As of 20th Aug 2020

Exec Summary (<50 words)

1. 1 hr news research - most time wastage - see output on the charts
2. 30mins - reachout on linkedin to old execs?
3. 1 hr - Youtube videos, data gathering - old site links (Wayback machine), customer feedback?

Baseball Stats

Founded: 1997

Employees: 1700 (4x in 6 yrs)

MarketCap (Aug 20): $11B

5Yr Rev growth: %

5Yr Inc growth: %

www.elliemae.com

Key Investors

2011 IPO

Raised $45M at $122M valuation

2019 Take-private

40% premium to 30day VWAP ($99 vs $72 VWAP)

Rev: $480M | EBITDA $126M

EV: 42x EBITDA

2020 M&A

Sold to ICE for $11B in Aug '20

Company description

1. Mortgage tech SaaS used by lenders to process applications (mainly Loan Origination System called Encompass with market share of 35%). Encompass is also called - Mortgage in a box as its the industry standard.
2. Value prop for 1. SaaS for small lenders who cannot afford custom software like big banks 2. Decreases loan processing costs 3. Decreases time to process apps (faster closure) 4. Compliance with regulations built in so no additional checks needed

Products

For end to end process from marketing, lead management, loan origination, processing, underwriting, appliaction, disclosure agreements, closing documents, funding and closing the loan for the borrower

• Encompass - LOS
• AllRegs
• AIQ - AI powered automation tool
• Velocify - Sales software
• Mavent - Compliance module

Also operates 'Ellie Mae Network' that acts as an interchange for various txns between parties on the network

Market / Competition

TAM ($6B in core product - mortgage origination)

1. Captured in the way of $ per loan and number of loans. Company currently at $174 (per loan) and 35% market share. Aim to go up to $250 per loan (TAM of $625 per loan)
   • Total TAM of $6.5B (just from mortgage, other platforms aspects not included)
   • Aggressive estimation of cost cutting via automation to drive to $6B TAM

Competition

1. ~35% share of U.S. mortgage applications, 21% market share in terms of number of lenders
2. Larger lenders have own in-house custom solutions and some use BlackKnight's EMPOWER LOS (highly customisable)
3. Smaller lenders also use other solutions like Cadence (Accenture), Calyx, LendingQB. Smaller lenders (<25 seats) use point solutions and keep upgrading as they grow (point → Accenture's Cadence → BKIs Empower → Encompass)

Value Prop