The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Ellie Mae beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins increased across the board.
Ellie Mae notched revenue of $27.5 million. The 11 analysts polled by S&P Capital IQ anticipated revenue of $24.4 million on the same basis. GAAP reported sales were 87% higher than the prior-year quarter's $14.7 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 $0.35. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.25 for Q3 were 400% higher than the prior-year quarter's $0.05 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 78.0%, 560 basis points better than the prior-year quarter. Operating margin was 22.9%, 1,500 basis points better than the prior-year quarter. Net margin was 24.9%, 1,800 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $22.5 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $91.3 million. The average EPS estimate is $0.75.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 60 members out of 71 rating the stock outperform, and 11 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 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 $29.20.
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