nCino CFO Greg Orenstein Cites Pricing and AI Gains

nCino Chief Financial Officer Greg Orenstein reported that 48% of the cloud software company's customers have transitioned to an asset-based pricing model ahead of schedule, helping offset ongoing pressures in its mortgage-related business.

"We've moved 48% of our customer base to a new asset-based pricing model after six quarters, ahead of our original four-year timeline," said Greg Orenstein, Chief Financial Officer, nCino, during his presentation at the conference.

Asset-Based Pricing Velocity and Enterprise Adoption

The transition to asset-based pricing has exceeded initial company projections, reaching nearly half of the customer base in just six quarters compared to an original four-year timeline. According to a conference transcript published by Investing.com, the company achieved its targeted 10% price increase upon each customer's conversion.

Adoption is also advancing among the firm's largest accounts. Twelve of nCino's 20 largest customers by annual contract value have completed the migration, including four accounts that transitioned in the most recent quarter.

Artificial Intelligence Monetization

Beyond pricing restructuring, nCino is expanding its monetization of artificial intelligence tools. More than 230 clients are paying for the company's proprietary AI capabilities.

Those paying accounts utilize a suite of specialized software offerings designed to automate banking workflows. The deployed products include Banking Advisor, Digital Partners, and Continuous Credit Monitoring.

Mortgage Pressures and Capital Allocation

While commercial lending and international markets demonstrate strong demand, nCino's mortgage-related business continues to experience headwinds from higher benchmark interest rates.

To manage shareholder value amid these macroeconomic pressures, the software provider has repurchased more than $300 million of its common stock since April of the prior year. Leadership subsequently authorized an additional $100 million for future share buybacks.

What Is at Stake for Cloud Software Vendors

The financial sector's transition toward usage- and asset-based software pricing models remains a critical test for enterprise cloud providers seeking predictable revenue streams. By successfully accelerating its migration timeline while simultaneously commercializing AI assistants like Banking Advisor, nCino aims to insulate its broader commercial banking software business from cyclical downturns in mortgage origination volume.