The 10-second takeaway
For the quarter ended June 30 (Q2), Ellie Mae beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Margins improved across the board.
Ellie Mae notched revenue of $23.6 million. The eight analysts polled by S&P Capital IQ expected to see a top line of $20.0 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $11.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.27. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.12 per share. GAAP EPS of $0.21 for Q2 were much higher than the prior-year quarter's $0.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 77.6%, 820 basis points better than the prior-year quarter. Operating margin was 22.3%, 2,290 basis points better than the prior-year quarter. Net margin was 21.2%, 2,150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $19.2 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $79.5 million. The average EPS estimate is $0.44.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 21 members out of 27 rating the stock outperform, and six members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), five give Ellie Mae a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ellie Mae is outperform, with an average price target of $19.20.
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