Q1 2027 nCino Inc Earnings Call Transcript
Key Points
- Ncino Inc (NCNO) outperformed guidance across all key metrics, with subscription revenue growth accelerating to 12% and non-GAAP operating margin improving to 28%.
- The company has successfully transitioned over 40% of its Annual Contract Value (ACV) to a new platform pricing model, demonstrating strong market adoption of its AI technology.
- Ncino Inc (NCNO) reported a significant increase in the usage of its Banking Advisor, with usage up over 38 times from October to May, indicating strong customer engagement.
- The company achieved a record gross bookings performance in Q4 of fiscal '26, contributing to a significant sequential dollar increase in subscription revenues.
- International revenues showed strong growth, with non-US subscription revenues up 21% year-over-year, reflecting successful global expansion efforts.
- The U.S. Mortgage business is facing challenges, with a forecasted negative 2% year-over-year subscription revenue growth for the second quarter due to elevated mortgage rates.
- Despite strong performance, Ncino Inc (NCNO) is not extrapolating the first quarter overperformance in U.S. Mortgage subscription revenues into future guidance, indicating caution in this segment.
- The company faces a competitive landscape with both longstanding and new AI-native competitors, which could impact market share.
- There is a need for careful management of compute costs associated with AI deployments, as some tasks are more compute-intensive and could affect margins.
- The transition to the new pricing model and AI adoption requires significant change management and leadership buy-in from customers, which could slow down adoption rates.
Good day and thank you for standing by. Welcome to the EnCino First Quarter Fiscal Year 2027 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question-and-answer session. To ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again. I would now like to hand the conference over. To your speaker today, Harrison Masters, Vice President, investor relations.
Good afternoon, and welcome to InCino's first quarter fiscal 2027 earnings call.
With me on today's call are Sean Besman, InCino's Chief Executive Officer and Greg Orenstein, InCino's Chief Financial Officer.
During the course of this conference call, we will make forward-looking statements regarding trends, strategies, and the anticipated performance of our business. These forward-looking statements are based
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