Q: What is nCino (NCNO) Q3 2025 Earnings Call Transcript Summary?
The earnings call for nCino (NCNO) presented a mixed outlook with both positive and negative aspects highlighted. Here are the specific viewpoints from the earnings call:
Bullish Points:
1. The company exceeded expectations for both revenues and non-GAAP operating income in the third quarter.
2. Sales momentum increased, with gross bookings accelerating both quarter over quarter and year over year.
3. Strong sales performance in the U.S. community and regional, as well as U.S. enterprise businesses, with both on track to exceed their gross bookings targets for the year.
4. Addition of 11 new mortgage logos in the U.S., including four banks and a farm credit institution.
5. Average mortgage customer ACV increased by 15% compared to a year ago.
6. Increased momentum in international markets, including an expansion agreement with the largest bank in Norway and the first customer in Luxembourg for a joint commercial and mortgage lending solution.
7. Acquisition of FullCircl, which was closed on November 1.
8. Total revenues for the third quarter were $138.8 million, a 14% increase year over year.
9. Subscription revenues for the third quarter were $119.9 million, also a 14% increase year over year.
10. Non-GAAP operating income for the third quarter was $28 million, a 38% increase year over year.
Bearish Points:
1. Mortgage churn in Q3 was approximately $3 million, slightly higher than expectations due to M&A in the IMB space.
2. Forecasting mortgage churn of approximately $2 million in the fourth quarter and approximately $10 million for the full year, up from the prior expectation of $8 million.
3. Mortgage subscription revenues outperformed previous expectations for the quarter, partly due to the rollout and go-live of a large national homebuilder, which was expected to take place in the fourth quarter.
4. Lower expectations for mortgage revenues in the fourth quarter due to continued elevated mortgage rates.
For more information about nCino's earnings call, you can read the relevant news: nCino (NCNO) Q3 2025 Earnings Call Transcript
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
