The 10-second takeaway
For the quarter ended March 31 (Q1), Ellie Mae beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted.
Gross margins grew, operating margins contracted, net margins contracted.
Ellie Mae notched revenue of $30.9 million. The nine analysts polled by S&P Capital IQ anticipated sales of $30.5 million on the same basis. GAAP reported sales were 48% higher than the prior-year quarter's $20.9 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 averaged $0.24 per share. Non-GAAP EPS of $0.27 for Q1 were 69% higher than the prior-year quarter's $0.16 per share. GAAP EPS of $0.14 for Q1 were 13% lower than the prior-year quarter's $0.16 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 75.3%, 40 basis points better than the prior-year quarter. Operating margin was 16.9%, 150 basis points worse than the prior-year quarter. Net margin was 12.7%, 470 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $33.9 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $130.9 million. The average EPS estimate is $1.09.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 187 members out of 190 rating the stock outperform, and three members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Ellie Mae a green thumbs-up, and one 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 $32.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Ellie Mae. The Motley Fool owns shares of Ellie Mae. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.