NCNO — nCino, Inc.

nCino Q4 and Fiscal Year 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Q4 2026 Results:

  • Total revenues: $149.7 million (up 6% YoY)
  • Subscription revenues: $133.4 million (up 7% YoY)
  • Non-GAAP operating income: $34.7 million (23% of total revenues, up from 17% YoY)
  • Non-GAAP net income: $42.8 million ($0.37 per diluted share, compared to $22 million or $0.19 in Q4 2025)
  • Free cash flow: $12.5 million (up from negative $10.4 million YoY)

• Fiscal Year 2026 Results:

  • Total revenues: $594.8 million (up 10% YoY)
  • Subscription revenues: $523.1 million (up 12% YoY)
  • ACV: $602.4 million (up 17% YoY)
  • ACV net retention rate: 112% (up from 106% in FY25)

2. Strategic Updates and Business Highlights

• nCino experienced strong momentum in AI adoption, with over 170 customers purchasing AI intelligence units.
• The company reported its best sales quarter in over four years, particularly in the U.S. enterprise market.
• Significant international growth, highlighted by a major deal in Austria and a large bank signing in Japan, which tripled ACV in that region.
• Transition to a new platform pricing model is underway, with 38% of ACV now on this model, facilitating better customer engagement and renewals.
• A new Chief Revenue Officer, Keith Kettell, was appointed to further accelerate growth.

3. Forward Guidance and Outlook

• Q1 FY27 Guidance:

  • Total revenues: $154.5 million to $156.5 million
  • Subscription revenues: $137 million to $139 million (8-10% growth YoY)
  • Non-GAAP operating income: $38 million to $40 million

• FY27 Guidance:

  • Total revenues: $639 million to $643 million (8% growth)
  • Subscription revenues: $569 million to $573 million (8-9% growth)
  • Expected free cash flow: $132 million to $137 million (up 63% YoY)
  • ACV growth expected to be 10% for FY27.

4. Bad News, Challenges, or Points of Concern

• International revenues were down 1% YoY in Q4, indicating potential market challenges.
• The company faces headwinds from the previous year’s one-time subscription revenues that impacted comparisons.
• The transition to the new pricing model may lead to customer pushback, although management is focused on education and demonstrating value.
• The mortgage sector remains a cautious area, with guidance reflecting only 1% growth in U.S. mortgage subscription revenues.

5. Notable Q&A Insights

• Management emphasized the importance of pipeline management and conversion rates, noting a larger pipeline compared to previous years.
• There is a strong focus on customer adoption of AI capabilities, with significant increases in usage metrics.
• Concerns were raised about the competitive landscape, particularly regarding AI orchestration capabilities, but management believes nCino's regulatory compliance and data moat provide a strong competitive advantage.
• Early renewals are contributing positively to ACV growth, with a notable increase in customer trust and engagement.
• Management acknowledged the complexities of large customer implementations, particularly in international markets, but expressed confidence in their ability to deliver results efficiently.

Overall, nCino demonstrated strong financial performance and strategic execution in FY26, with a positive outlook for continued growth driven by AI adoption and a robust sales pipeline. However, challenges in international markets and cautious growth in the mortgage sector remain points of consideration.