Despite a rough start to the year when its origination system Encompass360 temporarily shut down for users, Ellie Mae (ELLI) is reporting strong growth and relocating its headquarters in Pleasanton, California to accommodate its increasing workforce.
The company currently occupies two smaller buildings in Pleasanton and will nearly doubles its existing office space to better fit its employees, which also has about doubled in size in the last two years to more than 500.
Under the lease agreement, Ellie Mae will pay a monthly rent of $263,630, for an annual rent of $3.16 million from April 1, 2015 to March 31, 2016, ending with a monthy rent of $343,977.35, for an annual rent of $4.13 million from April 1, 2024 to Dec. 31, 2024.
After the company’s outage in late March, it incurred forensic and consulting fees and decided to accelerate its investments to bolster its infrastructure and enhance its system capacity, reliability and security.
The additional expenses are anticipated to come into fruition in the second quarter, and for the remainder of the year, Ellie Mae lowered its GAAP and non-GAAP earnings guidance.
Ellie Mae reported a first-quarter revenue of $32.2 million compared to $30.9 million for the same period a year ago. It will release its second-quarter earnings after market close on July 31, where most of the impact from the outage will be seen. Operating expenses will fall along the lines of $3 million to $4 million this year.