Ellie Mae (ELLI) has reported 126.09 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $10.90 million, or $0.31 a share in the quarter, compared with $4.82 million, or $0.16 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $16.23 million, or $0.46 a share compared with $9.93 million or $0.32 a share, a year ago. 

Revenue during the quarter surged 48.27 percent to $96.18 million from $64.87 million in the previous year period. Gross margin for the quarter expanded 217 basis points over the previous year period to 65.85 percent. Total expenses were 85.09 percent of quarterly revenues, down from 92.43 percent for the same period last year. This has led to an improvement of 734 basis points in operating margin to 14.91 percent.

Operating income for the quarter was $14.34 million, compared with $4.91 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $29.41 million compared with $17.12 million in the prior year period. At the same time, adjusted EBITDA margin improved 418 basis points in the quarter to 30.58 percent from 26.39 percent in the last year period.  

"We finished the year with a great fourth quarter," said Jonathan Corr, president and chief executive officer of Ellie Mae. "Fourth quarter year-over-year revenue growth of 48% was driven by increased mortgage volume, the addition of new Encompass users, and the adoption of our services. Total seat bookings reached 12,000 during the quarter and we grew contracted users to a record 216,000, highlighting our ongoing business momentum."

For the first-quarter, Ellie Mae forecasts revenue to be in the range of $92 million to $93 million.  It projects net income to be in the range of $4.50 million to $5 million.  The company expects adjusted net income to be in the range of $7.40 million to $7.50 million.  The company expects diluted earnings per share to be in the range of $0.13 to $0.14.

For fiscal year 2017, Ellie Mae forecasts revenue to be in the range of $433 million to $440 million. It projects net income to be in the range of $45 million to $50 million. The company expects adjusted net income to be in the range of $65.60 million to $70.70 million, the company expects diluted earnings per share to be in the range of $1.23 to $1.36, the company expects diluted earnings per share to be in the range of $1.79 to $1.92 on adjusted basis.

The company has spent $44.60 million cash to meet investing activities during the year as against cash outgo of $66.35 million in the last year.

Cash flow from financing activities was $288.46 million for the year as against cash outgo of $13.24 million in the last year period.

Cash and cash equivalents stood at $380.91 million as on Dec. 31, 2016, up 1,007.42 percent or $346.51 million from $34.40 million on Dec. 31, 2015.

Working capital increases sharply
Ellie Mae has recorded an increase in the working capital over the last year. It stood at $398.44 million as at Dec. 31, 2016, up 578.41 percent or $339.71 million from $58.73 million on Dec. 31, 2015. Current ratio was at 6.05 as on Dec. 31, 2016, up from 1.93 on Dec. 31, 2015.

Days sales outstanding went down to 19 days for the quarter compared with 20 days for the same period last year.

At the same time, days payable outstanding went up to 22 days for the quarter from 19 for the same period last year.