nCino (NCNO) Fiscal Q2 2027 Earnings Call: Subscription Growth and AI Adoption
Source Tradingkey
Key Takeaways
- Fiscal Q2 2027 revenue increased 8% year over year to $161 million. Subscription revenue rose 10% to $143.5 million, including 12% growth excluding U.S. mortgage.
- Non-GAAP operating income increased 36% to $40.8 million, representing a 25% operating margin. Free cash flow rose 170% to $34 million.
- AI adoption continued to expand. More than 230 customers had purchased intelligence units, while 48% of total ACV was on platform pricing, up from 40% in the prior quarter.
- Four of nCino’s 20 largest U.S. enterprise customers renewed early under multiyear agreements. Their average ACV increase exceeded 10%, and 12 of the top 20 had transitioned to the new pricing model by quarter-end.
- Management raised its fiscal 2027 non-GAAP operating income and free cash flow guidance. However, it reduced its U.S. mortgage subscription outlook because of additional independent mortgage bank churn.
- nCino maintained its fiscal 2027 constant-currency net ACV addition target of $60 million to $65 million, implying cumulative ACV of $662.5 million to $667.5 million.
Core Financial Results
| Metric | Fiscal Q2 2027 result | Year-over-year change / context |
|---|---|---|
| Total revenue | $161 million | Up 8% |
| Subscription revenue | $143.5 million | Up 10%; also up 10% in constant currency |
| Subscription revenue excluding U.S. mortgage | — | Up 12% |
| U.S. mortgage subscription revenue | $20.6 million | Down 1% |
| Professional services revenue | $17.5 million | Down 3% |
| Professional services gross margin | 3% | Up 600 basis points from negative 3% |
| Non-U.S. total revenue | $36.4 million | Up 9% |
| Non-U.S. subscription revenue | $30.9 million | Up 13%; approximately $200,000 FX headwind |
| Non-GAAP operating income | $40.8 million | Up 36%; 25% margin |
| Free cash flow | $34 million | Up 170% |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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