nCino Migrates 40% ACV to AI Pricing, Forecasts 2% Mortgage Revenue Decline
NCNO•nCino reported a 38-fold increase in Banking Advisor usage since October and migrated over 40% of its Annual Contract Value to a new AI-centric pricing model. However, U.S. Mortgage subscription revenue is forecast to decline 2% year-over-year in Q2 and compute-intensive AI deployments could pressure margins.
1. Q1 Performance and Mortgage Guidance
nCino delivered robust Q1 revenue growth but cautioned that U.S. Mortgage subscription revenues are expected to fall 2% year-over-year in Q2 due to elevated mortgage rates. The company declined to extend its strong first-quarter mortgage performance into future guidance, signaling a conservative outlook for that segment.
2. AI Adoption and Banking Advisor Uptick
Usage of nCino’s Banking Advisor platform has surged over 38 times from October to May, reflecting heightened customer engagement and rapid deployment capabilities. This adoption has accelerated professional services workflows, enabling deployments in weeks rather than months and driving cost efficiencies.
3. Platform Pricing Model Migration and Compute Costs
More than 40% of nCino’s Annual Contract Value has transitioned to its new AI-centric platform pricing model, underscoring strong market acceptance. Management noted that compute-intensive AI workloads and extensive change management requirements may pose margin pressures as adoption scales.
