Ellie Mae reported positive results for its second quarter of 2018, stating the number of closed loans on its Encompass platform increased 6% from 2017 while revenue per loan increased 13% from the previous year.
Ellie Mae reported $125 million in total revenue for the second quarter, a 20% increase compared to $104.1 million reported in the second quarter of 2017.
The net income for the first quarter of 2018 was $9.5 million, or $0.27 per diluted share, compared to net income of 18.8 million, or $0.52 per diluted share, for the second quarter of 2017.
Lastly, the diluted share count for the second quarter of 2018 was $19.1 million, as compared to $18.2 million, during the second quarter of 2017.
Ellie Mae President and CEO Jonathan Corr said although the industry is experiencing hurdles, the company is “pleased” that its financial results exceeded expectations.
“The value proposition of Encompass remains strong as the industry seeks a digital mortgage platform that improves and streamlines the complex origination process,” Corr stated. “We have made continued progress in the rollout of our Encompass Lending Platform, announcing the general availability of several Encompass Connect solutions.”
“This includes the general availability of Encompass Consumer Connect, which is designed to help lenders better compete in today’s highly competitive purchase-centric market by enabling a seamless end-to-end digital experience for the borrower,” Corr concluded.
Earlier this month, Ellie Mae announced its new offering for lenders that will allow them to give borrowers a personalized digital mortgage experience.
Ellie Mae also released its guidance for the third quarter and the rest of 2018.
For the third quarter of 2018, revenue is expected to range from $127 million to $129 million, and net income is expected to be in the range of $4 million to $6 million or $0.52 to $0.57 per diluted share, which includes additional amortization of “intangible assets and integration costs related to the Velocify acquisition.”
Ellie Mae acquired Velocify, a sales acceleration platform, for $128 million in 2017.
Ellie Mae’s revenues for the rest of 2018 are expected to range from $495 million to $505 million. Contracted revenues are now expected to be in the range of $353 million to $358 million, which is an increase from $350 million to $355 million predicted in April.
The company expects net to range from $19 million to $23 million, or $0.53 to $0.64 per diluted share, which is an increase from the range of $10 million to $14 million, or $0.28 to $0.38 per diluted share previously predicted.
Adjusted net income is expected to range from $64.5 million to $69.5 million, or $1.79 to $1.92 per diluted share, which is another increase from $61 million to $65 million, or $1.68 to $1.78 per diluted share previously provided.
Lastly, the adjusted EBITDA is expected to be in the range of $129.5 million to $134.5 million, up from $126.7 million to $132 million previously provided.
