March 20 th, Analyst Day Ellie Mae. All rights reserved.

Transcription

1 March 20 th, 2018 Analyst Day

2 1:05 PM Jonathan Corr, President and CEO: Vision and Focus 1:20 PM Joe Tyrrell, EVP of Corporate Strategy: Opportunity and Growth 1:45 PM Pete Hirsch, EVP of Technology and Operations: Powering the Vision Agenda 2:10 PM Cathleen Schreiner Gates, EVP of Sales and Marketing: Driving Adoption and Revenue Per Loan 2:35 PM Break 2:50 PM Customer Panel 3:35 PM Matt LaVay, EVP and CFO: Financial 4:00 PM Executive Team Q&A 4:30 PM Cocktail Reception 2

3 Safe Harbor Statement This presentation, and the accompanying oral presentation, contain forward-looking statements that involve risks, uncertainties, and assumptions. These forward-looking statements include but are not limited to statement regarding our projected financial results, our ability to further penetrate our addressable market, our ability to effectively deliver on our product and technology roadmap, any statements about historical results that may suggest on-going trends for our business, any statements of the plans, strategies, and objectives of management for future operations, any statements of expectation or belief regarding future events, potential markets or market size or technology developments, and any statements of assumptions underlying any of the items mentioned. These statements involve known and unknown risks, uncertainties, and other factors that may cause Ellie Mae s results to be materially different than those expressed or implied in such statements. Such differences may be based on factors such as changes in the volume of residential mortgages in the United States, and changes in other macroeconomic factors affecting the residential real estate industry. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from our current expectations. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described under the heading Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2017 as updated from time to time by our quarterly reports on Form 10-Q and our other filings with the U.S. Securities and Exchange Commission. Actual results could differ materially from those anticipated or implied in our forward-looking statements. Except as required by law, we assume no obligation and do not intend to update these forwardlooking statements. Certain financial measures contained herein represent non-gaap financial measures. A reconciliation of these measures to the most directly comparable GAAP measure is available on our most recent investor presentation on 3

4 Vision and Focus Jonathan Corr President and CEO 4

5 Our North Star To automate everything that is automatable in the mortgage origination process 5

6 Our Culture We re a high tech company with strong core values: We have a passion for developing industryleading innovation. We put our customers first. We have a fun, friendly environment, with respect and understanding for our employees. We believe in giving back to our communities. The balance of a focus on technology with caring about people has gotten us where we are today. 6

7 Historically Broken Workflow Thousands of pages Error prone process Separate databases Phones Couriers Borrowers Faxes GSE s Investors Regulators Hundreds of steps Mortgage Insurance Credit Reports Highly Manual, Complex, Fragmented, and Regulated Mortgage Process Fraud Detectors Labor intensive Income Verification Lenders Several stakeholders Appraisers Flood Report Tons of data Databases Insurers Verification 7

8 UNDER- WRITING All-in-One, Integrated Next-Gen SaaS Solution Compliance. Quality. Efficiency. Communication Documentation Borrowers Fraud Detectors GSE s Regulators Appraisers Lenders Insurers Investors 8

9 Innovating on Industry Leadership 2,300+ lenders 240,000+ users 20M+ transactions Thousands of service providers and investors 2.5M+ closed loans 9

10 Strong Secular Tailwinds Regulation and Increased Quality Pent Up Housing Demand Increasing Purchase Volume Increasing Origination Costs 87M Millennial Population Digital Mortgage Experience 10

11 Automation End-to-End Help Lenders Fund More Loans Reduce Origination Time and Cost Make Smarter Decisions Validated and Compliant Applications Workflow Automation Data Validation Integrated Services Data Lake Data Access DATA Pattern Recognition Predictive Analytics Custom Content Machine Learning Automated Recommendations Marketing Automation Humans Robots Human Touch Get Data Apply Rules Apply ML Apply Workflow Order Services Extract Data Human Touch Data Apply Guidelines Lender Rules Investor Rules Decision Engine DATA Exception Processing Yes Exception? Human Touch No eclosing Encompass Data Servicing Data Financial Data Aggregation Data Scientist Lenders APIs DATA LAKE Business Analyst Predictive Modeling Insights Analytics DaaS Communication On Demand Consumer Engagement EM Data Scientist Business Modeling Product Machine Learning 11

12 > Encompass NG Lending Platform Encompass Consumer Connect Encompass TPO Connect Encompass Loan Officer Connect Encompass Investor Connect Encompass Developer Connect > Lender APIs: Build, Integrate, Extend Compliance Engine Workflow Engine Document Engine Calculation Engine Pricing/Eligibility Engine Partner APIs: Build, Integrate, Extend Rules Engine Encompass Data Connect Encompass Partner Connect 12

13 Opportunity and Growth Joe Tyrrell EVP of Corporate Strategy

14 Our North Star Is to Automate Everything Automatable 15

15 Loan Origination Cost $9,000 $8,000 $7,000 Total Loan Production Expenses $6,959 $7,000 $7,747 $7,562 $8,060 $6,000 $5,000 $4,810 $4,402 $4,930 $5,118 $5,603 $4,000 $3,416 $3,000 $2,000 $1,000 $ Encompass represents less than 2% of this total spend Sources: MBA 16

16 What Are These Costs? Occupancy and Equipment Personnel $405 5% $8,060 $5,279 $913 11% Cost of Acquisition 66% $671 Technology and Services 8% $792 10% Other Expenses 2017 Sources: MBA, Ellie Mae, MarketWise Advisors 17

17 What Are These Costs? $8,060 $671 8% Technology and Services 2017 Sources: MBA, Ellie Mae, MarketWise Advisors 18

18 Why Are the Personnel Costs so High? Personnel People waiting for the loan to be assigned $5,279 66% Once assigned, people waiting for someone to take action People time spent ordering and reviewing services Time spent with people verifying and reconciling information as it changes Loan files moving back and forth between the same milestones and people 19

19 10 44 Days to Close 27 5 Days Lead Acquisition Application Processing Underwriting Closing Post-Closing Identify Prospect Score Lead Complete Application Advise Consumer Request Documents Order MI Appraisal Flood Perform QC Documents ed Prepare for Investor Reconcile Paydown Create Campaign Assign Lead Order Credit Consumer Decision Verify Income Order/ Track Appraisal Income MI Prepare Documents File ed Deliver to Investor Reconcile Pr. Advice Acquire Content Re-distribute Lead Run AUS Calculate Fees/Taxes Verify Assets Order Flood Assets Ensure Compliance Create Final Disclosures Fund Loan Conditions Create Transfer Ensure Compliance Track Lead Determine Eligibility Generate Disclosures Verify Employment Order Title Employment Determine Eligibility Send Loan Package Warehouse Adv. Created Request Documents Secure Trailing Send Campaign Nurture Lead Identify Program Send Disclosures Verify Identity Documents Fraud Assign Conditions Consumer Signs Record Note Identify Trailing Send Trailing Create Interest Convert Lead Price Loan Assign File Order Fraud Prepare for Underwriting Title Clear Conditions Documents Notarized Register MERS Clear Conditions Onboard Loan Can Be Automated Requires Human Touch $2,600 Savings per Loan Sources: MarketWise Advisors, Ellie Mae 20

20 10 44 Days to Close 27 5 Days Lead Acquisition Application Processing Underwriting Closing Post-Closing Automated: Identify Prospect Predictive Analytics Create Campaign Score Lead Auto content Marketing automation Acquire Content Assign Lead Re-distribute Lead Lead scoring Lead routing Ensure Compliance Track Lead Complete Application Order Credit Run AUS Determine Eligibility Advise Consumer Consumer Decision Calculate Fees/Taxes Generate Disclosures Request Documents Verify Income Verify Assets Verify Employment Order MI Order/ Track Appraisal Order Flood Order Title Appraisal Income Assets Employment Flood MI Ensure Compliance Determine Eligibility Perform QC Prepare Documents Create Final Disclosures Send Loan Package Documents ed File ed Fund Loan Warehouse Adv. Created Prepare for Investor Deliver to Investor Conditions Request Documents Reconcile Paydown Reconcile Pr. Advice Create Transfer Secure Trailing Reduces Send cost of Campaign acquisition Nurture Lead Identify Program Send Disclosures Verify Identity Documents Fraud Assign Conditions Consumer Signs Record Note Identify Trailing Send Trailing Create Interest Convert Lead Price Loan Assign File Order Fraud Prepare for Underwriting Title Clear Conditions Documents Notarized Register MERS Clear Conditions Onboard Loan Can Be Automated Requires Human Touch $2,600 Savings per Loan Sources: MarketWise Advisors, Ellie Mae 21

21 Days to Close 27 5 Days Lead Acquisition Application Processing Underwriting Closing Post-Closing Automated: Identify Prospect Predictive Analytics Create Campaign Acquire Content Ensure Compliance Score Lead Auto content Marketing automation Assign Lead Re-distribute Lead Lead scoring Lead routing Track Lead Automated: Complete Application Ordering of services Qualification Order Credit Run AUS Determine Eligibility Advise Consumer Consumer Decision Request of data and documents Initial disclosures Assignment Calculate Fees/Taxes Generate Disclosures Request Documents Verify Income Verify Assets Verify Employment Order MI Order/ Track Appraisal Order Flood Order Title Appraisal Income Assets Employment Flood MI Ensure Compliance Determine Eligibility Perform QC Prepare Documents Create Final Disclosures Send Loan Package Documents ed File ed Fund Loan Warehouse Adv. Created Prepare for Investor Deliver to Investor Conditions Request Documents Reconcile Paydown Reconcile Pr. Advice Create Transfer Secure Trailing Reduces Send cost of Campaign acquisition Nurture Lead Eliminates Identify 6 Program days Send Disclosures Verify Identity Documents Fraud Assign Conditions Consumer Signs Record Note Identify Trailing Send Trailing Create Interest Convert Lead Price Loan Assign File Order Fraud Prepare for Underwriting Title Clear Conditions Documents Notarized Register MERS Clear Conditions Onboard Loan Can Be Automated Requires Human Touch $2,600 Savings per Loan Sources: MarketWise Advisors, Ellie Mae 22

22 Days to Close 27 5 Days Lead Acquisition Application Processing Underwriting Closing Post-Closing Automated: Identify Prospect Predictive Analytics Create Campaign Acquire Content Ensure Compliance Score Lead Auto content Marketing automation Assign Lead Re-distribute Lead Lead scoring Lead routing Track Lead Automated: Complete Application Ordering of services Qualification Order Credit Run AUS Determine Eligibility Advise Consumer Consumer Decision Request of data and documents Initial disclosures Assignment Calculate Fees/Taxes Generate Disclosures Automated: Request Documents Verify Income Verify Assets Verify Employment Order MI Service ordering and review Verifications Order/ Track Appraisal Data validation Document classifying OCR Order Flood Data validation Order Title Appraisal Income Assets Employment Flood MI Ensure Compliance Determine Eligibility Perform QC Prepare Documents Create Final Disclosures Send Loan Package Documents ed File ed Fund Loan Warehouse Adv. Created Prepare for Investor Deliver to Investor Conditions Request Documents Reconcile Paydown Reconcile Pr. Advice Create Transfer Secure Trailing Reduces Send cost of Campaign acquisition Nurture Lead Eliminates Identify 6 Program days Send Disclosures Eliminates Verify 11 Identity more days Documents Fraud Assign Conditions Consumer Signs Record Note Identify Trailing Send Trailing Create Interest Convert Lead Price Loan Assign File Order Fraud Prepare for Underwriting Title Clear Conditions Documents Notarized Register MERS Clear Conditions Onboard Loan Can Be Automated Requires Human Touch $2,600 Savings per Loan Sources: MarketWise Advisors, Ellie Mae 23

23 Days to Close 27 5 Days Lead Acquisition Application Processing Underwriting Closing Post-Closing Automated: Identify Prospect Predictive Analytics Create Campaign Acquire Content Ensure Compliance Score Lead Auto content Marketing automation Assign Lead Re-distribute Lead Lead scoring Lead routing Track Lead Automated: Complete Application Ordering of services Qualification Order Credit Run AUS Determine Eligibility Advise Consumer Consumer Decision Request of data and documents Initial disclosures Assignment Calculate Fees/Taxes Generate Disclosures Automated: Request Documents Verify Income Verify Assets Verify Employment Order MI Service ordering and review Verifications Order/ Track Appraisal Data validation Document classifying OCR Order Flood Data validation Order Title Automated: Appraisal Assets Flood Service ordering and review Condition Income fulfillment Compliance Employment MI Ensure Compliance Income analysis Day 1 Certainty Clear to close Determine Eligibility Perform QC Prepare Documents Create Final Disclosures Send Loan Package Documents ed File ed Fund Loan Warehouse Adv. Created Prepare for Investor Deliver to Investor Conditions Request Documents Reconcile Paydown Reconcile Pr. Advice Create Transfer Secure Trailing Reduces Send cost of Campaign acquisition Nurture Lead Eliminates Identify 6 Program days Send Disclosures Eliminates Verify 11 Identity more days Documents Eliminates 9 Fraud more days Assign Conditions Consumer Signs Record Note Identify Trailing Send Trailing Create Interest Convert Lead Price Loan Assign File Order Fraud Prepare for Underwriting Title Clear Conditions Documents Notarized Register MERS Clear Conditions Onboard Loan Can Be Automated Requires Human Touch $2,600 Savings per Loan Sources: MarketWise Advisors, Ellie Mae 24

24 Days to Close 27 5 Days Lead Acquisition Application Processing Underwriting Closing Post-Closing Automated: Identify Prospect Predictive Analytics Create Campaign Acquire Content Ensure Compliance Score Lead Auto content Marketing automation Assign Lead Re-distribute Lead Lead scoring Lead routing Track Lead Automated: Complete Application Ordering of services Qualification Order Credit Run AUS Determine Eligibility Advise Consumer Consumer Decision Request of data and documents Initial disclosures Assignment Calculate Fees/Taxes Generate Disclosures Automated: Request Documents Verify Income Verify Assets Verify Employment Order MI Service ordering and review Verifications Order/ Track Appraisal Data validation Document classifying OCR Order Flood Data validation Order Title Automated: Appraisal Assets Employment Flood Service ordering and review Condition Income fulfillment Compliance MI Ensure Compliance Income analysis Day 1 Certainty Clear to close Determine Eligibility Automated: Perform QC QC enote Prepare Documents Closing documents enotary Create Final Disclosures Funding erecording Send Loan Package Documents ed File ed Fund Loan Warehouse Adv. Created MERS transfer Prepare for Investor Deliver to Investor Conditions Request Documents Reconcile Paydown Reconcile Pr. Advice Create Transfer Secure Trailing Reduces Send cost of Campaign acquisition Nurture Lead Eliminates Identify 6 Program days Send Disclosures Eliminates Verify 11 Identity more days Documents Eliminates 9 Fraud more days Assign Conditions Eliminates Consumer 8 Signs more days Record Note Identify Trailing Send Trailing Create Interest Convert Lead Price Loan Assign File Order Fraud Prepare for Underwriting Title Clear Conditions Documents Notarized Register MERS Clear Conditions Onboard Loan Can Be Automated Requires Human Touch $2,600 Savings per Loan Sources: MarketWise Advisors, Ellie Mae 25

25 Days to Close 27 5 Days Lead Acquisition Application Processing Underwriting Closing Post-Closing Automated: Identify Prospect Predictive Analytics Create Campaign Acquire Content Ensure Compliance Score Lead Auto content Marketing automation Assign Lead Re-distribute Lead Lead scoring Lead routing Track Lead Automated: Complete Application Ordering of services Qualification Order Credit Run AUS Determine Eligibility Advise Consumer Consumer Decision Request of data and documents Initial disclosures Assignment Calculate Fees/Taxes Generate Disclosures Automated: Request Documents Verify Income Verify Assets Verify Employment Order MI Service ordering and review Verifications Order/ Track Appraisal Data validation Document classifying OCR Order Flood Data validation Order Title Automated: Appraisal Assets Employment Flood Service ordering and review Condition Income fulfillment Compliance MI Ensure Compliance Income analysis Day 1 Certainty Clear to close Determine Eligibility Automated: Perform QC QC enote Prepare Documents Closing documents enotary Create Final Disclosures Funding erecording Send Loan Package Documents ed File ed Fund Loan Warehouse Adv. Created MERS transfer Automated: Prepare for Investor Deliver to Investor Conditions Request Documents Reconcile Paydown Purchase advice reconciling Condition review Reconcile Pr. Advice Transfer creation Investor delivery Stipulation curing Create Transfer Secure Trailing Reduces Send cost of Campaign acquisition Nurture Lead Eliminates Identify 6 Program days Send Disclosures Eliminates Verify 11 Identity more days Documents Eliminates 9 Fraud more days Assign Conditions Eliminates Consumer 8 Signs more days Record Note Eliminates Identify 22 days Trailingp-closing Send Trailing Create Interest Convert Lead Price Loan Assign File Order Fraud Prepare for Underwriting Title Clear Conditions Documents Notarized Register MERS Clear Conditions Onboard Loan $2,600 Savings per Loan Sources: MarketWise Advisors, Ellie Mae 26

26 10 Days to Close 5 Days Lead Acquisition Application Processing Underwriting Closing Post-Closing Automated: Automated: Automated: Automated: Automated: Automated: Predictive Analytics Auto content Marketing automation Lead scoring Lead routing Ordering of services Qualification Request of data and documents Initial disclosures Assignment Service ordering and review Verifications Data validation Document classifying OCR Data validation Service ordering and review Condition fulfillment Compliance Income analysis Day 1 Certainty Clear to close QC enote Closing documents enotary Funding erecording MERS transfer Purchase advice reconciling Condition review Transfer creation Investor delivery Stipulation curing Reduces cost of acquisition Eliminates 6 days Eliminates 11 more days Eliminates 9 more days Eliminates 8 more days Eliminates 22 days p-closing Cost of Acquisition Personnel Personnel Personnel Personnel Other Expenses $2,600 Savings per Loan Sources: MarketWise Advisors, Ellie Mae 27

27 Significant Opportunity to Extend Our TAM Personnel $5,279 66% $913 11% Cost of Acquisition $2,600 savings per loan equates to 7 10 million loans per year $18B $26B $792 10% Other Expenses of costs we can reduce, which we believe we can monetize a percentage of the savings Sources: MBA, Ellie Mae, MarketWise Advisors 28

28 Our North Star Now Has a Name... 29

29 The True Digital Mortgage Help Lenders Fund More Loans Reduce Origination Time and Cost Make Smarter Decisions Validated and Compliant Applications Workflow Automation Data Validation Integrated Services Data Lake Data Access DATA Pattern Recognition Predictive Analytics Custom Content Machine Learning Automated Recommendations Marketing Automation Humans Robots Human Touch Get Data Apply Rules Apply ML Apply Workflow Order Services Extract Data Human Touch Data Apply Guidelines Lender Rules Investor Rules Decision Engine DATA Exception Processing Yes Exception? Human Touch No eclosing Encompass Data Servicing Data Financial Data Aggregation Data Scientist Lenders APIs DATA LAKE Business Analyst Predictive Modeling Insights Analytics DaaS Communication On Demand Consumer Engagement EM Data Scientist Business Modeling Product Machine Learning 30

30 Data Access Validated and Compliant Applications Data Lake Predictive Analytics Automated Recommendations Data Validation DATA Custom Content Workflow Automation Integrated Services Pattern Recognition Machine Learning Marketing Automation Communication On Demand Consumer Engagement 31

31 Consumer Data Humans Human Touch Human Touch Exception Processing Human Touch DATA Yes eclosing Robots Get Data Apply Rules Apply ML Apply Workflow Order Services Extract Data Data Apply Guidelines Lender Rules Investor Rules Decision Engine Exception? No 32

32 Lenders Data Scientist Business Analyst Servicing Data APIs Insights Encompass Data Aggregation DATA LAKE Predictive Modeling DaaS Financial Data Analytics EM Data Scientist Business Modeling Product Machine Learning 33

33 The True Digital Mortgage Help Lenders Fund More Loans Reduce Origination Time and Cost Make Smarter Decisions Validated and Compliant Applications Workflow Automation Data Validation Integrated Services Data Lake Data Access DATA Pattern Recognition Predictive Analytics Custom Content Machine Learning Automated Recommendations Marketing Automation Humans Robots Human Touch Get Data Apply Rules Apply ML Apply Workflow Order Services Extract Data Human Touch Data Apply Guidelines Lender Rules Investor Rules Decision Engine DATA Exception Processing Yes Exception? Human Touch No eclosing Encompass Data Servicing Data Financial Data Aggregation Data Scientist Lenders APIs DATA LAKE Business Analyst Predictive Modeling Insights Analytics DaaS Communication On Demand Consumer Engagement EM Data Scientist Business Modeling Product Machine Learning 34

34 The True Digital Mortgage Help Lenders Fund More Loans Reduce Origination Time and Cost Make Smarter Decisions Encompass Validated and Compliant Rules Applications Engine Workflow Velocify Automation Data Validation Integrated Services Data Lake Encompass Developer Data Access Connect DATA Encompass Data Connect Pattern Recognition Predictive Analytics Custom Content Machine Learning Automated Recommendations Velocify Encompass Marketing Automation CRM Humans Robots Human Touch Get Data Apply Rules Encompass Apply ML Apply Workflow Order Developer Services Extract Data Connect Human Touch Data Apply Guidelines Lender Rules Investor Rules Decision Engine DATA Encompass Data Connect Exception Processing Yes Exception? Human Touch No eclosing Encompass Data Servicing Data Financial Data Aggregation Data Scientist Lenders Encompass Developer Connect APIs DATA LAKE Encompass Data Connect Business Analyst Predictive Modeling Insights Analytics DaaS Encompass Communication Loan On Demand Officer Connect Encompass Consumer Engagement Connect EM Data Scientist Business Modeling Machine Learning Product 35

35 Monetizing The Digital Mortgage 36

36 Creating New Opportunities March 2017 Last year we discussed our opportunities to penetrate the existing TAM but not our strategy for monetizing the platform or data to increase the TAM 37

37 Creating New Opportunities Help Lenders Fund More Loans Reduce Origination Time and Cost Make Smarter Decisions Consumer Engagement Subscription Comprehensive consumer engagement solution (now including Velocify) to reduce a lender s acquisition costs and help them fund more loans Cognitive Learning fee to help save $18 B-$26 B Intelligent automation and cognitive learning enables us to participate in the savings we can generate for our lenders Monetize Our Data Through Data Connect Subscriptions: Data Lake Analytics DaaS 38

38 Open Platform With Robust APIs Allows Encompass to be both an all-in-one and best-of-breed solution Creating New Opportunities The Digital Mortgage Provides additional monetization opportunities and further attracts Enterprise lenders seeking maximum efficiency and the ability to innovate on top of our platform Velocify + Encompass CRM + Consumer Connect + LO Connect Creates a comprehensive consumer engagement system to drive more funded loans for our lenders Platform Creates additional opportunities Coming soon: the Ellie Mae Marketplace 39

39 Powering the Vision Pete Hirsch EVP of Technology and Operations

40 The Four Pillars of Our Technology Strategy Open Platform Data Cognitive Computing Public Cloud 41

41 Providing a Robust Foundation Encompass NG Lending Platform powers all Encompass Connect products, proving architecture and providing immense customer value Fully modern service-oriented architecture with API-first design Strong customer adoption of APIs and Developer Connect Leverages Public Cloud for massive scalability 42

42 > Encompass NG Lending Platform > Lender APIs: Build, Integrate, Extend Compliance Engine Workflow Engine Document Engine Calculation Engine Pricing/Eligibility Engine Rules Engine Partner APIs: Build, Integrate, Extend 43

43 > Encompass NG Lending Platform Encompass Consumer Connect Encompass TPO Connect Encompass Loan Officer Connect Encompass Investor Connect Encompass Developer Connect > Lender APIs: Build, Integrate, Extend Compliance Engine Workflow Engine Document Engine Calculation Engine Pricing/Eligibility Engine Partner APIs: Build, Integrate, Extend Rules Engine Encompass Data Connect Encompass Partner Connect 44

44 Encompass NG Lending Platform Encompass Data Connect Encompass Data Connect 45

45 Requirements for a Cognitive Learning System Feedback into applications Real-time data with events Deep integration with platform Open for additional data 46

46 Why Does Feedback Matter? Linear Flow Linear System with Batch Updates Extract Transform Load Encompass Hourly, Daily, Weekly Data Warehouse Feedback Feedback System with Real-Time Updates Encompass Lending Platform Continuous Learning Real-Time Data Streaming Models Data Connect 47

47 Why Does Openness Matter? Feedback in a closed system allows Self-tuning systems Recommendation engines But what about other types of data? Organizational data Regional factors Borrower payment history Economic drivers Encompass Data Connect (LOS data) (Lender data) Enrich ERP Servicing Other Sources 48

48 Feedback and Openness Have Largely Been Mutually Exclusive Until Now The Challenge 49

49 Encompass Data Connect Extending the Encompass NG Lending Platform Encompass Data Connect Lender APIs: Build, Integrate, Extend Feedback Data Lake Partner APIs: Build, Integrate, Extend Live Data Streaming Enrich Fully cloud-based and open Near infinite scalability Available to full Connect Suite 50

50 Public Cloud Transition Unlocking Opportunity Migration to public cloud well underway Focuses core IP investment on the Digital Mortgage Provides massive scalability for even the largest lenders Access to enormous and dynamic innovation community 51

51 Well Prepared for Today AND Tomorrow Data drives the Digital Mortgage The Encompass NG Lending Platform is at the heart of the ecosystem Ellie Mae is building for the future but with immediate benefits for today 52

52 Driving Adoption and Revenue Per Loan Cathleen Schreiner Gates EVP, Sales and Marketing

53 Customer Life Cycle Management Delivering operational efficiencies, productivity gains and ROI driving RPL for Ellie Mae Marketing and Sales Development New Customer Acquisition Implementation Support Education and Certification Customer Success Client Relationship Management Adoption and Utilization Optimization Business and Systems Optimization 55

54 Driving Productivity and Growth Delivering operational efficiencies, productivity gains and ROI driving RPL for Ellie Mae Marketing and Sales Development New Customer Acquisition Implementation Support Education Certification Customer Success Client Relationship Management Adoption and Utilization Optimization Business and Systems Optimization 56

55 Groundwork for Adoption/Utilization Implementation Configuration Permissions Workflows Documents Business Rules Service Ordering Income Verification Mortgage Insurance Flood Certification Fraud Appraisals Title Fannie Freddie, etc. Client Relationship Management: Adoption and Utilization Assess Adoption and Utilization Business s Peer Group Integrations Certifications Improve Efficiency Curve Optimization: Business and Systems Optimization Health Checks to drive ROI Workflow Automation Business Expansion 57

56 Implementation Adoption Growing Regional Bank $8 $10B Origination Focus on Efficiency 2016 Implementation 2017 Deployment 100% 80% 60% 40% Flood 20% 0% Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Customer Utlization Market Segment Utilization 58

57 Relationship Management Assess Adoption & Utilization Relationship Management Process and Tools Business s Reporting and Analytics ROI Education Peer Group Comparisons Best Practices Workflow Automation and Optimization 100% 80% 60% 40% 20% 0% Income Verification (4506T) Identified Adoption Gap Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Customer Utlization Market Segment Utilization 59

58 Win-Win for Clients and Ellie Mae Lenders Decrease Costs Reduce Time to Close Eliminate Inefficiencies Growth Drivers Ellie Mae Improve Productivity Increase ROI Increase Revenue per Loan 60

59 Enterprise Success 61

60 Enterprise Segment Leads in Loan Share & Productivity Loan Distribution by Market Segment Market Segment Productivity Enterprise 60% 30% Strategic Enterprise 2.0 Strategic 1.7 9% 1% Corporate Mid-Market Mid-Market 0.5 Corporate 0.4 Enterprise Segment is 400+ Seats, Strategic is Seats, Mid-Market is Seats, Corporate is <25 Seats. Productivity is defined as "# of loans per user" 62

61 1. Elite Sales Team 2. Dedicated Implementation Teams and Project Management Office 3. Senior Relationship Management Teams Dedicated Resources 4. Funded Premium Support Programs 5. Executive Advisory Boards of Lenders and Partners 63

62 Customer Experience 64

63 Enterprise Adoption and Utilization Top 10 retail mortgage lender Mature customer >$20B in originations in 2017 ~40% YoY growth through acquisition 90,000 75,000 60,000 45,000 30,000 15,000 0 Loans Originated Mortgage Insurance Income Verification (4506T) 2017: Increased adoption of 4506T & MI Increased revenue per loan 100% 50% 100% 50% 0% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 0% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Customer Utilization Market Segment Utilization 65

64 Enterprise Growth and Optimization Top 40 Retail Mortgage Lender Steady growth in loan volumes Efficient operation: strong adoption and utilization of Ellie Mae Network Services 25,000 20,000 15,000 10,000 5,000 0 Loans Originated : Increased Adoption of MI 100% Mortgage Insurance 100% Income Verification (4506T) 2017: Professional Services project to automate workflows 50% 50% Increased revenue per loan 0% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 0% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Customer Utilization Market Segment Utilization 66

65 Summary 1 Continued Growth in Enterprise Market 2 Encompass Platform and Services are essential to allow lenders to scale 3 Encompass brings efficiencies to lenders to increase productivity 4 Win-Win for Ellie Mae and Lenders Lender productivity - higher ROI Increased revenue to Ellie Mae 67

66 Customer Panel Richard T. Bechtel Executive Vice President Head of U.S. Mortgage Banking Rose Marie David Senior Executive Vice President Mortgage Lending Director John Hedlund Chief Operating Officer and Managing Director 69

67 Financial Matt LaVay EVP and CFO 71

68 Becoming a Billion Dollar Company 72

69 History of Success $1.9T $1.7T $2.0T $1.8T $1.7T $500M $1.3T 31% 5-Year CAGR $360M $417M $254M $39M $128M $46M $162M $75M $113M $123M $129M E Adj. EBITDA ($M) Revenue ($M) National Mortgage Volume ($T) 73

70 In $ Millions Revenue Growth Revenue YOY growth of 20% per year $1,000 $1B+ $750 $500 $360 $417 $500 $250 $128 $162 $254 $ E E 74

71 Strong Contracted Revenue Base with High Retention Average Customer Retention* Contracted Revenue $350 $300 35% CAGR $250 95% $200 $150 $100 $50 $ E *Average retention of

72 Market Share Growth of Total Mortgage Originations Market share growth of +2 4 percentage points per year 50 55% 35% 30% 25% E Note: Market share calculated as loans originated by Encompass lenders over estimated total US residential mortgage loans derived from HMDA data. Assuming an industry forecast with modest growth. 76

73 Total Revenue Per Loan $240 $260 $165 $135 $ E Note: Loans defined as closed loans originated by Encompass lenders. 77

74 Growth Drivers 78

75 Addressable Technology and Services Spend $671 Tech spend per loan 7 10M Loans per year equates to ~ $5 7B Potential market technology and services savings Sources: MBA, Ellie Mae, MarketWise Advisors 79

76 Extended TAM $2.6K Savings per loan 7M 10M Loans per year equates to $18B 26B Total potential 20% Ellie Mae monetization ~ $4B 5B Expanded potential market personnel and acquisition savings Sources: MBA, Ellie Mae, MarketWise Advisors 80

77 Extended TAM ~$4 5B Expanded potential market personnel and acquisition savings equates to ~$5 7B Potential market technology and services savings ~$10B+ TAM 81

78 Driving Profitability and Free Cash Flow 82

79 Path to Adjusted EBITDA Margins of 35 40% 50% 25% Velocify acquisition Impact 0% E 2019 E E Adj. EBITDA trend x Velocify Adj EBITDA % 83

80 Strong Free Cash Flow Generation CAPEX and Free Cash Flow % of revenue 20%+ FCF 14% 7% 7% <10% Capitalized Software <5% Infrastructure E 84

81 Target Model at $1 Billion Non-GAAP Financials Target Total Revenue ($M) $360 $417 $1,000 Gross Margin 67% 61% 70 75% Adj. EBITDA Margin 31% 29% 35 40% 20% Revenue growth and reduced incremental spend drive achievement of our target model Adj. Net Income Margin 17% 14% 15 20% FCF % of Revenue 15% 7% 20%+ CAPEX % of Revenue 17% 21% <10% Revenue Per Loan $145 $165 $240 $260 Market Share 30% 35% 50 55% 85

82 New Financial Disclosures 86

83 New Supplemental Metrics for

84 New Supplemental Data Metrics Current Data Revenue Total Revenue Contracted Revenue % Contracted Encompass Revenues Contracted Encompass Revenues Contracted % Encom pass Revenues User at End of Period Contracted Users Active Users Active as a % of Contracted Users Average Users Average Active users during the period Revenue per Average Active user during period Seat Bookings (effective 2019) New Data Revenue Total Revenue Contracted Revenue % Contracted YO Y Contracted G rowth Total Encompass Encompass Contracted % Encom pass Contracted YO Y Contracted G rowth Other Revenue Other Contracted Other Variable Users Active Users Average Active User Revenue per Average Active User Loans Encompass Closed Loans Closed Loans per Average Active User Revenue per Closed Loan 88

85 Guidance Recap Q1 18 FY 18 Low High Low High Revenue $107,000 $109,000 $495,000 $505,000 Net Income ($9,000) ($8,000) $10,000 $14,000 Adj. EBITDA $13,600 $15,600 $126,700 $132,000 Adj. EBITDA % 13% 14% 26% 26% Adj. Net Income $2,400 $3,400 $61,000 $65,000 Adj. Net Income EPS $0.07 $0.09 $1.68 $1.78 Free Cash Flow ($22,000) ($22,000) $45,000 $55,000 Under ASC

86 Interest Rate Impact on Purchase Loan Volumes 2018 reflecting higher interest rates with steady purchase volume $2,500 7% $2,000 6% 5% $1,500 4% $1,000 3% 2% $500 1% $- $ E 2019 E Purchase Loan Volume $B 10-Year Treasury Yield (%) 0% Source: MBA and Federal Reserve 90

87 Interest Rate Impact on Refinance Loan Volumes 2018 reflecting higher interest rates and lower refinance volumes $2,500 7% $2,000 6% 5% $1,500 4% $1,000 3% 2% $500 1% $- $ E 2019 E Refinance Loan Volume $B 10-Year Treasury Yield (%) 0% Source: MBA and Federal Reserve 91

88 Strong Secular Tailwinds Regulation and Increased Quality Pent Up Housing Demand Increasing Purchase Volume Increasing Origination Costs 87M Millennial Population Digital Mortgage Experience 92

89 Proven business model with strong track record High recurring revenue and customer retention Summary Large addressable market Clear path to $1B in revenue Business model with strong operating leverage and free cash flow dynamics 93

90 Questions? 94

91