Ellie Mae Reports Strong Revenue Gains

*Ellie Mae Reports Strong Revenue Gains*
**LOS IPO Succeeds So Far**

***Who said an LOS couldn’t go public and make it a success? Well, they were wrong, at least so far anyway. Today origination vendor Ellie Mae reported results for the second quarter and six months ended June 30, 2012. Total revenue for the second quarter of 2012 increased 106% to $23.6 million, compared to $11.5 million in the second quarter of 2011. Net income for the second quarter of 2012 was $5.0 million, or $0.21 per diluted share, compared to a net loss of $(40) thousand, or $(0.00) per diluted share, in the second quarter of 2011.

****On a non-GAAP basis, adjusted net income for the second quarter of 2012 was $6.3 million, or $0.27 per diluted share, compared to $0.5 million, or $0.02 per diluted share, in the second quarter of 2011.  Adjusted EBITDA for the second quarter of 2012 was $7.3 million, compared to $0.9 million for the second quarter of 2011.

****Total revenue for the six months ended June 30, 2012 increased 102% to $44.5 million compared to $22.1 million for the six months ended June 30, 2011.  Net income for the six months ended June 30, 2012 was $8.6 million, or $0.38 per diluted share, compared to a net loss of $(0.8) million, or $(0.08) per diluted share, for the six months ended June 30, 2011.

****On a non-GAAP basis, adjusted net income for the six months ended June 30, 2012 was $10.9 million, or $0.47 per diluted share, compared to $0.1 million, or $0.01 per diluted share, for the six months ended June 30, 2011.  Adjusted EBITDA for the six months ended June 30, 2012 was $12.7 million, compared to adjusted EBITDA of $0.9 million for the six months ended June 30, 2011.

****A reconciliation of the non-GAAP financial measures to their related GAAP financial measures is set forth below.

****Key Operating Metrics as of and for the quarter ended June 30, 2012:

****>> On-demand revenue increased 112% year over year to $20.4 million, comprising approximately 87% of total revenues for the quarter;

****>> The total number of users, both lender and broker, actively using the company’s Encompassenterprise solution (“active Encompass users”) increased 23% year over year to 62,487;

****>> Revenue per active Encompass user increased 69% year over year to $384;

****>> As of the end of the second quarter, the number of users of the SaaS version of Encompass increased 73% year over year to 32,114, or 51% of all active Encompass users;

****>> Total SaaS Encompass revenues increased 191% year over year to $10.7 million or 45% of total revenue for the quarter.

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