Ellie Mae Doubles Revenue, Posts $5 Million 2Q Profit

Ellie Mae posted net earnings of $5 million in the second quarter, the result of an increase in both its customer user base and revenue per client.

The Pleasanton, Calif.-based loan origination system and technology provider generated total revenue of $23.6 million in 2Q, up 106% from the same period last year when Ellie Mae posted a net loss of $40,000 off revenue of $11.5 million.

In a press statement announcing its results after the close of markets Wednesday, Ellie Mae said its user base increased 23% year-over-year to 62,487 active lender and brokers users—a figure that includes former users of the Del Mar DataTrac LOS (which Ellie Mae acquired in August 2011) that have switched to Encompass, but does not include DataTrac users still on the legacy system.

In its last quarterly financial filing, Ellie Mae announced that it would begin providing less detailed information about its customer base, revenue streams and pricing models in its financial disclosures, which executives said was reflective of consolidation of the company’s operations—including no longer breaking out the segments of broker and lender users.

Revenue per user (including transaction-based fees for the LOS and fees charged for accessing its Ellie Mae Network and other ancillary products) increased 69% to $384. Also during the quarter, Ellie Mae raised $55.7 million in a follow-on offering of its common stock.

Noting that industrywide residential fundings could be higher this year at $1.5 trillion (up 11% from 2011), Ellie Mae increased its annual revenue projection to upwards of $91 million, compared to a previous high of $79 million.

Adjusted net income is expected to be in the range of $17.1 million to $18 million, up from a previous range of $9.6 million to $10.1 million.