Delaware | 001-35140 | 94-3288780 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits. |
Exhibit No. | Description | ||
99.1 | Press Release dated February 9, 2017, titled "Ellie Mae Reports Fourth Quarter and Full Year 2016 Results" |
Date: February 9, 2017 | Ellie Mae, Inc. | |
By: /s/ Edgar A. Luce | ||
Edgar A. Luce | ||
Executive Vice President, Finance and Administration and Chief Financial Officer |
Exhibit No. | Description | ||
99.1 | Press Release dated February 9, 2017, titled "Ellie Mae Reports Fourth Quarter and Full Year 2016 Results" |
• | Revenue of $96.2 million, up 48% from $64.9 million in 2015 |
• | Net income of $10.9 million, up 126% from $4.8 million in 2015 |
• | Adjusted EBITDA of $29.4 million, up 72% from $17.1 million in 2015 |
• | 12,000 Encompass seats booked |
• | Revenue per average active Encompass® user of $587, up 24% from $475 in 2015 |
• | Revenue of $360.3 million, up 42% from $253.9 million in 2015 |
• | Net income of $37.8 million, up 70% from $22.3 million in 2015 |
• | Adjusted EBITDA of $113.1 million, up 51% from $74.7 million in 2015 |
• | 52,800 Encompass seats booked |
• | 164,648 active Encompass users, up 21% from the year-ago period |
Ellie Mae, Inc. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(UNAUDITED) | |||||||
(in thousands, except share and per share amounts) | |||||||
December 31, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 380,907 | $ | 34,396 | |||
Short-term investments | 41,841 | 48,975 | |||||
Accounts receivable, net of allowance for doubtful accounts of $45 and $124 as of December 31, 2016 and December 31, 2015, respectively | 39,358 | 28,568 | |||||
Prepaid expenses and other current assets | 15,209 | 9,874 | |||||
Total current assets | 477,315 | 121,813 | |||||
Property and equipment, net | 126,297 | 81,360 | |||||
Long-term investments | 45,931 | 55,473 | |||||
Intangible assets, net | 17,289 | 22,810 | |||||
Deposits and other assets | 10,138 | 8,888 | |||||
Goodwill | 74,547 | 74,547 | |||||
Total assets | $ | 751,517 | $ | 364,891 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 15,942 | $ | 9,911 | |||
Accrued and other current liabilities | 39,809 | 37,307 | |||||
Deferred revenue | 23,126 | 15,864 | |||||
Total current liabilities | 78,877 | 63,082 | |||||
Leases payable, net of current portion | 85 | 685 | |||||
Other long-term liabilities | 17,647 | 10,273 | |||||
Total liabilities | 96,609 | 74,040 | |||||
Stockholders’ equity: | |||||||
Common stock, $0.0001 par value per share; 140,000,000 authorized shares, 33,685,649 and 29,566,511 shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively | 3 | 3 | |||||
Additional paid-in capital | 612,098 | 285,342 | |||||
Accumulated other comprehensive loss | (219 | ) | (257 | ) | |||
Retained earnings | 43,026 | 5,763 | |||||
Total stockholders’ equity | 654,908 | 290,851 | |||||
Total liabilities and stockholders’ equity | $ | 751,517 | $ | 364,891 |
Ellie Mae, Inc. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||
(UNAUDITED) | |||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||
Quarter ended December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | $ | 96,181 | $ | 64,867 | $ | 360,285 | $ | 253,937 | |||||||
Cost of revenues(1) | 32,843 | 23,555 | 120,145 | 84,208 | |||||||||||
Gross profit | 63,338 | 41,312 | 240,140 | 169,729 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing(1) | 14,257 | 10,562 | 54,704 | 38,208 | |||||||||||
Research and development(1) | 16,305 | 11,734 | 58,501 | 40,451 | |||||||||||
General and administrative(1) | 18,434 | 14,103 | 71,318 | 57,212 | |||||||||||
Total operating expenses | 48,996 | 36,399 | 184,523 | 135,871 | |||||||||||
Income from operations | 14,342 | 4,913 | 55,617 | 33,858 | |||||||||||
Other income, net | 424 | 180 | 989 | 619 | |||||||||||
Income before income taxes | 14,766 | 5,093 | 56,606 | 34,477 | |||||||||||
Income tax provision | 3,864 | 271 | 18,830 | 12,219 | |||||||||||
Net income | $ | 10,902 | $ | 4,822 | $ | 37,776 | $ | 22,258 | |||||||
Net income per share of common stock: | |||||||||||||||
Basic | $ | 0.33 | $ | 0.16 | $ | 1.21 | $ | 0.76 | |||||||
Diluted | $ | 0.31 | $ | 0.16 | $ | 1.15 | $ | 0.72 | |||||||
Weighted average common shares used in computing net income per share of common stock: | |||||||||||||||
Basic | 33,481,511 | 29,483,605 | 31,179,857 | 29,179,352 | |||||||||||
Diluted | 35,010,867 | 30,959,344 | 32,799,785 | 30,842,584 | |||||||||||
Net income | $ | 10,902 | $ | 4,822 | $ | 37,776 | $ | 22,258 | |||||||
Other comprehensive income, net of taxes: | |||||||||||||||
Unrealized gain (loss) on investments | (284 | ) | (319 | ) | 38 | (162 | ) | ||||||||
Comprehensive income | $ | 10,618 | $ | 4,503 | $ | 37,814 | $ | 22,096 | |||||||
(1)Includes stock-based compensation expense of the following for the periods presented: | |||||||||||||||
Cost of revenues | $ | 1,352 | $ | 1,029 | $ | 4,835 | $ | 3,218 | |||||||
Sales and marketing | 1,249 | 779 | 4,429 | 2,752 | |||||||||||
Research and development | 1,879 | 1,470 | 7,296 | 5,431 | |||||||||||
General and administrative | 3,535 | 3,359 | 14,911 | 12,840 | |||||||||||
$ | 8,015 | $ | 6,637 | $ | 31,471 | $ | 24,241 |
Ellie Mae, Inc. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(UNAUDITED) | |||||||
(in thousands) | |||||||
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 37,776 | $ | 22,258 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 20,460 | 10,842 | |||||
Amortization of intangible assets | 5,521 | 5,180 | |||||
Impairment loss on intangible assets | — | 562 | |||||
Legal settlement | — | (522 | ) | ||||
Stock-based compensation expense | 31,471 | 24,241 | |||||
Excess tax benefit from stock-based compensation | (10,246 | ) | (11,387 | ) | |||
Impairment and loss on sale of property and equipment | 5 | 97 | |||||
Deferred income taxes | 7,784 | 2,255 | |||||
Amortization of investment premium | 1,024 | 1,033 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (10,791 | ) | (7,943 | ) | |||
Prepaid expenses and other current assets | (5,334 | ) | 1,381 | ||||
Deposits and other assets | (3,464 | ) | (1,985 | ) | |||
Accounts payable | 3,678 | 290 | |||||
Accrued, other current and other liabilities | 17,585 | 35,079 | |||||
Deferred revenue | 7,184 | 5,849 | |||||
Net cash provided by operating activities | 102,653 | 87,230 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisition of property and equipment | (25,191 | ) | (24,768 | ) | |||
Acquisition of internal-use software | (35,097 | ) | (27,608 | ) | |||
Proceeds from sale of property and equipment | — | 58 | |||||
Purchases of investments | (62,533 | ) | (60,816 | ) | |||
Maturities of investments | 58,223 | 63,204 | |||||
Sale of investments | 20,000 | — | |||||
Cash paid for acquisitions, net of cash acquired | — | (16,419 | ) | ||||
Net cash used in investing activities | (44,598 | ) | (66,349 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Payment of capital lease obligations | (3,827 | ) | (3,745 | ) | |||
Proceeds from issuance of common stock under employee stock plans | 17,297 | 14,199 | |||||
Proceeds from issuance of common stock in public offering, net of issuance costs | 271,379 | — | |||||
Payments for repurchase of common stock | (663 | ) | (31,530 | ) | |||
Tax payments related to shares withheld for vested restricted stock units | (5,976 | ) | (3,552 | ) | |||
Excess tax benefit from stock-based compensation | 10,246 | 11,387 | |||||
Net cash provided by (used in) financing activities | 288,456 | (13,241 | ) | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 346,511 | 7,640 | |||||
CASH AND CASH EQUIVALENTS, Beginning of period | 34,396 | 26,756 | |||||
CASH AND CASH EQUIVALENTS, End of period | $ | 380,907 | $ | 34,396 |
Ellie Mae, Inc. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - (continued) | |||||||
(UNAUDITED) | |||||||
(in thousands) | |||||||
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 294 | $ | 133 | |||
Cash paid for income taxes | $ | 267 | $ | 104 | |||
Supplemental disclosure of non-cash investing and financing activities: | |||||||
Fixed asset purchases accrued but not paid | $ | 5,945 | $ | 3,662 | |||
Stock-based compensation capitalized to property and equipment | $ | 2,831 | $ | 1,126 | |||
Acquisition of property and equipment under capital leases | $ | — | $ | 6,998 |
Ellie Mae, Inc. | |||||||||||||||
NON-GAAP RECONCILIATION | |||||||||||||||
(UNAUDITED) | |||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||
Quarter ended December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 10,902 | $ | 4,822 | $ | 37,776 | $ | 22,258 | |||||||
Depreciation and amortization | 5,973 | 3,518 | 20,460 | 10,842 | |||||||||||
Amortization of intangible assets | 1,079 | 1,491 | 5,521 | 5,180 | |||||||||||
Other income, net | (424 | ) | (180 | ) | (989 | ) | (619 | ) | |||||||
Impairment loss on intangible assets | — | 562 | — | 562 | |||||||||||
Income tax provision | 3,864 | 271 | 18,830 | 12,219 | |||||||||||
EBITDA | 21,394 | 10,484 | 81,598 | 50,442 | |||||||||||
Stock-based compensation expense | 8,015 | 6,637 | 31,471 | 24,241 | |||||||||||
Adjusted EBITDA | $ | 29,409 | $ | 17,121 | $ | 113,069 | $ | 74,683 | |||||||
Net income | $ | 10,902 | $ | 4,822 | $ | 37,776 | $ | 22,258 | |||||||
Stock-based compensation expense | 8,015 | 6,637 | 31,471 | 24,241 | |||||||||||
Impairment loss on intangible assets | — | 562 | — | 562 | |||||||||||
Amortization of intangible assets | 1,079 | 1,491 | 5,521 | 5,180 | |||||||||||
Adjusted net income before tax adjustments | $ | 19,996 | $ | 13,512 | $ | 74,768 | $ | 52,241 | |||||||
Income tax effects of adjustments | (3,763 | ) | (3,583 | ) | (14,195 | ) | (11,071 | ) | |||||||
Adjusted net income with tax adjustments | $ | 16,233 | $ | 9,929 | $ | 60,573 | $ | 41,170 | |||||||
Shares used to compute adjusted net income per share | |||||||||||||||
Basic | 33,481,511 | 29,483,605 | 31,179,857 | 29,179,352 | |||||||||||
Diluted | 35,010,867 | 30,959,344 | 32,799,785 | 30,842,584 | |||||||||||
Adjusted net income per share before tax adjustments | |||||||||||||||
Basic | $ | 0.60 | $ | 0.46 | $ | 2.40 | $ | 1.79 | |||||||
Diluted | $ | 0.57 | $ | 0.44 | $ | 2.28 | $ | 1.69 | |||||||
Adjusted net income per share with tax adjustments | |||||||||||||||
Basic | $ | 0.48 | $ | 0.34 | $ | 1.94 | $ | 1.41 | |||||||
Diluted | $ | 0.46 | $ | 0.32 | $ | 1.85 | $ | 1.33 | |||||||
Net cash provided by operating activities | $ | 47,017 | $ | 22,694 | $ | 102,653 | $ | 87,230 | |||||||
Acquisition of property and equipment and internal-use software, net | (13,996 | ) | (10,993 | ) | (60,288 | ) | (52,318 | ) | |||||||
Free cash flow | $ | 33,021 | $ | 11,701 | $ | 42,365 | $ | 34,912 |
Ellie Mae, Inc. | |||||||||||||||
NON-GAAP RECONCILIATION | |||||||||||||||
(UNAUDITED) | |||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||
First Quarter 2017 Projected Range | Fiscal 2017 Projected Range | ||||||||||||||
Net income | $ | 4,500 | $ | 5,000 | $ | 45,000 | $ | 50,000 | |||||||
Depreciation and amortization | 8,000 | 8,000 | 39,000 | 39,000 | |||||||||||
Amortization of intangible assets | 1,100 | 1,100 | 4,400 | 4,400 | |||||||||||
Income tax provision/other | (2,500 | ) | (2,900 | ) | 12,600 | 14,000 | |||||||||
EBITDA | 11,100 | 11,200 | 101,000 | 107,400 | |||||||||||
Stock-based compensation expense | 8,200 | 8,300 | 38,500 | 40,000 | |||||||||||
Adjusted EBITDA | $ | 19,300 | $ | 19,500 | $ | 139,500 | $ | 147,400 | |||||||
Net income | $ | 4,500 | $ | 5,000 | $ | 45,000 | $ | 50,000 | |||||||
Stock-based compensation expense | 8,200 | 8,300 | 38,500 | 40,000 | |||||||||||
Amortization of intangible assets | 1,100 | 1,100 | 4,400 | 4,400 | |||||||||||
Adjusted net income before tax adjustments | $ | 13,800 | $ | 14,400 | $ | 87,900 | $ | 94,400 | |||||||
Income tax effects of adjustments | (6,400 | ) | (6,900 | ) | (22,300 | ) | (23,700 | ) | |||||||
Adjusted net income with tax adjustments | $ | 7,400 | $ | 7,500 | $ | 65,600 | $ | 70,700 | |||||||
Shares used to compute non-GAAP net income per share | |||||||||||||||
Basic | 33,700,000 | 33,900,000 | 34,500,000 | 34,800,000 | |||||||||||
Diluted | 35,500,000 | 35,700,000 | 36,600,000 | 36,800,000 | |||||||||||
Projected net income per share | |||||||||||||||
Basic | $ | 0.13 | $ | 0.15 | $ | 1.30 | $ | 1.44 | |||||||
Diluted | $ | 0.13 | $ | 0.14 | $ | 1.23 | $ | 1.36 | |||||||
Adjusted net income per share before tax adjustments | |||||||||||||||
Basic | $ | 0.41 | $ | 0.42 | $ | 2.55 | $ | 2.71 | |||||||
Diluted | $ | 0.39 | $ | 0.40 | $ | 2.40 | $ | 2.57 | |||||||
Adjusted net income per share with tax adjustments | |||||||||||||||
Basic | $ | 0.22 | $ | 0.22 | $ | 1.90 | $ | 2.03 | |||||||
Diluted | $ | 0.21 | $ | 0.21 | $ | 1.79 | $ | 1.92 |
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