Mortgage software provider Ellie Mae reported a dip in net income as a result of increased sales, marketing and research expenses that outweighed revenue gains.
The Pleasanton, Calif.-based company reported net income of $2.5 million, down 31% from last year. Earnings per share of 8 cents beat the average estimate of analysts polled by Bloomberg by 3 cents.
Year-over-year comparisons were skewed in part because of the company's fourth-quarter purchase of customer-relationship management services provider
Revenue at the company went up 36% to $73.6 million. In the first quarter, the number of active Encompass users rose 22% from last year to 144,533. And revenue per Encompass user expanded 10% to $522.
These gains were outweighed by higher costs though. Corporate costs increased 53% to $26.6 million. And operating expenses rose to $43.5 million, a 43% jump. Contributing to the latter increase was a 56% spike in sales and marketing costs to $15.3 million and a 50% leap in research and development expenses to $12.5 million. General and administrative costs also went up.
