Ladies and gentlemen, thank you for standing by and welcome to the nCino Inc's second quarter fiscal 2022 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the questions during this session, you will need to press star then one on your telephone. If you require any further assistance, please press star then zero. I would now like to hand the conference over to your speaker for today, Greg Orenstein. You may begin. Good afternoon, and welcome to nCino's second quarter fiscal 2022 earnings call for the quarter ended July 31st, 2021. With me on today's call are Pierre Naudé, nCino's Chief Executive Officer, David Rudow, our Chief Financial Officer, and Josh Glover, our President and Chief Revenue Officer. During the course of this conference call, we may 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, including those related to the impacts of COVID-19 on our business, the financial services industry, and global economic conditions. nCino disclaims any obligation to update or revise any forward-looking statements. 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. With that, thank you for joining us, and I will turn it over to Pierre. Thanks, Greg. Good afternoon, and thank you for joining us. We had another great quarter, and I want to thank our entire team at nCino for their hard work and efforts. As you can see from our second quarter results, the nCino platform continues to be selected by leading financial institutions around the globe, reinforcing our position as the worldwide leader in cloud banking. nCino really is in an enviable position. The digital transformation of the global financial services industry is accelerating, and we offer a best-in-class platform to help financial institutions of all sizes around the world transition to a digital client-first strategy. We reported impressive financial results for the quarter, highlighted by 37% growth in subscription revenues, which compared to a very strong second quarter last year that was driven by PPP revenues. We also achieved the highest sales for a second quarter in the history of the company. There is a lot of news from us today. In addition to earnings, this afternoon we were very pleased to announce that Wells Fargo has chosen the nCino Bank Operating System as a foundational technology platform to accelerate its digital transformation within its commercial banking and corporate and investment banking businesses. A third press release shared promotions across our executive management team, positioning nCino for further growth as we scale the organization to address the significant global opportunity ahead. I want to spend time discussing these executive changes. First, let me touch upon the Wells Fargo announcement and our record second-quarter sales. At $1.9 trillion in assets, Wells Fargo is one of the top four banks in the U.S. We now have two of the top four. Bank of America has been a customer of nCino since 2017. Wells Fargo is a prime example of the momentum around digital transformation I just mentioned. They are investing in digital capabilities to serve their clients and improve their digital experience more quickly and effectively. We are incredibly proud to partner with Wells Fargo to help them transform their commercial lending operations and continue to meet the evolving needs of their clients. Signing our first customer in France was another highlight in the second quarter. This financial services firm, a subsidiary of one of the largest banking groups in France, purchased nCino for corporate lending and also purchased Automated Spreading, part of our nCino IQ or nIQ platform, to automate and speed up the credit analysis process. You may recall as we started the year, I challenged the team to add customers in each of the new European markets we entered. Two quarters in, we've added a customer in Germany and now one in France. We are seeing the benefit of the teams we've been able to build out in the local markets, and I'm pleased with the progress we have made, particularly in light of the challenges posed by COVID in Europe. Another key win was with US Bank, a $540 billion asset institution and existing nCino customer, who significantly expanded their relationship with us in the second quarter. US Bank first started using nCino for business banking in 2018. This additional agreement puts nCino Bank Operating System at the core of US Bank's commercial lending strategy. As Sal Maglietta, US Bank Executive Vice President, said in the press release they issued, "Across our organization, our bankers and technology teams are working collaboratively to reshape the way we serve our wholesale banking clients." Everyone involved is guided by our commitment to increasing simplicity and agility at every step of the lending process. The expanded agreement will provide us with a proven platform that will improve outcomes for both clients and employees. A few other noteworthy US customer wins in the second quarter include adding a new logo for a top 50 bank in the U.S. with over $75 billion in assets that will be using nCino in multiple lines of business, and signing a multi-year expansion with a top 20 bank in the U.S. with $180 billion in assets, giving them the ability to expand small business lending across their branches. I mentioned our first French customer purchased our Automated Spreading solution. They were one of nine new Automated Spreading customers this quarter, including the US arm of a global bank. Demand for Automated Spreading continues to be very encouraging, and we are now selling it across our customer base globally. In addition to a strong sales quarter, our customer success organization had another productive quarter, crossing key implementation and adoption milestones for many customers, including in Europe, Australia, and North America. As always, we celebrate the go-lives, and notable go-lives this quarter included a $39 billion bank in the U.S., where we went live on an end-to-end commercial and small business transformation project, treasury management go-lives for a US community bank and a US regional bank. In Australia, we went live with three customers, including deployments for small, medium, and enterprise or SME lending and Automated Spreading. Our growth highlights the magnitude of nCino's global market opportunity. The executive promotions we announced today create additional infrastructure to support a much larger, increasingly global organization and to more effectively pursue the strategic opportunities we see ahead of us. One point to keep in mind, you've heard me discuss nCino's culture many times. An important element of our culture is professional growth opportunities for our people. These internal promotions reflect the core nCino philosophy to forward invest in leadership. By adding more depth to our senior team, we are also giving the next level of leaders the chance to grow professionally. The appointment of Josh Glover as president is a perfect example. Josh was an early nCino employee and has played a key role in shaping the nCino you see today. Our results speak to his success as Chief Revenue Officer over the past two years in creating a dynamic global sales organization and driving nCino's expansion across North America, EMEA, and APAC. With the additional role of President, Josh will now take on operational responsibilities in addition to sales. At the same time, it enables the next tier of sales leadership to undertake more senior roles as Josh adds new structure below him. Josh's new responsibilities will also free me up to focus more on customers, investors, and strategic opportunities. For those of you who have not yet met Josh, you will be seeing more of him in the quarters to come. Trisha Price's promotion to Chief Innovation Officer is another step to free up senior time to allow an even more strategic approach to product innovation, further aligning our technology vision and business strategy. Again, this move creates an opportunity for two proven leaders under Trisha, Josh Marcy and Dory Weiss, to take on larger roles within our product development and engineering organizations. Being an innovation company is part of nCino's DNA. Trisha, who has led the design and development of the nCino Bank Operating System for the past several years, is now tasked with furthering our product innovation leadership position in the financial services industry. Innovation can also come from outside the company. Finding those ideal opportunities, be it a partnership or acquisition, is part of our long-term strategy. I've asked Greg Orenstein, who has more than 20 years of experience driving corporate strategy and executing M&A and corporate finance transactions in the fintech industry, to head up corporate strategy in addition to his role as Chief Corporate Development Officer. His responsibilities as general counsel will be assumed by April Rieger, who has earned the title after working closely with Greg over the past three years. I view the second quarter as a textbook example of success for nCino. We exceeded our financial guidance, posted strong sales to support future growth, and took steps scaling the organization to effectively address a massive global market opportunity while recognizing key leaders who have made invaluable contributions to the company. With that, David will take you through the second quarter financials in detail and provide added color around our outlook for the rest of the year. Thank you, Pierre, and thanks to everyone for joining us this afternoon to review our second quarter financial results. Please note that all numbers referenced in my remarks are on a non-GAAP basis unless otherwise stated. Our non-GAAP financial information excludes the impact of stock-based compensation, the amortization of intangible assets, and expenses related to the government antitrust investigation and related civil action disclosed in our SEC filings. A reconciliation to comparable GAAP metrics can be found on today's earnings release, which is available on our website and as an exhibit to our Form 8-K furnished with the SEC. To echo Pierre's comments, we are very pleased with the strong results for the second quarter and how it positions us for continued momentum in the second half of the year. Total revenues for the second quarter of fiscal 2022 were $66.5 million, an increase of 36% year-over-year. Subscription revenues were $53.9 million, an increase of 37% year-over-year, representing 81% of total revenues. Subscription revenues benefited from a few deals that closed earlier than expected and some add-on sales. While we are no longer breaking out PPP revenues, there is no change to the previously communicated approximately $18 million in PPP revenues we expect for the full year. Professional services revenues were $12.6 million in the quarter, growing 34% in the second quarter of fiscal 2022, reflecting solid billing and utilization rates on projects outside the U.S. We enjoyed a particularly strong quarter in international revenues. Non-US revenues were $10.8 million, or 16% of total revenues in the second quarter, up 129% year-over-year. While we expect the level of international growth to moderate in the coming quarters, based largely on strong US sales and continued challenges from COVID, we are very pleased to see such a strong return on investment for our international growth initiatives. Non-GAAP gross profit for the second quarter of fiscal 2022 was $41.9 million, compared with $29.1 million in the second quarter of fiscal 2021, an increase of 44% year-over-year. Non-GAAP gross margin was 63%, compared to 60% in the second quarter of fiscal 2021. Our gross margin continues to improve, largely from subscription product mix. Sales and marketing expenses for the second quarter of fiscal 2022 were $16.8 million, or 25% of total revenues, compared to $11.9 million, or 24%, in the second quarter of fiscal 2021. We continue to invest in our global expansion, adding salespeople on the continent in Europe, along with sales specialists to further support some of our newer and maturing products like retail and nIQ. We also saw some return to travel in the U.S. and continental Europe as certain customers' level of comfort with on-site visits improved in the quarter. Research and development expenses for the second quarter of fiscal 2022 were $16.9 million, or 25% of total revenues, compared to $12.3 million, or 25%, for the second quarter of fiscal 2021. We continue investing across our platform, including in our retail products and nIQ, as well as localizing products to support our international expansion. General and administrative expenses for the second quarter of fiscal 2022 were $10 million, or 15%, of total revenues, compared to $6.6 million, or 14%, in the second quarter of fiscal 2021. We continue to invest in G&A to support our global growth. In the second quarter, we incurred approximately $2.9 million in costs related to the antitrust matters, which are not included in the $10 million expense. As a reminder, we are excluding these costs from our non-GAAP operating income results and guidance. Non-GAAP operating loss for the second quarter of fiscal 2022 was $1.8 million, compared with non-GAAP operating loss of $1.6 million in the second quarter of fiscal 2021. Our non-GAAP operating margin for the second quarter was negative 3%, compared with negative 3% in the second quarter of fiscal 2021. Non-GAAP net loss attributable to nCino for the second quarter of fiscal 2022 was $2.3 million, or $0.02 per share, compared to non-GAAP net loss attributable to nCino of $581,000, or $0.01 per share, in the second quarter of fiscal 2021. Turning to cash. We ended the quarter with cash and cash equivalents of $399.4 million. Net cash provided by operating activities totaled $13.3 million for the second quarter, compared to $23.5 million in the second quarter of fiscal 2021. Capital expenditures were approximately $750,000 in the quarter, resulting in free cash flow of $12.6 million. Consistent with our normal billings and collection seasonality, we expect negative cash from operations through the balance of the year. While we have noted some of the limitations of RPO as a metric in managing our business, I did want to comment on RPO this quarter, as the record sales resulted in a meaningful increase. Total RPO was $707 million, a 55% increase over $456 million in the second quarter of fiscal 2021. The portion of RPO greater than 24 months was up 92% over fiscal 2021 to $301 million, reflecting the large long-term contracts signed in the second quarter, which should position us quite well for continued top-line growth. RPO less than 24 months increased 36% to $406 million. Turning to guidance. For the third quarter, we expect total revenues of $66 million-$67 million. Subscription revenues are expected to be between $54 million and $55 million. Non-GAAP operating loss is expected to be approximately $5.5 million-$6.5 million, and non-GAAP net loss attributable to nCino per share is expected to be $0.06-$0.07 based on a weighted average of approximately 96.6 million shares outstanding. We are increasing our guidance for the full year 2022 as follows. Total revenues of $263 million-$264 million. Subscription revenues are expected to be between $216 million-$217 million, and we expect non-GAAP operating loss for FY 2022 to be $21 million-$22 million. Non-GAAP net loss attributable to nCino per share to be $0.22 - $0.23 based upon a weighted average of approximately 95.9 million shares outstanding. The second quarter was another very strong quarter for the company and sets the stage for continued momentum in the second half of the year. I want to thank the entire nCino team for their continued dedication and hard work in helping financial institutions around the globe successfully transition to a digital strategy. We are now happy to take your questions. Thank you. Our first question comes from the line of Brad Sills with Bank of America. Your line is open. Oh, great. Thanks, guys, for taking my questions. Congratulations on a real nice quarter. The metric that stands out here is RPO, and you called out a couple of these large deals. Congratulations there. I wanted to ask about what's driving that. Is this some pent-up demand from the pandemic now catching up here in that big mega bank segment of the market? How would you classify just general spending environment now versus, say, three, six months ago, particularly in that segment of the market because you've obviously seen some great results there? Yeah, Brad, thanks a lot for being here today. What I would say to you is that in general, these are very large strategic deals with long-term strategic intent. It was a great sales cycle. Obviously, we talked to all of these big banks over a long period of time, as you can imagine. I would say that we finally have the impact of pandemic behind us. People have adjusted fantastically. I would tell you nCino people adjusted, executing and working like this. I see our bankers have adjusted and executing and working like this. People are just doing their jobs, whether they at home or at the office, et cetera. I'm not only proud of my company, I'm proud of the industry who's actually reacting to customer needs and demands as they go forward, especially at the strategic level. I see this momentum. I think there is an element where the pandemic is driving a strategic urgency for digital transformation. I think that's what you're seeing because I can see that in the pipelines as well. You would expect after a quarter like this that the pipelines will take a little dip for us too. I don't see that. That is pretty fantastic to see the momentum. Excellent to hear. Thanks, Pierre. Then one more, if I may, just on the international activity. Obviously, you're seeing some good results there on revenue, which we know is kind of a lagging indicator. You mentioned because of these big deals, we'll see U.S. start to increase as a mix. If you could just remind us where you are with the build-out of international. Which countries are you seeing real traction in, and where are you investing incrementally from here? Thanks again. Yes. I'm going to give you a broad statement on that, and maybe this is a great time to introduce Josh a little bit to the team here as well. The first thing is, I look at the numbers of international and compare it to the company when we started this. You guys remember at the onset of the company, we always said when we went public, the IPO, that we did a triple, double, double. I always measure every initiative against can we achieve that. As I look at the international business, in some case, we are meeting and exceeding it, and in some cases, really exceeding some of that momentum. It's going great. Josh has put a great team on the field in London that's expanding now. Josh, maybe you can just comment quickly on the German team in France, Italy, et cetera. Yeah, we've always taken a land and expand approach, that's playing out as we continue to pursue our international strategy. If you recall, in the first quarter, we announced our first German customer. We announced a French customer this quarter. Our goal is to show them a rapid path to success, we believe that as a reputation-focused company, that'll help us continue expanding in those exciting markets. We made significant infrastructure investments in the non-US teams that are covering this, I think that local presence is paying off. Thanks so much, guys. Thanks, Brad. Thank you. Our next question comes from the line of Terry Tillman with Truist. Your line is open. Yeah, good afternoon. I think last quarter I tried some German. I'll try some French. [Non-English content]. Terry, I'll give you some Afrikaans. [Non-English content] Yeah, I'll stop with that now. All right, I'm done. Anyways, first congrats on the record sales quarter, and also for Josh and Trisha and everybody with the promotions. That's great, scaling the business. I guess the first question, Pierre, for you is, to one of the earlier questions by Brad, I think you said that the pipeline is actually quite strong and you're not seeing a real fall off after the great momentum recently. What I'm curious in the pipeline, what are some of the newer areas that you're seeing more proliferating in the pipeline in terms of the newer products beyond just your leadership in commercial loans? Whether it's the retail side that I've asked about in the past, nIQ or mortgage, just anything you can share that's on the emerging side that's interesting or maybe incremental since the last time we caught up. I had a follow-up. Yes. I would say firstly from the areas I always talked about, international clearly is showing us great traction from a pipeline perspective and interest, okay. Which is what we like because it's mature product. We know what we do there. It's commercial, it is small business and so on. As you know, that's a massive TAM, okay. Number one. Number two, we're seeing tremendous interest in the nIQ products we're coming out with, driving intelligence and automations into the systems. nIQ is great. A little nugget for you is we went live with an Australian mortgage customer. It's a smaller customer, but I will tell you this, these are new products. You do proof points, you get referenceable customers, and every one of them is just a major victory for the teams down there. Those are the areas we're seeing. We're seeing great interest in our international mortgage products. On the retail front, we're seeing good momentum, but as a company hyper-focused on reputation, we have a big effort on making existing customers successful, get them referenceable, and then drive volume from there. That's how we executed all new products. We go in, we sell a number. There's an interesting tracker we have is as we look at customers with multiple products, which actually means they do platform embracing. Okay? I'm seeing a very high number of customers now embracing the platform with multiple products. We're actually exceeding 25% of our customers now with multiple products. I think that's really what's holding promise for the future. That's great, Pierre. Thank you. I guess, David, just a quick question. Put you on the spot here. It's great to see the Wells Fargo win. Something like that, one of these top four bank deals, and maybe they're all different, but is there any kind of guidance you could provide on how that could start flowing into the revenue from a meaningful perspective? Thank you. Yeah. Well, as you know, we have a seat activation schedule. This followed that similar activation schedule we talked about during the IPO process. It's no different than that. Revenues will ramp fully. I think it's a little bit over 24 months where you'll see the full ramp of revenues. Those will scale in over time, as they start deploying the product. Thanks. Thank you. Our next question comes from the line of Brent Bracelin with Piper Sandler. Your line is open. Hi, this is Clarke Jeffries on for Brent. Thanks for taking the question. I think 1st, interesting to see an Automated Spreading win in your first French customer. Just reflecting on the nIQ platform, where are you most excited to go with the platform from here? Is Automated Spreading really emerging as the killer app, or are there other things on the roadmap that we should be paying attention to? Yeah. As I look at there's volume deals and then there's dollar volume deals. Okay? We penetrate some very smaller institutions. I look, for instance, at the volume of Portfolio Analytics, where we provide to very much smaller institutions a level of technology that is not easily accessible at that level. Okay? People do spreadsheets and stuff. I saw in the numbers here good traction there, especially on the credit union side, et cetera. nIQ obviously is available to all customers of all sizes. I think the fact that we could launch a product that is globally available and that at the very first instance had great success with our early adopter customers, and then now is being this whole volume. Just one final point on that. Those products have a much quicker sale to revenue turnover time. It's really promising to see that. On top of that, as you know, we are at the very early stages of commercial pricing and profitability. We are working with a handful of smaller community banks to actually prove out the concept and make sure our models is right and how we approach this. The feedback so far has been very good. That holds great promise for us. Great. David, perhaps on the disparity between total RPO and 24 months or less RPO, I was just wondering if some of these larger deals extended beyond maybe a five-year contract horizon, or should we think of the total RPO build as mostly within that kind of five-year duration? Yeah. Historically, we've had three to five-year deals. Those are the averages. In the larger deals, nothing went out beyond five years. I'd say probably five years is the average for them. All right, perfect. Thank you. Thank you. Our next question comes from the line of Bob Napoli with William Blair. Your line is open. Thank you. Good afternoon, Pierre, David. Good to talk to you. Nice quarter. Congratulations on the wins. On the international business, Pierre, maybe a little commentary around the competitive environment and how you feel Pierre, the nCino product set stands up internationally versus the U.S. Is it more or less competitive? Is the win rate lower or higher, and how do you see that evolving? What I'm seeing is that, look, the first thing you have to do is get success. Introduce the cloud to an industry and a continent that believes banking will never go there. The great news is I've seen that in 2012 in the U.S. They told me big banks will never do it in 2015 and 2016. We proved that wrong. Now we're doing it in Europe. The momentum I'm seeing both on the pipeline side as well as the revenue growth, is proving out that we could even be bigger internationally than we could be in the U.S. There are a different set of competitors there, as you can imagine. There's some local companies. There's still a culture of they can build it themselves by using component-based software, et cetera. What I'm beginning to see is exactly the same patterns I saw back here. I do realize the big difference is you have to win in every country. Become referenceable, and then win your follow-on deals there. That is just a factor of culture, language, et cetera, and especially with COVID, the borders are back closed up, and so on. You know what? I'm so proud. We, about two quarters away, signed a bank on the continent without ever seeing them in person, all by Zoom. We've done it again. We've done it here in the U.S. I think it's boding well for us. Thank you. What are the R&D dollars being channeled to? What innovations or what is the product roadmap internally? Where are you investing the most? We continue to invest in our commercial small business products, to modernize it, to make it right to international, and to invest in nIQ to drive intelligence into those products, because we know that's a market-leading position, and that's how we penetrate countries. I want to make sure everyone understand. When we go international, we focused on our mature products, you gain that traction and you gain the reputation. Okay? We launch on top of that mortgage for the international countries, including Canada, U.K., to start off with. That's an early adopter or a very early phase of development. The differentiation I see there is the cloud. If you look at the specific product sets, we are heavily investing on top of nIQ and commercial. We are heavily investing in retail, and retail including deposit account opening, treasury management sales and onboarding, okay, which is a commercial retail deposit product, as well as retail lending. The investments there will continue for a long time. Those are heavily compliant-oriented products, and there are nooks and crannies that you have to figure out. That's why what we do is we sell a number of customers, and then we focus on those customers with all our resources to make sure we get them right, get them successful, and make sure they become referenceable so we can start selling the next group. That is just a level of success I've seen with previous product launches, and that's how we approach this one as well. Thank you. If I could just squeeze in one last quick one. You haven't made an acquisition in a couple of years. Certainly have a lot of momentum organically and don't need to make an acquisition. Just any thoughts around are you active on the M&A front and looking at opportunities? If so, what would interest you? Yes. As I always mention, I look at this platform play as a puzzle. If we can find the right companies with the right analytics, AI, machine learning, value add, decisioning engines, et cetera, we love those because I can plug them underneath our platform, and I can consume the outputs and the data from there, okay? That's one. We look at the global basis. You can imagine every time we make a decision about a product area, we look at do we buy, do we build, or do we partner? That's why what you see is we've now got specialized groups with Greg leading that to look at strategy and make sure that we've got a machine looking at that all the time, and we don't miss out on opportunities. I want to emphasize that this company is built on a platform vision that will automate and change the way banks operate. It's a client-centric platform. That means your products has to be integrated, share components, and share databases. It's not like I can just go buy a basket of products out there and start selling it. We have to make sure it fits our vision, and we will continue to do that. Thank you. Really appreciate it. Thank you. Our next question comes from the line of Mayank Tandon with Needham. Your line is open. Thank you. Good evening. Congrats on the quarter. Pierre and David, I wanted to just go back to the question around seat activation. Given the impetus on the part of banks to digitize and the pressure on them to move forward faster, is it conceivable that banks might look to accelerate the seat activation schedule with you guys, which might in turn help to drive above-trend growth for even longer than you would have imagined, maybe going back pre-pandemic? The activations typically is based on experience of how fast we can change processes and deploy it to actually the people in the bank using it, okay. Here's your obstacles to accelerate that. The first one is there's a natural pushback on change. It's just people are used to do certain ways. The second one is the number of integrations you have to do to internal and external data sources. Realize many of those systems we connect to are very old, not API-driven, and you have to write custom code for that, especially where the system integrators are involved. Our experience is we've learned through the years how to be more prescriptive, push best practices, push gold standards, et cetera, to help the banks to move faster. Triple P was a great example. With PPP, we said out the box, "Here's how it's going to work, best practice, go fast." We all know the market demanded that at the time, okay? Now, when you go back to a large project, we are becoming more gold standard-oriented. It's a complex job, and we've picked the hard things, automating middle back office and then push it out to the customer. That's a long way of telling you, we see small incremental improvements in seat activations by bank size. Overall, quite frankly, what we're doing is heavy lifting, and I don't see the patterns changing that much. That's very helpful. Makes a lot of sense. Then Pierre, if I can ask you one more around the Bank Operating System, just given the Wells Fargo win. I was curious, how many of your customers today are actually on the OS, the entire full suite comprehensive solution, versus using point solutions. What is the opportunity to convert many of those point solution clients to the OS, and what are the potential revenue contributions we could expect from something like that if that were to happen over time? Yes. Let me give you a number how you could calculate this if you just think of the magnitude of the opportunity we have. We're sitting around 12%-14% penetration overall in our banks. Now realize, if you take a pool of banks and you take all their employees that could consume at nCino, and you come up with a number, and you take our seats in those banks, that's where the 12%-14% comes from, okay? Your dilemma with the math is the moment we add a bunch of banks that's net new logos, the percentage go down again because I've got a much smaller penetration in those banks, okay? Then I start cross-selling, and the percentage come back up. On the one hand, it's great news that we moved from 9% - 14% at one stage, and now we're coming back to kind of 12%, 13%, because our new logo success is so great, okay. That's how the math play out in that game. I mentioned earlier, more than 25% of our customers use multiple products and actually is embracing the platform. That's what we are seeing, and that trend is continuing. The harder I push to do the cross-sell, the faster the new logos come because they see the value in the platform. I'm actually caught here in my own success trying to penetrate deeper but getting new logos. I love both of those. It's like your kids, you embrace them all. Right. Thank you so much. Appreciate the color. Thank you. Our next question comes from the line of Ken Suchoski with Autonomous Research. Your line is open. Hey, Pierre and David. Good afternoon, congrats on the strong quarter. Thanks for taking the question here. I just wanted to dig into the guidance a little bit. It looks like you're guiding to call it 26%-27% subscription revenue growth for the next couple quarters. We thought that would've been a little bit stronger since the comps get easier, you're booking these new wins. The RPO is up nicely, even RPO recognized in the next 24 months. Is that just conservatism on your end, or is there something else driving that? Yeah. I think what we talked about, we expected Q3 to be the low point and then would trend up. We actually closed a couple deals earlier than anticipated in the second quarter, that kind of changed the revenue ramp out, the revenue view into the back half of the year. We're not commenting on next year at this point. We're halfway through the year. We've had a phenomenal year so far, we still have deals to close to get a read on next year as well. The activity is strong, and we feel good with where we're at right now. Because of our activation schedules, always realize what we book now has got a long tail, and they come over 18 - 24 months. Our ability to impact the next two months comes with your nIQ-type products, et cetera, but it's fairly limited. That gives you some color of why you don't see second quarter bookings immediately pushing up third and fourth quarter. Yeah. The deals that we did sign, the big RPO was enterprise-driven in the quarter. Those just by nature will be longer-term seat activation schedules. Keep that in mind as you're building out your model. Mm-hmm. Okay, that's really helpful. I guess just a follow-up question, David. You just mentioned that 3Q would be the low point, I think in terms of subscription revenue growth and then ramp from there. Is it safe to assume that, is fiscal 3Q kind of a low point just going forward more broadly, or is it the low point just for this fiscal year? Yeah. We're not going to talk about next year at all, but for this year, the guidance is around a 27% growth rate, and then you can back into what Q4 is. We're really focused on closing out the year and then looking out to next year as we get closer to the end of the fiscal year. I think there's a factor of Q3 last year where we took consortium revenue on the PPP business that was pent up one time. That one-time revenue made last year's third quarter gave it a bump. This year's third quarter, which is normalized, compares with that, and that's where you see that mathematical impact. Okay. All right. Thanks again. Appreciate it. Thank you. Thank you. As a reminder, ladies and gentlemen. Our next question comes from the line of Alex Sklar with Raymond James. Thanks. Pierre, I wanted to follow up on Bob's product roadmap question. I know you just took up the TAM for the new nIQ offerings. I'm just curious if you see any opportunity to expand the TAM on the commercial bank operating systems side. You kind of talked about investing more on the SME side there, but are there any obvious ancillary solutions to kind of your commercial product that you can build or buy into the core platform? Yes. If you look at the landscape there, I think there are opportunities for more analytics and nIQ-oriented insights underneath that platform. Another area one can look at down the line is do customer onboarding in a fully compliant and legal way for very complex entities on a global basis. There's areas you can expand, okay? We get into, on the lending side, into the investment banking side, in the corporate banking side, et cetera, but you can expand into wealth management. There's so many things in a bank we can still address. I would say to you today, addressing a $12 billion opportunity, that our view is. Let's take what we have, build it in a repeatable fashion so we can drive volume and actually fulfill the promise of the platform. As we do that, I think that momentum and success will drive us to expand our portfolio elements. Understood. Yeah. $12 billion is no small number to attack. The other thing, David, I wanted to ask on the growth investment side that's been flagged for the second half of the year, what can you just tell us in terms of where you're going to be investing? Pierre, you mentioned some additional hiring on the international and retail sales front. I'm curious where the mix stands today of your sales force in terms of those big buckets, commercial, retail, and international. For the balance of the year, we do have some higher costs going into sales, marketing, R&D, and a little bit in G&A. We have higher insurance costs. Those went up on our renewal for D&O. We're also investing in our employees and retaining and recruiting employees to work here. Cost increases will be around that, and we do have increased costs around R&D as well to continue to mature and develop the product set. Okay, great. Thank you. Sure. Let me add a little bit there as you see the sales expenses. Realize, although we have this platform, we have an account management structure where our people own accounts or a territory and they're selling to there. Then behind them, you have the specialists. If I go and I understand that the bank has an issue with, let's say, retail lending, then I'm the general relationship person, but I bring in specialists for retail, or I bring in a specialist for small business or digital transformation from an end-user perspective, self-service perspective, or maybe it's commercial or it's account opening. Where you see some investment going in is at that level of specialization, so that when we compete with point solutions, we are not only best of breed with that point solution competition, but we differentiate and introduce the platform that will give us cross-sell down the line. You will see that as we expand our sales force and our depth of knowledge to compete better. Okay, great. That's helpful color. Thank you. Thank you. Our next question comes from the line of Saket Kalia with Barclays. Your line is open. Hey, guys. Thanks for taking my questions here and fitting me in. Congrats, by the way, to everybody on the call for the well-deserved promotions. Thank you. Thank you. Saket. Yeah, sure. Hey, Pierre, maybe just to start with you. Great news on Wells Fargo. I was just wondering, I think you said that makes two of sort of the top four banks domestically. Any thoughts on whether you think that could sort of open up pipeline for the other large banks in the U.S. who aren't already customers? I think every proof point actually must drive people to sit back and question and say, "What am I doing? Why am I doing it different?" Okay? Yes, the answer is absolutely so. As you can imagine, we have people calling on all these banks. We're having conversations with them. I actually look at the larger opportunity. Every one of these is a proof point to the top 400 banks in the world. We don't look at the U.S. as just a market. We're looking at the biggest banks in the U.K. As you know, Barclays is a great customer. We're looking at the biggest banks in France, biggest banks in Spain. There's fantastic institutions. Every one we get a top 10 bank in the U.S., and we publicize that, and we make it public, those become proof points that that is the momentum and the trend of the future. I see it as more a driver of that global footprint in the larger banks. Got it. That makes sense. David, maybe for you. I think we all have sort of a rough sense for how the seat activation schedule sort of looks across the blended base. I was just wondering how the seat activation schedule for a bigger deal like Wells Fargo could be different, if at all. As part of that, if there's anything just open-ended you would highlight just around expenses with that type of implementation as well. Yeah. On the seat activation schedule, the one we talked about during the IPO, that was the average at the time. If you look at the enterprise customers, it extends out to that 24-month period and sometimes even beyond 24 months for an even larger deal. It just depends on negotiations, just how deep we're building out integrations at the customer. I wouldn't expect anything majorly different as you look to build the model and try to forecast out RPO revenue recognition. What was the second part of your question? The second part was just if there's anything just to highlight that would be different from an expense perspective with a deal like that. Yeah. We use partners, so I would not expect to see really any increase in cost around a deal like that besides commissions that we pay out. Yeah, we engage partners. Partners are deploying that. We put our people in there more strategic during the deployment just to make sure everything goes as planned. On the cost side, there's really nothing else besides commissions that you would see an increase from. Got it. Actually, if I could just squeeze one more in. Since you talked about sort of forecasting RPO, it sounds like great growth in the long-term RPO. Is that five-year duration going to be the new normal for new deals, or is that something that could sort of ebb and flow? Any thoughts on sort of that duration as we kind of think about the components of RPO? I think it varies by market segment. Your community banks, I think our last average was 3.8 years overall on contracts. Your community banks, you have deals between three and five years. Your large banks go typically five. Every now and then you get an outlier with six years, but typically it's a five-year deal that we drive in these big banks because it's massive transformation. It takes time to do it. You have to get time to complete it, see the success, and then we drive cross-sells. Very helpful. Thanks, guys. Thank you. Thank you. Thank you. I'm showing no further questions in the queue. I would now like to turn the call back over to Pierre Naudé for closing remarks. Well, thank you. We couldn't be more pleased with the achievements of the quarter. Signing Wells Fargo in addition to our first customer in France, combined with strong sales, all highlight the company's ability to successfully execute on a massive global market opportunity. We are just getting started. The management promotions announced today position nCino to aggressively pursue this opportunity with the size and infrastructure of a much larger company, yet still nimble, thanks to the nCino culture. I am energized every day by our incredible people, the success we've achieved, and the exciting opportunities that lie ahead. Thank you again for your support, and we look forward to speaking with many of you in the coming weeks and months. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.