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,
"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
"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
"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
Approximately 50% of our revenue is sensitive to fluctuations in
mortgage volumes and we are therefore providing financial guidance for
the first quarter and full fiscal year 2013 based in part on these
composite quarterly forecasts.
Additionally, following our strong financial performance over the last
two years, we released the valuation allowance associated with our NOLs
and are now at a full tax rate of 38% in 2013 compared to 8% in 2012.
For the first quarter of 2013, revenue is expected to be in the range of
$30.0 million to $30.5 million. Net income is expected to be in the
range of $3.2 million to $3.5 million, or $0.11 to $0.13 per diluted
share. Adjusted net income is expected to be in the range of $6.4
million to $6.8 million, or $0.23 to $0.24 per diluted share. Adjusted
EBITDA is expected to be in the range of $9.5 million to $10.0 million.
For the full fiscal year 2013, revenue is expected to be in the range of
$127.5 million to $129.0 million. Net income is expected to be in the
range of $15.6 million to $16.2 million, or $0.55 to $0.57 per diluted
share. Adjusted net income is expected to be in the range of $30.2
million to $31.0 million, or $1.06 to $1.09 per diluted share. Adjusted
EBITDA is expected to be in the range of $44.2 million to $45.4 million.
Use of Non-GAAP Financial Measures
Ellie Mae provides investors with adjusted net income and adjusted
EBITDA in conjunction with traditional GAAP operating performance of net
income as part of its overall assessment of its performance. Adjusted
net income consists of net income plus amortization of acquired
intangibles, non-cash, stock-based compensation expense, acquisition
costs and other acquisition-related adjustments. EBITDA consists of net
income plus depreciation and amortization, interest income and expense
and income tax provision (benefit). Adjusted EBITDA consists of EBITDA
plus non-cash, stock-based compensation expense and acquisition costs.
Ellie Mae uses adjusted net income and adjusted EBITDA as measures of
operating performance because they enable period to period comparisons
by excluding potential differences caused by variations in the age of
book depreciation of fixed assets and amortization of intangibles
related to acquisitions, and changes in interest expense and interest
income that are influenced by capital market conditions. The Company
also believes it is useful to exclude non-cash, stock-based compensation
expense from adjusted net income and adjusted EBITDA because the amount
of non-cash expense associated with stock-based awards made at certain
prices and points in time (a) do not necessarily reflect how the
company's business is performing at any particular time and (b) can vary
significantly between periods due to the timing of new stock-based
awards. These non-GAAP measures are not measurements of the Company's
financial performance under GAAP and have limitations as analytical
tools. Accordingly, these non-GAAP financial measures should not be
considered a substitute for, or superior to, net income or operating
income or other financial measures calculated in accordance with
generally accepted accounting principles in the United States, or as an
alternative to cash flows from operating activities as a measure of the
Company's profitability or liquidity. The Company cautions that other
companies in Ellie Mae's industry may calculate adjusted net income and
adjusted EBITDA differently than the company does, further limiting
their usefulness as a comparative measure. A reconciliation of net
income to adjusted net income and adjusted EBITDA is included in the
Quarterly Conference Call
Ellie Mae will discuss its fourth quarter and fiscal year 2012 results
today, February 14, 2013, via teleconference at 4:30 p.m. Eastern Time.
To access the call, please dial 877-941-8416 or 480-629-9808 at least
five minutes prior to the 4:30 p.m. Eastern Time start time. A live
webcast of the call will be available on the Investor Relations section
of the Company's website at http://ir.elliemae.com.
An audio replay of the call will be available through February 28, 2013
by dialing 800-406-7325 or 303-590-3030 and entering access code 4593741.
About Ellie Mae
Ellie Mae, Inc. is a leading provider of on-demand automation solutions
for the mortgage industry. The Company offers an end-to-end solution,
delivered using a Software-as-a-Service model that serves as the core
operating system for mortgage originators and spans customer
relationship management, loan origination and business management. The
Company also hosts the Ellie Mae Network™ that allows Encompass users to
electronically conduct business transactions with the lenders and
settlement service providers they work with to process and fund loans.
The Company's offerings include the Encompass®, Encompass360®
and DataTrac® mortgage management software systems.
Ellie Mae was founded in 1997 and is based in Pleasanton, California. To
learn more about Ellie Mae, visit www.EllieMae.com
or call 877.355.4362.
© 2013 Ellie Mae, Inc. Ellie Mae®, Encompass®,
Ellie Mae Network™ and the Ellie Mae logo are registered
trademarks or trademarks of Ellie Mae, Inc. or its subsidiaries. All
rights reserved. Other company and product names may be trademarks or
copyrights of their respective owners.
This press release contains forward-looking statements under the safe
harbor provisions under The Private Securities Litigation Reform Act of
1995. These forward-looking statements include discussions regarding
projected revenue, net income, adjusted EBITDA and adjusted net income
for the first quarter and fiscal year 2013. These statements involve
known and unknown risks, uncertainties and other factors which may cause
Ellie Mae's results to be materially different than those expressed or
implied in such statements. Such differences may be based on factors
such as changes in strategic planning decisions by management;
reallocation of internal resources; changes in the volume of residential
mortgage volume in the United States; changes in anticipated rates of
existing customer conversions and new customer acquisitions; the risk
that the anticipated benefits, growth prospects and synergies expected
from the Del Mar Datatrac acquisition may not be fully realized or may
take longer to realize than expected; the possibility that economic
benefits of future opportunities in an emerging industry may never
materialize, including unexpected variations in market growth and demand
for the acquired products and technologies; delays, disruptions,
including changing relationships with partners, customers, employees or
suppliers; the amount of costs incurred in connection with the
supporting and integrating new customers and partners; ongoing personnel
and logistical challenges of managing a larger organization; changes in
other macroeconomic factors affecting the residential real estate
industry and other risk factors included in documents that Ellie Mae has
filed with the Securities and Exchange Commission, including but not
limited to its Annual Report on Form 10-K for the year ended December
31, 2011, Quarterly Report on Form 10-Q for the quarter ended September
30, 2012 and Current Reports on Form 8-K. Other unknown or unpredictable
factors also could have material adverse effects on Ellie Mae's future
results. The forward-looking statements included in this press release
are made only as of the date hereof. Ellie Mae cannot guarantee future
results, levels of activity, performance or achievements. Accordingly,
you should not place undue reliance on these forward-looking statements.
Finally, Ellie Mae expressly disclaims any intent or obligation to
update any forward-looking statements to reflect subsequent events or
Ellie Mae, Inc.
Three months endedDecember 31,
Three months ended December 31,
Other (expense) income, net
First Quarter 2013 Projected Range
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