if we get any indication that mortgage rates just top out and start coming down, you’re going to see refi volumes go back up and you’re going to see people get like a new lease on life in the mortgage business and that will just rip that market open, okay? And then realizes those companies who then is going to expand by using tools like SimpleNexus will actually buy from stable financial companies that’s profitable and has proven that they do their development and their work in the U.S. And then finally, I think the European story is a bit longer term.

We’ve got some great customers there and great prospects, but I would say that is the third one that probably could be on the upside as that environment improves, but I can’t see around the corners.

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