Ellie Mae posts first $100 million revenue quarter
Beats capital consensus
Ellie Mae isn’t backing down and posted another record quarter, breaking its previous record set last quarter, which actually broke the record set in the previous quarter.
This time, however, marks the first-ever quarter that Ellie Mae posted more than $100 million in revenue.
For the third quarter, the company reported revenue of $100.4 million, up 46% from $68.9 million in Q3 2015. This beat the capital consensus, which didn’t even estimate that Ellie Mae would break $100 million, only predicting revenue of $92.5 million.
“Third quarter results were strong across the board with the team continuing to execute, and mortgage volume remaining robust,” said Jonathan Corr, president and CEO of Ellie Mae.
“We achieved our first $100 million revenue quarter and drove strong growth to net income, Adjusted EBITDA and revenue per active user during the quarter. In addition, Q3 seat bookings of 12,800 were better than expected, as lenders increasingly seek to improve efficiency, compliance and loan quality through our all-in-one platform,” he said.
In addition, Ellie Mae stated that the total number of active Encompass users increased 18% year-over-year to 159,523, and revenue per average active Encompass user in the third quarter increased 23% year-over-year to $640.
Looking at the fourth quarter of 2016, Ellie Mae predicts revenue to be in the range of $87 million to $89 million.
And for the full year 2016, revenue is expected to be in the range of $351 million to $353 million, up from the previously provided range of $338 million to $341 million.
Corr also noted in the results that its chief financial officer for the past 12 years, Ed Luce, has announced his intention to retire.
“Ed played a critical role in Ellie Mae’s evolution from a startup to a fast-growing public company and we are grateful for his contributions. Matt LaVay, our senior vice president of finance, will become CFO effective April 1, 2017. I have the utmost confidence in Matt’s ability to succeed in his new role and help drive our next phase of growth,” concluded Corr.