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					                                                                               EQUITY RESEARCH
                                                                                     INITIATION


Enterprise Software                             Initiation                                                     Buy
January 28, 2013
                                                Ellie Mae
Closing Price (01/28/13):             $21.36    (ELLI – NYSE – $21.36)
12-month Target Price:                $28.00    Expect Continued Upside in 2013
52-Week Range:                 $5.39 - $30.59
                                                 We are initiating coverage on SaaS-based loan origination system
Market Cap (MM):                      $608.6        (LOS) vendor Ellie Mae with a Buy recommendation and a $28
Shares O/S (MM):                        27.4        price target. We believe that Ellie Mae is likely to continue generating
Float (MM):                             20.1        solid growth of 20%+ in each of the next three years, driven by: 1) an
Avg. Vol. (000)                        651.5        ongoing adoption cycle of LOS technologies as lenders manage
                                                    mounting regulatory requirements and the need to source higher quality
Book Value/Share:                      $5.75
                                                    loans; 2) the migration of the company’s large installed base of legacy
Dividend/Yield:                     $0.00/0%        users to the higher ASP SaaS offering; and 3) share gains, given Ellie
Risk Profile:                          High         Mae’s market-leading position.
                                                   We expect ongoing migration of the legacy installed base of 43,000
FYE: December                EPS       P/E
                                                    users to the higher ASP SaaS offering (subscription ASP of $130
       2011A                $0.24     89.0          per loan for new users, versus $18 for legacy users), driven by
       2012E                $1.05     20.3          demand for the broader SaaS suite.
       2013E                $0.91     23.5
                                                   Our discussions with a number of larger Ellie Mae lender
       2014E                $1.07     20.0
                                                    customers suggest the expectation for origination volume to remain
 LT Earnings Growth         25%                     flat/stable in 2013 (versus current industry forecast for 17%
                                                    decline), given an environment of: 1) low interest rates; 2) stable
                                                    refinancing volume as more borrowers qualify for refinancing with
                                                    improving loan-to-value (LTV) ratios; and 3) recovering new home
                                                    purchases.

INSERT PRICE CHART                                 Significant runway for continuing LOS adoption and share gains,
                                                    given a total addressable mid-size lender market of $800 million,
                                                    versus our FY13 revenue estimate of $127 million. We expect share
                                                    gains from Ellie Mae’s position as the best-of-breed LOS provider
                                                    with: 1) the largest installed base (87,201 users); 2) a broad offering
                                                    spanning documentation, compliance, pricing, and closing; 3) variable
                                                    success-based (SBP) pricing model; and 4) multi-tenant architecture.
                                                   We believe that Ellie Mae is likely to report significant upside to
                                                    preliminary guidance for FY13 revenue growth of 25% as we move
Source:Bigcharts.com                                through the year, driven by better than expected: 1) migration of the
                                                    company’s large installed base of legacy users to the higher ASP SaaS
Brad Sills               (415) 677-1521             offering; and 2) improving revenue per loan (ASP) with continued
                                                    adoption of Ellie Mae’s best of breed LOS suite and 3) upside to
bsills@maximgrp.com
                                                    conservative mortgage origination industry forecasts for 2013.
                                                   Our price target of $28 is based on an EV/sales multiple of 5.3x our
                                                    CY13 sales estimate of $127 million, representing a premium to the
                                                    vertical SaaS group, currently trading at 3.4x. We believe our
                                                    expectation for 26% growth in 2013 may be conservative, which also
                                                    exceeds the group at 20%.




        Maxim Group LLC 405 Lexington Avenue New York, NY 10174 – www.maximgrp.com
           SEE PAGES 25 – 26 FOR IMPORTANT DISCLOSURES AND DISCLAIMERS
                                                                              Ellie Mae (ELLI)

                                        CORPORATE PROFILE

Ellie Mae, Inc.
                                                             Institutional Ownership:      62.8%
4155 Hopyard Road, Suite 200
                                                             Insider Ownership:            23.0%
Pleasanton, CA 94588
                                                             Shares Short:                  1.7M
Senior Management:
Sig Anderman, CEO. Mr. Anderman co-founded Ellie
                                                             Balance Sheet Summary:        $M
Mae and has served as the company’s chief executive
                                                             (As of September 30, 2012)
officer and as a member of the board of directors since
                                                             Equity:                       $157.7
the inception of the company in August 1997. Prior to
                                                             Assets:                       $179.6
Ellie Mae, Mr. Anderman co-founded American Home
                                                             Long-term Debt:                  NA
Shield Corporation, a home warranty company, and
                                                             ROE TTM:                      22.4%
served as its general counsel. Mr. Anderman founded
CompuFund, Inc., a computerized mortgage banking
company. He also founded Inspectech Corporation, a                      Quarterly EPS
computerized home inspection company, and served as                  2012E      2013E      2014E
its chief executive officer.                                 1Q      $0.20A     $0.18       $0.21
                                                             2Q      $0.27A     $0.22       $0.26
Edgar A. Luce, CFO. Mr. Luce has served as CFO since         3Q      $0.35A     $0.26       $0.32
July 2005. Prior to Ellie Mae, Mr. Luce served as CFO        4Q      $0.23      $0.25       $0.30
for Sanarus Medical, Inc., a medical device company,
                                                             FY      $1.05      $0.91       $1.09
secretary and treasurer at ComView Corporation, a
cardiology imaging software company, CFO at Biex,
Inc., a healthcare company, and vice president, finance
and administration, and corporate secretary for Penederm          Quarterly Revenue (MM)
Inc., a public dermatology products company.                        2012E    2013E    20014E
                                                             1Q      $20.9A $29.3       $33.1
Company Description: Ellie Mae was founded in 1997           2Q      $23.6A $31.1       $36.2
as a provider of loan origination system (LOS) software      3Q      $27.5A $33.4       $39.3
for automating residential mortgage origination              4Q      $28.9    $33.5     $40.0
processes. The company launched a hosted SaaS-based          FY    $100.9    $127.3    $148.6
version of its core Encompass360 LOS suite, and has
                                                             Fiscal Year Ends December
been migrating its customer base onto this offering. Ellie
Mae executed its initial public offering in April 2011.
Fundamental Risks:                                           Analysts Following the Co.:        8
   Interest Rates: A rise in interest rates could
    negatively impact mortgage volumes attributable to       Investor Relations Contact:
    refinancing, which represent an estimated 73% of         Name: Lisa Laukkanen
    total originations in FY12.                              Phone: (415) 217-4967
   Highly Exposed to Macroeconomic Cycles: Ellie
    Mae’s business is highly cyclical, given exposure to
    the mortgage/real estate market. A global recession
    could drive consumer sentiment lower and create an
    environment in which banks are tightening consumer
    credit standards. This could weaken consumer
    sentiment and new originations, thus curbing our
    estimates for SBP revenue growth.

(PLEASE SEE PAGES 11-12 FOR A MORE DETAILED
OUTLINE OF OUR ―INVESTMENT RISKS‖)




Maxim Group LLC                                                                                 2
                                                                                  Ellie Mae (ELLI)


                           INVESTMENT SUMMARY AND CONCLUSION



                             We are initiating coverage on mid-sized lender loan origination software
 We are initiating           vendor Ellie Mae with a Buy recommendation and a $28 price target. We
 coverage on Ellie Mae       believe that Ellie Mae is likely to continue generating solid growth of
 with a Buy                  20% + in the coming three years, driven by: 1) an ongoing adoption
 recommendation and          cycle of LOS technologies; 2) migration of the company’s large installed
 $28 price target.           base onto the higher ASP offering; and 3) share gains with the leading
                             end-to-end SaaS based Encompass360 offering. We believe that Ellie
                             Mae is likely to report significant upside to preliminary guidance for
                             FY13 revenue growth of 25% as we move through the year, driven by
                             better than expected user migration, SaaS revenue per loan (ASP) and
                             upside to conservative mortgage origination industry forecasts for 2013.
                             In an environment of increasing regulation and focus on sourcing higher
 Runway remains for          quality loans, we expect healthy ongoing adoption of LOS technologies,
 LOS adoption and            which is likely to benefit Ellie Mae, given the company’s position as the
 share gains, given a        leading vendor to the mid-sized lender segment in the United States.
 total addressable mid-      Ellie Mae’s Encompass360 offering possesses a number of competitive
 market size of $800         advantages, such as: 1) having the largest installed base (87,201 users);
 million, versus             2) its end-to-end offering; 3) rich compliance features; 4) variable
 estimated FY13              success-based pricing model; and 5) multi-tenant scalability. These
 revenue of $127             advantages are difficult to replicate and defensible over the longer term.
 million.                    The total addressable LOS mid-market size of $800 million compares to
                             our estimate for FY13 revenue of $127 million, leaving significant room
                             for both ongoing adoption and share gains, in our opinion.
 We expect ongoing           Also, Ellie Mae maintains a large installed base of roughly 43,000 users
 migration of the Ellie      (of a total 87,201) running a legacy on premise offering at a maintenance
 Mae installed base          subscription ASP of $18 per loan, significantly below the subscription
 onto Encompass360,          fee for new users on the fully integrated SaaS Encompass360, which is
 which carries a higher      generating $130 per loan. The company has had real success migrating
 ASP ($130 for new           these legacy customers onto Encompass360, adding 1,500 on a monthly
 users versus $18 for        basis in 2QFY12 and 1,900 in 3QFY12. This easily exceeded the
                             company target of 500 per month. We expect ongoing migration of this
 legacy maintenance
                             large installed base onto Encompass360, driven by demand for the
 customers).                 broader suite of hosted, integrated service.
                             Finally, we believe there is potential for upside to conservative industry
 Recent discussions          assumptions for 2013 loan volumes to decline 17% in 2013. Our
 with a number of            discussions with a number of larger Ellie Mae lender customers suggest
 larger Ellie Mae            the expectation for origination volumes (representing 73% of total loan
 lenders suggest the         volume today) to remain flat/stable in 2013, given an environment of: 1)
 expectation for             low interest rates; 2) stable refinancing volume as more borrowers
 stable/flat origination     qualify for refinancing with improving home values and loan-to-value
 volume in 2013,             (LTV); and 3) recovering new home purchases. We estimate that flat
 exceeding industry          origination volume would add an incremental $6 million or 6% growth to
 estimates for a decline     our/consensus FY13 revenue estimates (EPS impact of +$0.11).
 of 17%.                     We believe that Ellie Mae is positioned to continue generating solid
                             operating margin expansion, driven by mid/high-20s growth of recurring
                             subscription revenue, over stable datacenter expansion and low touch
                             sales/marketing model. We estimate non-GAAP margin expansion of 90

Maxim Group LLC                                                                                      3
                                                                                 Ellie Mae (ELLI)

                           to 300 basis points in each of the next three years. We are modeled for
                           FY13 revenue of $127.3 million (+26%), exceeding the consensus
                           estimate of $124 million due to upside from industry volumes. We are
                           modeled for FY13 EPS of $0.91, in line with consensus, despite our
                           expectation for top-line upside, given our expectation for only modest
                           operating margin expansion in FY13 due to investment in datacenter
                           capacity.
                           We are modeled for 4QFY12 revenue and EPS of $28.9 million (+54%
 Our price target of $28
                           y/y) and $0.23, exceeding consensus estimates of $27.9 million and
 is based on an EV/sales   $0.21, given our expectation for on-demand revenue upside from better-
 multiple of 5.3x our      than-expected origination volumes during the quarter. During the quarter,
 CY13 sales estimate of    MBA, Fannie Mae, and Freddie Mac all raised estimates to an average of
 $127 million.             +4% q/q, from -8% heading into the quarter. Our price target of $28 is
                           based on an EV/sales multiple of 5.3x our CY13 sales estimate of $127
                           million, representing a premium to the vertical SaaS group, currently
                           trading at 3.4x. We believe that the premium is justified given our
                           expectation for upside to growth of 26% (peer group of vertical SaaS
                           vendors currently growing 25%). We note that this valuation is more in
                           line the horizontal SaaS group, currently trading at an EV/sales multiple
                           of 5.6x (2013 sales). Alternatively, our price target is based on an EV/
                           free cash flow multiple of 36x our C13 free cash flow estimate of $19
                           million. We believe that this premium is justified (versus vertical SaaS
                           group, trading at 19.4x), given expected FY13 and FY14 free cash flow
                           growth of 25% and 73% respectively.


                                   COMPANY OVERVIEW



                           Ellie Mae was founded in 1997 as a provider of loan origination system
                           (LOS) software for automating residential mortgage origination
                           processes. The company launched a hosted SaaS-based version of its
                           core Encompass LOS suite and has been migrating its customer base
                           onto this offering. Ellie Mae executed its initial public offering in April
                           2011, raising proceeds of $27.9 million. In June 2011, the company
                           completed a secondary offering, raising proceeds of $60 million. The
                           company is based in Pleasanton, CA, and has 270 employees. Ellie Mae
                           has 67,201 users of its core Encompass suite—roughly 90% of which are
                           mid-sized lenders. Ellie Mae’s offering is comprised of the following
                           three major components:
                              Encompass360: This represents the core LOS, which includes
                               features for automating and managing customer acquisition,
                               relationship management, document preparation, and processing.
                               The system incorporates robust compliance functionality into the
                               various steps throughout the process. The suite is released every six
                               months to incorporate new features/functionality and changes in
                               regulatory requirements, including Dodd-Frank, Truth in Lending,
                               and Real Estate Settlement Procedures.
                              Encompass360 Services: This represents other standalone services
                               that are complementary to the core Encompass360 system, including
                               the following:

Maxim Group LLC                                                                                     4
                                                                       Ellie Mae (ELLI)

                          o   Encompass360 Compliance: more robust compliance
                              features/capabilities.
                          o Encompass360 Pricing: a tool for determining loan pricing
                              (interest rate), based on risk profile of the borrower.
                          o Encompass360 Closer: functionality for automating
                              documentation post loan closing.
                          o Encompass360 Centerwise: a customer portal for
                              collaboration with the loan officer in generating the
                              application. Centerwise is fully integrated with Encompass
                              on the back end.
                     Ellie Mae Network: This represents the electronic network
                      connecting the 67,201 active Encompass users to tens of thousands
                      of service providers for complementary lender services, such as
                      credit reports, product eligibility, appraisal reports, title reports,
                      insurance, flood certification, identity and employment verification,
                      document preparation, fraud detection, compliance review, and
                      automated underwriting. The Ellie Mae Network also enables the
                      secondary sale of a loan to investors such as Fannie Mae and Freddie
                      Mac for loan securitization. The ASP for these services is $2.50 and
                      range from $1 for a basic credit report to $25 for loan sales to
                      investors.
                  Our estimate for FY12 revenue (ended December) is $110.9 million
                  (+77%, excluding the Del Mar acquisition). SaaS revenue, representing
                  47% of estimated FY12 revenue, is comprised of the following:
                         Success-Based Pricing (SBP) revenue: representing contracts
                          that are paid for on a per-closed-loan basis, subject to monthly
                          minimums (typically one loan per month). This pricing model
                          was introduced in 2009 and has proven to be a popular option for
                          customers, given the variable cost model in which customers
                          only pay for closed loans. SBP fees currently average $110 to
                          $120 per loan, which has been increasing (from $80 in 2QFY11)
                          as customers have been adding more service modules, such as
                          compliance or pricing, to the core documentation preparation
                          service. Currently, new customers are paying $130 per loan on
                          an SBP agreement. SBP contracts are subject to a minimum,
                          which is typically $70 per month.
                         SaaS revenue: This represents a traditional subscription
                          agreement for use of the Encompass, paid for on a per-user, per-
                          month basis.
                  Other on-demand revenue (representing 40% of estimated FY12
                  revenue) includes subscription fees for standalone subscription services,
                  such as document preparation (the core service), compliance, closing
                  documentation, and pricing. Average subscription fees for these services
                  range from $15 per loan to $70 per loan. This also includes network
                  transaction revenue. On-premise revenue (representing 13% of
                  estimated FY12 revenue) includes: 1) maintenance fees for support and
                  upgrade rights to customers running a legacy on premise offering; and 2)
                  license fees for new on-premise sales. These fees are declining as a
                  percentage of revenue as Ellis Mae continues to drive SaaS-based wins.


Maxim Group LLC                                                                           5
                                                                                Ellie Mae (ELLI)

                           Subscription (SBP and SaaS) agreements are typically three years in
                           length. Customers are billed at the end of the month based on actual
                           volumes. The deferred revenue balance is limited, representing only
                           maintenance revenue, which is billed quarterly up front. Renewal rates
                           are robust, in the high 90s (versus the industry average of roughly 85%).
                           The average implementation period for Encompass is six months.
                           Therefore, new customer wins represent a six-month leading indicator
                           for revenue growth. Nearly all sales are booked through a direct sales
                           force. All revenue is sourced from customers in the United States, given
                           that compliance requirements vary by country.
                           On August 15, 2011, Ellie Mae acquired competing LOS vendor Del
                           Mar Datatrac for a total of $25.2 million. The combination added a
                           customer base of 200 larger and mid-sized lenders, with 20,000 users,
                           originating roughly 500,000 loans per year. The acquisition adds the
                           leader for back-end LOS processes (such as underwriting, closing, and
                           secondary sale) to Ellie Mae’s front-end capabilities (loan origination
                           and processing). Ellie Mae has also completed a number of smaller tuck-
                           in acquisitions, including Mortgage Pricing Systems, Mavent, and Online
                           Documents. The company plans to use its cash balance for continued
                           acquisitions, mostly to add additional services for cross selling into its
                           installed base and to new customers.


                                  INVESTMENT POSITIVES



                           Migration of a Large Installed Base to Success-Based Pricing
                           Expected to Drive ASP Uplift
                           An estimated 43,000 Encompass and Datatrac users combined remain on
 In the last two           a legacy on premise version of Encompass and are paying a low
 quarters, Ellie Mae has   maintenance fee, averaging $18 per loan, versus $130 for new SBP users.
 migrated 1,500 and        The company has been up-selling this installed base onto to the
 1,900 legacy users per    SBP/SaaS version, which entitles the customer to use of the entire
 month onto SBP,           Encompass suite of cloud services, including documentation,
 exceeding the company     compliance, pricing, and post closing documentation. Ellie Mae has had
 goal for 500.             notable success with this up-selling initiative.
                           The company’s goal was to migrate roughly 500 legacy users onto SBP
                           per month since the introduction of the offering at the end of 2009.
                           During 2QFY12 and 3QFY12, these migrations were 1,500 and 1,900
                           per month, respectively. We spoke with a number of Ellie Mae
                           customers that indicated that there is strong value proposition behind the
                           offering, stemming from the use of a complete end-to-end LOS suite and
                           the cost benefits of the variable SBP pricing model. Given the large
                           installed base of Ellie Mae/Datatrac customers still running a legacy on
                           premise system and the positive momentum that Ellie Mae has achieved
                           with the SBP model, we expect SBP migrations to continue driving solid
                           subscription growth. Our model assumes that 500 users continue to
                           migrate onto SBP on a monthly basis from a legacy version/pricing
                           model, which generates incremental subscription growth of $11.3 million
                           (or 11% revenue growth) in FY13, with potential for upside as awareness
                           of the offering continues to improve within the Ellie Mae installed base.

Maxim Group LLC                                                                                    6
                                                                                           Ellie Mae (ELLI)

                                     We estimate that an additional 500 monthly user migrations represents
                                     $5.6 million in incremental subscription revenue (or 6% revenue
                                     growth), assuming that these migrations occurred in the middle of the
                                     year.
Migrations Upside Impact on FY13 Revenue
(amounts are single units, except where noted $ millions)
Estimated SBP revenue per loan (new customers)                                  130
Estimated maintenance fee per loan                                               18
 Uplift                                                                         112

Current average monthly loan volume                                              1.4
x 6 months                                                                        12
Esitmated annual revenue uplift per user                                               $    1,882

Estimated # Monthly Maintenance User Migrations to SBP                          500
x 6 months                                                                        6
                                                                                            3,000

Incremental Revenue ($ millions)                                                                    $    5.6
Impact to Revenue Growth                                                                                5.6%
Source: Company Reports and Maxim Group LLC estimates




                                     Expect Upside to Conservative Originations Forecast

 The average loans                   Ellie Mae’s business has demonstrated significant leverage to improving
                                     loan mortgage volumes, given that most Encompass360 subscription
 closed per user per
                                     agreements are priced under the SBP pricing model. In the past four
 month has increased to              consecutive quarters, revenue per SBP user has been growing, to $395 in
 roughly 1.29, from 0.94             3QFY12, from $221 in 1QFY11, largely due to increasing loan volumes
 in FY11, translating to             per user. For FY12, we estimate that the average loans closed per user
 estimated incremental               increased to roughly 1.29 (for the full year), from an estimated 0.94 in
 subscription revenue of             FY11. This increase of 0.35 loans has translated to an estimated
 $16 million.                        incremental subscription revenue of $16 million in FY12, per the
                                     calculation below (assuming 85% of the total SaaS user base):


                   Revenue Uplift from Increased Loan Volume - FY12
                   (amounts in units, except where noted $ millions)
                   Average # loans closed per user per month - FY12                                        1.29
                   Average # loans closed per user per month - FY11                                        0.94
                   Increase                                                                                0.35

                   x Average SBP revenue per loan                                                        112.5
                   Incremental revenue per user per month                                               39.375

                   x 12 months                                                                              12
                   Incremental revenue per user per year                                                 472.5

                   x Estimated # SBP Users in FY12                                                      33.422
                   Incremental Subscriptions Revenue Per Year ($ millions)                          $    15.8
                   Impact to Fy12 Revenue Growth                                                        28.5%
                   Source: Company Reports and Maxim Group LLC estimates




Maxim Group LLC                                                                                            7
                                                                                                    Ellie Mae (ELLI)

                                      Origination volume has recovered significantly. In 3QFY12, originations
                                      amounted to $520 billion, up from the low of $309 billion in 1QFY11.
                                      However, we believe that industry volume is likely to continue providing
                                      upside to our estimates in 4QFY12 and in 2013. Ellie Mae’s preliminary
                                      guidance for FY13 growth of 25% was based on conservative industry
                                      estimates for a mortgage originations decline of 19%. Since this
                                      guidance, the average forecast from Mortgage Bankers Association,
                                      FannieMae, and Freddie Mac has improved only slightly to a 17%
                                      decline, or $1.57 trillion.
                                                          Mortgage Originations Forecast




                              2,500


                                                                                            1,890
                                                  1,970
                              2,000

                                       1,601                       1,545                              1,571
            ($ in Billions)




                              1,500                                                 1,420



                              1,000



                               500



                                 -
                                      2008A      2009A             2010A            2011A   2012E     2013E




          Source: Mortgage Bankers Association, FanneMae and Freddie Mac


                                      We believe that industry volumes are likely to remain flat in 2013, given
                                      an environment of: 1) low interest rates; 2) stable refinancing volume as
                                      more borrowers qualify for refinancing with improving home values and
                                      loan-to-value (LTV); and 3) recovering new home purchases. During a
                                      round of recent discussions with a number of larger Ellie Mae lenders
                                      customers, we note feedback consistent this expectation. Flat origination
                                      volume in FY13 or $1.89 trillion would generate revenue upside of $6
                                      million or 6% growth (assuming that loans per user is impacted by 50%
                                      of the origination upside, which has been the case historically).




Maxim Group LLC                                                                                                    8
                                                                                          Ellie Mae (ELLI)


Originations Upside Impact on FY13 Revenue
Annual Mortgage Originations ($ Trillions) - Upside case                                                 1.89
Annual Mortgage Originations ($ Trillions) - Baseline FY13                                               1.57
Uplift                                                                                                 20.4%

Orogination Volume Upside Impact on Loans Per User                                                     50.0%
Uplift Impact on Loans Per User                                                                        10.2%

Average # Loans Closed Per User Per Month - 1QFY12                                                       1.15
Average # Loans Closed Per User Per Month - Upside case                                                  1.27
Uplift                                                                                                   0.12

x Average Revenue Per Loan                                                                        $    112.5
Incremental Revenue Per Month Per User                                                            $       13

x 12 Months                                                                                                12
Incremental Revenue Per User Per Year                                                             $      158

x Estimated # SBP Users in FY13                                                                        37.815
Incremetnal Revenue ($ millions)                                                                  $       6.0
Impact to Revenue Growth                                                                                5.9%
Source: Company Reports and Maxim Group LLC estimates

                                     Expect Continued Share Gains with Best of Breed LOS Offering
                                     We believe that Ellie Mae possesses a number of long-term defensible
                                     competitive advantages that are likely to continue driving share gains in
                                     the LOS market. We believe Encompass360 is the only vendor with a
                                     true multi-tenant SaaS offering. Competing LOS vendors Harland
                                     Financial Solutions, Fiserv (FISV $80.78 NR), and Calyx offer hosted
                                     options but are not multi-tenant (this has limitations in terms of
                                     scalability). Elli Mae provides a new release of Encompass360 every six
                                     months to its SaaS customers with updated compliance requirements. In
                                     our discussions with several Ellie Mae customers, we noted that
                                     automated compliance updates was a significant differentiator for
                                     Encompass360 in an environment of compounding regulatory
                                     requirements including Dodd-Frank, Consumer Protection Act, Truth-in-
                                     Lending, and Real Estate Settlement Procedures Act (RESPA).
                                     The SBP model was also mentioned as a positive differentiator for
                                     Encompass, given the benefits of the variable pricing model.
                                     Encompass360 is an end-to-end offering, spanning core documentation,
                                     compliance, pricing, post closing documentation, and web portal—and
                                     there are plans to add more functionality. Also, Encompass360 is
                                     integrated with the Ellie Mae Network of tens of thousands of service
                                     providers, offering complimentary services (such as income verification,
                                     fraud detection, flood insurance, and appraisal). The estimated
                                     addressable number of mortgage professionals at mid-sized lenders in the
                                     United States is roughly 150,000 (40% of the 375,000 total), which
                                     compares to only 87,201 active Encompass and Datatracusers at the end
                                     of 3QFY12, leaving room for continued share gains by Ellie Mae.




Maxim Group LLC                                                                                             9
                                                                                                                            Ellie Mae (ELLI)

                                  Ellie Mae                         Calyx                              Harland Financial Solutions   Fiserv
        Suite/Brand               Encompass360                      Calyx Point, Point Central         GreatDocs, E3                 EasyLender Mortgage
                                                                28% 12%, mostly in declining                                     12%                                8%
        Market Share (2010)                                         independent broker segment
                                  Core documentation,               Core documentation and             Core documentation,              Core documentation and
        Breadth of Offering       compliance, pricing, closing      compliance.                        compliance and closing.          compliance. On premise or
                                  documentation and portal.                                                                             hosted (not multi-tenant).
                                  Mulit-tenant/SaaS based.          On premise or hosted (not multi-   On premise or hosted (not multi- On premise or hosted (not multi-
        Product Differentiation   Network of tens of thousand of tenant). Network of 200 service       tenant).                         tenant).
                                  third party service providers     providers.
         Source: Maxim Group LLC, company data



                                        We Expect Increasing Adoption of LOS Technology
 We estimate that Ellie
 Mae can generate                       Historically, loan officers have performed mortgage origination
                                        processes manually, and adoption of LOS technology has remained low.
 subscription and                       With increased focus on sourcing quality loans and regulatory scrutiny
 transaction revenue of                 following the 2008-2009 financial crisis, we expect increasing adoption
 $400 per loan over                     of LOS technologies. Ellie Mae estimates that the company can generate
 time, up from the                      total software services of $300 per loan with the inclusion of new
 company-wide average                   origination processes/workflow. Ellie Mae estimates an additional $100
 of $80 today, with                     from complementary transaction services, as customers add more
 adoption of LOS for                    processes/workflow to an LOS. The potential maximum subscription fee
 more origination                       of $400 per loan compares to the current company-wide average of $80
 processes.                             ($70 subscription revenue plus $10 transaction revenue), illustrating
                                        considerable upside potential from increased adoption.
                                        Assuming the average annual mortgage volume of 5 million loans
                                        (according to Ellie Mae) and the long-term ASP of $400, we calculate
                                        the total addressable LOS market size at $2 billion. Ellie Mae estimates
                                        that the company’s targeted mid-sized lender segment represents roughly
                                        40% of the 375,000 mortgage professionals in the United States today, or
                                        $800 million of the $2 billion addressable market for LOS, illustrating a
                                        large and growing market opportunity over the longer term. We estimate
                                        that an uplift of 5% to SaaS revenue per loan (consistent with the
                                        increase in 2012) would translate to $10 million upside to our current
                                        revenue estimate, per the calculation below.


ASP Upside Impact on FY13 Revenue
(amounts are single units, except where noted $ millions)
Estimated SaaS Revenue Per Loan - Upside                                                                     97.78
Estimated SaaS Revenue Per Loan - Baseline                                                                   94.13
 Uplift                                                                                                                           3.65

Current average monthly loan volume                                                                             1.4
x 12 months                                                                                                      12
Esitmated annual loan volume per user                                                                                  $           61
Estimated upside per user                                                                                                                 $     223.82

# SaaS Users (thousands)                                                                                                                         44.488


Incremental Revenue ($ millions)                                                                                                          $         10.0
Impact to Revenue Growth                                                                                                                            9.9%
Source: Company Reports and Maxim Group LLC estimates




Maxim Group LLC                                                                                                                                        10
                                                                                   Ellie Mae (ELLI)

                            New Total Quality Loan Program Expected to Drive Incremental
                            Growth
                            In May 2011, Ellie Mae launched the Total Quality Loan (TQL)
                            program, designed to increase the quality of loans originated by lenders
                            that are later sold to the mega-lenders such as Wells Fargo (WFC,
                            $35.11, NR), JP Morgan (JPM, $46.64, NR), and Citigroup (C, $42.34,
                            NR). The TQL solution includes basic income verification, fraud
                            detection and compliance services for an ASP of $25 per loan. The
                            program has been a success. Wells Fargo is currently rolling out the
                            solution to its base of 750 lenders (currently piloting the offering with a
                            small number of customers). Citigroup began piloting the program in
                            December. Our model assumes modest contribution from the TQL
                            program in FY13, though we believe that there is potential for upside, as
                            adoption begins to ramp within the respective Wells Fargo and Citigroup
                            lender bases. Additionally, we believe this program has potential to pull
                            through sales of Encompass360 within the growing TQL installed base
                            of Wells Fargo, Citigroup lenders, and other mega-lenders that enroll in
                            the program.


                            Expect Solid Operating Leverage from Subscriptions Scale
                            For the past several quarters, Ellie Mae has been demonstrating
 We estimate non-           significant operating leverage, reporting non-GAAP operating margin of
 GAAP operating             32.6% in the recent 3QFY12, an increase of 20.8% points from 3QFY11.
 margin growth of 90 to     Given our expectation for solid growth of high margin, recurring
 300 basis points in        subscription revenue over a stable datacenter investment, we believe the
 each of the next three     company is well positioned for solid margin expansion. We estimate
 years.                     non-GAAP operating margin growth of 90 to 300 basis points in each of
                            the next three years, though some of this expansion is likely to be offset
                            by data center investment in FY12 for increased capacity.


                                     INVESTMENT RISKS



                            Interest Rate Hike Could Negatively Impact Refinancing Volume
                            A rise in interest rates could negatively impact mortgage volumes
 While the current          attributable to refinancing, which represent an estimated 73% of total
 forecast is for rates to   originations in FY12. Given that Ellie Mae’s SBP subscriptions are
 increase gradually in      dependent on loan volume, this development could negatively impact
 2012 and 2013, this        subscription revenue growth. While the current forecast is for rates to
 could change with          increase gradually in 2012 and 2013, this could change with increasing
 increasing inflation.      inflation. We spoke with a number of larger Ellie Mae customers
                            recently to gauge expectations for interest rates and refinancing volume
                            in the coming year. In nearly all cases, the lenders expected interest rates
                            to rise modestly and refinancing volumes to remain flat. However, they
                            also acknowledged the risk that this would change dramatically if interest
                            rates increase.




Maxim Group LLC                                                                                      11
                                                                                                                        Ellie Mae (ELLI)


                                                 Mortgage Interest Rates



        6.0%



        5.0%



        4.0%



        3.0%



        2.0%



        1.0%



        0.0%
               Mar-   Jun- Sep-   Dec-   Mar-   Jun-   Sep- Dec-   Mar-    Jun- Sep-   Dec-   Mar-   Jun- Sep-   Dec-
               10A    10A 10A     10A    11A    11A    11A 11A     12A     12A 12A     12E    13E    13E 13E     13E


                                         30-Year Fixed Mtg rate      10-Year Treasury Note



     Source: Mortgage Bankers Association, Fannie Mae, and Freddie Mac



                                         Ellie Mae’s Business is Highly Cyclical While mortgage volumes have
  A global recession                     recovered since the bottom in 2QCY11, consumer demand for credit
  could drive consumer                   remains precarious. The job market remains shaky with the
  sentiment lower, and                   unemployment rate remaining above 7.5%, and the potential for a global
  create an environment                  slowdown representing an ongoing concern, given sovereign debt issues
  where banks are                        in Europe and in the United States. A global recession could drive
  tightening consumer                    consumer sentiment lower and create an environment in which banks are
  credit standards.                      tightening consumer credit standards. This could weaken consumer
                                         sentiment and new originations, thus curbing our estimates for SBP
                                         revenue growth. Our model is based on a conservative estimate for CY13
                                         mortgage originations of $1.53 trillion, representing an 18% decline.
                                         However, in a scenario where we are faced with a global recession, these
                                         estimates would likely be adjusted downward, which would negatively
                                         impact SBP revenue growth.
                                         Also, given the discretionary nature of applications, spending is highly
                                         exposed to a macroeconomic slowdown. IT projects involving new
                                         application deployments, upgrades, and expansions are often deferred
                                         during recessions, when CIOs are faced with shrinking IT budgets. This
                                         is especially true for Ellie Mae’s targeted small/mid-sized business
                                         segment that is historically more exposed to a macro slow down.
                                         Infrastructure projects such as a database or firewall upgrades are
                                         considered more mission-critical to IT operations and therefore more
                                         defensive in nature.




Maxim Group LLC                                                                                                                       12
                                                                                Ellie Mae (ELLI)


                                 CHANNEL COMMENTARY


 During a round of         We recently spoke with a number of Ellie Mae customers and system
 recent discussions with   integrator partners to gauge expectations for interest rate movement and
 larger Ellie Mae          mortgage origination volume in 2013. We noted the expectation for flat
 lenders, we noted the     origination volumes in 2013, given the expectation for stable interest
 expectation for flat      rates and continued recovery in home prices, which should enable more
 origination volumes in    borrowers to refinance mortgages under existing loan to value (LTV)
 2013.                     requirements. We include commentary from these discussions below.
                           ―We expect originations volume to be flat next year or up slightly, given
                           the demand that we are seeing in our pipeline right now. There is no
                           reason to believe that mortgage volumes would be down next year,
                           unless there is no fiscal cliff agreement. Lenders are still easing on
                           standards, which is helping to drive volumes. Customers are sorting
                           through the Dodd-Frank legislation that is misunderstood. This is helping
                           to drive demand for LOS compliance solutions like Encompass360. We
                           have seen improvements in the competitive position for both Calyx and
                           Byte.‖ – ISV Partner
                           ―We are expecting origination volume to decline next year, due to
                           refinancing volume declines. Interest rates can’t go any lower to drive
                           refinancing volumes, barring any additional government programs to
                           subsidize the refinancing volumes. In previous recoveries, new mortgage
                           growth has not been sufficient to offset declines in refinancing volume.
                           We think that the current forecast of an 18% volume decline in mortgage
                           volumes in 2013 is fair. Regarding Ellie Mae, we continue to view the
                           company as the best LOS vendor available, given the depth of
                           functionality in the front-end LOS. We are currently subscribing to
                           Encompass360 and using only half of the features. Ellie Mae needs to
                           improve on features for the back end. Del Mar Datatrac is a decent
                           offering, but it is not integrated with Ellie Mae. Ellie needs to improve
                           on the front end. Regarding transactions services, I am planning to use
                           my own transaction service providers to collect my own fees on the
                           network; I have the scale on my own network where it makes sense for
                           me to offer my own service providers. ‖ – Mid-Sized Lender Customer
                           ―We are expecting origination volume to range between $1.5 trillion and
                           $1.9 trillion. We are not forecasting any declines in refinancing volumes
                           given that only 25% of those who qualify for the Home Affordable
                           Refinancing Program (HARP) have refinanced—and with home prices
                           and home equity rebounding, we believe that more homeowners will
                           refinance, especially in the continued period of low interest rates. Also,
                           we believe that during a period of a recovering jobs market and pent-up
                           demand, new home purchases are likely to begin a long-term recovery.
                           We believe that industry volumes will not begin to decline until 2014. In
                           2013, we are planning to enter the wholesale market, as well as direct to
                           consumer. We are planning to add Datatrac to support the new wholesale
                           business with back-end processing support. We have seen the demo and
                           have no issues with it. It appears to be fully integrated with Encompass.
                           We are licensing Encompass360 today and are using it for compliance
                           and post closing. We use our own internal system for documentation, and
                           we use Optimal Blue for pricing.‖ – Mid-Sized Lender Customer
Maxim Group LLC                                                                                   13
                                                                            Ellie Mae (ELLI)

                       ―We don’t foresee a slowdown next year in mortgage volumes, given a
                       high likelihood that interest rates remain low and housing prices
                       improve, which will improve loan to value and enable more borrowers to
                       qualify for refinancing. Regarding competition, there really is no vendor
                       out there that comes close to having a loan origination system with the
                       breadth of functionality that Ellie Mae has.‖ – Mid-Sized Lender
                       Customer
                        ―We are forecasting flat mortgage volumes next year, assuming that
                       interest rates remain flat and the government continues to buy mortgage-
                       backed securities. There is still pent-up demand for refinancing, and our
                       pipeline continues to grow. However, if interest rates increase, we will
                       see volumes come down considerably. We believe that Ellie Mae
                       remains well positioned to gain share, given its leading market position.
                       We are going to begin reselling Encompass to Credit Unions. We are
                       already running Encompass for documentation, compliance, and closing.
                       We are currently running Optimal Blue for pricing and are planning to
                       migrate to the Encompass tool for pricing soon, given that it is better
                       integrated with the rest of Encompass.‖ – Mid-Sized Lender Customer
                       ―We began using Encompass in 2008 on the back end. We have a front-
                       end documentation solution that we have built internally that integrates
                       with Encompass on the back end. We are happy with the solution, given
                       a standardized process that has compliance built in. We are using Nylex
                       for a pricing engine, but we are evaluating the Encompass pricing
                       solution, which we will migrate to soon. We are paying a low
                       subscription per loan today, since we negotiated the contract in 2008 and
                       continue to run it on premise. We have 50 loan officers using the
                       Encompass solution. We are forecasting origination volumes to be flat
                       this year from the strong volume that we saw last year. Our refinancing
                       pipeline remains strong. We expect refinancing volume this year to be
                       supported by improving home prices, which should help more borrowers
                       qualify for refinancing. We are forecasting only a modest increase in
                       interest rates, which should not have a significant impact on refinancing
                       volumes. We expect to see stronger new loan volume this year as the
                       housing and job market continues to recover. Ellie should continue to
                       gain more customers this year, as the regulation continues to mount,
                       which drives the need for Encompass with compliance features
                       included.‖ – Mid-Sized Lender Customer


                  MAXIM IT SOFTWARE SPENDING SURVEY RESULTS
                       We conducted a survey with 50 IT managers/CIOs across small
                       businesses (50 to 499 employees), medium-sized businesses (500 to
                       1,999 employees), and large enterprises (> 2,000 employees) to gauge
                       spending intentions across the major IT/software project categories.
                       When asked, ―How do you expect your company's spending on each of
                       the following application software solutions will change for 2013?‖,
                       compliance scored 5th amongst 18 application categories, at 3.8%,
                       versus the overall range of 0% to 6.5% across all application categories
                       (note: for this question, 44 responses were received). This is consistent
                       with our view that we are in the midst of a healthy ongoing adoption
                       cycle for compliance systems.
Maxim Group LLC                                                                              14
                                                                                           Ellie Mae (ELLI)

“How do you expect your company's spending on each of the following application software
solutions will change for 2013?”

                            Mobile deployment                                               6.5%
                        Social media marketing                                             6.3%
                 Business intelligence/analytics                                    4.7%
                                E-mail marketing                                    4.6%
                                     Compliance                              3.8%
                                    E-Commerce                              3.7%
                         Sales force automation                             3.6%
                                   Procurement                             3.6%
                       Supply chain automation                             3.5%
                                            Portal                      3.0%
                                  Financials/ERP                        3.0%
                    Human capital management                          2.7%
                            Vertical applications                    2.5%
                    Time and expense reporting                     2.2%
                            Custom applications                 1.7%
   Learning, talent management and recruiting                 1.4%
                                          Payroll           1.1%
                                      Call center    0.0%

                                                 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

Source: Maxim Group LLC



                                     When asked, ―Which of the following application are you considering
                                     deploying via a SaaS vendor sometime in the next year?,‖ compliance
                                     scored 11th amongst 18 application categories, with 32% of respondents
                                     answering yes; all application categories ranged from 20% to 48%.
                                     When asked the same question for the next three years, the response
                                     increased to 46%—still in the middle of the range across all applications
                                     of 40% to 70%.




Maxim Group LLC                                                                                            15
                                                                                                     Ellie Mae (ELLI)

“Which of the following application are you considering deploying via a SaaS vendor sometime in
the next year ? And in the next three years?”

       Business intelligence/analytics                                        48.0%          70.0%
                  Mobile deployment                                         46.0%         64.0%
              Social media marketing                                     40.0%    60.0%
                          Financials/ERP                               40.0% 52.0%
                     E-mail marketing                                 38.0% 48.0%
                 Custom applications                                  38.0%               64.0%
                 Vertical applications                              34.0% 46.0%
   Learning, talent management and …                                34.0%   50.0%
               Sales force automation                             32.0%          50.0%
                           E-Commerce                             32.0%     46.0%
                            Compliance                            32.0%     46.0%
                           Procurement                           30.0%            52.0%
                                  Portal                         30.0%           50.0%
                                 Payroll                         30.0%        48.0%
         Time and expense reporting                         24.0%     38.0%
             Supply chain automation                      22.0%                  50.0%
         Human capital management                        20.0%             44.0%
                             Call center                 20.0%           40.0%

                                           0.0% 10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%

                             % Yes - in next year    % Yes in next three years

Source: Maxim Group LLC

                                                     VALUATION



                                       Comps
 We believe that Ellie                 Ellie Mae is trading at an EV/sales multiple of 3.9x our CY13 sales
 Mae’s premium                         estimate of $127 million, representing a premium to the vertical-based
                                       SaaS group average, which is currently trading at an average of 3.4x. We
 valuation to the
                                       believe the premium is justified, given expected upside to revenue
 vertical SaaS group is                growth of 26% in FY13 (vertical SaaS peer group is currently growing
 justified, given                      25%). We note that Ellie Mae shares are currently trading at a discount to
 expected revenue                      the SaaS applications group, which is currently trading at an average
 growth of 26% versus                  EV/sales multiple of 5.6x. Our price target of $28 is based on an
 20% for the group.                    EV/Sales multiple of 5.3x our CY13 sales estimate of $127 million. We
                                       note that the shares are trading near the high end of the trading range
                                       since the IPO (currently at 6.2x EV/TTM sales versus the range of 2x to
                                       8x).
                                       On an EV/free cash flow basis, Ellie Mae is trading at a multiple of 26.2x
                                       our CY13 free cash flow estimate of $19 million, representing a premium
                                       to the vertical-based SaaS group average, which is currently trading at an
                                       average of 19.4x. Alternatively, our price target is based on an EV/ free
                                       cash flow multiple of 36x our CY13 free cash flow estimate of $19
Maxim Group LLC                                                                                                    16
                                                                                                                                           Ellie Mae (ELLI)

                                                        million. We believe that this premium is justified, given expected FY13
                                                        and FY14 free cash flow growth of 25% and 73% respectively. We note
                                                        that FY13 free cash flow growth is muted by investment in data center
                                                        and sales/marketing capacity.
SaaS Comps Sheet
$ in millions (except per share amounts)
SaaS Applications Comps Sheet
                                                                                          EV/Revenue               EV/Free Cash Flow                      PE
                                               Stock                   Enterprise
Company                               Ticker   Price      Market Cap       Value    CY2012    CY2013   CY2014   CY2012   CY2013    CY2014        CY2012   CY2013   CY2014
Bazaarvoice, Inc.                BV              7.93         555.19       413.7      2.9x      2.2x     1.8x      NA        NA           NA        NA       NA       NA
Callidus Software Inc.           CALD            4.42          165.0       198.9      2.1x      1.9x      NA       NA        NA           NA        NA       NA       NA
Concur Technologies, Inc.        CNQR           72.71        4,011.5     3,760.4      8.2x      6.4x     5.2x      NA        NA         42.3x     87.1x    69.1x    51.3x
Constant Contact, Inc.           CTCT           15.15          460.0       371.9      1.5x      1.3x     1.2x    18.2x     15.4x        14.1x     28.8x    22.3x    19.0x
Cornerstone Ondemand, Inc.       CSOD           32.14        1,612.2     1,549.4     13.2x      9.1x     6.4x      NA      70.9x        41.4x       NA       NA       NA
Exacttarget, Inc.                ET             22.67        1,544.1     1,333.5      4.6x      3.6x     2.8x      NA        NA           NA        NA       NA       NA
Jive Software, Inc.              JIVE           15.61          969.8       839.8      7.6x      5.6x     4.2x      NA        NA           NA        NA       NA       NA
Liveperson, Inc.                 LPSN           13.64          787.9       684.6      4.4x      3.7x     3.1x    44.1x     24.1x          NA      44.7x    35.0x    26.0x
Netsuite Inc.                    N              70.54        5,234.9     5,234.9     17.1x     13.2x    10.4x   121.2x     90.4x        64.1x       NA       NA       NA
Qlik Technologies Inc.           QLIK           23.29        1,962.8     1,769.7      4.7x      3.9x     3.2x    77.3x     52.9x        32.9x       NA     62.3x    41.1x
Responsys, Inc.                  MKTG            7.57          364.4       264.9      1.7x      1.4x     1.2x    24.8x     16.0x        12.2x     41.6x    33.9x    28.5x
Salesforce.com, Inc.             CRM           178.07       26,715.1    25,988.1      8.5x      6.7x     5.3x    47.6x     37.1x        29.1x       NA     90.8x    71.0x
Sciquest, Inc.                   SQI            16.10          360.6       313.3      4.7x      3.4x     2.8x    19.2x     15.2x        12.2x     73.9x    39.8x    29.3x
Sps Commerce, Inc.               SPSC           36.98          554.9       485.2      6.4x      5.0x     4.1x      NA        NA        139.2x       NA     74.7x    56.0x
The Ultimate Software Group, Inc.ULTI           98.82        2,815.9     2,739.2      8.3x      6.7x     5.4x    97.7x     54.8x        40.0x       NA     71.5x    53.8x
Vocus, Inc.                      VOCS           17.86          365.0       413.5      2.4x      2.0x     1.7x    29.7x     23.2x        17.4x     50.1x    31.3x    25.2x
Workday, Inc.                    WDAY           56.50        8,894.9     8,124.6         --    19.1x    12.5x      NA        NA           NA        NA       NA       NA

Mean                                                                                  6.1x      5.6x     4.5x    53.3x     40.0x        40.4x     54.4x    53.1x    40.1x
Median                                                                                4.7x      3.9x     3.7x    44.1x     30.6x        32.9x     47.4x    51.0x    35.2x
Source: Thomson Reuters data

SaaS Vertical Applications Comps Sheet
                                                                                          EV/Revenue               EV/Free Cash Flow                      PE
                                               Stock                   Enterprise
Company                               Ticker   Price      Market Cap       Value    CY2012    CY2013   CY2014   CY2012   CY2013    CY2014        CY2012   CY2013   CY2014
The Active Network, Inc.         ACTV            5.65          335.5       259.8      0.6x      0.5x     0.5x      NA        NA             --      NA       NA       NA
Advent Software, Inc.            ADVS           24.98        1,217.7     1,119.3      3.1x      2.9x     2.7x    14.3x     14.4x          NA      25.3x    21.9x    19.4x
Athenahealth, Inc.               ATHN           88.29        3,229.8     3,049.6      7.2x      5.7x     4.5x      NA        NA           NA      93.9x    72.8x    62.2x
Dealertrack Technologies, Inc.   TRAK           32.23        1,376.2     1,167.3      3.1x      2.6x     2.3x    23.6x     17.8x        15.2x     30.0x    24.5x    21.5x
Ellie Mae, Inc.                  ELLI           21.36          585.5       491.5      4.9x      3.9x     3.3x    32.8x     26.2x        15.1x     20.4x    23.4x    19.6x
Guidewire Software, Inc.         GWRE           34.52        1,856.1     1,670.6      7.0x      5.4x     4.5x      NA        NA           NA        NA       NA       NA
Higher One Holdings, Inc.        ONE            10.90          583.5       595.8      3.0x      2.8x     2.4x      NA        NA           NA      14.6x    14.3x    12.4x
Intralinks Holdings, Inc.        IL              6.39          351.2       361.6      1.8x      1.7x     1.6x      NA        NA           NA      76.9x    38.0x    42.6x
Medidata Solutions, Inc.         MDSO           46.09        1,188.0     1,064.6      4.9x      4.1x     3.6x      NA        NA           NA      44.7x    40.1x    30.7x
Realpage, Inc.                   RP             22.82        1,739.5     1,728.3      5.4x      4.4x     3.7x      NA        NA         23.3x     48.3x    35.8x    28.1x
Ss&c Technologies Holdings, Inc. SSNC           22.96        1,827.1     2,817.6      5.1x      3.9x     3.7x    30.5x     19.4x          NA      16.9x    13.9x    13.1x

Mean                                                                                  4.2x      3.4x     3.0x    25.3x     19.4x        17.9x     41.2x    31.6x    27.7x
Median                                                                                4.9x      3.9x     3.3x    27.1x     18.6x        15.2x     30.0x    24.5x    21.5x
Source: Thomson Reuters data


Historical Price to Sales (TTM)




Source: Thomson One

Maxim Group LLC                                                                                                                                                      17
                                                                                                                                              Ellie Mae (ELLI)



                                                      DCF
                                                      For informational purposes, we include a 10-year DCF model, which
                                                      generates a share value of $45. Our model assumes a total addressable
                                                      LOS mid-market size reaches $800 million over the next 10 years, from
                                                      $375 million in 2012 (CAGR of 8%), as well as share gains of 1.4% to
                                                      4% per year in the coming 5 years. Our DCF model also assumes
                                                      operating margin expansion of roughly 50 to 300 basis points in each of
                                                      the next five years, as well as weighted average cost of capital (WACC)
                                                      of 11.5% and a terminal multiple of 13.3x.


Ellie Mae
Maxim Group
Discounted Cash Flow ($'s in millions, except per share data)

                                         CY11A        CY12E      CY13E      CY14E      CY15E      CY16E      CY17E      CY18E      CY19E       CY20E      CY21E      CY22E

Total Addressable Market                   340.7       374.8      412.2      453.5      498.8      548.7      598.1      645.9      691.1       732.6     769.2       800.0
Growth                                     10.0%       10.0%      10.0%      10.0%      10.0%      10.0%       9.0%       8.0%       7.0%        6.0%      5.0%        4.0%

Ellie Mae Share                            16.3%       26.9%      30.9%      32.8%      36.3%      40.3%      44.4%      48.5%      52.1%       54.6%     54.6%       54.6%

Revenue                                     55.5      100.9      127.3      148.6      181.3      221.1      265.4      313.1      360.1       399.7      419.7       436.5
% Growth                                   28.4%      81.8%      26.2%      16.7%      22.0%      22.0%      20.0%      18.0%      15.0%       11.0%       5.0%        4.0%

Net Operating Profit (EBIT)                  4.6       28.2       39.6       47.7       59.8       74.1       90.3      108.1      126.1       140.8      148.6       155.5
Operating Margin                           8.4%       28.0%      31.1%      32.1%      33.0%      33.5%      34.0%      34.5%      35.0%       35.2%      35.4%       35.6%

Tax                                          (0.2)       1.5      14.3       17.2       21.5       26.7       32.5       38.9       45.4        50.7       53.5        56.0
Tax Rate*                                  -3.8%       5.3%      36.0%      36.0%      36.0%      36.0%      36.0%      36.0%      36.0%       36.0%      36.0%       36.0%

EBIAT                                        4.8        26.7       25.4       30.5       38.3       47.4       57.8       69.2       80.7        90.1      95.1        99.5
Y/Y Growth                                 42.7%      455.2%      -5.1%      20.4%      25.4%      23.8%      21.8%      19.7%      16.7%       11.6%      5.6%        4.6%

Less: Capital Expenditures                   (3.7)       (7.2)      (9.2)     (11.2)     (12.8)     (14.5)     (16.1)     (17.4)     (18.3)      (18.3)    (17.1)      (15.6)
% of revenue                               -6.6%       -7.2%      -7.3%      -7.6%      -7.1%      -6.6%      -6.1%      -5.6%      -5.1%       -4.6%     -4.1%       -3.6%

Add: Depreciation                            2.0         3.3        3.6        3.6      12.3       14.0       15.6       16.9        17.8       17.8       16.6        15.1
% of revenue                               3.5%        3.2%       2.8%       2.4%       6.8%       6.3%       5.9%       5.4%        4.9%       4.4%       3.9%        3.5%

Add: Change in Working Capital               (0.7)       (4.2)      1.5      11.8       14.0       19.9       18.6       15.7        14.4       16.0       16.8        17.5
% of revenue                               -1.2%       -4.1%      1.2%       7.9%       7.7%       9.0%       7.0%       5.0%        4.0%       4.0%       4.0%        4.0%

Free Cash Flow*                              2.4       18.6       21.2       34.7       51.8       66.8       75.8       84.3       94.6       105.6      111.4       116.4
Y/Y Growth                                   NA      672.2%      14.2%      63.4%      49.4%      28.9%      13.5%      11.2%      12.2%       11.6%       5.5%        4.5%

Less: Stock-based Compensation Expense (1.7)             (5.8)      (8.6)      (8.0)      (9.8)     (11.9)     (14.3)     (16.9)     (19.4)      (21.5)    (22.6)      (23.5)
% of revenue                          -3.0%            -5.8%      -6.8%      -5.4%      -5.4%      -5.4%      -5.4%      -5.4%      -5.4%       -5.4%     -5.4%       -5.4%

Adjusted Free Cash Flow                      0.7        12.7       12.6       26.7      42.1       54.9       61.6       67.5       75.2        84.1       88.8        92.9
Y/Y Growth                                   NA      1654.3%      -0.9%     111.4%     57.6%      30.6%      12.1%       9.6%      11.5%       11.8%       5.7%        4.7%

DCF
Year                                                               1.00       2.00       3.00       4.00       5.00       6.00       7.00        8.00      9.00       10.00
Discounted Cash Flow                                               12.6       26.7       42.1       54.9       61.6       67.5       75.2        84.1      88.8        92.9

Terminal Multiple (1/ (WACC - 4% growth)                                                                                                                                13.3x
Terminal Value                                                                                                                                                       1,239.3
Discounted Terminal Value                                                                                                                                              417.3
PV of Cash Flows                                                                                                                                                       606.4
Enterprise Value                                                                                                                                                     1,023.6
Net Cash & Marketable Securities                                                                                                                                        29.7
Total Equity Value                                                                                                                                                   1,053.4
Shares Outstanding (millions)                                                                                                                                           23.3
Equity Value per Share                                                                                                                                              $ 45.22

WACC Assumptions
Ten-year T-Bill                                                                                                                                                          5%
Beta                                                                                                                                                                     1.3
Equity risk premium                                                                                                                                                      5%
Equity Cost of Capital (no debt)                                                                                                                                      11.5%

* differs from FCF per cash flow statement largely for difference in tax rates (non GAAP tax rate versus GAAP per statement of cash flow)

Source: Company Reports and Maxim Group LLC estimates




Maxim Group LLC                                                                                                                                                         18
                                                                      Ellie Mae (ELLI)



                        FINANCIALS/ESTIMATES


                  Recent Results
                  3QFY12. Ellie Mae reported a strong quarter in Q3, with upside to
                  revenue and EPS driven again by strong user adds and ASP growth. Q3
                  total revenue of $27.5 million (+87% y/y) exceeded the consensus
                  estimate of $24.6 million, driven by better-than-expected on-demand
                  revenue. SaaS revenue of $13.4 million grew significantly from $5.1
                  million in 3QFY11, driven by solid user adds and revenue per user. The
                  company ended Q3 with active SaaS users of 35,677, up 10%
                  sequentially from an exceptionally strong Q2, driven by strength in: 1)
                  migration of legacy license of standalone on-demand users to the
                  Encompass360 success based pricing offering; 2) migration of Datatrac
                  users; and 3) new customer signings. The company signed (booked) a
                  solid 6,800 new SaaS users, exceeding the company target of 3,000 and
                  up from an exceptional 6,300 in 2QFY12. Revenue per SaaS user of
                  $395 was up significantly from $344 in 2QFY12, driven by better-than-
                  expected mortgage origination volumes of $527 billion, exceeding
                  company expectations heading into the quarter of $374 billion.
                  Ellie Mae reported Q3 non-GAAP EPS of $0.35, well exceeding the
                  consensus estimate of $0.21, due to revenue upside. Ellie Mae again
                  demonstrated strong operating leverage with non-GAAP operating
                  margin of 32.6% growing significantly from 27.8% in 2QFY12, due to
                  gross margin strength and leverage from operating expenses. Gross
                  margin of 78.8% was up from 77.8% in Q2. Sales/marketing expenses
                  represented 14.2% of total revenue, down from 17.3% in Q2, and
                  research and research/development represented 15.7%, down from
                  17.4%.
                  2QFY12. Ellie Mae reported exceptional Q2 results driven by strong
                  user adds and ASP growth. Q2 total revenue of $23.6 million (+106%
                  y/y) exceeded the consensus estimate of $19.8 million, driven by better-
                  than-expected on-demand revenue. SaaS revenue of $10.7 million grew
                  significantly from $5.1 million in 2QFY11, driven by solid user adds and
                  revenue per user. The company ended Q2 with active SaaS users of
                  32,114, up 10% sequentially from an exceptionally strong Q1, driven by
                  strength in: 1) migration of legacy licenses of standalone on-demand
                  users to the Encompass360 success-based pricing offering; 2) migration
                  of Datatrac users; and 3) new customer signings. The company signed
                  (booked) a solid 6,300 new SaaS users, exceeding the company target of
                  3,000—and up from an exceptional 4,900 in 1QFY12. Revenue per SaaS
                  user of $344 was up significantly from $304 in 1QFY12, driven by
                  better-than-expected mortgage origination volumes of $417 billion,
                  exceeding company expectations heading into the quarter of $353 billion.
                  Ellie Mae reported Q2 non-GAAP EPS of $0.27, well exceeding the
                  consensus estimate of $0.12, due to revenue upside. Ellie Mae
                  demonstrated strong operating leverage with non-GAAP operating
                  margin of 27.8% growing significantly from 22.8% in 1QFY12 from
                  gross margin strength and leverage from operating expenses. Gross

Maxim Group LLC                                                                        19
                                                                                     Ellie Mae (ELLI)

                                margin of 77.8% was up from 75% in Q1. Sales/marketing expenses
                                represented 17.4% of total revenue, down from 18.8% in Q1, and
                                research and research/development represented 19.1%, down from
                                21.1%.
                                1QFY12. Ellie Mae reported 1QFY12 total revenue of $20.9 million
                                (+97.2% y/y, +90% excluding Del Mar), easily exceeding the consensus
                                estimate of $18.2 million and the guidance mid-point of $18.1 million,
                                driven by solid total SaaS revenue. SaaS revenue grew an impressive
                                137% y/y, to $8.4 million, representing an acceleration from 107%
                                growth in Q4 and 85% in Q3. SaaS strength was driven largely by: 1)
                                solid growth of new users with total Encompass users growing 15% to
                                58,844; 2) faster-than-anticipated activation of new users that signed in
                                the previous six months; and 3) strong revenue per active Encompass
                                user, growing 77% to $367.
                                Non-GAAP EPS of $0.20 easily exceeded the consensus estimate and
                                guidance mid-point of $0.14. Non-GAAP operating margin was strong at
                                22.8%, easily exceeding the consensus estimate of 14.8%, highlighting
                                strong operating leverage from upside in high margin subscriptions
                                revenue. Free cash flow of $2.4 million was up from -$0.7 million, from
                                higher net income from top-line growth.


                                Maxim Group Estimates
                                Ellie Mae provides guidance for revenue, adjusted EBITDA, and non-
                                GAAP EPS on a quarterly basis for both the upcoming quarter and the
                                current fiscal year. During the recent 3QFY12 earnings call, the company
                                provided guidance for 4QFY12 total revenue of $27.5 million-$28
                                million (+84%-89% y/y), which was based on expected sequential
                                decline in origination volumes, below industry estimates from Fannie
                                Mae, Freddie Mac, and the Mortgage Bankers Association for Q4 of
                                $482 billion, down 7% from Q3 volume. Guidance for adjusted EBITDA
                                is $4.9 million to $5.4 million, and non-GAAP EPS of $0.18 to $0.19.
                                For FY13, Ellie Mae provided a preliminary expectation for total
                                revenue growth of roughly 25%.
Maxim Group Estimates
Snapshot ($ in millions, except per share amounts)
                                        Y/Y
                             4Q12E    Growth Consensus       Diff.     FY13E   Growth Consensus    Diff.
Total Revenue                    28.9    54.4%       27.9        1.0     127.3   26.2%     125.2       2.1
On-Demand Revenue                25.5    63.2%         NA         NA     113.6   29.6%        NA         NA
SaaS Revenue                     14.8    97.8%         NA         NA      61.8   30.6%        NA         NA
Gross Margin                   80.0%      5.7%         NA         NA     79.8%    1.7%        NA         NA
Operating Margin               27.5%     12.5%         NA         NA     31.1%    3.2%        NA         NA
EPS                              0.23       NA       0.21      0.02       0.91  -13.0%      0.91     0.00
Free Cash Flow                    3.9       NA        3.6        0.3      18.7      NA      17.2       1.6
All amounts are fiscal year and non GAAP
Source: Maxim Group LLC estimates, Thomson One for consensus estimates



                                We are modeled for 4QFY12 revenue of $28.9 million (+54% y/y),
                                exceeding the consensus estimate of $27.9 million, given our expectation
                                for on-demand revenue upside from better-than-expected origination

Maxim Group LLC                                                                                         20
                                                                      Ellie Mae (ELLI)

                  volumes during the quarter. Our estimate for total on-demand revenue is
                  $25.5 million (+63% y/y), which includes SaaS revenue of $14.8 million
                  (98% y/y). Our estimate for SaaS revenue is based on assumed SaaS
                  revenue per user of $395, flat from Q3, slightly below recently raised
                  industry estimates for origination volumes during Q4. During the quarter,
                  MBA, Fannie Mae, and Freddie Mac all raised estimates to an average of
                  +4% q/q, from -8% heading into the quarter. Our estimate for other on-
                  demand revenue is $10.6 million, representing flat q/q growth, consistent
                  with the origination forecast. Our estimate for 4QFY12 non-GAAP EPS
                  is $0.23, exceeding consensus estimates for $0.21, driven by revenue
                  upside, somewhat offset by increased cost of revenue and research and
                  development for investment in datacenter and sales headcount. Our EPS
                  estimate assumes non-GAAP operating margin of 27.5%, up from 15%
                  in 4QFY12 from subscription revenue growth. Our estimate for 4QFY12
                  free cash flow is $3.9 million, exceeding the consensus estimates of $3.6
                  million, due to revenue and margin upside.
                  We are modeled for FY13 revenue of $127.3 million, representing 26%
                  growth, slightly higher than management expectations for 25% growth in
                  2013. The consensus estimate for FY13 revenue is $124 million. Our
                  revenue estimate includes total on-demand revenue of $113.6 million
                  (+30%), which includes SaaS revenue of $61.8 million (+31%). Our
                  estimate for SaaS revenue is based on the assumption for average
                  quarterly SaaS revenue per user of $348 (-3%), which assumes a
                  sequential trend that is largely directionally consistent with industry
                  forecasts for originations (-15% q/q in Q1; -1% q/q in Q2; -18% q/q in
                  Q3; and -18% q/q in Q4). We believe that we are likely to see upside to
                  SaaS revenue as we move through the remainder of the year, driven by
                  origination volume upside to industry forecasts. During our recent calls
                  with a number of Ellie Mae customers, we noted the expectation for flat
                  origination growth in 2013, given the expectation for low interest rate
                  and stable demand for refinancing volume driven by improving home
                  values, which should enable more borrowers to qualify for refinancing.
                  We also noted the expectation for improving new mortgages driven by
                  expected improving demand. Our estimate for FY12 non-GAAP EPS is
                  $0.91, in line with consensus estimate, despite our higher revenue
                  estimate, given the higher expected tax rate in FY13 (which is not fully
                  reflected in consensus estimates). Management expects the non-GAAP
                  tax rate to be approximately 36% in FY13, up from our estimate for 5%
                  in FY12, as net operating loss tax assets become fully amortized in Q4.
                  Excluding this change, our non-GAAP EPS estimate would be $1.35
                  (+29%). Our EPS estimate assumes non-GAAP operating margin of
                  31.3%, representing an increase of 340 basis points. Management
                  expects EBITDA margin to be flat to up slightly, assuming a revenue
                  base of $125 million, given investment in datacenter and sales personnel
                  to support growth. Our expectation for margin expansion is largely due
                  to a conservative estimate for 4QFY12 margin and top-line upside in
                  FY13. Our estimate for FY12 free cash flow is $18.6 million, exceeding
                  consensus estimates for $17.2 million, due to top-line upside.




Maxim Group LLC                                                                         21
                                                                                                                                                                                                                              Ellie Mae (ELLI)

                                                                                                           Ellie Mae
                                                                                                       Income Statement
           Ellie Mae
           Maxim Group
           Earnings Model ($'s in millions, except per share amounts)

                                                                                Fiscal Year 2011A                           Fiscal Year 2012E                 Fiscal Year 2013E                    Fiscal Year End: December
                                                                        Mar-11A Jun-11A Sep-11A Dec-11A         Mar-12A       Jun-12A Sep-12A Dec-12E Mar-13E Jun-13E Sep-13E Dec-13E           2011A    2012E    2013E   2014E

           Total Revenue                                                  10.6      11.5      14.7      18.8       20.9          23.6      27.5      28.9     29.3     31.1     33.4    33.5       55.5    100.9     127.3    146.3

           Costs of Goods Sold                                              3.3       3.5      4.0       4.8        5.2           5.2       5.8       5.8      6.2      6.3      6.4     6.8       15.7     22.1      25.7     28.8
           Gross Margin                                                     7.3       8.0     10.7      13.9       15.7          18.3      21.6      23.2     23.1     24.8     27.0    26.7       39.8     78.8     101.6    117.5

           Sales & Marketing                                                2.4       2.5      3.0       4.1        3.9           4.1       3.9       5.1      5.1      5.1      5.2     5.4       11.9     17.0      20.8     23.7
           Research and Development                                         2.7       2.6      3.4       4.0        4.0           4.1       4.3       5.1      5.1      5.1      5.2     5.4       12.6     17.5      20.8     23.7
           General & Admin.                                                 2.5       2.5      2.5       3.1        3.0           3.6       4.5       5.1      5.0      5.0      5.2     5.2       10.7     16.1      20.4     23.1
           Total Operating Expenses                                         7.6       7.6      8.9      11.1       10.9          11.8      12.7      15.2     15.2     15.3     15.5    15.9       35.2     50.6      62.0     70.6

           Total Non-Operating Expenses                                     0.5       0.5      1.0       1.0        0.9           1.3       2.7       2.6      2.6      2.6      2.5     2.5        2.9      7.5      10.2
                                                                                                                                                                                                                        -       9.6
           Operating Income GAAP                                           (0.8)     (0.1)     0.8       1.8        3.8           5.3       6.3       5.4      5.2      6.9      9.0     8.3        1.7     20.7      29.4     37.3
           Operating Income Non-GAAP                                       (0.3)      0.4      1.7       2.8        4.8           6.6       8.9       8.0      7.9      9.5     11.5    10.8        4.6     28.2      39.6     46.9

           EBITDA GAAP                                                     (0.3)      0.5      1.6       2.8        4.9           6.4       7.6       6.8      6.6      8.2     10.3     9.6        4.6     25.6      34.6     46.2
           EBITDA Non-GAAP                                                  0.0       0.9      2.3       3.4        5.4           7.3       9.8       9.0      8.8     10.4     12.4    11.7        6.6     31.5      43.2     55.1

           Other Income/(Expense) GAAP                                      0.0       0.0      0.0      (0.0)       (0.0)        (0.0)      0.0        -       0.1      0.1      0.2     0.2        0.1      (0.0)     0.5      1.3
           Other Income/(Expense) Non-GAAP                                  0.0       0.0      0.0      (0.0)       (0.0)        (0.0)      0.0        -       0.1      0.1      0.2     0.2        0.1      (0.0)     0.5      1.3

           Pre-Tax Income GAAP                                             (0.8)     (0.0)     0.8       1.8        3.8           5.2       6.3       5.4      5.3      7.0      9.1     8.5        1.8     20.7      29.9     38.6
           Pre-Tax Income Non-GAAP                                         (0.3)      0.5      1.8       2.8        4.7           6.5       9.0       8.0      7.9      9.6     11.6    11.0        4.7     28.2      40.1     48.2

           Income Taxes Expense/(Benefit) GAAP                              0.0       0.0      (0.2)     0.0        0.2           0.2      (0.5)      1.9      1.9      2.5      3.3     3.1       (0.2)     1.8      10.8     13.9
           Income Taxes Expense/(Benefit) Non-GAAP                          0.0       0.0      (0.2)     0.0        0.2           0.3      (0.5)      1.6      2.8      3.5      4.2     4.0       (0.2)     1.5      14.5     17.4

           Net Income GAAP                                                 (0.8)     (0.0)     1.0       1.8        3.6           5.0       6.8       3.4      3.4      4.5      5.8     5.4        2.0     18.9      19.1     24.7
           Net Income Non-GAAP                                             (0.3)      0.5      2.0       2.8        4.6           6.3       9.5       6.4      5.1      6.2      7.4     7.0        4.9     26.7      25.7     30.9

           GAAP EPS                                                       (0.05)    (0.00)    0.05      0.08       0.16          0.21      0.25      0.12     0.12     0.16     0.21    0.19       0.10     0.75      0.68     0.86
           Non-GAAP EPS                                                   (0.02)     0.02     0.09      0.13       0.20          0.27      0.35      0.23     0.18     0.22     0.26    0.25       0.24     1.05      0.91     1.07

           Shares Outstanding (mil.)                                      17.3      21.1      22.0      22.0       22.5          23.3      27.4      27.8     27.9     28.1     28.2    28.4       20.6     25.3      28.1     28.7


                                                                                Fiscal Year 2011A                           Fiscal Year 2012E                      Fiscal Year 2013E            Fiscal Year End: December
                                                                        Mar-11A Jun-11A Sep-11A Dec-11A Mar-12A             Jun-12A     Sep-12A    Dec-12E Mar-13E Jun-13E Sep-13E Dec-13E      2011A     2012E    2013E  2014E

           Margins
           Gross Margin                                                  68.4%     69.5%     72.6%     74.3%      75.0%         77.8%     78.8%     80.0%    78.8%    79.8%    80.8%    79.8%     71.7%    78.1%     79.8%    80.3%
           Operating Margin                                              -3.1%      3.7%     11.8%     15.0%      22.8%         27.8%     32.6%     27.5%    26.8%    30.6%    34.3%    32.3%      8.4%    28.0%     31.1%    32.1%
           EBITDA (GAAP)                                                 -3.0%      4.2%     10.6%     15.2%      23.2%         27.2%     27.6%     23.4%    22.4%    26.4%    30.7%    28.7%      8.2%    25.4%     27.2%    31.6%
           EBITDA                                                         0.4%      7.7%     15.6%     18.1%      25.7%         31.0%     35.8%     31.0%    29.9%    33.5%    37.0%    35.0%     11.9%    31.2%     34.0%    37.7%
           Profit Margin                                                 -2.9%      3.9%     13.6%     14.7%      21.9%         26.7%     34.5%     22.0%    17.3%    19.8%    22.2%    21.1%      8.8%    26.5%     20.2%    21.1%
                                                                                                                                                                                                           29.4%     30.4%
           Year/Year Growth
           Total Revenue                                                  19.4%   17.4%       23.1%    48.0%       97.2%       105.6%     87.1%     54.4%     40.2%    31.9%    21.7%   15.6%     28.4%     81.8%     26.2%   14.9%
           Operating Income                                              -65.6% -169.2%      -19.6%     2.9%    -1535.5%      1465.4%    414.2%    183.3%     64.8%    45.1%    28.3%   35.8%     39.5%    508.9%     40.5%   18.3%
           Net Income                                                    -63.6% -193.5%      -12.2%     7.6%    -1568.8%      1290.7%    375.4%    131.1%     10.7%    -2.1%   -21.6%   10.6%     40.0%    445.9%     -3.8%   20.1%
           EPS                                                                                                  -1228.7%      1159.5%    281.0%     83.2%    -10.8%   -18.8%   -23.9%    8.5%     19.2%    341.3%    -13.0%   17.7%

           Quarter/Quarter Growth
           Total Revenue                                                 -16.3%    8.1%       28.0%    27.8%      11.5%         12.7%     16.5%       5.4%     1.2%    6.1%     7.5%     0.1%
           Operating Income                                             -112.2% -226.2%      314.8%    61.7%      69.6%         37.6%     36.3%     -10.9%    -1.3%   21.1%    20.5%    -5.7%
           Net Income                                                   -112.1% -245.3%      341.4%    38.1%      65.7%         37.6%     50.9%     -32.9%   -20.6%   21.6%    20.8%    -5.2%
           EPS                                                          -112.1% -219.2%      323.9%    37.7%      62.3%         33.0%     28.3%     -33.8%   -21.0%   21.0%    20.2%    -5.7%

           Percent of Total Revenue
           Cost of Goods Sold                                            31.6%      30.5%     27.4%    25.7%      25.0%         22.2%     21.2%     20.0%    21.2%    20.2%    19.2%    20.2%     28.3%    21.9%     20.2%    19.7%
           Sales & Marketing                                             22.5%      21.4%     20.6%    21.7%      18.8%         17.3%     14.2%     17.5%    17.5%    16.5%    15.5%    16.0%     21.5%    16.8%     16.3%    16.2%
           Research and Development                                      25.6%      22.3%     22.9%    21.1%      19.1%         17.4%     15.7%     17.5%    17.5%    16.5%    15.5%    16.0%     22.6%    17.3%     16.3%    16.2%
           General & Admin.                                              23.5%      22.2%     17.3%    16.6%      14.3%         15.3%     16.4%     17.5%    17.0%    16.2%    15.5%    15.5%     19.3%    16.0%     16.0%    15.8%
           Total Operating Expenses                                      71.6%      65.9%     60.7%    59.3%      52.2%         50.0%     46.2%     52.5%    52.0%    49.2%    46.5%    47.5%     63.4%    50.1%     48.7%    48.3%
           Effective Tax Rate (GAAP)                                     -1.4%     -53.8%    -31.3%     1.9%       4.7%          4.6%     -8.3%     36.0%    36.0%    36.0%    36.0%    36.0%    -10.1%     8.8%     36.0%    36.0%
           Effective Tax Rate (non GAAP)                                 -3.7%       3.0%    -13.7%     1.3%       3.8%          3.9%     -5.9%     20.0%    36.0%    36.0%    36.0%    36.0%     -3.8%     5.3%     36.0%    36.0%

           Source: Company Reports and Maxim Group LLC estimates




Maxim Group LLC                                                                                                                                                                                                                             22
                                                                                                                                                                                                                                                                                         Ellie Mae (ELLI)

                                                                                                                             Ellie Mae
                                                                                                                       Statement of Cash Flow
Ellie Mae
Maxim Group
Cash Flow Statement ($'s in millions, except per share amounts)

                                                                       Fiscal Year 2010A               Fiscal Year 2011A               Fiscal Year 2012E               Fiscal Year 2013E                                                                                                   Fiscal Year End: Dec
                                                               Mar-10A Jun-10A Sep-10A Dec-10A Mar-11A Jun-11A Sep-11A Dec-11A Mar-12A Jun-12A Sep-12A Dec-12E Mar-13E Jun-13E Sep-13E Dec-13E                                                                                   2010A       2011A 2012E 2013E            2014E

Cash flows from operating activities
Net Income                                                         -1.6       -1.3       1.8           1.9          -0.8           0.0           1.0           3.4          3.6          5.0           6.8           3.4          3.4          4.5           5.8           5.4       0.8        3.6     18.9      19.1      24.7
Depreciation and amortization                                       0.5        0.4       0.4           0.3           0.4           0.5           0.5           0.6          0.6          0.8           0.9           1.0          0.9          0.9           0.9           0.9       1.6        2.0      3.3       3.6       3.6
Provision for uncollectible accounts receivable                     0.2        0.1       0.1           0.0           0.1           0.2           0.1           0.0          0.0          0.0           0.0                                                                           0.4        0.5      0.1       0.0       0.0
Amortization of intangible assets                                   0.1        0.1       0.1           0.1           0.1           0.1           0.3           0.4          0.4          0.4           0.4           0.4          0.4           0.4           0.4          0.4       0.4        0.9      1.6       1.6       1.6
Stock based compensation                                            0.6        0.6       0.3           0.6           0.4           0.4           0.4           0.5          0.5          0.9           2.2           2.2          2.2           2.2           2.1          2.1       2.1        1.7      5.8       8.6       8.0
Other                                                                                                  0.0           0.0           0.0           0.0          -1.6          0.1         -0.1          -1.6          -1.6         -1.6          -1.6          -1.6         -1.6       0.0       -1.6     -3.3      -6.5      -6.5
Gross cash flow                                                    -0.3       -0.1       2.6           3.0           0.2           1.1           2.4           3.4          5.3          6.9           8.8           5.4          5.3           6.4           7.6          7.2       5.2        7.1     26.4      26.5      31.4
Net change in operating assets and liabilities                     -1.9       -0.5      -1.8           0.8          -0.1          -0.5          -1.2           1.0         -2.0          0.0          -2.2           0.0          0.5           0.5           0.5          0.0      -3.4       -0.7     -4.2       1.5      11.8

Net cash provided by (used in) operating activities                -2.2       -0.6       0.8           3.8          0.0           0.6           1.2            4.5          3.3          7.0           6.6           5.4          5.8          6.9           8.1           7.2      1.8         6.4     22.2      28.0      43.2
                                                                                                                                                                                                                                                                                    3.3         4.6     28.2      39.6      46.9
Cash flows from investing activities
Acquisition of property and equipment                              -0.1       -0.7      -0.2          -0.5          -0.8          -2.1         -0.5           -0.3         -0.8         -3.0          -1.9          -1.5         -1.3          -3.5          -2.4         -2.0      -1.6       -3.7      -7.2      -9.2     -11.2
Purchase of short-term investments                                 -1.9       -4.6      -0.5          -0.3          -2.1          -1.6         -1.3           -1.2        -1.11         -2.4          -1.9                                                                          -7.3       -6.2
Issuance of note receivable                                         0.0        0.0       0.0           0.0           0.0           0.0          0.0            0.0                                                                                                                   0.0        0.0
Purchase of acquisition, net of cash acquired                                  0.0       0.0           0.0          -1.0           0.0        -17.2            0.0                                                                                                                   0.0      -18.2
Sale of short-term investments                                      1.9        5.7       0.9           0.9           1.1           2.7          1.2            1.8          1.0          1.5           1.3                                                                           9.4        6.9
Other                                                                                                                                                                       0.0          0.0          -2.9
Cash Flow - Investing                                              -0.2        0.4       0.2           0.2          -2.8          -1.0        -17.7            0.3         -1.0        -3.83          -5.4                                                                          0.6       -21.3

Cash flows from financing activities
Proceeds from initial public offering, net of issuance costs                                                                     23.7            4.2           0.0                                  55.82
Payment of capital lease obligations                               -0.1       -0.1      -0.1          -0.1        -0.06         -0.04            0.0           0.0          0.0         0.00         0.00                                                                           -0.4       -0.1
Proceeds from issuance of common stock                              0.0        0.8       0.0           0.0         0.21          0.11            0.2           0.8          1.4         0.17         1.39                                                                            0.8        1.3
Other                                                                                                                                           -4.8           0.0          0.1         0.13         1.01
Cash Flow - Financing                                              -0.1        0.7      -0.1          -0.1          0.1          23.7           -0.4           0.8          1.5          0.3         58.2                                                                           0.4       24.3

Increase / Decrease in cash                                        -2.4        0.4       1.0           3.9          -2.6         23.4         -16.9            5.5          3.8        3.417         59.4                                                                           2.9         9.4

                                                                                                                                                                                                                                                                                                    7.1
Free Cash Flow                                                     -2.3       -1.4       0.6           3.3       -0.7             -1.4        0.7              4.1        2.4          3.9             4.7           3.9          4.4           3.4          5.7           5.2        0.3    2.7   15.0   18.7  32.0
Y/Y Change                                                                                                    -68.1%             6.2%      16.8%            25.3%    -429.9%      -372.1%          536.7%         -5.3%        82.7%        -14.7%        21.4%         33.6%    -111.0% 951.8% 458.7% 25.1% 70.7%
Q/Q Change                                                                 -40.9%    -146.3%        421.9%   -122.4%            96.3%    -150.9%           459.9%     -41.1%        61.9%           19.2%        -16.7%        13.7%        -24.4%        69.6%         -8.4%
Free Cash Flow Margin                                           -26.0%     -14.0%       5.3%         26.0%     -7.0%           -12.6%       5.0%            22.0%      11.6%        16.7%           17.1%         13.5%        15.2%         10.8%        17.1%         15.6%     0.6%      4.8%      14.9%     14.7%     21.9%

Free Cash Per Share                                            $ (0.13) $ (0.08) $     0.04     $    0.19    $ (0.04) $ (0.07) $              0.03     $     0.19    $    0.11    $    0.17    $     0.17    $     0.14    $    0.16    $    0.12     $    0.20     $    0.18    $ 0.01     $ 0.13    $ 0.59    $ 0.67    $ 1.11

Net Income                                                          1.9       -0.8        0.0      1.0               1.8        3.6              5.0           6.8      3.4     3.4                    4.5           5.8          5.4           4.5           5.9          7.4      2.1        17.3      17.1   23.2         -5.2
Y/Y Change                                                        3.6%     -33.4%    -235.9% -229.9%             -63.6%    -193.5%           -12.2%          7.6% -1568.8% 1290.7%                 375.4%        131.1%        10.7%         -2.1%        -21.6%        10.6%               832.4%     99.2% 135.7%       -22.2%
Q/Q Change                                                        7.0%    -142.0%     -95.0% -2625.0%             77.6%     103.0%            37.3%         36.6%   -49.8%   -1.1%                  32.3%         30.0%        -6.6%        -17.1%         30.5%        25.8%

Net Profit Margin                                                -9.6%      -4.9%     19.1%         20.2%         -2.9%         3.9%         13.6%          14.7%        21.9%        26.7%         34.5%         22.0%        17.3%        19.8%         22.2%         21.1%     8.1%      8.8%      26.5%     20.2%     21.1%

 Free Cash Flow TTM                                               (2.3)      (3.7)      (3.0)         0.3        1.8           1.7           1.8              2.7           5.9         11.2         15.2          15.0          17.0        16.4          17.4          18.7
Y/Y Change                                                                                                   -179.1%       -147.4%       -160.8%           951.8%        220.5%       545.3%       722.6%        458.7%        190.4%       46.0%         14.6%         25.1%
Free Cash Flow Margin                                            -7.6%     -11.4%      -8.1%         0.6%       4.1%          3.7%          3.7%             4.8%          8.9%        14.4%        16.8%         14.9%         15.6%       14.1%         14.2%         14.7%

Free Cash Per Share                                            $ (0.14) $ (0.21) $ (0.17) $          0.01    $    0.10     $    0.09     $    0.10     $     0.13    $    0.27    $    0.50    $     0.64    $     0.59    $    0.64    $    0.59     $    0.62     $    0.67

Net Income TTM                                                      0.8      -24%       -10%         2%              4%         6%            4%               4%           10%          15%          19%           19%          17%          16%            14%           15%
Y/Y Change                                                     -111.4%     -96.8%     -98.6%    -100.5%          -95.5%    -125.5%       -140.5%            96.8%        176.7%       141.1%       353.5%        429.0%        75.2%         5.6%         -26.7%        -19.7%
Net Profit Margin                                                 2.6%      -0.7%      -0.3%       0.0%            0.1%       0.1%          0.1%             0.1%          0.1%         0.2%         0.2%          0.2%         0.2%         0.1%           0.1%          0.1%

Source: Company Reports and Maxim Group LLC estimates




Maxim Group LLC                                                                                                                                                                                                                                                                                                             23
                                                                                                                                                                             Ellie Mae (ELLI)

                                                                                                               Ellie Mae
                                                                                                             Balance Sheet
Ellie Mae
Maxim Group
Balance Sheet ($'s in millions, except per share amounts)

                                                     Fiscal Year 2009A               Fiscal Year 2010A               Fiscal Year 2011A               Fiscal Year 2012A
                                             Mar-09A Jun-09A Sep-09A Dec-09A Mar-10A Jun-10A Sep-10A Dec-10A Mar-11A Jun-11A Sep-11A Dec-11A Mar-12A Jun-12A Sep-12A
ASSETS
Cash and cash equivalents                       13.1     16.0     15.7     11.5     13.8     13.2    13.7    14.3    11.7    35.1    18.2    23.7    27.5     30.9    90.3
Short term investments                                                      4.7                               2.6     3.5     2.4     2.5     1.9     2.1      2.9     3.6
Accounts receivables, net                        3.8      3.5      2.6      2.7      2.9      3.2     4.7     4.2     3.8     4.8     6.6     6.8     7.3      7.9    10.5
Prepaid expenses and other                       0.5      0.4      0.6      0.9      1.1      0.9     0.9     0.8     0.7     1.0     2.4     2.4     2.3      4.3     8.3
Deferred offring costs                                                      0.8                               4.7     6.0     0.0
Total current assets                            17.4     19.9     18.9     20.7     17.9     17.2    19.3    26.7    25.9    43.4    29.7    34.9    39.2     46.0   112.6


Property & Equipment                             4.2      3.6      3.1      2.9      2.6      2.9     2.9     2.7     4.0     5.0     5.2     5.5     5.8      8.4     8.8
Deposits and other assets                        0.1      0.1      0.6      0.6      0.6      0.6     0.6     0.6     0.1     0.1     0.1     0.1     0.1      0.1     0.1
Note Receivable                                  0.0      0.0      1.0      1.0      1.0      1.0     1.0     1.0     1.0     1.0     0.0     0.0     0.0      0.0     0.0
Other intangibles, net                                                                                                        0.9     8.6     8.2     7.8      7.3     6.9
Goodwill                                        31.8     31.8     31.9     31.5     32.4     32.3    32.2    31.5    32.0    32.0    49.5    51.1    51.1     51.1    51.1
Other long term assets                                                      1.0      2.8      4.1     4.4     0.6     1.0
Total assets                                    53.6     55.4     55.5     57.7     57.4     58.2    60.4    63.1    64.0    82.5    93.1    99.8   103.9    112.9   179.6

LIABILITIES

Accounts payable                                 0.4      0.4      0.6      1.1      1.2      0.9     1.2     3.8     5.3     2.5     2.1     2.3     1.9      2.5     1.9
Accrued and other current liabilities            1.8      2.3      2.3      3.7      4.6      5.9     6.3     3.5     3.4     3.2     3.9     4.9     3.7      6.4     7.5
Deferred revenue, current portion                2.8      2.6      2.8      3.4      3.3      2.9     2.6     3.2     3.1     2.9     4.0     4.5     4.6      4.2     4.5
Deferred rent                                    0.7      0.6      0.4      0.5      0.4      0.3     0.2     0.2     0.2     0.2     0.2     0.2     0.2      0.2     0.2
Leases payable                                                              0.4      0.4      0.3     0.2     0.1     0.1     0.0     0.0             0.0      0.0     0.0
Sales and use tax payable                        0.0      0.0      0.0               0.0      0.0     0.1
Other current liabilities                        0.1      0.1      0.0               0.0      0.0     0.0                             2.8     3.0     3.0     2.99     2.9
Total current liabilities                        5.7      6.2      6.1      9.1      9.9     10.3    10.6    10.8    12.0     8.8    13.0    14.9    13.4     16.3    17.1

Deferred revenue                                                   0.0      0.0      0.1      0.1     0.1     0.1     0.2     0.2     0.2     0.1     0.1              0.0
BE/CE deposits                                   0.0      0.0      0.0               0.0      0.0     0.0
Deferred rent                                    2.1      1.9      1.7      1.0      1.0      0.9     0.9     0.8     0.8     0.7     0.7     0.6     0.6      0.5     0.4
Other long term liabilities                      0.1      0.1      0.1      0.3      0.3      0.6     0.5     0.5     0.5     0.4     5.2     5.3     5.4      5.4     4.3
Leases payable                                                     0.2      0.1      0.1      0.0     0.0                             0.0     0.0     0.0
Total liabilities                                7.9      8.2      8.2     10.6     11.2     12.0    12.1    12.2    13.4    10.1    19.0    20.9    19.4     22.2    21.9

Total stockholders' equity (deficit)            45.7     47.2     47.3     47.2     46.2     46.3    48.4    51.0    50.6    72.4    74.1    78.9    84.5     90.7 157.702

Total liabilities and stockholders' equity      53.6     55.4     55.5     57.7     57.4     58.2    60.4    63.1    64.0    82.5    93.1    99.8   103.9    112.9   179.6


LIQUIDITY AND SELECT RATIOS

Total deferred revenue                           2.8      2.6      2.8      3.4      3.3     3.0      2.8     3.3     3.3     3.1     4.2     4.6     4.7      4.2    4.6
Y/Y change in deferred revenue                  -41%     -32%    -19%      25%      21%    14.3%    -1.8%   -2.8%   -2.1%    3.2%   51.3%   39.3%   43.6%    35.0%   9.6%
Q/Q change in deferred revenue                  1.6%    -4.6%    6.3%    21.5%     -2.1%   -9.6%    -8.7%   20.3%   -1.4%   -4.7%   33.9%   10.8%    1.6%   -10.4%   8.6%

Net Cash                                        13.2    16.2     16.3     16.8     14.5     13.8    14.3    17.5    15.4     37.7   20.9    25.8    29.7     34.0     94.0
Cash per share                                  0.80    0.96     0.96     0.98     0.83     0.78    0.81    1.01    0.89     1.79   0.95    1.17    1.32     1.46     3.43
Y/Y change in cash                               -8%     21%      24%      36%       9%     -15%    -12%      4%      6%    173%     46%     47%     93%     -10%    350%
Q/Q change in cash                                7%     22%       1%       3%     -14%      -5%      4%     22%    -12%    145%    -45%     23%     15%      14%    177%

Days Sales Outstanding                           45       39       36       35       30       30      35      30      33      38      40      33      31       30      34

Book value per share                            2.76    2.81     2.78     2.74     2.66     2.63    2.72    2.95    2.93    3.43    3.37    3.58    3.75     3.89    5.75

Return on Equity (TTM)                        -19.5%   -14.1%   -11.7%   -11.1%   -11.1%   -10.7%   -2.2%   7.3%    8.2%    8.9%    7.6%    7.1%    12.6%   19.0%    22.4%

Source: Company Reports and Maxim Group LLC estimates




Maxim Group LLC                                                                                                                                                                            24
                                                                                                           Ellie Mae (ELLI)

                                                                 DISCLOSURES

    Maxim Group LLC Stock Rating System                                                                     As of:   1/1/2013
                                                                                     % of Coverage     % of Ratings for w hich Firm
                                                                                     Universe w ith   provided Banking Services in
                Expected Perform ance*                                                   Rating            the last 12 months
         Buy    Expected total return of 15% or more over next 12 months                 77.9%                   18.3%
         Hold   Expected total return of plus or minus 14% over next 12 months           15.7%                    0.0%
         Sell   Expected total negative return of at least 15% over next 12 months       6.4%                     0.0%
    * Relative to Nasdaq Composite.                                                                              #REF!




                                                Maxim makes a market in Ellie Mae Inc.
  Maxim Group expects to receive or intends to seek compensation for investment banking services from
                                  Ellie Mae Inc. in the next 3 months.

I, Brad Sills, attest that the views expressed in this research report accurately reflect my personal views about the
subject security and issuer. Furthermore, no part of my compensation was, is, or will be directly or indirectly
related to the specific recommendation or views expressed in this research report.
The research analyst(s) primarily responsible for the preparation of this research report have received
compensation based upon various factors, including the firm’s total revenues, a portion of which is generated by
investment banking activities.


Valuation Method: Our price target of $28 is based on an EV/Sales multiple of 5.3x our CY13 sales estimate of
$127 million.


Price Target and Investment Risks:
           Interest Rates Exposure: A rise in interest rates could negatively impact mortgage volumes attributable
            to refinancing, which represent an estimated 73% of total originations in FY12.
            Highly Exposed to Macroeconomic Cycles: Ellie Mae’s business is highly cyclical, given exposure to
             the mortgage/real estate market. A global recession could drive consumer sentiment lower and create an
             environment in which banks are tightening consumer credit standards. This could weaken consumer
             sentiment and new originations, thus curbing our estimates for SBP revenue growth. Also, application
             spending is highly discretionary and subject to budget cuts in the event of a macroeconomic slowdown.


                                                                  RISK RATINGS

Risk ratings take into account both fundamental criteria and price volatility.
Speculative – Fundamental Criteria: This is a risk rating assigned to early-stage companies with minimal to no
revenues, lack of earnings, balance sheet concerns, and/or a short operating history. Accordingly, fundamental
risk is expected to be significantly above the industry. Price Volatility: Because of the inherent fundamental
criteria of the companies falling within this risk category, the price volatility is expected to be significant with the
possibility that the investment could eventually be worthless. Speculative stocks may not be suitable for a
significant class of individual investors.
High – Fundamental Criteria: This is a risk rating assigned to companies having below-average revenue and
earnings visibility, negative cash flow, and low market cap or public float. Accordingly, fundamental risk is
expected to be above the industry. Price volatility: The price volatility of companies falling within this category
is expected to be above the industry. High-risk stocks may not be suitable for a significant class of individual
investors.




Maxim Group LLC                                                                                                                       25
                                                                                                   Ellie Mae (ELLI)

Medium – Fundamental Criteria: This is a risk rating assigned to companies that may have average revenue and
earnings visibility, positive cash flow, and is fairly liquid. Accordingly, both price volatility and fundamental risk
are expected to approximate the industry average.
Low – Fundamental Criteria: This is a risk rating assigned to companies that may have above-average revenue
and earnings visibility, positive cash flow, and is fairly liquid. Accordingly, both price volatility and fundamental
risk are expected to be below the industry.


                                                 DISCLAIMERS

Some companies that Maxim Group LLC follows are emerging growth companies whose securities typically
involve a higher degree of risk and more volatility than the securities of more established companies. The
securities discussed in Maxim Group LLC research reports may not be suitable for some investors. Investors must
make their own determination as to the appropriateness of an investment in any securities referred to herein, based
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This publication is confidential for the information of the addressee only and may not be reproduced in whole or
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Indeed, in the case of some investments, the potential losses may exceed the amount of initial investment and, in
such circumstances, you may be required to pay more money to support these losses.


                 ADDITIONAL INFORMATION IS AVAILABLE UPON REQUEST




Maxim Group LLC                                                                                                      26
      EQUITY RESEARCH DEPARTMENT                                 CAPITAL MARKETS / SYNDICATE
      Anthony Vendetti                                           Christopher Fiore                                          212-895-3743
      Director of Research                        212-895-3802    President & Head of Capital Markets

      Todd Klein                                                 Paul LaRosa                                                212-895-3695
      Associate Director of Research              212-895-3562    Senior Managing Director - Chief Mark et Technician
                                                                 Andrew Rosen                                               212-895-3685
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      Echo Yinghui He Ph.D., M.D.                 212-895-3718
                                                                 INSTITUTIONAL SALES & INSTITUTIONAL SALES TRADING
      CLEANTECH
      Aaron Chew                                  212-895-3568   Jamie Barker                                                212-895-3755
                                                                  Managing Director - Institutional Equity Sales & Sales Trading
      FINANCIAL SERVICES / REITS
      Michael K. Diana                            212-895-3641   INSTITUTIONAL SALES                                        800-628-4005

      HEALTHCARE                                                 Ian Burgess                                                212-895-3548
      Healthcare IT, Services & Medical Devices                  David Circle                                               212-895-3691
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                                                                 Gerry Fershtman                                            516-396-3311
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      Bryan Brok meier, CFA                       212-895-3845   Chris Fetchet                                              212-895-3681
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      Echo He Ph.D., M.D.                         212-895-3718   Amanda Nozaki                                              212-895-3570
                                                                 Gerry Oberrender                                           212-895-3615
      INDUSTRIALS & INFRASTRUCTURE                               Alessandro Profita                                         212-895-3795
      William D. Bremer                           212-895-3835   Jason Sardo                                                212-895-3630
                                                                 Jeff Sklar                                                 212-895-3780
      RETAIL                                                     Dirk van Erp                                               925-954-1194
      Rick Snyder                                 212-895-3674

      TELECOM / MEDIA / TECHNOLOGY
      Communications Infrastructure                              INSTITUTIONAL SALES TRADING                                800-628-4005
      Greg Mesniaeff                              212-895-3533
                                                                 Todd Bodine                                                212 895-3806
      Enterprise Software                                        Phil Buchanan                                              212-895-3746
      Brad Sills                                  212-895-3759   Robert Benedickson                                         732-784-1903
                                                                 Adam Cheek                                                 212-895-3878
      Media                                                      Steve Dora                                                 212-895-3868
      John Tink er                                212-895-3735   David Haraburda                                            415-677-1518
                                                                 Jon Huzarsky                                               212-895-3629
      Technology                                                 Peter Kaufman                                              561-465-2493
      Ashok Kumar, CFA                            650-823-4745   Josh Levy                                                  212-895-3897
                                                                 Rich Levy                                                  212-895-3820
      Research Associates                                        Mitch Martin                                               212-895-3831
      Benjamin Black                              212-895-3509   Mike Massimino                                             212-895-3544
      Francesco Citro, Ph.D.                      212-895-3809   Joseph Matura                                              212-895-3892
      Nirav Modi                                  212-895-3595   Mark Milton                                                212-895-3752
                                                                 Michael Pizzo                                              213 895-3643
                                                                 Eugene Polt                                                732-784-1906
      Supervisory Analyst/Research Assistant                     Alex Povalski                                              732-784-1904
      Nik k i Reed                                212-895-3736   Hany Sabet                                                 650 587 8585
                                                                 Clint Schoen                                               212-895-3893
                                                                 Ed Shopkorn                                                212-895-3601
                                                                 Brian Schroetter                                           732-784-1918
                                                                 Kevin Schweitzer                                           516-396-3012
                                                                 Toni Stabile                                               212-895-3853
                                                                 Gary Tritto                                                212-895-3842
                                                                 Richard Vaughn                                             212-895-3676
                                                                 Cass Waller                                                212-895-3740
                                                                 Reed Werbit                                                212-895-3634


      FIXED INCOME TRADING                                       EQUITY TRADING
      Jamie Terranova                             212-895-3875   Bill Vitale                                                732-784-1905
      Jon Good                                    212-895-3607   Keith Arner                                                212-895-3891
      Jon Kattouf                                 212-895-3573   Ricardo Barquero                                           212-895-3781
      Justin Rabinowitz                           212-895-3839   Ralph Calabro                                              212-895-3586
      Anthony Marciano                            212-895-3613   William Doyle                                              212-895-3724
      Sean Meehan                                 212-895-3621   Robert Lynch                                               732-784-1910
      Frantisek Kovac                             212-895-3606   Joseph Matura                                              212-895-3892
                                                                 Jared Rabinowitz                                           212 895 3729
                                                                 Robert Sayegh                                              212-895-3680
      GLOBAL EQUITY TRADING                                      John Viteritti                                             212-895-3541
      Charles Ferrera                             212-895-3770
      Tom Giordano                                212 895-3837
      Peter Murgolo                               212-895-3612   INSTITUTIONAL OPTIONS TRADING
      John Palmieri                               732-784-1929
      Eric Skibo                                  212-895-3776   Leonard Greenbaum                                          212-895-3791
      Jackson Platsky                             212-895-3561
      Chris Valvo                                 732-784-1916
      Rory Gourlay                                732-784-1936   WEALTH MANAGEMENT

      PRIME BROKERAGE                                            John Garrity
      Kristi Marvin                               212-895-3769    Executive Managing Director                               212-895-3624


      CORPORATE FINANCE
      Clifford A. Teller
       Director of Investment Bank ing            212-895-3773




Maxim Group LLC 405 Lexington Avenue New York, NY 10174 – www.maximgrp.com

				
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