Loan origination software provider Ellie Mae posted a net loss of $40,000 on total revenue of $11.5 million during the second quarter, an improvement over a loss of $1.3 million in the year ago period.
Overall, its revenues grew by 17% -- and during a time when lenders are funding fewer loans.
Ellie Mae CFO Ed Luce categorized the loss as “essentially break even” on a conference call with analysts late Wednesday. In Q1 of this year the firm lost $800,000 on revenues of $10.6 million.
Ellie Mae releases data on per-seat users, rather than number of mortgage companies using its product. The number of individual users employed by mortgage lenders increased 20% year-over-year to 41,594, with 17,588 (42%) using the software-as-a-service model of Ellie's Encompass LOS.
Ellie Mae said 5,355 users were sold or booked on the transaction-based pricing SaaS version of Encompass. The Pleasanton, Calif.-based company said 2,955 users were conversions of existing users from its desktop and nontransaction-based priced versions of Encompass.
The remaining 2,400 users are seats at new lender accounts, including what Ellie Mae president and CEO Sig Anderman categorized as a “significant number” of users in the retail channel of “one of the mega-lenders,” during the conference call.
“We still feel that we have the most compelling product in the marketplace and the reception we're getting from prospects seems to validate that,” Anderman said.
Ellie Mae executives also touted its
Anderman said a “top three lender-investor” signed on to use the TQL service beginning in 3Q11. In addition, Anderman said Ellie Mae intends to release a fraud detection product in the second half of 2011.
In an earnings press release, Ellie Mae reaffirmed its annual earnings projection for the year: net income of $2.1 million to $3.1 million on revenues of $50 million to $52 million.
In after hours trading its stock was up slightly to just over $5.73 per share.
