Ellie Mae, Inc.
Thesis
Ellie Mae is positioned to capture a significant market share among larger mortgage companies that have not yet adopted their systems. With current margins around 20%, there is potential for sales to double or triple, leading to much higher operating margins.
Did it work?
No price performance or pitch date is provided, so the return cannot be weighed against the long thesis. While Ellie Mae subsequently grew revenue several-fold and was ultimately taken private at a substantial premium (Thoma Bravo, 2019) — directionally consistent with the market-share capture and margin-expansion thesis — without knowing when the pitch was made, I cannot confirm whether the sales doubling/tripling and margin outcomes occurred within the thesis's own window. The verdict is therefore inconclusive.