Ellie Mae Reports Fourth Quarter and Fiscal Year 2012 Results

2012 revenue up 84% year over year to $101.8 million 2012 adjusted EBITDA up 397% year over year to $32.8 million

PLEASANTON, CA – February 14, 2013 – Ellie Mae® (NYSE: ELLI), a leading provider of on-demand, enterprise level automation solutions for the residential mortgage industry, today reported results for the fourth quarter and fiscal year ended December 31, 2012.

Total revenue for the fourth quarter of 2012 increased 60% to $29.9 million, compared to $18.8 million in the fourth quarter of 2011.  Net income for the fourth quarter of 2012 was $4.0 million, or $0.14 per diluted share, compared to net income of $1.8 million, or $0.08 per diluted share, in the fourth quarter of 2011.

On a non-GAAP basis, adjusted net income for the fourth quarter of 2012 was $7.6 million, or $0.27 per diluted share, compared to $2.8 million, or $0.13 per diluted share, in the fourth quarter of 2011.  Adjusted EBITDA for the fourth quarter of 2012 was $10.3 million, compared to $3.4 million for the fourth quarter of 2011.

Total revenue for the full year 2012 increased 84% to $101.8 million, compared to $55.5 million in 2011.  Net income for the full year 2012 was $19.5 million, or $0.76 per diluted share, compared to net income of $3.6 million, or $0.18 per diluted share, in 2011.

On a non-GAAP basis, adjusted net income for the full year 2012 was $27.9 million, or $1.09 per diluted share, compared to $4.9 million, or $0.24 per diluted share, in 2011.  Adjusted EBITDA in 2012 was $32.8 million, compared to $6.6 million in 2011.

A reconciliation of the non-GAAP financial measures to their related GAAP financial measures is set forth below.

Key Operating Metrics as of and for the quarter ended December 31, 2012:

  • On-demand revenue increased 70% year over year to $26.6 million, comprising approximately 89% of total revenues for the quarter;
  • The total number of users actively using the company’s Encompass® enterprise solution (“active Encompass users”) increased 37% year over year to 73,687;
  • Revenue per average active Encompass user increased 17% year over year to $414;
  • As of the end of the fourth quarter, the number of users of the SaaS version of Encompass increased 71% year over year to 41,458, or 56% of all active Encompass users; and
  • Total SaaS Encompass revenues increased 106% year over year to $15.4 million or 52% of total revenue for the quarter.

“Ellie Mae’s 60% revenue growth in the fourth quarter was a spectacular finish to 2012,” said Sig Anderman, CEO of Ellie Mae.  “Our strong financial and operating performance for the fourth quarter was driven by new SaaS Encompass user activation and increasing revenue per user.  We are very pleased with the pace at which we added new SaaS Encompass users and upgraded existing customers to our SaaS platform during the quarter.”

“Our strong 2012 financial results reflect the demand we are experiencing for our end-to-end, comprehensive solution that meets the functional as well as regulatory compliance needs of lenders,” continued Mr. Anderman.  “During the year, we grew our SaaS users by 71% to 41,458.  Even with this impressive growth in users, we believe we will continue to have good runway for both new SaaS customer acquisitions and existing customer conversions.”

“As we enter 2013, we are excited about our growth opportunities even in the face of the currently expected decline in 2013 mortgage origination volumes.  The rapidly evolving mortgage landscape is creating new requirements for our clients that we believe expand the long-term growth opportunities for Ellie Mae.  We expect our growth to continue to be fueled by activating and ramping usage of SaaS Encompass users, adding more SaaS Encompass users and driving adoption of our on-demand solutions,” Mr. Anderman concluded.

First Quarter and Fiscal Year 2013 Financial Outlook

The January 2013 composite forecast of Fannie Mae, Freddie Mac and the Mortgage Bankers Association for 2013 mortgage origination volume is approximately $1.6 trillion, which represents a 17% decrease from estimated mortgage volume in 2012, but a 4% increase from the October 2012 composite forecast for 2013 of $1.5 trillion.  These organizations publish monthly updates of their annual and quarterly forecasts.  The January 2013 composite quarterly forecast for origination volume is as follows:

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