Ellie Mae had a great quarter. “Ellie Mae’s fourth quarter results were a tremendous finish to 2014,” said Jonathan Corr, CEO of Ellie Mae. “Revenue grew 53% over last year’s fourth quarter to a record $46.6 million. We again outperformed the overall mortgage market as we continued to grow our active user base and increased average revenue per user by 32% over last year’s fourth quarter. Our results demonstrate the upside leverage of our model as we benefited from an uptick in the volume of loan applications during the quarter.”
Total revenue for the fourth quarter of 2014 was $46.6 million, compared to $30.4 million for the fourth quarter of 2013. Net income for the fourth quarter of 2014 was $4.3 million, or $0.14 per diluted share, compared to net income of $1.7 million, or $0.06 per diluted share, for the fourth quarter of 2013. Diluted share count for the fourth quarter of 2014 was 30.1 million as compared to 28.9 million during the fourth quarter of 2013.
On a non-GAAP basis, adjusted net income for the fourth quarter of 2014 was $11.5 million, or $0.38 per diluted share, compared to $5.4 million, or $0.19 per diluted share, for the fourth quarter of 2013. Adjusted EBITDA for the fourth quarter of 2014 was $12.8 million, compared to $7.3 million for the fourth quarter of 2013.
“The combination of business momentum and solid execution enabled us to deliver strong results throughout 2014 as we increased revenues by 26% over last year. Against the backdrop of mortgage industry volumes that declined 38% in 2014, our performance was driven by demand for our all-in-one solution that meets lenders’ ever increasing needs for loan quality, regulatory compliance and operating efficiency,” continued Mr. Corr.
“Our successes in 2014 and our robust pipeline give us ongoing confidence in our growth strategy. We are entering 2015 well positioned to continue to grow market share and revenues. To support customers and further differentiate the company, we will continue to ramp our investment in key areas such as R&D, enterprise sales, services, technical support and data center infrastructure. These investments are reflected in our net income guidance for 2015. We are excited about the opportunity to add additional SaaS Encompass users and drive adoption of our broad array of on-demand solutions,” concluded Mr. Corr.
Looking forward, For the first quarter of 2015, Ellie Mae revenue is expected to be in the range of $46.0 million to $47.0 million. Net income is expected to be breakeven to $0.5 million, or $0.00 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. Adjusted EBITDA is expected to be in the range of $7.5 million to $8.6 million.
For the full year 2015, revenue is expected to be in the range of $203.0 million to $206.0 million. Net income is expected to be in the range of $0.5 million to $1.5 million, or $0.02 to $0.05 per diluted share. Adjusted net income is expected to be in the range of $27.1 million to $29.0 million, or $0.86 to $0.91 per diluted share. Adjusted EBITDA is expected to be in the range of $37.8 million to $40.8 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.