Despite industry mortgage volume declining
Ellie Mae powered through industry declines in mortgage volumes and recorded a strong boost in revenue for the first quarter 2017.
Ellie Mae is a mortgage technology solution provider and features Encompass as is its flagship mortgage management solution.
According to the company’s first-earnings release, total revenue for the first quarter of 2017 increased to $93 million, up 26% from $73.6 million for the first quarter of 2016. Last quarter, Ellie Mae posted $96.2 million in revenue in the fourth quarter.
Net income for the first quarter of 2017 also jumped, increasing to $9.6 million, or $0.27 per diluted share, compared to $2.5 million, or $0.08 per diluted share, for the first quarter of 2016.
Ellie Mae noted that first quarter 2017 net income reflects the impact of changes to the GAAP tax treatment of stock compensation benefits.
“We had a very productive first quarter and are on track for a solid year,” said Jonathan Corr, president and CEO of Ellie Mae. “Revenue increased 26% and seat bookings were strong at 12,100. While industry wide mortgage volume declined by 34% from the fourth quarter, lenders of all sizes continue to see the value of our Encompass Lending Platform as demonstrated by our Q1 seat bookings.”
Looking ahead, Ellie Mae expects second-quarter revenue to be in the range of $109 million to $111 million. Net income is expected to be in the range of $15.7 million to $16.4 million, or $0.43 to $0.45per diluted share.
And for the full year 2017, revenue is expected to be in the range of $433 million to $440 million, while net income is expected to be in the range of $50 million to $55 million, or $1.37 to $1.49 per diluted share.