nCino, Inc.

Hello, everyone, and welcome to Encino Third Quarter Financial Results Conference Call for the year 2025. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To participate, you will need to press star 11 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, simply press star 11 again. Please be advised that today's conference is being recorded. Now, I will pass the call over to the Director of Investor Relations, Harrison Masters. Please proceed.

Good afternoon, and welcome to Encino's third quarter fiscal 2025 earnings call. With me on today's call are Pierre Naudet, Encino's Chairman and Chief Executive Officer, and Greg Ornstein, Encino's Chief Financial Officer. During the course of this conference call, we will make forward-looking statements regarding trends, strategies, and the anticipated performance of our business. 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. and CINO 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 the Form 8-K 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 turn the call over to Pierre.

Good afternoon, and thanks for joining us today. We are very pleased with our third quarter financial results, once again exceeding expectations for both revenues and non-GAAP operating income. Our sales momentum increased in the third quarter, with gross bookings accelerating quarter over quarter and year over year. The team demonstrated solid execution across the globe, signing over 30 multi-solution deals and generating more gross bookings from net new customers than the last two quarters combined. Turning to specific sales highlights from the third quarter, our U.S. community and regional and U.S. enterprise businesses both again had strong sales quarters and both are well on their way to exceeding their gross bookings targets for the year. Of note in the CNR space was the signing of an over $10 billion credit union for commercial lending, small business lending, portfolio analytics, and banking advisor under our new pricing framework, which Greg will discuss further. In the U.S. enterprise market, we continue to see strength with expansion sales, including signing an agreement for our small business solution with an $80 billion bank. increasing acv for that account by approximately 15 the scope of this expansion is initially focused on solving a key challenge for compliance with dot frank 1071 but will be part of a larger journey to automate the bank's small business lending processes and consolidate multiple legacy systems onto encino i'm also pleased to announce that shortly after the end of the third quarter Our U.S. enterprise team signed a five-year multi-solution deal, also under our new pricing framework, with a top 40 bank in the U.S. for commercial lending, small business lending, treasury management, automated spreading, pricing and profitability, and banking advisor. Our financial results also reflect some momentum in mortgage, even as mortgage rates remain elevated despite the reduction in the federal funds rate. We added 11 new mortgage logos in the US in the quarter, including four banks and the farm credit institution, though we did see slightly higher churn due to IMB M&A. Our average mortgage customer ACV is 15% higher than a year ago, highlighting the progress we've made in aligning with larger mortgage lenders over the past couple of years and with bundling products for this market. As we previewed on last quarter's call, we saw some increased momentum in the national markets. You would have seen a press release in August announcing Tokushima Taisho Bank as a new customer in Japan using Encino for commercial lending. This agreement, signed in the third quarter, makes Tokushima Taisho our largest customer in Japan. We are honored to partner with Tokushima Taisho to enhance the value it brings to both its corporate clients and its employees. I was in Japan just a couple of weeks ago visiting customers and prospects and left more excited than ever about the opportunity we have in that market. In the third quarter, the EMEA team signed an expansion agreement with the largest bank in Norway, bringing the full business bank onto Encino, as well as ESG reporting capabilities, banking advisor, and credit portfolio management. The expansion of this customer relationship should serve to continue building our brand awareness in the Nordics and EMEA at large. The EMEA team also signed our first customer in Luxembourg in third quarter for a joint commercial and mortgage lending solution. The ongoing emphasis on regulation in Europe continues to be an opportunity for Encino. For example, the Digital Operational Resilience Act, or DORA, is designed to enhance the operational resilience of digital systems that support financial institutions operating in European markets. As such, financial institutions are looking to aggressively reduce the number of vendors they are using in an effort to mitigate risk and become more efficient. Vendor consolidation is a key priority for many of the institutions we speak with, and the Encino platform is the ideal solution for a financial institution on a global basis to run its lending, account opening, onboarding, and ongoing portfolio management needs. Turning to Banking Advisor, we continue to be quite pleased with the early traction we have seen. We added 11 new Banking Advisor customers in the quarter across the globe, with customers going live in just a few weeks. As our new pricing framework gets rolled out, we plan for Banking Advisor to be part of every new deal and renewal. We expect this to be well-received based on customer feedback for Banking Advisor as well as for the new pricing framework. In the third quarter, we announced the acquisition of Full Circle, which we subsequently closed on November 1st. This transaction is just the latest example of Encino utilizing an acquisition to strategically extend our platform and grow the wallet share opportunity within our large and happy customer base. The acquisition of Full Circle brings additional depth to our customer onboarding capabilities, with an initial focus on the UK and growing applicability across Europe. Following the successful acquisition of DocFox earlier this year, which addressed the user experience for onboarding commercial customers, Full Circle marks another step forward in advancing and expanding our onboarding capabilities by adding data aggregation components to the platform. Today, onboarding, which is the process by which financial institutions verify the legitimacy of a prospective client or business for the prevention of things such as money laundering and fraud, is a highly manual and time-intensive process with a lot of complexity, particularly when onboarding larger and more sophisticated organizations. ToolCircle aggregates a premium data supply that our customers would otherwise be gathering from fragmented sources. Access to this data within the Encino platform will enable financial institutions to streamline application processes and improve client lifecycle management across other processes being performed on Encino, yielding a powerful combined integrated offering. We currently have 10 mutual customers in the UK, and we believe all our UK clients can benefit from the combined businesses as we look to further expand is offering across the channel to continental Europe to create even more cross-sell opportunities. Based on the onboarding capabilities we brought onto the platform this year with DocFox and Full Circle, we believe we have increased the size of our global SAM by approximately $800 million based on observed attach rates within our mutual customers. As evidenced by these acquisitions and recent enhancements, developed by our internal product development organization, our focus across the business remains on delivering greater efficiencies that create real business value for our customers. In the recent issue of American Banker, the president and CEO of First Horizon spoke about tangible economic value delivered with our new deal proposal feature. He shared that the deployment of this feature has cut 1,500 hours in staff work on a yearly basis, with 44% fewer screens, 21% fewer clicks, and 20% fewer required fields when filling out digital forms for internal tasks. It's important to note that these improvements are compared to an earlier Encino experience, demonstrating the ongoing innovation and value we deliver for customers long after their initial deployment. In the third quarter, We also announced Joaquin de Valenciela as the new managing director for our EMEA operations. Joaquin has extensive experience leading large cross-functional teams and go-to-market efforts across the European continent. We look forward to building on the momentum created by existing EMEA leadership, especially as we add the capabilities of Full Circle to the platform. With that, I will turn the call over to Greg.