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Ellie Mae locks in strong third quarter amid Velocify acquisition

Revenue jumps 7% from 2016

Ellie Mae’s third-quarter earnings are in, posting a strong quarter that ended with the major acquisition of Velocify, a sales acceleration platform.

According to the results, total revenue for the third quarter of 2017 increased to $107 million, up from $100.4 million for the third quarter of 2016.

Net income for the third quarter of 2017 came in at $14.5 million, or $0.41 per diluted share, compared to $13.8 million, or $0.41 per diluted share, for the third quarter of 2016.

Additionally, adjusted EBITDA for the third quarter of 2017 was $37.6 million, compared to $37.1 million for the third quarter of 2016.

“We delivered strong third quarter results with better than expected revenue and adjusted EBITDA,” said Jonathan Corr, president and CEO of Ellie Mae. “Seat bookings of 8,100 were also solid despite a tough quarter in which some of our customers were affected by devastating hurricanes in two of our major markets.”

The big news for the mortgage technology firm came right as the third quarter wrapped up.

At the beginning of October, Ellie Mae officially announced it completed its previously announced acquisition of Velocify. HousingWire recognized both Ellie Mae and Velocify in the 2017 HW Tech100 awards

However, the deal closed after the fourth quarter rather than in the third quarter, meaning some of the financial impact of the acquisition won’t happen until next quarter.  

Ellie Mae included a fourth quarter financial outlook in its report, noting that revenue is expected to be in the range of $107 million to $109 million. Net income is expected to be in the range of a $1 million loss to $1.0 million, or $0.03 per basic share loss to $0.03 per diluted share, which reflects amortization of intangibles and integration costs related to the Velocify acquisition.

“With this acquisition, we see a tremendous opportunity for our customers to drive better lead optimization and for us to further our goal of fully automating the mortgage process,” said Corr.

“We believe the acquisition helps us accelerate our delivery of the front end digital experience combined with Encompass CRM and Consumer Connect,” he continued. “This also introduces a key opportunity for us to drive more long-term value and increased revenue per loan with both new and existing customers.”

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