Ellie Mae Profits Fall on Rising Operating Expenses
Mortgage software firm Ellie Mae posted higher year-over-year revenue growth in the fourth quarter of 2013, but reported a dip in net income as operating expenses rose.
Ellie Mae earned $1.6 million, or 6 cents per share, in the fourth quarter — down 60% from $4 million in the same period a year ago. While revenues ticked up 2%, to $30.4 million, the cost of revenues rose 26%, to $8.2 million.
For the full-year 2013, Ellie Mae reported net income of $12.6 million off $128.5 million in revenue. That compares with net income of $19.5 million off $101.8 million in revenue in 2012.
Higher operating costs also took a bite out of the Pleasanton, Calif., company's earnings. Expenses rose to $20 million, a 14% increase, because of inflated research and development, sales and marketing and general and administrative costs.