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HousingWire Annual Virtual Summit

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Steve Murray on new brokerage models, CFPB crackdowns

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InvestmentsMortgage

Ellie Mae reports record revenue for fourth quarter

Net income up 153% from 4Q13 to 4Q14

Mortgage software solution provider, Ellie Mae (ELLI), beat analyst expectations on earnings per share, at $0.38 versus the consense of $0.17, and posted fourth quarter revenues of $46.6 million, up 53% from 4Q2013, and net income of $4.3 million for the quarter, up 153% from the same period in 2013.

For FY2014, Ellie posted record revenue of $161.5 million, up 26% from $128.5 million in 2013, and net income of $14.8 million, up 11% from $13.3 million from 2013.

“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.

“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,” he said.

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.

Total revenue for 2014 was $161.5 million compared to $128.5 million for 2013. Net income for 2014 was $14.8 million, or $0.50 per diluted share, compared to net income of $13.3 million, or $0.47 per diluted share, for 2013.

“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,” Corr said.

Key Operating Metrics:

  • The total number of active Encompass users increased 18% year over year to 109,000;
  • The total number of active users of the SaaS version of Encompass increased 33% year over year to 85,000, or 78% of all active Encompass users;
  • Contracted SaaS users, the total number of SaaS seats under contract with us, increased 33% year over year to approximately 126,000;
  • Total SaaS Encompass revenue in the fourth quarter increased 48% year over year to $28.0 million, representing 60% of total revenue for the fourth quarter of 2014;
  • Revenue per average active Encompass user in the fourth quarter increased 32% year over year to $433; and
  • On-demand revenue in the fourth quarter increased 59% year over year to $44.9 million, comprising approximately 96% of total revenue for the fourth quarter of 2014 compared to on-premise revenue which decreased to $1.6 million or approximately 4% of total revenue for the fourth quarter of 2014.

The January 2015 composite forecast of Fannie Mae, Freddie Mac and the Mortgage Bankers Association for 2015 mortgage origination volume is about $1.2 trillion, which represents a 3% increase from estimated mortgage volume in 2014.

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. 

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