Ellie Mae (ELLI) reported net income in the second quarter of $5 million, or 21 cents a share, reversing its $40,000 loss, or zero cents a share, the company experienced a year ago.
The firm beat analysts' estimates of 12 cents a share, according to Zack's Investment Research.
The results appear to be the beginning of a trend. Ellie Mae also returned to a quarterly profit in the first quarter after losing $800,000 a year earlier.
Second-quarter revenue for the Pleasanton, Calif.-based mortgage technology company rocketed 106% to $23.6 million from $11.5 million in the year-ago period. The addition of nearly 8,000 new and converted SaaS Encompass users in the previous and the steady increase in revenue per user drove the massive growth.
The firm’s Encompass software platform, which handles business and management functions for mortgage originators, allows it to control about 20% of the national volume of loans.
“Mortgage volume was higher than the forecasts provided by Fannie Mae, Freddie Mac and the Mortgage Bankers Association earlier this year, so we benefited from the upside leverage our business model can create when mortgage volumes increase,” said Ellie Mae Chief Executive Sig Anderman.
In the third quarter, Ellie Mae expects net income to arrive in the $3.7 million to $4.1 million, or 14 to 15 cents a share, range. It expects revenue to total between $23.75 million to $24.25 million.
Citing continued strength in its overall business and revised forecasts for mortgage origination volume for 2012, Ellie Mae raised its full-year guidance.
For the full year, net income will total between $12.3 million and $13.1 million, or 49 to 52 cents a share, Ellie Mae predicts. Revenue is expected to be in the $90 million to $91 million range for the full year.