Ellie Mae reported that revenues in the third quarter were $123 million, up from $107 million in 2017.
“We grew revenue by 15% and increased revenue per loan 14% year-over-year,” said Jonathan Corr, president and CEO. Also, loan volume on the platform increased year-over-year despite industry mortgage volumes being down 9% on an absolute dollar basis and down around 13% on a unit basis.
Revenues for the third quarter of 2018 were $123 million, compared to $107 million for the third quarter of 2017. Net income for the third quarter of 2018 was $12.4 million, or $0.35 per diluted share, compared to $14.5 million, or $0.41 per diluted share, for the third quarter of 2017. Net income for the third quarter of 2018 includes the amortization of acquisition-related intangibles related to the Velocify acquisition.
On a non-GAAP basis, adjusted net income for the third quarter of 2018 was $24.2 million, or $0.67 per diluted share, compared to $19.9 million, or $0.56 per diluted share, for the third quarter of 2017. Adjusted EBITDA for the third quarter of 2018 was $40.9 million, compared to $38.7 million for the third quarter of 2017.
For the fourth quarter of 2018, revenues are expected to be in the range of $113 million to $116 million. Net income is expected to be in the range of $0.0 to $2 million, or $0.0 to $0.06 per diluted share.
On a non-GAAP basis, adjusted net income is expected to be in the range of $12.4 million to $14.2 million, or $0.34 to $0.39 per diluted share. Adjusted EBITDA is expected to be in the range of $28.8 million to $31.3 million.
“Rising rates, low housing inventory, and overall home affordability are serving as significant headwinds to the overall mortgage market. While we believe these headwinds are temporary, they are prompting us to reset our assumptions for the year,” said Corr.
For the full year 2018, revenues are now expected to be in the range of $477 million to $480 million, a decrease from the prior range of $495 million to $505 million.
Contracted revenues are now expected to be in the range of $347 million to $349 million, a decrease from the prior range of $353 million to $358. Net income is expected to be in the range of $22 million to $24 million, or $0.61 to $0.67 per diluted share, for a range of $19 million to 23 million, or $0.53 to $0.64 per diluted share previously provided.
On a non-GAAP basis, adjusted net income is expected to be in the range of $65.8 million to $67.6 million, or $1.84 to $1.88 per diluted share, a decrease from the range of $64.5 million to $69.5 million, or $1.79 to $1.92 per diluted share previously provided. Adjusted EBITDA is expected to be in the range of $125.3 million to $127.8 million, a decrease from the range of $129.5 million to $134.5 million previously provided.
“In the third quarter, we announced a new major release of Encompass and made continued progress on the rollout of our Encompass Connect solutions,” said Corr. “Over the long-term, we expect the mortgage industry to trend to a sustained purchase driven market and we believe we are well positioned to drive further market share gains and technology adoption across our large customer base."
