Image source: Getty Images.

What happened

Shares of Ellie Mae (ELLI) are on the move, rising by about 11% as of 12:15 p.m. EDT as the company's third-quarter earnings and guidance for 2016 left investors optimistic about what's to come.

So what

Ellie Mae delivered on the top and bottom lines, as revenue grew 46% year over year to $100.4 million. Net income grew to $13.8 million, and earnings per share more than doubled to $0.41.

The company is growing by attracting new customers and deriving more revenue from its existing customers. This quarter, it reported that revenue per active Encompass user increased 23% over the year-ago period to $640 per user.

Management noted that increased loan volume per user as well as increased penetration (the number of its services it was able to sell to each user) helped drive its nominal and per-user revenue growth.

Now what

Ellie Mae is looking ahead to a healthy fourth quarter. The company raised its revenue guidance to a range of $351 million to $352 million for the full year, up from previous guidance of $339 million to $341 million. Guidance for net income and adjusted net income were increased to $33.2 million to $33.75 million and $71.1 million to $71.8 million, up from a range of $27.5 million to $28.5 million and $63.5 million to $66 million, respectively.

This quarter showed that Ellie Mae can win big when all of its main earnings drivers (loan volume, penetration, and the number of active users) trend in the right direction. Increased compliance spending that has dragged on bank profits has been a boon for Ellie Mae.