nCino, Inc.

and welcome to the Encino Fourth Quarter and Fiscal Year 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session, and instructions will be given at that time. As a reminder, this call is being recorded. I would like to turn the call over to Harrison Masters, Director of Investor Relations. You may begin.

Harrison Masters Good afternoon, and welcome to Encino's Fourth Quarter Fiscal 2023 Earnings Call. With me on today's call are Pierre Naudet, Encino's Chairman and Chief Executive Officer, Greg Ornstein, Chief Financial Officer, and Josh Glover, President and Chief Revenue Officer. During the course of this conference call, we will make forward-looking statements regarding trends, strategies, and the anticipated performance of our business, including, without limitation, the acquisition and integration of SimpleNexus. These forward-looking statements are based on management's current views and expectations, entail certain assumptions made as of today's date, and are subject to various risks and uncertainties described in our SEC filings and other publicly available documents, the financial services industry, and global economic conditions. NCINO disclaims any obligation to update or revise any forward-looking statements. Further, on today's call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. 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 form 8K furnished with the SEC just before this call, as well as the earnings presentation on our investor relations website at investor.ensino.com. With that, I will now turn the call over to Pierre.

thank you harrison good afternoon and thank you all for joining us today we are pleased to share the details and accomplishments of our fourth quarter and 2023 fiscal year with you but before we walk you through those results i would be remiss if i did not acknowledge the events of the past few weeks which have been impacting the banking sector we are all aware there has been significant turmoil and uncertainty surrounding financial institutions, particularly certain regional banks in the United States. As you will recall, a few weeks ago, we filed an 8K regarding our known impacted customers, Silicon Valley Bank and Signature Bank, which were both taken over by the FDIC. These financial institutions collectively represented less than 2% of the company's total revenues the third quarter of fiscal year 2023 that was true for the fourth quarter as well since that 8k was filed we received notice from the fdic that bridge banks have been established to assume the contractual obligations both banks had with encino and that they have the full ability to make timely payments to vendors subsequently We took note of announcements that First Citizens and New York Community Bank would acquire assets of Silicon Valley Bank and Signature Bank, respectively. We will continue to monitor the situation and see how this plays out, just as we would with other bank M&A situations. Let me remind you that Encino has a large and diversified customer base representing more than 1,850 financial institutions of all types and sizes around the globe. We remain well positioned, well capitalized, and confident in our ability to support our customers as they navigate through current conditions. What we continue to focus on is taking care of our customers, developing innovative cloud-based software, and strengthening our partnerships across the financial services ecosystem. As a management team, those have always been and will continue to be our key priorities. We are incredibly passionate about the company we have built and the future promise and growth opportunities we see for this business. We will continue to focus on controlling what we can control and the markets will do what markets do. We have a great business model, a healthy balance sheet, industry-leading software, and a seasoned management team that has been through many different economic cycles. I am confident in the team's ability to manage through the short-term challenges while continuing to position Encino for long-term growth. And now with that, let me turn back to the results of the fourth quarter. We are pleased that in Q4, we once again exceeded expectations. Total revenues grew 46% and we posted another profitable quarter on a non-GAAP basis. $5 million better than the midpoint of our non-GAAP operating income guidance. We improved our full year loss by $32 million compared to the midpoint of the guidance we provided at the beginning of the year. I'm proud of the team's successful execution toward accelerating our path to profitability, which we first committed to during the second quarter last year. The difficult mortgage market made SimpleNexus' fourth quarter performance especially impressive. The team had its largest sales quarter ever, including signing three of the largest initial deals in its history. There were also seven cross-sells into the Ancino installed base, along with five competitive takeaways. We again increased market share, which will be particularly valuable as mortgage demand rebounds. Two additional points to highlight on SimpleNexus. First, SimpleNexus has been making solid progress expanding its footprint into banks and credit unions, as evidenced by their mix of new customers this past year, which was almost evenly split between banks and credit unions, and independent mortgage banks as compared to prior years, where it was much more heavily weighted to IMBs. Second, we are seeing Simple Nexus getting engaged in larger sales opportunities. These are just two of the many benefits we have seen from the Simple Nexus acquisition. To that point, We are now one Encino with all of the SimpleNexus and Encino teams integrated, including engineering, sales, and marketing. I'm very excited by the progress we have made to date integrating the SimpleNexus technology with the Encino platform. And by the continued traction, we see cross-selling to banks and credit unions within the Encino customer base. In Q4, The macro uncertainty definitely had an increased impact on banks and their ability to move forward with buying decisions. We continue to see strong interest from financial institutions in modernizing their operations with our platform. The issue we saw in Q4 was an unprecedented level of deal scrutiny, particularly with larger opportunities. We highlighted this issue in Europe earlier in fiscal 23. we faced similar behavior in North America, including Canada. The good news is that just as we saw some deals that were delayed in Europe last year get signed in Q4, as Josh will discuss shortly, we still believe the deals that slipped in Q4 will close in the coming quarters. The reality is that banks need to digitally transform. That was true when we started Encino, and it's even more relevant today. In order to thrive, financial institutions must provide the personalized customer experience and ease of use of a fintech while benefiting from a bank's lower cost of capital. The health of our pipeline only reinforces that banks are embracing this view. Even if moving from a prospect to assigned customer is taking longer than we would like. The extended sales cycles and increased deal scrutiny I mentioned led to fourth quarter net bookings that did not meet our expectations, which is reflected in RPO. Yet, we remain focused on achieving Rule of 30 profitable growth for fiscal 24, specifically subscription revenue growth and non-GAAP operating income margins, thanks to the durability of our business model. But let me be clear. While cost efficiencies, including with the integration of Simple Nexus, are at the center of our ability to increase profitability, our overriding focus remains on driving growth. We are continuing to invest in product development, especially around data utilization, and integrating Simple Nexus technology into the front end of the Encino platform. We are also prioritizing sales and customer success by deploying teams to cover the global SAM and maintaining the touch points key to our success in renewing and expanding with our customers. The excitement and enthusiasm from the global team at our company kickoff last month set a solid tone for the year ahead. We'll share this enthusiasm when we welcome over a thousand strategic partners and customers from global, enterprise, regional, and community banks and credit unions to Insight 2023 in May. This year, we have moved our annual conference to Charlotte, North Carolina, to accommodate the increased demand. And we are excited to gather for three days of keynotes, breakout sessions, product demonstrations, and networking across the Encino ecosystem. Greg will provide the details on our fiscal 24 guidance, which takes the more difficult banking and macro environment into account, even as we remain confident in our strategy product portfolio, and ability to execute. Now let me turn the call over to Josh, so he can provide operational highlights for the fourth quarter, as well as his thoughts on our positioning for fiscal 24. Thanks.