PLEASANTON, CA (July 30, 2015) — Ellie Mae (NYSE:ELLI), a leading provider of innovative on-demand software solutions and services for the residential mortgage industry, today reported results for the second quarter ended June 30, 2015.
Second Quarter 2015 Highlights
* Record revenue of $65.9 million, up 65% from $40.0 million in Q2 2014
* Net income of $7.6 million, up 62% from $4.7 million in Q2 2014
* Adjusted EBITDA of $22.7 million, up 72% from $13.2 million in Q2 2014
* Revenue per average active Encompass user of $526, up 28% from $410 in Q2 2014
“Ellie Mae had a very strong second quarter with financial results that exceeded expectations and record seat bookings of 11,800,” said Jonathan Corr, president and CEO of Ellie Mae. “With a healthy pick up in the purchase market, our customers continued to grow their businesses and close more loans during the quarter. The increased productivity of our customer base and continued adoption across our product portfolio drove a 28% year-over-year increase in average revenue per user. Our highly differentiated approach to meeting lenders’ needs for loan quality, regulatory compliance and operating efficiency has resulted in growth that outpaced the overall mortgage origination market as we continued to capture market share.”
Financial Results
Total revenue for the second quarter of 2015 was $65.9 million, compared to $40.0 million for the second quarter of 2014. Net income for the second quarter of 2015 was $7.6 million, or $0.25 per diluted share, compared to net income of $4.7 million, or $0.16 per diluted share, for the second quarter of 2014.
On a non-GAAP basis, adjusted net income for the second quarter of 2015 was $14.9 million, or $0.48 per diluted share, compared to $9.4 million, or $0.32 per diluted share, for the second quarter of 2014. Adjusted EBITDA for the second quarter of 2015 was $22.7 million, compared to $13.2 million for the second quarter of 2014.
Additional information about the non-GAAP financial measures presented in this release, including a reconciliation of the non-GAAP financial measures to their related GAAP financial measures, is set forth below under the section entitled “Use of Non-GAAP Financial Measures.”
Key Operating Metrics:
The total number of active Encompass users increased 28% year-over-year to 127,000;
The total number of active users of the SaaS version of Encompass increased 47% year-over-year to 106,000, or 84% of all active
Encompass users;
Total On-Demand revenue in the second quarter increased 70% year-over-year to $64.8 million, representing 98% of total revenue for the second quarter of 2015; and
Revenue per average active Encompass user in the second quarter increased 28% year-over-year to $526.
Third Quarter and Full Year 2015 Financial Outlook
For the third quarter of 2015, we expect revenue to be in the range of $61.0 million to $62.0 million. Net income is expected to be in the range of $1.8 million to $2.5 million, or $0.06 to $0.08 per diluted share. Adjusted net income is expected to be in the range of $9.8 million to $10.8 million, or $0.31 to $0.34 per diluted share. Adjusted EBITDA is expected to be in the range of $14.6 million to $16.3 million for the quarter.
For the full year 2015, revenue is expected to be in the range of $237.5 million to $238.5 million, up from the previously provided range of $223.0 million to $226.0 million. Net income is expected to be in the range of $10.0 million to $11.5 million, or $0.32 to $0.37 per diluted share, up from the previously provided range of $4.0 million to $5.0 million, or $0.13 to $0.16 per diluted share. Adjusted net income is expected to be in the range of $39.4 million to $41.6 million, or $1.27 to $1.32 per diluted share, up
from the previously provided range of $34.4 million to $36.1 million, or $1.09 to $1.13 per diluted share. Adjusted EBITDA is expected to be in the range of $57.7 million to $61.6 million, up from the previously provided range of $48.6 million to $51.3 million.
Quarterly Conference Call
Ellie Mae will discuss its second quarter 2015 results today, July 30, 2015, via teleconference at 4:30 p.m. Eastern Time. To access the call, please dial 888-812-8534 or 913-312-0379 at least five minutes prior to the 4:30 p.m. Eastern Time start time. A live webcast of the call will be available on the Investor Relations section of the Company’s website at http://ir.elliemae.com. An audio replay of the call will be available through August 13, 2015 by dialing 888-203-1112 or 719-457-0820 and entering access code 2271372.
Ellie Mae (NYSE:ELLI) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry. Ellie Mae's Encompass(r) all-in-one mortgage management solution provides one system of record that allows banks, credit unions and mortgage lenders to originate and fund mortgages and improve compliance, loan quality and efficiency. Visit EllieMae.com or call 877.355.4362 to learn more.
Erica Harvill
Ellie Mae, Inc.
(925) 227-5913
Erica.Harvill@elliemae.com
Warren Lutz
Strategic Vantage Mortgage & Public Relations
(925) 899-9773
WarrenLutz@StrategicVantage.com
