The first three months of 2013 was profitable for Ellie Mae as revenue was up 48% year-over-year to $30.9 million.
This figure is $10 million greater than a year ago, the Pleasonton, Calif.-based residential mortgage software provider said in its first quarter earnings release.
Overall, net income for 1Q13 was $3.9 million, or $0.14 per diluted share, compared to net income of $3.6 million, or $0.16 per diluted share, during the same time period last year.
“We had a great start to the year with strong financial and operating performance in the first quarter. Through solid execution we delivered robust growth in both revenue and profits while generating significant free cash flow,” said Sig Anderman, CEO of
One of the main drivers that contributed to the revenue increase was the number of people who decided to use the company’s Encompass 360 enterprise solution. Through March 31, a record 80,710 users are utilizing Encompass 360, 37% more than a year ago.
Revenue per average active Encompass 360 user increased 7% on an annual basis to $394, the firm revealed in its earnings report.
Encompass 360 is an end-to-end solution that helps lenders automate and streamline the mortgage origination process by assuring regulatory compliance and reducing IT and other operational costs, Anderman said. He added that due to the concerns lenders are dealing with in today’s market because of the all of the regulatory issues, Encompass 360 provides Ellie Mae “the opportunity for a solid foundation for continued growth in 2013 and beyond.”
Due to the success of Encompass 360, Anderman is forecasting revenue to be in the $33.5 million to $34 million range in the second quarter and $130 million to $131.5 million for the full fiscal year.
“With the business momentum we experienced in the first quarter, we have raised our full year revenue guidance, even in the face of current expectations for a decline in 2013 mortgage origination volumes,” Anderman stated. “We are maintaining our bottom line guidance for the full year, enabling us to incrementally increase our investment in growth initiatives and further enhance our compliance capabilities.”
