Q2 2025 Earnings Summary
Reported on Feb 18, 2025
Pre-Earnings PriceN/ADate unavailable
Post-Earnings PriceN/ADate unavailable
Price ChangeN/A
- Non-commercial products constitute approximately 60% of nCino's pipeline, indicating strong growth in newer solutions beyond commercial lending. Non-commercial products are maturing and gaining referenceability, with pipelines in regions like Japan, EMEA, and Australia/New Zealand up 30% year-over-year. ,
- nCino expects a significant increase in net bookings, aiming for 50% year-over-year growth, with strong confidence in achieving these numbers due to a robust pipeline and anticipated big deals in Q4. The company has already exceeded over 50% of its bookings goal for the year, with the community bank business performing steadily and international markets showing positive movement.
- New product offerings like Banking Advisor and portfolio management solutions are gaining traction and are expected to drive future revenue growth. nCino has signed several Banking Advisor deals shortly after its launch, positioning AI as a differentiator and revenue generator. There's increased interest in portfolio management, which enhances efficiency and differentiates nCino in the market. ,
- The decision to de-emphasize Germany and France may limit nCino's international growth potential in key European markets, potentially impacting long-term expansion plans.
- The mortgage business is expected to be dilutive to overall growth this fiscal year, and its recovery depends on interest rate cuts, which introduces uncertainty if rate cuts are delayed or less impactful.
- The transition to platform pricing is causing discrepancies between revenue recognition and billing, increasing unbilled accounts receivable and potentially impacting cash flow and making revenue trends less predictable in the near term.