Outage barely dents Ellie Mae earnings
Earnings match analysts expectations
Ellie Mae (ELLI) reported a first-quarter revenue of $32.2 million compared to $30.9 million for the same period a year ago.
Net income for the first quarter of 2014 was $0.8 million, or $0.03 per diluted share, compared to net income of $3.9 million, or $0.14 per diluted share, in the first quarter of 2013. This matched analyst expectations, which forecasted an EPS of $0.03.
In addition, the mortgage software provider recorded 94,971 active Encompass users as of March 31, 2014, up 18% year over year, and 67,416 active SaaS Encompass users as of March 31, 2014, up 40% year over year.
“Despite the recent forecasts of further declines in mortgage origination volume this year, we are maintaining our revenue guidance for the full year,” Sig Anderman, CEO of Ellie Mae, said.
“However, following the outage we experienced on March 31, we incurred forensic and consulting fees, and have decided to accelerate our investments to bolster our infrastructure and enhance our system capacity, reliability and security. With the additional expenses anticipated in the second quarter and for the remainder of the year, we are lowering our GAAP and non-GAAP earnings guidance for the year,” Anderman continued.
Since the April 2014 composite forecast of Fannie Mae, Freddie Mac and the Mortgage Bankers Association for 2014 mortgage origination volume was changed to approximately $1.2 trillion, Ellie Mae revised its financial outlook for the second quarter and fiscal year 2014.
For the second quarter of 2014, revenue is expected to be in the range of $36 million to $37 million, while revenue for the full fiscal year 2014 is expected to continue to be in the range of $150 million to $153.5 million