(ML's Factoid Report condenses some key points from a company's quarterly earnings conference call with analysts.)

A focus of new business for Ellie Mae are some of the largest lenders and correspondent investors, who are now interested in working with the company. “And that is because we have gotten to a place of so much share coming from Encompass lenders that sell to other investors that those investors are now coming to the table and showing genuine interest, serious interest, for Encompass,” said Jonathan Corr, CEO of Ellie Mae, during the company’s third-quarter earnings call.

Corr discounted the possibility of a stock buy-back, saying “We have a stock repurchase out there. And we've used it in the past, but we're also always looking at the best use of cash and that includes (mergers and acquisitions) that we're always considering,” said Corr. “So, it’s something we'll consider, we have a plan out there and we just (have) to balance the best use of proceeds.”

Ellie Mae didn’t experience a significant change in its historical churn rate of 1 to 1.5 percent per quarter, “which is very low, obviously (we have) very high retention rates,” despite the decrease in originations the industry experienced, said Corr.

Contracted revenue increased 25% to $88.6 million and represented 72% of total revenue. Contracted revenue are subscription revenue streams that are fixed by the terms of a contract and professional services revenues, representing 7% of revenue.

Although the volume of originations could drop 5 percent, Ellie’s Corr said increase market share (and earnings) will be realized through lenders that use more products, new clients, and offering additional products. In addition, some clients that were added, haven’t generated volume so far. Big lenders, such as TD Bank, big lenders like PenFed Credit Union are not fully ramped out, and that’s true of other lenders that we've sold. Ellie has a market share of 35 percent. Despite challenges, Ellie Mae’s long-term target growth rate remains at 20%