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Date

Wednesday, May 27, 2026, at 4:30 p.m. ET

Call participants

• Chief Executive Officer — Sean Desmond
• Chief Financial Officer — Gregory D. Orenstein
• Vice President, Investor Relations — Harrison Masters

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Takeaways

• Total Revenues -- $159.4 million, representing 11% year-over-year growth.
• Subscription Revenues -- $140.9 million, rising 12% year over year or 11% in constant currency.
• Non-U.S. Subscription Revenues -- $31.3 million, up 21% year over year, or 16% in constant currency.
• U.S. Mortgage Subscription Revenues -- $19.7 million, increasing 4% year over year.
• Professional Services Revenues -- $18.5 million, unchanged year over year, with non-GAAP gross margin rising to 10%, up 1,100 basis points, adding approximately $1 million to non-GAAP operating income.
• Non-GAAP Operating Income -- $44.5 million, 28% of total revenues, an increase of 79% year over year; $1.7 million of this overperformance was due to delayed timing of expenses.
• Free Cash Flow -- $80.8 million, a 54% increase year over year.
• Share Repurchases -- Approximately 6.1 million shares repurchased at an average price of $15.20 per share, totaling $93.1 million; $65 million remains available under the program.
• Banking Adviser Usage -- Usage rose by more than 38 times from October to May, with adoption contributing to intelligence unit consumption growth.
• Updated Platform Pricing Model -- Over 40% of annual contract value (ACV) is on the new platform pricing model, up from 38% at January-end.
• AI Monetization -- More than 200 customers have purchased initial intelligence unit bundles, and some have already reached or exceeded their original allocations.
• Professional Services Efficiency -- "We are seeing the returns on investments we have made in our professional services organization over the past year, developing AI tooling and methodologies that are already compressing professional services hours per engagement by greater than 40%." due to new AI tooling and methodologies.
• AI-Assisted Code -- Approximately 57% of code was written with AI assistance in the first quarter, up from 21% a year ago.
• Q2 Guidance -- Total revenues expected between $157.75 million and $159.75 million; subscription revenues forecasted at $140.25 million to $142.25 million, reflecting 7%-8% year-over-year growth (9%-11% excluding U.S. mortgage and in constant currency); non-GAAP operating income of $35.5 million to $37.5 million.
• Full-Year Guidance Updates -- Raised fiscal 2027 total revenue guidance to $642 million to $646 million (approx. 8% growth), subscription revenue to $571.5 million to $575.5 million (10% growth; 9% in constant currency), non-GAAP operating income to $166 million to $171 million (approx. 30% growth at midpoint), and free cash flow to $135 million to $140 million.
• International Performance -- Strength noted in Continental Europe, Japan, and Southeast Asia; growth supported by team restructuring and expanded data partnerships.
• ACV Additions -- Net additions to ACV for fiscal 2027 expected to be $60 million to $65 million, totaling cumulative ACV of $662.5 million to $667.5 million, representing 10% growth at the midpoint.
• Insight Conference -- Over 1,600 attendees participated, with more than 300 customers and prospects; approximately 10% of participants were prospects.
• Cost Management of Intelligence Units -- Not all intelligence units require large language models, enabling cost management depending on skill type.
• Forward Deployed Engineering Team -- Fully utilized across diverse customer profiles, including major banks in the U.S. EMEA, and APAC.

Summary

nCino (NCNO +4.58%) reported strong top-line growth driven by accelerated subscription revenue and AI-driven operational efficiencies, resulting in a significant increase in non-GAAP operating income and free cash flow. The company saw an early inflection point in AI monetization, with initial customer cohorts exceeding their intelligence unit allocations, highlighting momentum for expanded adoption. Management cited rapid growth in banking adviser usage and customer migration to the updated platform pricing model as leading indicators for future revenue expansion.

• Desmond said, "Consumption of intelligence units has continued to inflect higher month over month with banking adviser usage up>38x so far in the month of May from October," citing tangible evidence of accelerating AI adoption.
• ConnectOne Bank engaged nCino for initial forward-deployed banking adviser implementation, aiming to reclaim half of its team's time for revenue-generating activities.
• Professional services margins benefited from AI-driven productivity improvements, contributing to operating leverage and client value.
• Management emphasized prudent guidance for mortgage revenue growth, forecasting second-quarter U.S. mortgage subscription revenues to decline by 2% year over year due to elevated mortgage rates and a difficult prior-year compare.
• The international segment's robust subscription revenue growth outpaced consolidated growth, assisted by leadership changes and strategic expansion in data partnerships.
• nCino recorded its largest-ever quarter for global gross bookings in the preceding quarter, directly impacting strong sequential subscription revenue growth due to early deal closures and revenue recognition under the new model.
• Desmond stated, "intelligence unit consumption is the future of this company," underscoring management's strategic focus on AI-driven monetization.

Industry glossary

• Intelligence Unit (IU): nCino's proprietary AI consumption metric, representing tokens sold in bundles enabling various AI tasks within the platform; monetized as customers utilize advanced workflow and analytic features.
• Agentic Operating System (AOS): nCino's AI orchestration platform supporting role-based, workflow-embedded agents across banking operations, designed to embed intelligence and automation in customer processes.
• Forward Deployed Engineering (FDE): Specialist teams that work directly with customers to implement AI and agentic solutions, accelerating adoption and informing product development.
• Gross Bookings: The total value of contracted business signed within a period, serving as a leading indicator for future revenue growth, particularly with the shift to new pricing models.

Full Conference Call Transcript

Sean Desmond: Thank you, Harrison and welcome everyone. Before we turn to highlights from our strong first quarter, I want to take a moment to remind you of nCino's mission in the market. NCino was founded to help financial institutions across the globe digitize, automate, and streamline their business processes. Boosting efficiencies and creating better banking experiences. NCino serves as the system of record for the operational processes and resulting decisions that drive revenue growth and mitigate risk for our customers. We serve some of the largest financial institutions in the world as well as regional and community banks, credit unions, and independent mortgage banks.

Helping them more efficiently and effectively onboard clients, make loans, monitor portfolios, and open accounts through a single, unified platform powered by AI. Our depth and breadth of customer relationships unique dataset, and history of technology innovation built on almost a decade and a half of deep domain expertise inside the highly regulated world of banking. Uniquely positioned nCino to lead the AI based transformation of the financial services industry. Turning to the first quarter, we delivered a great start to the year, outperforming guidance across all key metrics. Including accelerating subscription revenues 12%. And improving our non-GAAP operating margin to 28%, Achieving the rule of 40.

The entire organization continued to execute with focus and discipline across the strategic initiatives instituted in fiscal 26 and I could not be more proud of their hard work and efforts. Customer conversations continue to reinforce that every financial institution is thinking about how they can leverage AI to be more efficient. And they are recognizing that to make AI work for their organization, they need a trusted partner like nCino. We help our customers harness AI specifically for banking. By providing the context and data needed to deliver reliable outcomes while also providing the governance infrastructure required to satisfy legal, risk, and regulatory requirements.

Every AI interaction on our platform is auditable, traceable, governed by the same standards our customers apply to their human workforce because in banking, intelligence without accountability is not intelligence. it is a liability. Banking adviser is the first expression of our Agentic operating system. The intelligent layer that orchestrates AI across the full range of banking operations that we unveiled 2 weeks ago at Insight our annual customer conference. Our digital partners purpose built AI agents for distinct banking roles from executive strategy to loan processing to client engagement. Represent the next wave of capabilities built on this infrastructure.

This is not a single chatbot. it is a platform designed to embed nCino intelligence into every workflow a financial institution runs. Customers that want to leverage nCino's AI capabilities must first adopt our new platform pricing model that correlates our business model to our clients' outcomes. At the end of Q1, >40% of our ACV has already transitioned to this pricing model. Which we believe demonstrates the heightened urgency in the market to embrace nCino's AI technology. We generally monetize our platform with platform fees and also through the sale of AI token bundles which we call intelligence units. Customers use these intelligence units to execute various AI tasks on our platform.

Some tasks are as simple as chat usage where users can ask a question like, is this borrower in compliance with their covenants? While others are more complex and compute intensive, like agents that continuously monitor the credit performance of an entire loan portfolio. As of the end of Q1, >200 of our customers have their initial bundle of intelligence units. We have been very intentional about how we package these initial bundles of intelligence units as our near term strategic goal is to maximize and accelerate the adoption of our AI features.

To this end, we thoughtfully sized initial bundles to provide enough room for customers to comfortably experiment with, deploy, and ultimately build reliance on core group of AI capabilities. Without worrying, they will exceed their initial allotment and get saddled with unexpected invoice for overages. Our customers span a wide continuum of readiness and enthusiasm to adopt these AI features and depending on how widely they initially deploy the technology across their institution, and how many AI capabilities they start off using an average customer might have their initial bundles last them about a year.

Our strong point of view is that by taking this deliberate approach, rather than prioritizing near term revenue opportunities, customers will be able to more quickly and easily realize the value of our AI technology. We expect as customers get more accustomed to this value and become more reliant on the benefits it provides them they will adopt even more of our AI capabilities and purchase more bundles of intelligence units. Additionally, as more compute intensive agentic capabilities like continuous portfolio monitoring, agentic deal creation, and Agentic multi step loan origination workflows are adopted we expect the number of intelligence units consumed per task and workflow to increase meaningfully. Creating natural expansion in consumption beyond simple user growth.

We are already starting to see signs of this in the field. Consumption of intelligence units has continued to inflect higher month over month with banking adviser usage up >38x so far in the month of May from October. With a few business days still left for additional usage this month. This gives us tremendous confidence in our ability to optimize subscription revenues growth from intelligence unit consumption over the medium and long term.

While some of our customers are just getting started experimenting with nCino's AI technology, Others are more advanced in their journey, including those that want to run in front of the pack by welcoming our team of forward-deploy engineers on-site to help them embrace our banking adviser and agentic capabilities. Several of these customers were on stage with us at Insight where we welcomed >1.6 thousand attendees. Representing an Insight user conference record of >300 customers and prospects to Charlotte, North Carolina, for what has evolved from a software user conference to a symposium for intelligent banking.

Frank Sorrentino, CEO of ConnectOne, shared the stage with me to discuss his bank's experience to date with banking adviser and notably referenced his plan to reclaim half of his team's time for revenue generating activities by leveraging nCino's AI capabilities. ConnectOne, a $14 billion institution in the Northeast, and an nCino customer since 2017 that already boasts 1 of the best efficiency ratios in banking, contracted for their first bundle of intelligence units and began their banking adviser rollout in the fourth quarter of fiscal 26.

The bank engaged with our team of forward-deploy engineers in March for a quick win engagement to assess current benchmarks with our operations analytics functionality and to pinpoint friction points they could quickly address with Banking Advisor. This initial forward deploy engineering engagement put foundational banking advisor capabilities in the hands of all the bank's nCino users. And they could not be more excited about the time they are getting back. As a simple example of this, rather than manually creating relationship records, the banker tells banking adviser to do it for them. As compared to the tedious 1 by 1 process of creating and updating collateral records, banking adviser does it on demand en masse.

NCino's forward deploy engagements serve a dual purpose. They accelerate value for our most ambitious customers while simultaneously informing our product road map with real world application of our Agentic and other AI solutions that we can then scale across our entire customer base. We are already planning a follow on FDE engagement at ConnectOne to raise the bar even further with our digital partners. nCino's series of persona based AI agents. Our Forward Deployed engineering team is fully utilized. With engagement spanning the spectrum of our customer base including a $5 billion community bank, an $80 billion regional bank, and a top-4 enterprise bank in The U. S. As well as customers in EMEA and APAC.

I would like to highlight another development on the AI front. We are seeing the returns on investments we have made in our professional services organization over the past year developing AI tooling and methodologies that are already compressing professional services hours per engagement by >40%. As Greg will elaborate on shortly, it was great to see this show up in our professional services gross margins this quarter but beyond the positive gross margin impact, I believe the bigger return will be materially shorter implementations and lower program costs for our customers that will ultimately drive better pipeline conversions for nCino.

We are enabling customers and system integrator partners with the same tools to help them continually optimize their deployments and prepare their environments for our latest innovations. On the product development and engineering front, we are seeing development cycles that used to extend beyond a year now compress <90 days. With teams operating approx. 34% more efficiently over the past year with AI which allows us to invest more aggressively in agentic and other AI capabilities while continuing to fulfill foundationally functional commitments to our customers. In the first quarter of fiscal 26, approx. 21% of our code was written with AI assistance. That percentage increased to approx. 57% as of the first quarter of fiscal 27.

But writing more code is not the goal. from idea to production. The goal is to be faster in the entire product life cycle to production. We estimate writing code represents approx. 30% of the work it actually takes to ship a product. The rest is product definition, quality assurance, security reviews, compliance validation, and the coordination required to deliver tier-1 mission-critical software to financial institutions of all sizes. We believe there is no better blend of technical talent and financial services domain expertise anywhere in the industry than right here at nCino. And these tools and efficiency gains are exciting enablers of product development velocity and potential leverage on our path to sustaining the Rule of 40 and beyond.

In summary, I am extremely proud of the way the team is executing our strategy. Excited by the tenor of conversations coming out of Insight and eager to build on the momentum from Q1 to continue helping financial institutions around the world turn AI ambition into measurable outcomes. As 1 of our stockholders noted, in an April white paper on the rise of AI, companies with mission critical workflows deeply embedded customer relationships, regulatory complexity that serves as a moat rather than a burden, and the free cash flow generation required to absorb and accelerate through the transition will not be victims of AI. They will be AI's next beneficiaries.

We believe that statement accurately reflects nCino's strategic positioning and reinforces our confidence that nCino is uniquely positioned to be an AI beneficiary and to lead the financial services industry into the world of AI powered banking. The reason we are confident is straightforward. Our AI capabilities are shaped by almost 15 years of operational banking data across global, regional and community banks credit unions and independent mortgage banks embedded in the actual workflows where loans get made. Risk gets managed, and compliance gets enforced. This combination of domain specific intelligence regulatory trust and workflow integration is not something that can easily be replicated by a general purpose AI provider or easily assembled from scratch.

And with that, I will turn the call over to Gregory.

Gregory D. Orenstein: Thanks, Sean. And thank you all for joining us today. Please note that all numbers referenced in my remarks other than revenues are on a non GAAP basis unless otherwise stated. A reconciliation to comparable GAAP metrics can be found in today's earnings release which is available on our website and as an exhibit to the Form 8-Ks furnished with the SEC just before this call. In Q1, total revenues were $159.4 million, an increase of 11% year over year. Subscription revenues were $140.9 million, an increase of 12% year over year or 11% in constant currency.

Note that the first quarter represented a significant sequential dollar increase in subscription revenues at approx. $7.5 million This was enabled by a record gross bookings performance in Q4 of fiscal 26, with earlier deal closing timing in the fourth quarter and straight line revenue recognition under our new pricing model yielding more subscription revenues relative to the prior quarter than we have generally seen historically. As noted on Slide 14 of our earnings presentation, subscription revenues over performance included a foreign currency tailwind of approx. $1.3 million favorability of approx. $500 thousand from US mortgage, and approx. $200 thousand of execution based overperformance. U. S. Mortgage subscription revenues were $19.7 million in the first quarter, up 4% YoY.

Professional services revenues were $18.5 million, flat YoY. As I have previously highlighted, we believe our progress with professional services is best measured by looking at the growth in professional services gross profit dollars rather than professional services revenues. As we continue to apply and refine new implementation methodologies leveraging AI to reduce project timelines. Non US total revenues were $36.4 million, up 15% year over year or 11% in constant currency. Non US subscription revenues were $31.3 million, up 21% year over year or 16% in constant currency. Non GAAP operating income was $44.5 million, or 28% of total revenues, an increase of 79% year over year.

Non GAAP professional services gross margin improved meaningfully in the first quarter to 10%, up 1.1 thousand bps year over year contributing approx. $1 million to the non GAAP operating income over performance in the quarter. Approx. $1.7 million of the overperformance of non GAAP operating income was from the delayed timing of expenses, including for various marketing activities, that we thought would occur in Q1 but now expect to incur later in the year. And the balance of the overperformance was from the gross profit resulting from subscription revenues overperformance as noted on Slide 14 of our earnings presentation. Free cash flow was $80.8 million in the first quarter, up 54% YoY.

As a reminder, the first quarter is typically our largest free cash flow quarter of the year, following seasonally high bookings in the fourth quarter of the prior year. Turning to an update on our share repurchase programs. In the first quarter, we repurchased approx.

6.1 million shares of our outstanding common stock under the December 2025 stock repurchase program and the March 2026 accelerated share repurchase program at an average price of $15.2 per share totaling $93.1 million This includes 5.5 million shares received upfront as part of the $100 million ASR program announced in March, and we expect to receive the remaining shares in the second quarter. $65 million remains available for future repurchases under the December 2025 stock repurchase program. Turning to guidance.

For the second quarter of fiscal 27, we expect total revenues of $157.75 million to $159.75 million with subscription revenues of $140.25 million to $142.25 million an increase of 7% to 8% year over year respectively at the midpoint of the ranges. Excluding U. S. Mortgage, our second quarter subscription revenues guidance assumes constant currency subscription revenues growth of 9% to 11%. You will recall the second quarter of fiscal 26 included U.S. mortgage subscription revenues growth of 22%. Our second quarter guidance assumes elevated mortgage rates suppressed the seasonal benefit we realized last year making for a difficult year over year-over-year compare for our U.S. mortgage business, and we are forecasting -2% YoY subscription revenues growth for U.S.

Mortgage in the second quarter as noted at the bottom of Slide 10 in our earnings presentation. Non GAAP operating income in the second quarter is expected to be $35.5 million to $37.5 million Our annual user conference and other marketing activities are expected to contribute approx. $3 million sequential increase to sales and marketing expenses in the second quarter with timing of expenses in our annual merit process contributing the rest of the increase in operating expenses assumed by our non GAAP operating income guidance. We are very excited about the size and quality of our sales pipeline, and the sales momentum and activity we see across our business.

For fiscal 27, we continue to expect net additions to ACV of $60 million to $65 million on a constant currency basis representing cumulative ACV of $662.5 million to $667.5 million up 10% over fiscal 26 in ACV at the midpoint of the range. As a reminder, the first quarter is historically our smallest gross bookings quarter of the year, and the fourth quarter is our largest. For fiscal 27, we now expect total revenues of $642 million to $646 million, up from our prior guidance range of $639 million to $643 million representing approx. 8% growth at the midpoint of the range.

For fiscal 27, we are extrapolating the approx. $200 thousand execution-based subscription revenues over performance through our full year guidance. In keeping with our guidance philosophy for mortgage that we established last year, we are not extrapolating the first quarter over performance in U. S. Mortgage subscription revenues. For fiscal 27, we now expect subscription revenues of $571.5 million to $575.5 million up from our prior guidance of $569 million to $573 million representing 10% growth or 9% in constant currency at the midpoint of our range. Our updated guidance continues to assume annual U. S. Mortgage revenues growth of approx. 1% and assumes subscription revenues growth excluding U.S. mortgage of 11-12% year over year.

Our updated guidance does not assume any additional currency tailwind beyond the first quarter. We are raising our non GAAP operating income guidance and now expect fiscal 27 non GAAP operating income to be $166 million to $171 million up from a prior range of $165 million to $170 million. This represents an approx. 30% increase over fiscal 26 at the midpoint. You will note we did not pass all of the Q1 non GAAP operating income over performance through. In light of the shift in timing of expenses as well as a desire to maintain some operating flexibility at this early point in the fiscal year, similar to the approach we took last year.

We continue to remain focused on driving the rule of 40 mix in future quarters, more towards subscription revenues growth than non GAAP operating margin. We are also raising our free cash flow guidance for fiscal 27 to be $135 million to $140 million up from the prior range of $132 million to $137 million We expect the second quarter to contribute a majority of the remaining annual free cash flow represented by our guidance. With that, I will open the line for questions.

Operator: Thank you. Please press 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. Our first question comes from Adam Hotchkiss with Goldman Sachs. You may proceed.

Analyst (Adam Hotchkiss): Brent. Thanks so much for taking the questions. I wanted to start, Sean, with your comment around the AI efficiencies. You are seeing in Professional services segment, particularly the engagement cost being down by engagement per hour cost being down by >40%. Just talk a little bit about what exactly is driving that? To what extent do you know, what is it within your business that you are seeing, drive that so quickly? I think that is a pretty precipitous move given the times you have started to implement some of these AI changes. So maybe just go into a little bit more detail around of those drivers.

Sean Desmond: Sure. Thanks for the question. Firstly, I would say the most important AI efficiency that our forward deploying engineering teams are delivering are the outcomes for our customers, and that is what I am most excited about. And that is what I believe we are most focused on. At the same time, we have been on a journey, that I have been communicating to you all for some time to increase the velocity with which we deploy our solutions. And so it might seem like that is been overnight, but we started on this journey beginning of last year.

And as our forward deploy engineering teams are locked step in alignment with our product development and engineering teams, We are really looking at the entire life cycle from how we build our software to how we deploy our software and get it into our customers' hands quickly so they can receive outcomes. And that is why banking adviser is being deployed in a matter of weeks versus months, and we are seeing the efficiencies that we are seeing. And it is also translating to the bottom line.

Analyst (Adam Hotchkiss): Okay. Brent. Really helpful. And then, Gregory, just on the mortgage revenue point, I know we saw a pretty large pickup in industry refi volumes over the last 6-9 months. I am just curious, how that how we how investors should think about that within the context of mortgage revenues. It looks like mortgage revenues are a little bit more seasonal and in line with purchase mortgage trends maybe rather than refi mortgage trends just as we think about the business moving more towards some of the volume exposed pricing model that I know is newer for you guys? How should investors think about tracking that with some of the KPIs that we see out there? Thanks so much.

Gregory D. Orenstein: Thanks for the question, Adam. As we look back at the quarter, I think in the first half of the quarter, you know, we did see nice volumes coming through. As rates went up. As the quarter proceeded, you know, we saw some of the impact from that And so, basically, we are just kind of looking at run rates from April. Extrapolating those through again, being consistent with the I would call it, prudent guidance philosophy we took to mortgage last year and just continuing to take that approach. And so, again, we see the industry data. it is calling for higher numbers, which would be great.

But, again, we wanna be prudent as we go through the year and hopefully continue to surprise on the upside. For mortgage.

Analyst (Adam Hotchkiss): Brent.

Operator: Thank you both. Thank you. Our next question comes from Ryan Tomasello with KBW. You may proceed.

Analyst (Ryan Tomasello): I wanted to ask about the evolution of the, you know, AI offering I guess, now that you are potentially seeing more renewals of your early platform pricing cohorts. What evidence are you seeing within that of customers expanding their intelligence unit allocations beyond the initial bundles, And then more broadly, what have you learned so far about the monetization uplift at renewal that might be able to help us size the incremental revenue opportunity tied to these AI consumption units? Thanks.

Sean Desmond: Sure. Thanks, Ryan and listen. If you think about the evolution of our AI strategy, you heard me talk last year about the 3 pillars being banking advisor, agents, and our integration gateway. And that all converging at this year's inside event a couple weeks ago in the unveiling of the AOS, for nCino. So the momentum is real and the customer feedback is really strong in terms of how we are partnering with customers to imagine agents exponentially, proliferating within the customer base.

Specific to the initial bundles, that we provision to our customers, what I think is really exciting to share on this call and is new news, is that we have had our first customers reach the limit in their bundles. And so they have proven that we are delivering outcomes. And they are consuming the intelligence units that we are tying to the value proposition we provide with our 5 core digital partners. Right?

And so long as we continue doing that, while this whole industry is finding its footing, there is nothing in the model that we have put in here, but I am fully confident that by the time we get to the end of this year, we will monetize by re-upping the customers that are reaching their limits. So that is exciting new news from nCino.

Analyst (Ryan Tomasello): Right. And then sticking on the on the AI topic, wanted to ask about how you frame the opportunity set between US and international. I guess, you know, on the AI side, are there different use cases or adoptions? And maybe monetization dynamics that meaningfully differ across geographies and how in general is that influencing how you are prioritizing your go to market investments on the AI front internationally? Thanks.

Sean Desmond: Yeah. Listen. I would say on the Zoom Out sort of, exec summary, we are solving the same problems the world over. With our solutions. When you think about the value we deliver across onboarding loan origination portfolio monitoring. The conversations are pretty similar across geographies. Yes. There are some nuances, both culturally and from a regulatory perspective, that we need to contemplate. And some of that shows up in the governance conversations we have with our customers around compliance. And we need to build that locally, and that is exactly why we have a global PDE team with local presence in EMEA and Asia Pac.

But the framework we have in place, the strategy we have in place the vision for the Agentic operating system, the technology and infrastructure partners that we have thoughtfully chosen to go to market with scale globally, and we are largely solving the same problems with the same technology.

Analyst (Ryan Tomasello): Brent. Thank you.

Operator: Thank you. Thank you. Our next question comes from Saket Kalia with Barclays. You may proceed.

Analyst (Saket Kalia): Sean, maybe for you, hey, guys. Sean, maybe for you, I would love to zoom out a little bit and maybe get a state of the union on your commercial banking customers in particular. And so, Sean, the question is for you because I know you spend a lot of time with customers. What are they saying as we sort of get deeper here into calendar 2026? And how do you maybe feel about just demand in kind of US commercial banking here?

Sean Desmond: Yeah. As you know, Saket, that is a core part of our heritage, our flagship solution in commercial loan origination remains a very fundamental part of our business, and we still see strong demand and expansion across some of the largest customers that we have, and we still see new logo opportunities in this space. And we still see opportunities from a geographic standpoint internationally in commercial loan origination with a lot of room. For upside, and that is showing up in our readout and in our revenue growth.

What I am also seeing that I think is exciting is that some of these banks now have commercial lending leaders that are working in concert with folks that have been appointed within their institutions to play specific AI leadership roles. Right? So some of our largest enterprise banks will have somebody who is responsible for the adoption of AI across the bank that is working directly with the head of commercial bank. To provide the right governance framework in place. And those folks are reaching out directly to nCino to ensure that we can comply with those standards, and those conversations are going very well.

Analyst (Saket Kalia): Got it. Got it. that is great to hear. Gregory, maybe for you just to pick up a little bit on that on that topic. You know, I think we said that there was a ~38x increase in usage in banking adviser, I think, May versus October. And you correct me there if I am wrong. But maybe the question is, how do you think about Banking Advisor maybe contributing to the business here this year or over the next couple years? Understanding it is early, I think we are seeing customers go beyond their usage limits. But how do you sort of think about the revenue or ACV opportunity here with banking adviser specifically?

Gregory D. Orenstein: Thanks for the question. Saket, I think, again, it is exciting times and again Sean being able to highlight that. And that trend continuing month over month of usage growing up and to the right. So it is great to see that You know, we are going back to Sean's comments. I mean, we continue to focus on near term adoption. Again, we expect if we do the adoption thing right, that will lead to long term top line subscription revenue growth from leveraging our AI and our intelligence units. And so there is nothing in the model for this year for. That would be upside.

But, again, our focus this year is making sure that we execute on the adoption front, and it contributes next year and beyond. And I think the trends we are seeing are incredibly encouraging. I think, you know, the feedback we got at our Insight user conference 2 weeks ago was, also very encouraging and exciting. And, again, I think we feel like we are really uniquely positioned to drive you know, this new world of AI powered banking, you know, in the financial services industry on a global basis. For banks, credit unions, INBs of all sizes. And so it is an exciting time.

And, ultimately, again, I think from a model perspective and a forecasting perspective, we are taking a prudent approach this year. But setting ourselves up for next year and beyond. Yeah.

Sean Desmond: And if and, Saket, if I could just jump in here as well. You know, on the 1 hand, yes, I am excited to share that our first customers are consuming their entire bundles because that is a question you all have been asking. And I am happy to be able to share that news. But more importantly, make no mistake, you know, intelligence unit consumption is the future of this company. Right? And while we have steadily re accelerated growth on our asset based model, plus intelligence units, not even having that baked in.

And the upside with customers getting the outcomes you have heard from our forward deploy engineering teams just gives us nothing but cause for optimism here on that front.

Gregory D. Orenstein: Yeah. And just to touch upon that a little further, if you think about the model change that we have gone through, put the IU opportunity aside, Right? Changing from the fixed seat based pricing to asset-based. Right? that is separate and apart from AI and the IU opportunity. Again, I think that set us up for growth that we did not have intra contract previously. So I think that model change from a foundational standpoint is exciting. And again, point us in the right direction. And then incrementally on top of that, we have now added this IU opportunity as well.

And so to Sean's point about where we are going, I think the overall model that we have evolved to, I think, sets us up well for, you know, for continuing reacceleration of growth. With the opportunities that we have in front of us that we just need to keep executing on to capitalize.

Analyst (Saket Kalia): Super helpful, guys. Thank you. Thanks.

Operator: Thank you. Our next question comes from Alexander Sklar with Raymond James. You may proceed.

Analyst (Alex Sklar): Sean, maybe to follow up on some of the banking adviser questions here, but you showed some of the dashboarding at Insight around operations analytics. Where do you stand today from those early adopters realizing measurable ROIs? And then as it relates to those FDA engagements you spoke to, how are you going to go about replicating kind of the before and improvements that your customers are seeing without with the customers being able to get it out of the box? Thanks.

Sean Desmond: Sure. Thank you. Listen. The outcomes that I have talked about being first and foremost our mind. When we can stand side by side with the customer, who is, articulating that in the world you know, the traditional 80-20 rule in terms of available hours in a year. he is saving 1 thousand hours per employee that he can direct them toward higher value activity directly attributed to the banking adviser solutions. You know, that is something we are proud of when our credit analyst agent is delivering ≥60% efficiency on credit reviews, that is something we are proud of. How do we replicate that? We have got some of our best and brightest at the company.

At the tip of the spear on this forward deploy engineering team. That are not only out there deploying banking adviser, but then packaging up how we unwrap it for the next customer and making that repeatable and scalable. In some cases, that we would not necessarily need to be on-site to do that, Right? We could do this all remotely, all digitally. In other cases, you know, I will share candidly that sometimes I chuckle and think that the term forward deploy engineer is just a fancy word for what we have called consultants for years.

Right? it is folks who sit side by side with bankers and help them solve business problems with our technology and deploy it in a way that makes sense. And so, you know, all this is working really well. I think the big force multiplier for us is and always has been the partner and system integrator ecosystem. You know that is been a big story for us from day 1. And the largest system integrators in the world have helped us build and scale this company. In the early day, the paradigm was configure an open, flexible, you know, configurable solution for our customers. And that paradigm has simply shifted to deploying agents everywhere.

Agents in our swim lanes where we plan, onboarding, account opening, loan origination, and portfolio monitoring. And then agents that are gonna exist in the banking landscape side by side with ours and connect to those. And we think that is a tremendous opportunity for the SI ecosystem. To be highly utilized and profitable and doing that with nCino. So we are busy training on that model today.

Analyst (Alex Sklar): Okay. I appreciate that. Brent answer there. Maybe just a follow-up, Sean. Just on credit unions, you had your largest new logo win this quarter. It felt like a big uptick in credit unions attending Insight this month. Are you seeing from that part of the market in terms of moving from adoption of portfolio analytics to kind of broader platform adoption maybe just a quick follow-up for Gregory. How should we think about the mix of kind of those smaller singles and doubles in the pipeline this year versus larger enterprise deals as it relates to the ACV outlook? Thanks.

Sean Desmond: Yeah. In the credit union market, our solutions in our opinion, have always resonated very well in terms of problems that we solve for that segment of the market. I do think that a year in now from that go to market credit union team, 1 that culturally speaks the same language to that community, and we have got many members of that team that come from the credit union space. And I met with several of those customers with those teams in Charlotte a few weeks ago, is starting to pay off. Right? I think that people realize that, again, those same problems we are solving the world over for financial services institutions resonate with our credit union customers.

And that is showing up in the logos that we are signing as well as the expansion. Portfolio analytics has always been a very powerful you know, sort of point solution in its original heritage, but us integrating that fully into the platform is enabling us to actually imagine a pipeline of products and services we can deliver to the credit union market that you will hear more from us about in the future.

Gregory D. Orenstein: Yeah. And, Alexander, just to your comment, you know, we really like that credit union business just like we really like our C&I business. I mean, we like all of our businesses. But those are nice singles and doubles, if you will, just in terms of overall deal size compared to our average. And so, again, advancing runners around the base, that is good business for us. We think we have got great offering for credit unions. And ultimately, again, a standing up that team, right, so we could focus very much exclusively on them with that team, I think, is paying dividends for us.

Analyst (Alex Sklar): Alright. Brent. Thank you both.

Operator: Thank you. Our next question comes from Chris Kennedy with William Blair. You may proceed.

Analyst (Chris Kennedy): On the last call, you talked about how the new Chief Revenue Officer could help accelerate subscription revenue growth. Can you just give an update on kind of his key priorities and areas of focus?

Sean Desmond: Sure. First and foremost, revenue. And Keith and I spent some time earlier today and the pipeline momentum that we have continues under his leadership. He brings a unique lens from having operated in this ecosystem, in other areas, and is injecting some new ideas and thinking to the team as well. But as we continue on the momentum that we have been reading out, with our pipeline year over year, Keith comes in, and I think he also you know, starts to bring ideation around how we think about that partner ecosystem.

I talked about expanding from not only SIs and traditional tech partners, but to the hyperscalers, you know, in the industry where he has deep roots in connection and, you know, has a great nose for, the balance of functionally positioning our problem solving for customers, but also letting our demos shine. From a technical presale standpoint, doing that in the most efficient and elegant way that we possibly can.

So those are the some areas that he is looking, but he is making his the rounds globally. he is already been over see our European team, and we are excited that you know, we seemingly have not missed a beat with Keith stepping in as true veteran into this role. Seems like he is been here a long time already, and it is only been a few a few months.

Analyst (Chris Kennedy): Brent. Thanks for that. And then can you just it is great to hear about the uptake in intelligence units. Can you just remind us of how you are thinking about managing the costs of tokens as this business continues to grow? Thanks for taking the questions.

Sean Desmond: Yeah. it is a big part of the equation. No doubt. And, you know, we are paying close attention as we see some of the largest names in the industry. Industry, you know, sharing that they have consumed all of their tokens year to date, and we are not even halfway through the year. We are not in that position, but we are watching carefully. And so as we think about the usage that we have for everything from, you know, leveraging Claude code to leveraging tokens internally for every job and every function. At nCino. We have revenue dashboards for IU consumption, and we have cost dashboards that we need to correlate.

You know, I would say you know, right now, I am comfortable that we are calibrating that appropriately. And we are not too far out over our skis. But we certainly are leaning into the opportunity and encouraging our folks to leverage the most efficient technology to solve problems, and we will calibrate spend over time. Achieving the rule of 40 in an era where we are already leveraging you know, AI to do our jobs is something I am super proud of. It did not take us sideways on achieving that goal. Yeah.

Gregory D. Orenstein: And, Chris, 1 more thing just to add. As we think about IUs or our intelligence units, and the cost You know, not all of our intelligence units require LLNs. And so we have our own models, we have our own math, we have our own analytics, And so from a cost standpoint, again, there is a different cost equation depending on the skill that we are leveraging. Versus, again, each IU being dependent upon some type of third party LLM.

Analyst (Chris Kennedy): Right. Thanks for taking the questions.

Gregory D. Orenstein: Thanks, Chris.

Operator: Thank you. Our next question comes from Aaron Kimson with Citizens. You may proceed.

Analyst (Aaron Kimson): Brent. Thank you. Sean, nCino helped move financial institutions lending operations to the cloud. Now you are helping move them into an AI world. Can you compare and contrast financial institutions relative urgency and pace of adoption with AI today? Versus what you saw at a comparable point of financial institutions adopting cloud solutions?

Sean Desmond: Love to. that is a topic that we discuss often around here because, you know, to a certain degree, the more things change, the more they stay the same. Right? There is a different technology imperative at this point in time, but there is the same psychological trepidation around adopting that new technology. And it all revolves around security. It revolves around scalability. Compliance, regulation, and comes back to the industry that we serve. Right? And in this industry vertical, having a deep understanding and context data that helps to inform how we serve up these experiences to our customers, I think, really reinforces the confidence they have in a partner like nCino.

I still you know, stand before you and share that I do not talk to any CEOs in our customer base that are eager to automate their business on public cloud data. Alone. They are looking for a trusted partner who is navigated transformations like this in the past whether they be technology shifts or cultural transformations. At the end of the day, we are changing the way people do their jobs. that is what we have always done. Now we are simply injecting the dual workforce methodology into our customer base. And so that is that is a different change.

But it requires the same sort of sense of urgency that we would push and be provocative in terms of how, you know, our banks understand that there will be first mover advantages. And the folks that embrace the change will separate from the pack, and the folks who wanna be last, you know, are probably, you know, certainly susceptible to acquisition. So that has not changed at all.

Analyst (Aaron Kimson): Got it. And then as a follow-up. You are now up to more than 40% of ACV on the updated pricing model. Versus 38% at the end of January. Has there been any slowdown in early renewals? Or is it just seasonal? And is there any give and take between duration and pricing on early renewals that investors should be aware of? Thank you. Yeah.

Gregory D. Orenstein: Aaron, I would say nothing to note. You know, Q4 is always our biggest quarter and I think as we noted on the call, Q1 generally our lightest bookings quarter. So, you know, I think we feel good about where we are 1 quarter into the year. And, yeah, nothing new from what we have talked about over the last quarter or 2 in terms of the appetite to renew, as well as the step up that we have been targeting and achieving as part of that renewal.

Operator: Thank you. Our next question comes from Charles Nabin with Stephens. You may proceed.

Analyst (Charles Nabhan): Good afternoon, and thank you for taking my question. Couple quick ones on mortgage for me. As we think about the cadence of revenue for the full year, I think you said second quarter would be up ~2%, which would imply something in the -3% range for the back half. Which I could appreciate has a degree of conservatism. Is it fair to think about the third quarter as the trough given, I think, 13% revenue growth last year. And then secondly, within that business, are you seeing more of your clients operating above their contractual minimums which would you which, I guess, would position you potentially to capitalize on volume overages? Within that part of the book?

Gregory D. Orenstein: Yeah. Thanks for the question, Chuck. Yeah. From a comp perspective, Q2 and Q3, which I think would be fairly flattish between the 2, you know, is something that we have assumed as part of the guidance that we have provided. If you look at Q4, remember Q4 is generally seasonally a slower quarter. For mortgage. If you think about the holidays, and just the buying cycles for homes. So we came into the year forecasting about a 1% increase in mortgage for the year.

And, you know, we have reiterated that this year, noting that from a from a linearity perspective, it would kinda play out with Q2 and Q3 being more trough versus last year, and again, Q4 having more of the seasonal the seasonal flavor to it. In terms of folks exceeding their committed or minimum commitments, Again, it really varies from customer to customer. And you see some that are, Again, we highlighted, you know, a nice, expansion that we did with a customer, as part of the press release. Right? Getting more under contract which again, we think is great and provides more visibility for us. And so it really is customer by customer.

Some folks may be a little bit more heavy on refi than purchase, and so as refi ticked up earlier in the quarter and then maybe calmed down a little bit as rates popped up, you know, you can see some impact there. But that really has not changed as we have talked about that. You really need to go customer by customer. And see where they are and frankly, how aggressively they are operating in the market.

Analyst (Charles Nabhan): Got it. And as a follow-up, I wanted to touch on international. Strong performance, up 21% year over year. And I know you have made some changes on the management level. I was wondering if you could expand on some of the drivers of that business in the quarter, specifically, where you are seeing strength from a geographic standpoint? And any of the initiatives that you have implemented under new management that are particularly contributing to that, that outperformance? Or that strength?

Sean Desmond: Yes. We are seeing strength on Continental Europe seeing strength in our Japanese market. And the opportunity in Southeast Asia is 1 we are leaning into. And, you know, I would say in terms of you know, what is driving that in addition to having new leaders in place for some time that have now retooled their teams and reenergized the field We also have some imperatives around expanding our data partnerships. To lean into the opportunity around onboarding and full client life cycle management. Which is a big part of the conversation in Continental Europe. So we are starting to see some of the larger financial institutions in that region come our way.

The active conversations there You know, I was I was over there just about a month ago, a little more, and I am spending a lot more time on the continent than I am just in The UK and Ireland these days, and that is where we have a lot of the pipeline movement.

Analyst (Charles Nabhan): Got it. Appreciate all the color.

Sean Desmond: Thank you. Thanks, Chuck.

Operator: Thank you. Our next question comes from Michael Infante with Morgan Stanley. You may proceed.

Analyst (Michael Infante): I wanted to ask on nCino integration gateway, particularly just given yeah, deployments require, you the integrated access both across core systems and data. How is the growth there in the attach rate as you see customers sort of standardize more of their know, AI and automated workflows on nCino now.

Sean Desmond: Yeah. Yeah. The growth is strong. I mean, listen. The customers cannot fully take advantage of the offering the AI offerings we have without having connectivity to the data. Right? So when we think about the foundational infrastructure traversing our data layer to all the way to the MCP layer, LLMs in place, sometimes not as Gregory talked about earlier. You know, all of this connectivity matters is exactly why we made the strategic acquisition of Sandbox Banking. And that is now serving as the framework for the agentic operating system that we are evolving into. So integration gateway is just part of our platform, and I do not think in the future we will talk about it separately.

Analyst (Michael Infante): Saket sense. And then just to circle back on Chris's regarding some of the compute costs, I just wanted to understand how pervasive the adoption behavior of some of those compute intensive Agentic capabilities are versus some of the more standardized chat capabilities. And if there is really any context that you can provide based on you know, the sort of cost that you are seeing today, as to how you are thinking about both in near and medium term gross margin profile of the banking adviser product? Thanks, guys.

Sean Desmond: Yeah. To your point, you know, they are not all created equal in terms of, you know, how we consume the cost on our side, so we are watching carefully. In general, you know, the cost, we have been able to manage, and we are certainly outrunning the cost with, the consumption of the intelligence units. But in some of the more heavy-- you know, when you think about auto spreading, which is 1 of our more mature capabilities, and we are having really good success on the adoption and the results we are delivering to our customers and keeping the cost well under control.

So as we roll out more skills, we will calibrate that, and we are really putting in a place to kind of rationalize spend across the board so we do not have to manage that separate within each individual skill down to each intelligence unit that would be in a common framework that we can manage the cost?

Gregory D. Orenstein: Yeah. And the other thing, Michael, you know, you continue to hear us talk about outcomes. And, again, I think as we look at some of the capabilities that we are providing as we think about the value you know, that drives how we are charging forward as well. Making sure, again, we keep the cost in mind but really focusing on the value that we are we are driving with the with the functionality and the technology that we are providing with our AI and banking advisor skills.

Sean Desmond: It just 1 more thing to add. I would say with respect to the overall anxiety that out there in the market, and the things we read every day about you know, the hype cycle around consumption of AI out running forecast I am proud of our engineering teams and pleasantly surprised that the cost relatively is low here at nCino compared to what I read out there in the general ether.

Operator: Thank you. Our next question comes from Eleanor Smith with JPMorgan. You may proceed.

Analyst (Ella Smith): So first, because financial institutions are notoriously risk averse, I want to ask I understand that much of your customer base is full steam ahead on AI and already consuming their entire token bundles. But what are the concerns they are voicing and the guardrails they want established as they venture on their AI transformation with you.

Sean Desmond: Yeah. They wanna make sure that we are adherent to the policies that they have established internally. You have to remember some of these banks have tens of thousands of employees. Right? And if you were to think of each individual employee and each individual role, experimenting with a different AI provider, right, and then bringing those ideas up to the top of the house. that is absolute chaos. Right? So they need to put in some sort of governing structure that gives guidance on how people should think about using AI within their jobs. And then they are looking to not necessarily reinvent the wheel. They are they are looking for folks.

When I give the example of the credit analyst agent, then banks do not necessarily want all their credit analysts experimenting and how they could build their own agent when nCino already serves that up. Very straightforward and elegantly. And so those policies are typically documented. They will be served up in documentation packs that oftentimes these banks provide external links to. We can then sit down with our engineering teams, and it typically comes down to, in summary, building a few APIs.

Gregory D. Orenstein: And, Ella, I do not think we can emphasize enough the importance of the trust and governance factor. Besides the regulatory framework our customers live under, again, they cannot afford a, you know, a hallucination. Right? They cannot take that risk. Right? That risk could have millions and millions and millions of dollars of exposure on top of potential regulatory risk. And so, again, I think we just as we did with the cloud getting back to an earlier question and how we transitioned our customers from on prem to the cloud and got them comfortable doing that. You know, we are holding their hands along this path for AI as well.

And, again, I think we are uniquely positioned to do that, and it does come down to, I think, the history that we have. Of supporting them, of scaling with them, and supporting them, and appreciating the regulatory environment, the governance framework that they have to operate in. In order to comply with the obligations that are placed on them.

Analyst (Ella Smith): Brent. Thank you. Very clear. And for a quick follow-up, can you tell us more about the current competitive landscape and how and if it is evolved in the past few quarters? Do you see any new players, AI-native players or any sort of shift in intensity from existing vendors?

Sean Desmond: What I would tell you is that the platform continues to win. In the market, and they are in the AI era, we do not have a single competitor that has the breadth and scale that nCino does with respect to the things that we do and where we do them, the solutions we serve up across lines of business and across the globe. So we continue to see a healthy competitive dynamic out there, and competition is good. Whether those are some of the, you know, old time long time competitors or new entrants.

They are all point solutions that largely focus on 1 of the things that we do, but not serve up a platform experience connected by 15 years of data across customers, giving incentive to participate in a pool that serves up insights and real time at the point of production. So, you know, the landscape, I would say, while maybe, you know, a little more crowded is certainly similar in terms of point solution versus platform.

Analyst (Ella Smith): Very clear. Thank you so much.

Sean Desmond: Thank you.

Operator: Thank you. Our next question comes from Kenneth Chrykowsky with Autonomous Research. You guys talked about some customers going beyond their usage limits on IUs. And I think the thinking earlier this year was once they hit those limits, salespeople are gonna have conversations with those cup customers. So what happens to those customers that have consumed their units before year-end?

Analyst: Are you granting them the same number of units that they received originally, or are you starting to have conversations with them about potential pricing and contracts You know, presumably, those are more super users, that are getting more value out of that offering. Thank you.

Sean Desmond: Yeah. The conversations are very active, not only with our sales teams in the field, but I am personally involved in these conversations. My product leaders are involved in these conversations. And, you know, we are certainly learning, and, you know, I would share with you candidly that, you know, that the first customers we talked about that have consumed their bundles, We have customers that have addendums in front of them today. To re up their units, and so that is exciting. And we also have the reality that in some cases, we feel like we underestimated. The intelligence units they needed because they started using more skills than anticipated on day 1.

So there really is a case by case reality. I mean, you think about some of customers that have been on the journey with nCino for quite some time. You know, we are absolutely applying some discretion. To those conversations. And, most importantly to me is if we can direct line read the outcomes, then we certainly, you know, have customers that are willing to, pay a premium for re upping those bundles. And it is imperative on us to partner with our customers and deliver the outcomes. And when we do, there is nothing but upside. No. That makes a lot of sense. that is that is really clear. So you could be flexible on timing there.

Maybe just on international, and I think Chuck might have asked about this, but maybe just following up there, like, the 16% FX neutral revenue growth, I think that is all organic. I know fiscal Q4 had a bit of a tougher comp, and maybe that was low-double-digit sort of normalized growth. But it does seem like the international business on an organic FX neutral subscription revenue growth basis is accelerating, and it does feel like the comps get a little bit easier throughout the year.

So is the thinking that, you know, we should expect that international subscription line to continue to accelerate for the balance of the year and be above this sort of mid teens type of range.

Gregory D. Orenstein: Yeah. Thanks, Kenneth. Yeah. I think the output that you are seeing in Q1 it reflects the good end of the year that the international team had. Very solid end of the year, which gave us our largest quarter of gross bookings ever and what was our largest year of gross bookings ever. And so, ultimately, it is just around keeping the momentum up. But I did say on the last call that we did expect our international subscription growth to be accretive to our overall growth this year. And, again, I think we feel real good about the sales pipeline and the level of activity that we see.

As Sean mentioned, he was over in Europe not too long ago and also noted that, you know, Keith Kettell, our new CRO, has already been there. And so, it is exciting opportunities, outside of The US. as well as, and we are seeing the activity here. Mhmm. Great. Thanks, Gregory. Thanks, Sean.

Analyst.

Operator: Thank you. Next question comes from Andrew Schmidt with KeyBanc Capital Markets.

Analyst (Andrew Schmidt): Hey, Sean. Hey, Gregory. Thanks for having me on the call here. I wanted to ask about win rates. Maybe you could talk about how win rates are trending across the business. I know it is early, but obviously, we have the assumption embedded in ACV that win rates are going to be lower than what you what you realized in FY26. So I am curious just how you are trending to start the year even though it is early? Thanks so much.

Gregory D. Orenstein: Thanks, Andrew. It is early, but we feel good. We feel good about what we are seeing in the market, getting back to my prior response, the level of sales activity on a global basis. The ACV guide, yes, we did take, you know, I think, a prudent approach where we guided above or below our win rates of last year, but above what we assumed last year. But there is nothing new to report. I think we feel good about the activity, and we just need to keep executing.

Analyst (Andrew Schmidt): Perfect. Understood, Gregory. And if I could follow-up just a 2 parter on Agentic strategy. To the first 1, if I interpret the comments about AOS correctly from the user conference, it sounds like there is obviously ambitions beyond lending. I heard treasury deposit. Maybe talk about your ability to execute sort of beyond core lending ops. And then just as a secondary question, obviously, you know, you are rolling out your own agents, which makes a lot of sense. Does it make sense at some point to allow third party agents or bank run agents also participate in the platform as well and have nCino be the government platform for Insino agents and then third party agents as well.

Thank you very much.

Sean Desmond: The answer is yes. It absolutely does, and that is the, the absolute vision. For the AOS with nCino. While we do want to serve up prepackaged and easily deployable agents, for the core business that we focus on and the solutions that we have the most investment in. We fully recognize that our customer base, as well as the SI ecosystem is going to want to build agents around this. And build agents even things that are outside those lines, like even call center and contact center and service side of the business.

Think of those agents needing to not only communicate with the agents that we are serving up, but also tap into that same data layer that we talk about as being a differentiator. So while we build the agents, the customers are consuming intelligence units, and we are monetizing that. While the customer or the partner builds the agents we are actually monetizing that through the data layer.

Analyst (Andrew Schmidt): Perfect. Thank you, Sean. Very helpful.

Operator: Thank you. Thank you. Next question comes from Hannah Rudolph with Piper Sandler. You may proceed.

Analyst (Hannah Rudolph): Hi, guys. Thanks for squeezing me in. 2 quick ones. Sean, it was really encouraging to hear about the record attendance at Insight. I just wanted to hear if there is anything that really surprised you coming out of the event. And then for Gregory, as the conference becomes more of a symposium, you guys have talked about an AI to adoption becomes increasingly relevant. I guess I would imagine there are more prospects that are coming to the conference. Would love to hear any color around pipeline build specifically resulting from Insight and maybe how that compared to prior years.

Sean Desmond: Yeah. You know, I will tell you my biggest surprise coming out of the event, and I will remind you that I am a CEO, comes from the customer success heritage. And I wake up in the morning making sure we deliver outcomes and have strong NPS and customer satisfaction. Scores. And I spend a lot of time talking to my customer base as well as our employees that while we are excited about the future and the AOS, and the agentic possibilities and the entire market is, you know, is involved in the hype cycle, we simply need to fulfill the existing commitments we made to our customers.

And what I would tell you is that it was very few and far between at our biggest event of the year where we have thousands of folks and 300 unique customers, that people pulled me aside to say that we were not fulfilling those commitments. This is a tough business. Right? We are solving difficult problems for customers, and I am really proud that the teams are fulfilling on all those expectations while innovating at the pace we are. And that was a surprise to me. that is the first thing that comes to mind when you ask that question.

Gregory D. Orenstein: And, Hannah, in terms of prospects, which is relatively new over the last couple years, inviting prospects versus customers as that is evolved, I would I would say probably ~10% of those 300 were prospects, which would be a record for us. And what was great to see for folks who walked around is it was a global conference. And so there were folks from all over the world there. And the fact that they take the time and incur the expense to come, I think, says a lot about, them and their commitment to nCino and going on this journey with us, particularly as we focus on AI banking.

So to me, I always judge those conferences by our sales folks. And how they are feeling and I left there very encouraged and by the conversations I had with our sales team post insight.

Analyst (Hannah Rudolph): Super helpful. Thank you.

Operator: Thank you. Thank you. Our next question comes from Terry Tillman with Truist. You may proceed.

Analyst (Terry Tillman): Hey, guys. it is Giancarlo on for Terry here. Thank you for taking the question. I just wanted to ask, you know, what are some of the difference between customers who are using a high amount of credits for some customers that might be, you know, having a lower amount being spent and, you know, what could explain that delta? And, what are the strategies, I guess, to get that lower end up? Thanks.

Sean Desmond: Yeah. I would tell you the number 1 correlation between our customers that are most aggressive adopting intelligence units is the posture of the leaders in those institutions. They need to set the tone and create the space and the conditions to adopt new technology. Right? And then those are the folks that we run toward with our forward deploy engineering teams. And those are the folks that are eager to have those conversations on-site and innovate together and understand while we are deploying agents they are already thinking about the art of the possible with the AOS. So a lot of this is about change management and leadership posture.

Analyst (Terry Tillman): Got it. Thanks.

Operator: Thank you. I would now like to turn the call back over to Sean Desmond for any closing remarks.

Sean Desmond: Thank you all for your interest in the continued momentum here at nCino this afternoon. We appreciate it, and have a great evening.

Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.