CBA does referral cope with OnDeck

Cameron Poolman, CEO of OnDeck Australia, stated will probably be capable of lend to CBAs younger enterprise clients after which refer them again to CBA as soon as theyre established. Photograph: Louie Douvis

Commonwealth Financial institution has cast a cope with OnDeck to refer clients to one another after a yr assessing suitors from an explosion of lending start-ups.

The financial institution stated itll refer chosen small companies from its 500,000 buyer base that it will possiblyt lend to as a result of they have not met its necessities – together with the necessity for safety, corresponding to a household residence – to OnDeck, which arrange in Australia in April and commenced lending in late November.

The Australian Monetary Evaluates .

OnDeck has agreed to refer clients to CBA, once more in return for a charge, the place it doesnt have the suitable product for his or her wants.

Commercial

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Clive van Horen, CBAs head of small enterprise and retail banking providers stated it had spoken to numerous potential companions among the many quite a few start-up enterprise lenders, however determined OnDeck – which has loaned US$three billion ($four billion) since beginning in 2006 at rates of interest of between 19 and 99 per cent – had the confirmed monitor report it required.

Rivals new enterprise lenders have questioned whether or not OnDecks excessive rates of interest are appropriate to the Australian market. However OnDeck Australia chief government Cameron Poolman has stated the charges in Australia are decrease, starting from 18 to between 40 and 50 per cent, relying on the danger of the borrower.

He stated CBA can be making referrals to OnDeck in early 2016.

The lenders would not remark in individual, however in emailed feedback Mr van Horen stated: were working with OnDeck to determine clients that could be appropriate for OnDeck loans.

Restricted enterprise sectors eligible

CBA has made a big funding in small enterprise and has a variety of merchandise to satisfy the wants of our small enterprise clients. The partnership with OnDeck supplies a chance to satisfy extra of our small enterprise buyer wants.

The deal is just like partnerships father or mother OnDeck Capital and different new lenders like Lending Membership has cast with established banks within the US. On December 2, OnDeck established a partnership with JPMorgan Chase.

The thought is that the financial institution refers debtors which are too dangerous however has the prospect to retain a relationship with them.

Ought to OnDeck fund them, the enterprise can return to the financial institution once they have enough monitor document and safety behind them.

OnDeck Capital floated on Nasdaq precisely a yr in the past on December 16, 2014, elevating $US200 million at $US20 a share on the peak of the fintech hype. It is inventory jumped virtually 40 per cent on the day however was final buying and selling at simply $US9.76.

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OnDeck Australia chief, Cameron Poolman, stated will probably be rather more capable of lend to younger enterprise individuals than a financial institution if they do not have a house to supply as safety.

Nevertheless it too requires established money flows, wont lend to companies with turnover under $100,000 and wont lend to quite a few sectors.

Theres nice synergy between our two corporations when it comes to innovation, know-how and buyer expertise. Our objective is to offer a reputable various lending answer to small enterprise house owners and we consider our partnerships are central to reaching and conveniently servicing these companies, he stated by way of e-mail.

OnDeck Capital within the US will get its funding from banks, institutional buyers and a type of lending market, the place buyers should buy its loans immediately.

OnDeck Australia shall be primarily funded by its dad or mum for the subsequent 12 months and later by banks. It has 15 employees however after a US-based gross sales workforce has completed coaching new recruits, itll look to extend that to about 40 by the top of 2016.

Vantage Production Successfully Completes Rigorous SOC 2 Examination

Technology and facilities meet stringent standards for information security

Red Bank, NJ (PRWEB) April 28, 2015

Vantage Production LLC, a leading provider of advanced customer relationship management (CRM) and compliant automated marketing and sales-acceleration solutions for mortgage lenders, today announced the successful completion of its Service Organization Control (SOC) 2 examination. The report confirms that the company meets stringent standards for controls over the security and confidentiality for its Vantage Integrated Production (VIP) system and Mortgage Market Guide service.

The companys SOC 2 report indicates that the companys processes, procedures and controls are in accordance with the applicable security and confidentiality Trust Services Principles and Criteria set by the American Institute of Certified Public Accountants. A SOC 2 examination provides assurance to Vantage Production clients that the company has the proper internal controls in place to keep customer information secure and confidential. Chicago-based McGladrey LLP, a top accounting and consulting firm, conducted Vantage Productions SOC 2 examination for the period of June 1, 2014 through November 30, 2014.

Compliance with the SOC 2 standard requires the most stringent internal policies related to software development, storing and accessing data, and security over all systems and their related hardware. At Vantage Production, security is a company-wide effort. Our business operates with extreme care and commitment to the security controls that protect our client data, said Vantage Production Chief Operating Officer Ryan Stillwell. This examination demonstrates that all of our teams are using highly structured, consistent methods and effective controls. We are very proud of our achievement, Stillwell said. Our clients can rest assured that Vantage Production is doing all it can to ensure their data–especially their borrowers data–is secure.

About Vantage Production

Vantage Production, LLC provides advanced CRM systems, compliant automated marketing and sales solutions, compelling content for the mortgage industry, and professional development programs. With solutions tailored to the requirements of both enterprise lenders and loan officers, Vantage Production serves more than 300 leading lenders and tens of thousands of individual subscribers. For more information, visit http://www.VantageProduction.com.

PRESS CONTACT:

Jim Hennessy Strategic Vantage, (858) 774-0201 JimHennessy(at)StrategicVantage(dot)com

For the original version on PRWeb visit: http://www.prweb.com/releases/2015/04/prweb12673050.htm

Ellie Mac’s (ELLI) CEO Jonathan Corr on Q1 2015 Results – Earnings Call …

Operator

Good day everyone and welcome to the Ellie Mae Incorporated First Quarter 2015 Earnings Conference Call. Today’s conference is being recorded. At this time, I would now like to turn the conference over to Ms. Lisa Laukkanen with The Blueshirt Group. Please go ahead.

Lisa Laukkanen

Good afternoon and thank you for joining us on today’s conference call to discuss Ellie Mae’s first quarter 2015 results. This call is being broadcast live over the web and can be accessed for 90 days in the Investor Relations section of Ellie Mae’s website at elliemae.com.

On today’s call are Jonathan Corr, Chief Executive Officer, Ed Luce, Chief Financial Officer and Michelle Gable, Vice President of Investor Relations.

We would like to remind you that during the course of this conference call, Ellie Mae’s management team will make projections and other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are simply predictions and actual events or results may differ materially. We refer you to the documents that the company files from time-to-time with the Securities and Exchange Commission, specifically the company’s Forms 10-K and 10-Q. These documents identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.

I also want to inform our listeners that management will make some references to non-GAAP financial measures during the call. You will find supplemental data in the company’s press release, which includes reconciliations of the non-GAAP measures to comparable GAAP results.

Now I’d like to turn the call over to Ellie Mae’s Chief Executive Officer Jonathan Corr.

Jonathan Corr

Thanks, Lisa. Good afternoon everyone and thanks for joining us today. I am excited to share our results in my first quarter as Ellie Maes CEO. I happy to say that we kicked-off the year with a stellar first quarter and financial results that exceeded expectations.

In the first quarter we grew revenues by 68% year-over-year to a record $54.2 million. Adjusted EBITDA increased to 141% to $14.6 million. Total seat bookings were 9,600 and we had strong customer implementations.

Our Q1 outperformance was attributable to several factors. Not only did we see origination volumes increased in the first quarter above initial industry expectations, but our customers also significantly outpaced the mortgage industry as a whole. We observed signs of greater productivity to the use of technology as well as their nimble nature that allowed them to efficiently step-in to services this demand better than other industry players.

At the same time, we expanded our user base and we continue to drive customer adoption across our product portfolio in the Ellie Mae Network combined these factors help grow average revenue per user by 38%.

Our Q1 results demonstrate the leverage in our business model when expectations are exceeded across multiple fronts. The quarter truly exemplifies the continued progress and momentum towards our vision of automating every aspect of the mortgage origination process.

The investments weve made in our infrastructure, development, services and support organizations to best serve our customers are already paying off. During Q1 we continued to grow market share and ended the quarter with an 119,000 active Encompass users a 25% increase over last year.

On a sequential basis, the increase of nearly 10,000 active Encompass users was a company record beating the prior record by over 20%. This increase reflects strong implementations as well our traction with large enterprise lenders, the fastest growing segment of the business.

As proud as I am of the financial results that we achieved in Q1 Im equally as proud of Ellie Mae’s recent recognition is one of the best places to work in the Bay Area. Considering how many fantastic companies there are in the Bay Area and Silicon Valley being recognized is a huge honor. We have made an effort to create a fun and inclusive culture in which innovation and creative ideas can thrive and where everyone feels valued.

In February, we held our largest ever Encompass experience customer conference. We hosted more than 1,700 attendees representing hundreds of lenders and industry partners from around the country. Over the course of three days we met with our executive advisory board consisting of executives from many of our top customers to get their feedback on our product roadmap, industry trends and market expectations. We had visionary keynotes networking events as well as specialized training sessions on topic such as compliance executive strategy and sales and marketing.

A big theme for this year’s conference was preparedness for RESPA-TILA which is by far the largest compliance challenge this industry has ever faced and it takes effect this summer. The response from our customers on our product plans and services were overwhelmingly positive.

To support our succession growth we have continued to significant level of investment in Ramp;D enterprise services, data centers and security infrastructure. In light of the looming implementation of RESPA-TILA much of our Ramp;D spend was allocated to prepare for it and we feel confident about Ellie Mae’s ability to usher our clients through this major industry change.

We are confident that the strength of the compliance capabilities and our ongoing investment sets us far apart from the competition and makes Encompass increasingly attractive to both existing customers and to prospects. We also believe that these compliance demands will drive even more automation as these vast new requirements make manual processes prohibitively costly for vendors to sustain.

Again we are excited by great start to the year driven by continued strong demand for Encompass and solid adoption across our entire product portfolio. We are encouraged by the stabilization of the mortgage industry even as interest rates are predicated to modestly climb and just the last week the National Association of Realtors reported that existing home sales spiked in March to the fastest pace in the last 18 month.

With our strong Q1 performance and the positive trends in our business we are very pleased we are raising our guidance for the full year.

With that Ill now turn the call over to our CFO, Ed Luce to discuss our results and guidance in more detail. Ed?

Ed Luce

Thank you, Jonathan. Good afternoon and thanks again to all of you joining us today.

As Jonathan mentioned we had a great first quarter and I am pleased to report the following highlights. Total revenue for the first quarter of 2015 was 54.2 million, an increase of 68% from the first quarter of 2014. Contracted revenue was 59% of total revenues or 31.9 million for the quarter compared to 70% or 22.5 million from the year ago period. This percentage decreased as mortgage origination volume and user productivity increased which caused total variable revenue to grow at a quicker rate than our contracted revenue in the period. We also booked 9,600 seats in the first quarter as Jonathan mentioned. Those seats breakdown as follows in round numbers. News seats totaled 3100 conversions and add-ons were 3900 and upgrades were 2600.

Weve previously mentioned that for enterprise lenders we typically onboard one channel at a time. The bookings of these new seats for additional channels are included here in the conversion and add-on category. The total number of active Encompass users increased 25% year-over-year to approximately 119,000. Active SaaS and Encompass users increased 40% year-over-year to approximately 95,000 and contracted SaaS users the total number of SaaS seats under contract increased 35% year-over-year to approximately 134,000.

Revenue per active Encompass users increased 38% year-over-year and 9% sequentially to $474. This was the fifth consecutive quarter this metric has increased.

Implementation and professional services also increased year-over-year driven primarily by the booking and onboarding of enterprise lenders. On demand revenue which includes the SaaS and success based pricing version of Encompass, subscription and transaction revenues from our standalone products in Ellie Mae network as well as training and pro services increased 75% to $52.7 million in Q1 2015 from $30.1 million in the first quarter of last year.

On premise revenue which primarily includes legacy licensed software products and maintenance fees was $1.5 million for the first quarter down from $2 million in the prior year period as we continue to upgrade Encompass sale posted users to our SaaS platform. Cost of revenues for the first quarter was 32% of revenue or $17.4 million compared to 29% of revenue or 9.3 million in the prior year period. This increase was due primarily to staff added in the areas of implementation professional services and SaaS operations. This resulted in gross margin for the quarter of 68% compared to 71% in the first quarter last year. And as we continue to invest in tech support, datacenters and security infrastructure to support our growing client base including the expansion of our enterprise customer base, we expect to maintain gross margins in the mid to upper 60s for the year 2015.

As we indicated at our last earnings call we continue to invest in our future growth during the first quarter resulting in higher operating expense levels. We increased our staff by 32 people in the quarter mainly in the areas of implementation professional services and research and development. Our total headcount at March 31 was 672 and increase of 206 people or 44% over the prior year and we expect to reach approximately 850 staff by year end.

Net income for the first quarter was $3.6 million or $0.12 per diluted share compared to net income of $800,000 or $0.03 per diluted share in the first quarter of last year. This quarter our effective tax rate was 46%, our projected annual effective tax rate is expected to be approximately 46% for the full year 2015 as well. The higher rate this year is due to the non-renewal of Ramp;D tax credits and lower forecasted annual pretax income in relation to fixed non-deductible expenses. On a non-GAAP basis, adjusted net income for the first quarter was $9.9 million or $0.33 per diluted share compared to adjusted net of $4.6 million or $0.16 per diluted share in the first quarter of 2014. And adjusted EBITDA for the first quarter was $14.6 million compared to $6 million for the first quarter of last year.

Now shifting to the balance sheet. As of March 31st, we have cash in investments totaling $133.4 million a decrease of $1.4 million from the prior quarter. During the quarter we generated $11 million in cash from operations versus $2 million in the same period last year. In Q1 we also used $16 million of cash to purchase capital equipment and fund Ramp;D projects. These expenditures included capitalized project cost for new products and next generation Encompass in addition to SaaS operations expansion. Throughout of rest of 2015 we will continue to invest in CapEx initiatives particularly in the areas of engineering, development, security and SaaS and network operations.

For the full year capital expenditures should be in the range of $40 million to $45 million and approximately three fourth of this will be used toward capitalized research and development cost. First quarter diluted shares outstanding were $30.4 million compared to $29.1 million in the first quarter of 2014. And during this quarter we purchased $2.5 million worth of common stock under our share buyback program.

Now turning to the guidance for the second quarter. As a reminder we used a composite estimates of mortgage origination volume published by Fannie May, Freddie Mac and The Mortgage Bankers Association to forecast certain portions of our business. For the second quarter of 2015 this composite shows an estimated 19% increase in origination volumes from the first quarter a 21% increase compared to the second quarter of last year. The detailed blended forecast data can be found on our supplemental data sheet which is posted on our Investor Relations website.

For the second quarter of 2015, we expect revenue to be in the range of $59 million to $60 million. Net income is expected to be in the range of $1 million to $1.5 million or $0.03 to $0.05 per diluted share. Adjusted net income is expected to be in the range of $8.6 million to $9.3 million or $0.28 to $0.30 per diluted share. And adjusted EBITDA is expected to be in the range of $12.1 million to $13.3 million for the quarter.

Given the strong results for the first quarter and a healthy implementation backlog, we are raising our revenue guidance for the full year as Jonathan indicated. We now expect revenue to be in the range of $223 million to $226 million up from the previously provided range of $203 million to $206 million. Net income is expected to be in the range of $4 million or $5 million or $0.13 to $0.16 per diluted share. This is up from the previously provided range of $500,000 to $1.5 million or $0.02 to $0.05 per diluted share.

Adjusted net income is expected to be in the range of $34.4 million to $36.1 million or $1.09 to $1.13 per diluted share and thats up from the previously provided range of $27.1 million to $29 million which was $0.86 to $0.91 per diluted share. And adjusted EBITDA is expected to be in the range of $48.6 million to $51.3 million up from the previously provided range of $37.8 million to $40.8 million.

And finally before we turn to your questions, I would like to mention that well be presenting at the Stevens Spring Investment Conference in New York. A fourth coming press release will be issued with additional details on our participation of this event.

And now wed like to open the line for questions operator.

Lochaber hydro shares offer pulls in £753k

A LOCHABER community has generated over pound;750,000 from selling shares in its local hydro-electric scheme.

And the huge popularity of the Sunart Community Renewables shares offer means the run of river hydro project is now able to go ahead with just a small top up loan from two social enterprise lenders.

The share offer was launched in October 2014 and the initial target of pound;284,000 – a third of the total cost of building the community hydro-electric scheme – was smashed early in 2015.

Money continued to pour in before the deadline of March 15 and this week Sunart Community Renewables revealed the total sum raised is pound;753,300.

The community company said 270 individual or corporate investors bought the shares which ranged from pound;300 to pound;100,000.

The majority of investors are local to Lochaber or have a long-term association with the Sunart area. But investment money has also flooded in from across the UK.

The remainder of the funding required will be loaned to Sunart Community Renewables by the RBS Social and Community Capital Fund and the Scottish Investment Banks Renewable Energy Investment Fund.

Now that the share offer has closed, work is expected to begin on site in the next two weeks and it is aimed to have the 100KW scheme fully operational by November this year.

The hydro project will make use of a disused dam purchased by the community from Scottish Water and will harness the untapped energy source of the Allt nan Cailleach which runs through Scotstown, Strontian.

It is expected to generate over 420,000KWh of electricity each year, which will be sold to the national grid. All surpluses will be donated to a local community benefit fund.

The community expects to receive around pound;15,000 a year for the first 13 years.

This figure will then rise to around pound;90,000 a year for the next seven years, while the Governments Feed-in-Tariff is still available.

Sunart Community Renewables said it has been amazed by the success of the shares venture.

Richard Laybourne, the groups chairman, said: We are overwhelmed by the interest our project has received and want to thank everyone who has supported us by buying community shares.

The final total exceeded our wildest expectations and it means we can not only start construction of the hydro but it will be able to give more money to the local community because we have not had to rely on large loans.

Sunarts community share offer was the first of its kind in Lochaber and was supported by Community Shares Scotland.

Vantage Production Hosting TRID Webinar on March 31st For Lending …

Vantage Production Hosting TRID Webinar on March 31st For Lending Executives and Senior Managers

Red Bank, NJ (PRWEB) March 27, 2015

Vantage Production, LLC, a leading innovator in customer relationship management (CRM), marketing, sales and content solutions, announced it is hosting a free one-hour webinar at 1pm EDT on Tuesday, March 31, 2015 aimed at preparing senior managers and lending executives for the August 1st TILA/RESPA Integrated Disclosures (TRID) industry-wide implementation.

Entitled Countdown to TILA-RESPA Integrated Disclosure – A Readiness Roadmap for Executives, the webinar focuses on what executives should be monitoring, the specific role of compliance officers in the process, the elements of a thorough implementation plan and leveraging the new disclosures to grow real estate agent referral relationships. The session will be moderated by Vantage Production President amp; CEO Sue Woodard, and presented by Education Specialist Ginger Bell of Strategic Compliance Partners.

Attendees will also receive a detailed implementation worksheet and other useful tools to help them prepare for August 1st. Seats are limited so Vantage Production urges interested attendees to register soon at http://vipexecutiveadvisor.vantageproduction.com/webinars.html. The session is presented by VIP Executive Advisor.

About Vantage Production

Vantage Production, LLC provides advanced CRM systems, compliant automated marketing and sales solutions, compelling content for the mortgage industry, and professional development programs. With solutions tailored to the requirements of both enterprise lenders and loan officers, Vantage Production serves more than 400 leading lenders and tens of thousands of individual subscribers. For more information, visit http://www.VantageProduction.com.

PRESS CONTACT:

Jim Hennessy Strategic Vantage, (858) 774-0201 JimHennessy(at)StrategicVantage(dot)com

For the original version on PRWeb visit: http://www.prweb.com/releases/2015/03/prweb12614676.htm

Grameen Koota to raise Rs 100 crore from existing investors

Bengaluru-based microfinance institution (MFI) Grameen Koota Financial Services plans to raise an equity investment of Rs 100 crore from its existing investors by March.

This will be a fifth round of funding for the MFI, which is looking to expand to new territories.

The existing investors include Creation Investments and MicroVentures. While Creation Investments focuses on private equity investments in MFIs, small-and-medium enterprise lenders and emerging market banks, Luxembourg-based MicroVentures is an MFI-focused investment fund.

Around 2011, getting funding, both equity and debt, was a challenge. However, the funding environment now is reasonably good, said Suresh Krishna, co-promoter and managing director, Grameen Koota.

MicroVentures, which holds 60 per cent in Grameen Koota, is keen to increase its stake further. Creation Investments holds the right of first refusal, according to sources.

In its last round of funding in March 2014, Grameen Koota had raised Rs 80 crore ($13.5 million) of equity from MicroVentures Investments.

This apart, MicroVentures, in a bilateral deal had bought the entire stake of two other investors – Aavishkaar Goodwell India Microfinance Development and Incofin Investment Management – for an undisclosed amount in 2014.

The MFI is also looking to raise Rs 300 crore through debt instruments, including non-convertible debentures (NCD) and bank finance, towards the end of this financial year.

Ellie Mae’s (ELLI) CEO Sig Anderman on Q4 2014 Results – Earnings Call …

Operator

Good day and welcome to the Ellie Mae Incorporated Fourth Quarter and Year End Earnings Call. Please note todays conference is being recorded. At this time, I would now like to turn the conference over to Ms. Lisa Laukkanen with the The Blueshirt Group. Please go ahead maam.

Lisa Laukkanen

Good afternoon and thank you for joining us on today’s conference call to discuss Ellie Mae’s fourth quarter and fiscal year 2014 results. This call is being broadcast live over the web and can be accessed for 90 days in the Investor Relations section of Ellie Mae’s website at elliemae.com.

On today’s call are Sig Anderman, Executive Chairman; Jonathan Corr, President and Chief Operating Officer, Ed Luce, Chief Financial Officer and Michelle Gable, Vice President of Investor Relations.

We would like to remind you that during the course of this conference call, Ellie Mae’s management team will make projections and other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are simply predictions and actual events or results may differ materially. We refer you to the documents that the company files from time-to-time with the Securities and Exchange Commission, specifically the company’s Forms 10-K and 10-Q. These documents identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.

I also want to inform our listeners that management will make some references to non-GAAP financial measures during the call. You will find supplemental data in the company’s press release, which includes reconciliations of the non-GAAP measures to comparable GAAP results.

Now I’d like to turn the call over to Ellie Mae’s Executive Chairman of the Board CEO, Sig Anderman.

Sig Anderman

Thank you, Lisa and good afternoon everyone and thank you all for joining us today. Last month we announced that effective February 1, Jonathan would take over as CEO of Ellie Mae and I would assume the role of Executive Chairman.

That has now been put in place, but before I turn this call over to Jonathan, Id like to say a few words. First, this has been quite a journey for me, actually quite a wonderful journey from the very first brainstorming session in the local steakhouse 17 years ago.

I thought then and Im convinced now that we could use technology to automate the complex, costly, time-consuming and frustrating mortgage process and revolutionize the way mortgages are done in America. But ideas and dreams are a dime a dozen.

Its a continuum of smart, dedicated and passionate people to make the dream a reality, starting of course with my technology partner and cofounder Limin Hu and with Jonathan Corr strategizing and running operations and Ed Luce handling our finances. And of course it took the hard work of the more than 600 other enormously talented, committed people who make up the Ellie Mae team.

And it took customers many of whom are on this call, who shared the vision, helped us design our software and bought into this concept, literally bought in by purchasing our software offerings.

And it took all of you as investors and shareholders who provided capital and support and insights and advice along the way. And analysts, who in your own way brought fresh and helpful perspectives on creating a world-class company, to all of you and for all of that Im sincerely and profoundly grateful. I thank you for helping make my tenure as CEO since founding the company 17 years ago the role of a lifetime.

In my new role, Ill continue to remain actively involved with management and in the companys strategic initiatives, so Im not going away.

Now turning to Jonathan, he has been with Ellie May for 12 years and has been involved in every aspect of our business from product strategy to technology to sales and operations.

As president and chief operating officer for the past several years, Jonathan has proven to be an outstanding leader and has been instrumental in the impressive growth of the company.

I am pleased to pass the baton to Jonathan and Im confident in his ability to take Ellie Maes leadership position in the mortgage technology industry to the next level.

So while we have come a long way from our founding, I am confident that the best is yet to come. Thank you and with that Ill turn it over to Jonathan.

Jonathan Corr

Thank you, Sig, thank you. In my 12 years at Ellie Mae Ive watched this company transform from its startup roots into an industry leader. Sig and the entire Ellie Mae team has built a healthy, profitable and financially successful business within exceptional family oriented culture, entrepreneurial spirit and drive the core ingredients of our DNA.

I am excited to assume this role and look forward to continuing to work with the Ellie Mae team to execute on our opportunity and our growth strategy.

And now onto results, our fourth quarter results were excellent. Despite industry volume headwinds we grew revenues by 53% year-over-year to a record $46.6 million. Adjusted EBITDA was $12.8 million.

Total seat bookings surpassed 10,000 for the third consecutive quarter and we had strong customer implementations. We again outperformed the overall mortgage market as we continue to grow our user base and increase usage of the Ellie Mae network and our proprietary on-demand services. Year-over-year we increased average revenue per user by 32% in the fourth quarter.

Our Q4 results demonstrate the upside leverage in our model as we benefited from higher than expected loan volume during the quarter. The combination of our business momentum and solid execution allowed us to deliver strong results throughout 2014.

For the full year we grew revenues by 26% against the backdrop of mortgage industry volumes declining an estimated 38%. Adjusted EBITDA increased 17% to $46 million from last year.

In 2014 we made a decision to invest aggressively in our infrastructure, development, services and support organizations to serve our customers and further distance ourselves from the competition.

I am pleased to report these investments have been paying off. We continue to grow market share and ended the year with 109,000 active Encompass users, an 18% increase over last year.

Our SaaS Encompass and on-demand solutions have become increasingly attractive to originators under the burden of an ever increasing compliance costs and their desire to reduce risk and improve efficiency.

Importantly, we gained traction with larger enterprise lenders and our current clients include seven of the top 25 mortgage lenders. Often we begin working with customers in one lending channel and expand into additional channels over time. Our momentum has made Enterprise the fastest-growing segment of the business.

We enter 2015 well-positioned to continue the expansion of our market share and revenues. We generated $21 million in cash during 2014 and plan to take advantage of our strong cash position to further invest in the business. In 2015 we are making significant investments in Ramp;D, Enterprise sales, services and technical support, data centers and security infrastructure. A meaningful portion of the Ramp;D spend will be targeted towards preparation for the most rigorous regulations to-date, RESPA-TILA.

We believe that the current strength of our compliance capabilities and our ongoing investment widens our competitive moat and makes Encompass even more attractive to both existing customers and prospects.

We continue to invest in the developments of our next generation Encompass platform which will be incrementally introduced over the coming quarters and throughout 2016. Simultaneously we will continue to broaden the functionality of our current platform and leverage the new capabilities of our AllRegs solutions.

We are very excited about our prospects for 2015 and remain confident in the long-term outlook for Ellie Mae, particularly in light of our growing footprint in the marketplace and the stabilizing mortgage industry environment.

With that, Ill now turn the call over to our CFO Ed Luce to discuss our results in more detail. Ed?

Ed Luce

Thanks Jonathan. Good afternoon and thanks again to everyone joining us today. We are pleased to report another very strong quarter. As Jonathan mentioned, total revenue for the fourth quarter of 2014 was $46.6 million an increase of 53% compared to $30.4 million for the fourth quarter last year.

Contracted revenue for the fourth quarter was $29.8 million which was an increase of 43% compared to $20.9 million for the fourth quarter last year. And the total number of active Encompass users increased 18% year-over-year to about 109,000.

We also booked 10,100 seats in the fourth quarter. Those seats breakdown as follows in round numbers: new client seats totaled 5,500, conversions and add-ons were 2,900 and upgrades were 1,700.

Active SaaS Encompass users increased 33% year-over-year to approximately 85,000. Active SaaS Encompass users increased sequentially by approximately 6,100 in the fourth quarter compared with our third quarter of 2014.

Contracted SaaS users, the total number of SaaS seats under our fixed fee contracts increased 33% year-over-year to approximately 126,000. Revenue per active Encompass user was $433 in the fourth quarter an increase of 32% over the previous year fourth quarter and an increase of 3% sequentially this despite an estimated 13% decline in volumes. This was the fourth consecutive quarter this metric has increased.

On-demand revenue which includes the SaaS and success-based pricing versions of Encompass as well as subscription and transaction revenues from standalone products and services and the Ellie Mae Network as well as training and professional services increased 59% to $44.9 million in Q4 2014 of $28.3 million Q4 2013. And on-premise revenue which primarily includes legacy licensed software products and maintenance fees was $1.6 million for the fourth quarter, down from $2 million in the prior year period as we continue to upgrade Encompass self hosted users to our SaaS platform.

Cost of revenue for the fourth quarter were 32% of revenue or $14.7 million compared to 27% of revenue and $8.2 million in the prior year period. This increase was due primarily to staff added in conjunction with the AllRegs acquisition and to a lesser extent addition related to implementation, professional services and customer support.

This resulting in gross margin for the quarter of 68% compared to 73% in the fourth quarter last year and 73% in Q3 of 2014. As we continue to invest in tech support, data centers and security infrastructure to support the expansion of our Enterprise customer base and with 2014 investments now being put into service we expect to realize gross margins during 2015 in the mid to upper 60s range.

Sales and marketing expenses for the fourth quarter totaled 17% of revenue or $7.8 million compared to 20% of revenue or $6.1 million in the prior year period.

This dollar increase was due primarily to an increase in staff for client services and business development. Ramp;D expenses for the fourth quarter were 19% of revenue $8.9 million compared to 20% of revenue or $6 million in the prior year period. This dollar increase was due to a higher level of investment in compliance and AllRegs staff and depreciation of capitalized Ramp;D projects.

We continue developing the next generation Encompass platform, mobile applications and other products and expanding our CRM and consumer direct solutions. Approximately $3 million of internal Ramp;D costs were capitalized in the quarter.

General and administrative expenses for the fourth quarter were 24% of revenue or $11.3 million compared to 26% of revenue or $7.7 million in the prior year period. This dollar increase was primarily due to an increase in staff and activities associated with our continued growth including the expansion of our corporate strategy, IT, MIS and Mamp;A functions and the use of consultants and temporary contractors.

Overall our higher operating expense levels during the quarter were a result of our ramp-up of investment in our future growth. We increased our staff by 111 people in the quarter mainly due to the AllRegs acquisition.

At December 31, our head count was 640, an increase of 233 people or 57% from a year ago. Reflecting these investments, income from operations for the fourth quarter was $4 million or 9% of revenue compared to income from operations of $2.3 million 8% of revenue in the fourth quarter 2013.

We are pleased to continue to be able to make these significant investments in our infrastructure and future growth while still posting profits and generating positive cash flows.

Net income for the fourth quarter was $4.3 million or $0.14 per diluted share compared to net income of $1.7 million and $0.6 per diluted share in the fourth quarter 2013. This year our effective tax rate was 31% lower than expected as a result of the approval of federal Ramp;D tax credits on a retroactive basis and realizing higher compensation deductions under 162 than we had expected. We now projected an annual effective tax rate in the range of 37% to 39% for the full year 2015. And depending on the potential renewal of the Ramp;D tax credits this rate could drop in the 31% to 33% range for the year.

On a non-GAAP basis adjusted net income for the fourth quarter was $11.5 million or $0.38 per diluted share compared to adjusted net of $5.4 million or $0.19 per diluted share in the fourth quarter 2013. And adjusted EBITDA for the fourth quarter was $12.8 million compared to adjusted EBITDA of $7.3 million for the fourth quarter 2013.

Now turning to our results for the full year 2014, we had a 26% increase in total revenue to $161.5 million compared to $128.5 in 2013. On-demand revenue increased 30% to $154.3 million compared to $118.6 million in 2013 and this increase was largely a result of the addition of new on-demand Encompass SaaS customers, the upgrade of existing customers to our SaaS platform, and ongoing adoption of our standalone products and services, in particular our TQL services compliance and pricing.

Gross margins for the full year were 71% compared to 75% for 2013, which again reflected our ramp in investment programs related to client implementation, support teams and data center expansion.

Net income for the full year of 2014 was $14.8 million or $0.50 per diluted share compared to $13.3 million and $0.47 per diluted share in 2013. And on a non-GAAP basis adjusted net income for the full year 2014 was $34.1 million $1.15 per diluted share compared to $29 million and $1.02 per diluted share for the full year 2013. Adjusted EBITDA for 2014 was $46 million 17% higher than the $39.4 million reported in 2013.

Turning to the balance sheet, at December 31, we had cash and investments totaling $134.8 million a decrease of $17.4 million from the prior quarter end due to our payment for the AllRegs acquisition in October.

Overall, we generated $21 million in cash from operations during the year before acquisition costs. Our receivables balance was $20.4 million at December 31, and our days sales outstanding continue to run less than 40 days. We have no debt on the balance sheet at year end.

Fourth quarter diluted shares outstanding were 30.1 million compared to 28.9 million in the fourth quarter 2013 and capital expenditures for the fourth quarter was $7 million and $19.8 million for the year.

Now turning to the guidance, our 2015 annual guidance takes into consideration industry forecast for 2015 mortgage origination volume. Our composite forecast for total 2015 mortgage origination volume currently stands at $1.2 trillion which represents a 3% increase in mortgage volumes from 2014. The current composite quarterly forecast for 2015 origination volume is as follows: Q1 $290 billion, Q2 $335 billion, Q3 $308 billion and Q4 $262 billion.

For the first quarter of 2015 our revenue is expected to be in the range of $46 million to $47 million. Net income is expected to be breakeven to $500,000 or 0 to $0.02 per diluted share. Adjusted net income is expected to be in the range of $5.9 million to $6.6 million or $0.19 to $0.21 per diluted share and adjusted EBITDA is expected to be in the range of $7.5 million to $8.6 million for the quarter.

For the full year 2015 revenue is expected to be in the range of $203 million to $206 million. Net income is expected to be in the range of $500,000 to $1.5 million or $0.02 to $0.05 per diluted share and adjusted net income is expected to be in the range of $27.1 million to $29 million or $0.86 to $0.91 per diluted share. Adjusted EBITDA is expected to be the range of $37.8 million to $40.8 million.

In 2015 we expect to realize lower adjusted EBITDA margins in the range of 19% to 20% taking into consideration the newly acquired operating expenses related to the AllRegs acquisition and the increased investments we are making to support Enterprise accounts and infrastructure enhancement.

And finally, before we turn to your questions, I would like to mention that we will be hosting an Analyst Day event in Orlando, Florida on February 24, in conjunction with our Annual Encompass User Conference.

In addition, we will be participating in several conferences during the month of March including the JMP Securities Technology Conference in San Francisco, the Morgan Stanley Technology, Media and Telecom Conference also in San Francisco, the 27th Annual ROTH Conference Laguna Niguel, and the William Blair Real Estate Services and Technology Summit in San Francisco. A forthcoming press release will be issued with additional details on each of these events.

And now, wed like to open the line for questions operator.