nCino's 2026 Q1 Earnings Call: Unpacking Key Contradictions in Revenue Growth, Sales Strategy, and AI Integration

Subscription revenue growth deceleration, sales capacity and growth investments, mortgage churn impact, AI integration and automation, subscription revenue growth are the key contradictions discussed in nCino's latest 2026Q1 earnings call.



Revenue and Subscription Growth:
- nCino reported total revenues of $144.1 million for Q1, rising 13% year-over-year, with subscription revenues contributing significantly.
- Subscription revenues were $125.6 million and rose 14% year-over-year on a reported basis.
- The growth was driven by successful execution against the operating plan and approximately $800,000 in U.S. mortgage revenues exceeding expectations.

Non-GAAP Operating Income:
- The company's non-GAAP operating income was $24.8 million or 17% of total revenues, beating expectations.
- This improvement was partially offset by severance expenses of approximately $0.5 million.
- The overperformance in subscription revenues contributed to the operating income outperformance.

International Expansion:
- Non-U.S. total revenues grew 22% year-over-year or 23% in constant currency, with non-U.S. subscription revenues up 31% year-over-year or 32% in constant currency.
- Growth was driven by strong performance in international markets, with notable contributions from the FullCircl acquisition.

Restructuring and Efficiency Initiatives:
- nCino announced a restructuring event affecting approximately 7% of its global workforce.
- The company is leveraging AI tools and streamlining processes to reduce bureaucracy and improve efficiency.
- The restructuring is expected to lead to approximately $24 million in annualized expense savings.