The mortgage processing software company Ellie Mae Inc., showed a better-than-expected result on the company's third-quarter financial report, beating expectations.
Ellie Mae's revenue jumped 61% to $68.9 million, beating the analysts expectations of 46% growth. The company's shares rose by 5.84% in the past week and 8.13% for the last 4 weeks.
The company's Return of Investment (ROI) calculator system called Encompass showed a remarkable growth. The number of Encompass' active user counts rose 30% year over year to 135,000 and the number of cloud-based subscribers grew at 47% rate.
Six of the seven active users of Encompass are on the cloud version.
Ellie Mae Inc. CEO Jonathan Corr stated, as reported on The Motley Fool, that the company added more Encompass users to drive the greater adoption of its services. Corr also said that Ellie Mae helps lender achieve loan quality, regulatory compliance, and operating efficiency with its software products.
According to Springfield Bulletin, the overall rating of Ellie Mae is 1.75. The rating is an average of the various different ratings given by analysts and brokers to the company. The ratings polled by 8 analysts using a simplified 1 to 5 scale where 5 represents a Strong Sell and 1 represents a Strong Buy.
Founded in 1997, Ellie Mae is a provider of automation solutions for the mortgage industry. The company processes almost a quarter of U.S. mortgage applications.
The services are based on a software as a service model that serves as the core operating system and automates the process of originating and funding new mortgage loans and facilitating regulatory compliance.
The company also hosts the Ellie Mae Network that allows Encompass users to electronically conduct business transactions with lenders and settlement service providers they work with to process and fund loans.
The Ellie Mae Network has approximately 74,000 mortgage professionals using the Encompass software to connect with morgage lenders, investors and service providers integral to the origination and funding of residential mortgages.
According to the American Trade Journal, Ellie Mae closed down on Friday last week at 2.62 points or 3.47% at $72.98 with 910,315 shares getting traded. The company has a market cap of $2,160 million and the number of outstanding shares had been calculated to be 29,592,551 shares.
For the fourth quarter of this year, Ellie Mae expects revenue between $59.5 million and $60.5 million, higher than $58 million that the investors expected. The company expects a full year revenue of between $248.5 million and $249.5 million.
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