Nick Altmann: Great. And then just as a follow-up, you guys mentioned 4Q bookings came in below your expectations and called out some incremental macro headwinds and now there’s a little bit more turbulence in your end market. So I’m just curious, can you maybe just talk about from a go-to-market perspective, how you plan to sort of combat some of these challenges? Is it leaning more into cross-selling into the existing installed base and maybe focusing less on landing that new customers? Is it leaning more into nIQ and sort of structuring sales comp incentives around some of those products that you typically sell into the existing installed base. Just maybe talk a little bit about some of the go-to-market changes, if any, that you’re sort of making given the turbulence and ambiguity.
Josh Glover: The benefit of this team having run this company for about 11 years now is that we’ve seen a variety of economic cycles. In times when they get very challenging we absolutely do see expansion and upsell conversations being easier. Greenfield is always the first thing to shut down. But we’re going to continue playing the long game. A lot of our customers are looking at more budgetary and project approval scrutiny. We’re doing it internally as we continue our evolution as a profitable growth company. But we’re going to continue telling them that story. I think what I see from banks who are forward looking is that even if things are tough now, they have to position themselves to grow on the other side of the cycle. So those conversations continue.
Operator: Thank you. Our next question comes from Terry Tillman with Truist Securities. Your line is open.
Terry Tillman: I guess kind of building on some of the prior questions on the macro side, and I appreciate you all providing some color in terms of what was happening in fourth quarter, particularly in the North America market. Maybe we could just talk about like how this compares to like COVID. COVID became disruptive on new business and then banks focusing on and just helping their customers, business continuity. If we’re getting into a situation tighter credit lending standards and just tighter credit in general, I don’t know how your business operates in that kind of environment. But like how would that compare to like the disruption we saw around COVID in terms of maybe becoming an ongoing challenge in terms of bookings if banks are focused on credit standards and tighter credits. Does that have a big impact? Is it too early to tell? Just a little bit more color on that. I’m getting some questions about that.
Pierre Naude: Thanks, Terry. Let me first address with you the COVID thing. Remember, there’s always an initial shock that you see. And then people start realizing what are we going to do about this? In the case of COVID, PPP came to the forefront. And all of a sudden, we all jumped into action and show a massive opportunity short term to digitize banks, help them distribute the money from the government, et cetera. I would tell you that the compression of net interest margins over time is becoming a new reality. And it’s going to take time for the bank to realize it. And once you’re saying is my business, once your gross margin squeeze is there, what else is left? It’s efficiency. And then you have to start looking at automation.
So what we see as these trends come and go, is that the need for automation and the investment in software infrastructure to actually digitize and service your customer experience in a more efficient way while keeping your people to maintain their personal relationships, it’s just becoming more of a need and a must for these banks to have to compete effectively. What you’ll find is over time is that the banks should lack the investment in their IT infrastructure will be acquired. And they will be acquired by banks with deep infrastructures that digitize everything end-to-end and it gives a 360 customer view as well as an experience second to none. So, I feel we are very well positioned as I see the market shift that way to get used to a tighter NIM and that in be well positioned to help them.
Terry Tillman: That’s very helpful, Pierre. And I guess, Josh, just a quick question on SimpleNexus, kind of glass half full, it sounded like you had three of the largest contracts ever, and you’re starting to have that real cross-selling motion play out. Was that less impacted? How did that perform in the quarter? And are there broader synergies you’re now seeing with that integrated with the broader retail banking set of products?
Josh Glover: Yes. We are very proud of the progress that SimpleNexus made as we commented their three largest initial deals that they’ve ever signed. And I’m very proud that two of those are actually cross-sales as a bank operating system customer base. So that took us to 15 cross-sales in the fiscal year as we just get the motions down and get the teams aligned. SimpleNexus is fully integrated into nCino sales now. We still have a dedicated team for the IMB space. That’s very important to me because they have a great market share there, and we’re going to keep our eyes on that market and continue expanding there. But when you look at the focus that we’ve had for 11 years and banks and credit unions or relationships that we have, we’ve talked to them about a single platform for multiple products for years.
And this is just one more step towards fulfilling that vision. So, in those accounts that we know in the market that we spent a lot of time in, we’re getting them great introductions. I think the cross-sell numbers that you’re seeing or added by that, as is the fact that this year, their average deal size was up 15% in this market. That’s something I’m proud of.
Operator: Thank you. Our next question comes from Saket Kalia with Barclays. Your line is open.
Saket Kalia: Josh, maybe for you, very helpful commentary earlier just on how conversations have sort of changed kind of after all the news here. But I’m wondering if we could just talk about that specifically with banks internationally, maybe focusing on Europe, just kind of given all the new logos there, right? I mean, clearly, there is more room for adoption in Europe as I think you talked about a big win in Ireland there. But I’m curious, how does the tone of business there in Europe compared to here in the U.S.? If you can comment on that at all qualitatively.
Josh Glover: I think it’s been a little bit more measures over the last couple of weeks. We obviously have seen some of this crisis extend European banks. I wouldn’t draw a huge delineation in how they’re thinking. Obviously, the deposit push in the U.S. has been a little bit unique. But we’re continuing to expand in the banks where we are and advance greenfield accounts. I think it’s a little bit of an input strategy tech you try to get one on the board, make them successful and with time you slowly expand. So what we did in Canada, what we’ve done in UKI is something that we’ll continue doing on the continent and in our other international markets as well.
Saket Kalia: Got it. Got it. That makes sense. Greg, maybe for my follow-up for you. I know we’ve got good visibility into that revenue growth for next year, which clearly is a testament to the seat-based activation model. But I’m curious if you could comment on how you’re thinking about ACV bookings growth next year? Qualitatively, quantitatively, however you want to approach it, but curious how you’re kind of thinking about that sort of preliminary driver, right, with, of course, revenue kind of lagging that. How are you thinking about sort of top-down ACV type of bookings next year?
Greg Orenstein: Yes, we’ve tried to give you some additional visibility in terms of the year and the outlook, along with, again, just what we’re seeing in the market. And so obviously, we’ll update you as the year progresses. As I think both Pierre and Josh noted, our pipelines are healthy, remain strong. Things are moving. We always want them to move quicker. But ultimately, from a bookings perspective, we’ll see how the year progresses and again, kind of focus you on the guidance that we gave and the visibility that we provided for this fiscal year.
Operator: Thank you. Our next question comes from Josh Beck with KeyBanc Capital Markets. Your line is open.
Josh Beck: I wanted to drill down on the sales cycles a little bit. That’s certainly something we had picked up as well in some of the work that we had done. From what I remember, the smaller financial institutions, I think it was roughly two to three quarters for the larger ones. I think it was about double that four to six quarters. So I know it’s early and it’s probably a little bit difficult to have any precision on that, but how much of an extension are you contemplating in the forecast here?
Pierre Naude: It’s difficult to quantify these things this early because normally what we see in these markets is people see the bad news or they get aware of it and it takes some time to find their feet. Like right now, I can tell you every bank is focused on liquidity, the deposit flow, et cetera. That’s what they think about. And then the moment things settled down, the management team sits around and say, what do we do now? And then they have to look strategically at the long term. And that’s what we’re focused on because that strategic long-term means they have to automate, drive their efficiency ratios to a much better point where it is today. And there will be some consolidation because some management teams just cannot get it done.
But overall, we feel good about our positioning and where we sit in the market, the business model we’ve deployed. You’ve heard all the good news about SimpleNexus. So as we put this puzzle together and we grow in the market, we feel like nCino was going to be the Company that actually will go and thrive throughout periods like this because of our solutions, but also our relentless focus on execution. And that is the best way to read market sentiment.
