Beating out the expectations of most analysts, origination vendor Ellie Mae reported revenue of $40.0 million in the second quarter as compared to $34.3 million in Q2 2013. Net income came in at $4.4 million compared to $3.7 million in Q2 2013. Here’s what else happened at Ellie Mae in the second quarter:
Adjusted EBITDA was $13.2 million compared to $11.7 million in Q2 2013. In total, there were 98,996 active Encompassusers as of June 30, 2014, up 12% year over year. Also, there were 72,085 active SaaS Encompass users as of June 30, 2014, up 29% year over year
“Our second quarter performance was outstanding,” said Sig Anderman, CEO of Ellie Mae in a prepared statement. “Our business momentum continued to be driven by onboarding more users to our SaaS Encompass platform and ramping their usage of our on-demand services. Our results also highlighted the upside leverage in our business model when mortgage origination volumes uptick as they did on a sequential basis in the second quarter.”
“Second quarter Encompass seats booked were strong, with particularly notable growth in new customers as lenders continued to embrace our comprehensive solutions to meet their operational efficiency and regulatory compliance needs,” continued Mr. Anderman.
“Our pipeline remains strong and we are maintaining our guidance for the full year despite the forecasts of further declines in mortgage origination volume this year,” concluded Mr. Anderman.
Total revenue for the second quarter of 2014 increased 17% to $40.0 million, compared to $34.3 million in the second quarter of 2013. Net income for the second quarter of 2014 was $4.4 million, or $0.15 per diluted share, compared to net income of $3.7 million, or $0.13 per diluted share, in the second quarter of 2013.
On a non-GAAP basis, adjusted net income for the second quarter of 2014 was $9.1 million, or $0.31 per diluted share, compared to $8.2 million, or $0.29 per diluted share, in the second quarter of 2013. Adjusted EBITDA for the second quarter of 2014 was $13.2 million, compared to $11.7 million in the second quarter of 2013.
Going forward, for the third quarter of 2014, revenue is expected to be in the range of $39.5 million to $41.0 million. Net income is expected to be in the range of $1.6 million to $2.0 million, or $0.05 to $0.07 per diluted share. Adjusted net income is expected to be in the range of $6.4 million to $7.1 million, or $0.21 to $0.23 per diluted share. Adjusted EBITDA is expected to be in the range of $9.7 million to $10.8 million.
For the full fiscal year 2014, guidance remains unchanged. Revenue is expected to be in the range of $150.0 to $153.5 million. Net income is expected to be in the range of $8.8 million to $9.5 million, or $0.30 to $0.32 per diluted share. Adjusted net income is expected to be in the range of $28.9 million to $30.2 million, or $0.98 to $1.01 per diluted share. Adjusted EBITDA is expected to be in the range of $40.5 million to $42.2 million.
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.