Specialist
Former senior executive at nCino Inc
Agenda
- NCino’s (NASDAQ: NCNO) operating environment, highlighting key considerations for ongoing performance
- Catalysts and limiting factors for BaaS (banking-as-a-service) adoption across size segments and industry verticals, discussing KPC (key purchasing criteria) and diversification efforts
- Competitive assessment vs similar platform players, bespoke solutions from existing financial institutions and core processors
- 3-5-year performance outlook with macroeconomic climate sensitivity analysis, competitive landscape and strategy execution
Questions
1.
What are your thoughts on nCino’s current operating environment and 2-3 key trends or drivers we should be monitoring?
2.
How would you describe the adoption trends within the modern cloud banking operating system that nCino is offering? Where is adoption and what are some driving factors behind that?
3.
How would you describe the penetration of modern platforms across the spectrum of FIs [financial institutions], including larger commercial banks, through community and regional players and credit unions? Where are we seeing most adoption? How do you see penetration trends evolving?
4.
What is the demand environment from players such as Wells Fargo and Chase and where might nCino focus to drive penetration and growth? Will it solely be via commercial customers or is the company trying to build an alternative use case for consumer lenders via the mortgage product? How might it balance out its target customers over the next three years?
5.
Could you describe the decision criteria for customers outside pricing? Where might nCino win and lose?
6.
What building blocks could nCino explore to drive reputation among smaller FIs, beyond the mortgage product via SimpleNexus?
7.
Might consolidation and M&A activity at regional and community bank level bolster demand for nCino’s products via consolidation increasing the AUM [assets under management] for these FIs? Is it more nuanced than that?
8.
How should we assess nCino’s product demand outlook, given the macroeconomic environment and deteriorating macro picture? Do you feel it bolsters demand or should we expect diminished demand given capital outlay deferrals and cost-cutting measures?
9.
Would the difficult macro environment meaningfully diminish ACV [annual contract value] enough for new customers, given the difficulty for mortgage lending, that they just look at the core system?
10.
What percentage deterioration over the next few years do you expect on blended average ACV for nCino, given the downward macro pressures?
11.
Should we anticipate any outsized cost-cutting measures? How do you grade nCino’s ability to manage operating costs and meet different growth targets?
12.
Where could nCino be more efficient in its cost structure and in leveraging technology? Can the company readjust its cost structure from the pandemic-era mentality of growth at all costs?
13.
Can you walk us through nCino’s buckets and competitors? Which do you perceive as the most meaningful competitive threat?
14.
What is your take on nCino’s Q1 2022 acquisition of SimpleNexus? What synergies do you see?
15.
Do you see any risks evolving out of that acquisition? Is there anything you would like to take a second look at relating to SimpleNexus?
16.
Are there any notable risks or opportunities around the trend of open banking adoption and the growing importance of fintechs? Is it influencing purchase solutions for nCino’s products on the commercial and retail lending sides of the business?
17.
Might further adoption of open banking make it easier for FIs to develop bespoke solutions and therefore disintermediate from nCino, amplifying its revenue concentration for larger FIs? Does that disintermediation risk give you pause?
18.
Could you discuss potential additional M&A from nCino? What would be driving that to expand point solutions? What might be potential targets and multiples?
19.
Do you have any targets in mind, if nCino were to look to expand on retail banking?
20.
How do you expect nCino’s financial performance over the next 1-3 years to evolve, including top-line growth and a path to profitability?
21.
Is there anything else worth highlighting that we haven’t already discussed?
