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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