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

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Saket Kalia: Got it, got it, that makes sense. David, maybe for you for my follow-up. Can you just talk about the health of underlying bookings in the quarter? I mean clearly the visibility on revenue is super high. You gave a helpful framework for how to think about revenue growth for next year. But I’m curious, how are the leading indicators looking now qualitatively of course, for just revenue growth drivers in the future. Does it make sense?

David Rudow : That does. And we do not disclose bookings, but I can talk about sales activity. So sales activity in the quarter despite Europe being slow, we had some FX impact and SimpleNexus, it was pretty much in line with our expectations. We talked about this earlier, about the year you know. We returned to a more normal cycle in terms of sales for the year, where the second half is higher-weighted than we saw over the last couple of years during COVID. So Q4 this year will be our biggest quarter of the year, but activity in the third quarter was pretty much in line with our expectations.

Saket Kalia: Very helpful. Thanks guys.

Operator: Thank you. Our next question €“ just one moment for our final question for today. And our final question for today comes in the line of Charles Nabhan from Stephens. Your question please.

Charles Nabhan : Great! Good afternoon and thank you for fitting me in. So my question is on the impact of the elongated sales cycles and the delays in decision-making on your existing customer base. So I would imagine it’s more pronounced on potentially new deals, but you know land and expand has been really the centerpiece of your strategy. So I’m curious, in terms of what you’re seeing within your existing customer base, in terms of a reluctance or an acceptance to expand existing relationships. And I guess sort of as a follow-up to that, to put a finer point on it, I’m curious what that could potentially mean for net retention levels and ACV expansion going forward.

Josh Glover : Absolutely! And we do value those customer relationships and we’re €“ in the nCino journey, we have seen headwinds. We find that those customer conversations are the easiest to keep going. So we continue to see ongoing success and proof points of our ability to cross-sell these solutions. We talked about adding retail and DAO into the $7 billion bank in Hawaii. We added CPP into a New Zealand enterprise account. This one we’re particularly proud of. That was a competitive deal and a fantastic account. And we’re also seeing, despite everything we discussed and reported, a good validation of SimpleNexus value in the bank market, right. Five cross-sales into nCino banks and credit unions and frankly, those are our larger deals that we would sell into IMBs. So we feel that is something that we’ll continue to focus on, and we always aspire, because we deliver for our accounts to be continuing into those conversations from a position of success and partnership.

Charles Nabhan : Got it. And just as a quick follow-up, and I apologize if I missed this somewhere. But can you talk about LBA Ware and the impact or contribution that had to SimpleNexus, as well as what you’re seeing in that business in terms of traction?

David Rudow : Yes. I mean we’ve had some cross-sales into the base of nCino, but we don’t have any more details. We’re not going to break down details because that really is integrated into the SimpleNexus platform now and so that’s all the detail we can give.

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