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 July 27, 2017, titled "Ellie Mae Reports Second Quarter 2017 Results" |
Date: July 27, 2017 | Ellie Mae, Inc. | |
By: /s/ Matthew LaVay | ||
Matthew LaVay | ||
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | ||
99.1 | Press Release dated July 27, 2017, titled "Ellie Mae Reports Second Quarter 2017 Results" |
• | Revenue of $104.1 million, up 16% from $90.1 million in 2016 |
• | Net income of $18.8 million1, up from $10.6 million in 2016 |
• | Adjusted EBITDA of $35.8 million, up 16% from $30.9 million in 2016 |
• | 9,600 Encompass seats booked |
Ellie Mae, Inc. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(UNAUDITED) | |||||||
(in thousands, except share and per share amounts) | |||||||
June 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 213,204 | $ | 380,907 | |||
Short-term investments | 120,454 | 41,841 | |||||
Accounts receivable, net of allowance for doubtful accounts of $249 and $45 as of June 30, 2017 and December 31, 2016, respectively | 45,542 | 39,358 | |||||
Prepaid expenses and other current assets | 18,965 | 15,209 | |||||
Total current assets | 398,165 | 477,315 | |||||
Property and equipment, net | 156,698 | 126,297 | |||||
Long-term investments | 121,096 | 45,931 | |||||
Intangible assets, net | 15,133 | 17,289 | |||||
Deposits and other assets | 22,705 | 10,138 | |||||
Goodwill | 74,547 | 74,547 | |||||
Total assets | $ | 788,344 | $ | 751,517 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 15,831 | $ | 15,942 | |||
Accrued and other current liabilities | 22,901 | 39,809 | |||||
Deferred revenue | 17,985 | 23,126 | |||||
Total current liabilities | 56,717 | 78,877 | |||||
Leases payable, net of current portion | 28 | 85 | |||||
Other long-term liabilities | 16,424 | 17,647 | |||||
Total liabilities | 73,169 | 96,609 | |||||
Stockholders' equity: | |||||||
Common stock, $0.0001 par value per share; 140,000,000 authorized shares, 34,320,850 and 33,685,649 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively | 3 | 3 | |||||
Additional paid-in capital | 629,443 | 612,098 | |||||
Accumulated other comprehensive loss | (264 | ) | (219 | ) | |||
Retained earnings | 85,993 | 43,026 | |||||
Total stockholders' equity | 715,175 | 654,908 | |||||
Total liabilities and stockholders' equity | $ | 788,344 | $ | 751,517 |
Ellie Mae, Inc. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||
(UNAUDITED) | |||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||
Three Months ended June 30, | Six Months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | 104,125 | $ | 90,098 | $ | 197,127 | $ | 163,723 | |||||||
Cost of revenues(1) | 38,267 | 28,453 | 73,035 | 55,084 | |||||||||||
Gross profit | 65,858 | 61,645 | 124,092 | 108,639 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing(1) | 13,860 | 12,506 | 33,240 | 27,792 | |||||||||||
Research and development(1) | 16,046 | 14,662 | 33,453 | 27,115 | |||||||||||
General and administrative(1) | 18,727 | 17,793 | 35,669 | 33,525 | |||||||||||
Total operating expenses | 48,633 | 44,961 | 102,362 | 88,432 | |||||||||||
Income from operations | 17,225 | 16,684 | 21,730 | 20,207 | |||||||||||
Other income, net | 762 | 162 | 1,263 | 361 | |||||||||||
Income before income taxes | 17,987 | 16,846 | 22,993 | 20,568 | |||||||||||
Income tax provision (benefit) | (836 | ) | 6,258 | (5,429 | ) | 7,474 | |||||||||
Net income | $ | 18,823 | $ | 10,588 | $ | 28,422 | $ | 13,094 | |||||||
Net income per share of common stock: | |||||||||||||||
Basic | $ | 0.55 | $ | 0.36 | $ | 0.84 | $ | 0.44 | |||||||
Diluted | $ | 0.52 | $ | 0.34 | $ | 0.79 | $ | 0.42 | |||||||
Weighted average common shares used in computing net income per share of common stock: | |||||||||||||||
Basic | 34,028,553 | 29,578,630 | 33,866,233 | 29,643,779 | |||||||||||
Diluted | 35,908,813 | 31,188,599 | 35,771,565 | 31,279,512 | |||||||||||
Net income | $ | 18,823 | $ | 10,588 | $ | 28,422 | $ | 13,094 | |||||||
Other comprehensive income, net of taxes | |||||||||||||||
Unrealized gain (loss) on investments | (103 | ) | 101 | (45 | ) | 429 | |||||||||
Comprehensive income | $ | 18,720 | $ | 10,689 | $ | 28,377 | $ | 13,523 | |||||||
(1) Includes stock-based compensation expense of the following for the periods presented: | |||||||||||||||
Cost of revenues | $ | 1,675 | $ | 1,132 | $ | 3,119 | $ | 2,102 | |||||||
Sales and marketing | 1,258 | 1,059 | 2,434 | 1,937 | |||||||||||
Research and development | 2,098 | 1,944 | 3,959 | 3,448 | |||||||||||
General and administrative | 3,479 | 3,883 | 6,849 | 7,221 | |||||||||||
$ | 8,510 | $ | 8,018 | $ | 16,361 | $ | 14,708 |
Ellie Mae, Inc. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(UNAUDITED) | |||||||
(in thousands) | |||||||
Six Months ended June 30, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 28,422 | $ | 13,094 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 16,282 | 8,679 | |||||
Amortization of intangible assets | 2,156 | 2,949 | |||||
Stock-based compensation expense | 16,361 | 14,708 | |||||
Deferred income taxes | (5,662 | ) | 6,153 | ||||
Loss on disposal of property and equipment | — | 5 | |||||
Amortization (accretion) of investments | (139 | ) | 490 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (6,183 | ) | (15,738 | ) | |||
Prepaid expenses and other current assets | (3,757 | ) | (1,388 | ) | |||
Deposits and other assets | 194 | (1,580 | ) | ||||
Accounts payable | 2,677 | (432 | ) | ||||
Accrued, other current and other liabilities | (10,243 | ) | (6,629 | ) | |||
Deferred revenue | (5,087 | ) | 2,895 | ||||
Net cash provided by operating activities | 35,021 | 23,206 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisition of property and equipment | (21,800 | ) | (15,566 | ) | |||
Acquisition of internal-use software | (25,478 | ) | (16,373 | ) | |||
Purchases of investments | (181,760 | ) | (35,615 | ) | |||
Maturities of investments | 28,076 | 31,551 | |||||
Sale of investments | — | 20,000 | |||||
Net cash used in investing activities | (200,962 | ) | (16,003 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Payment of capital lease obligations | (553 | ) | (2,080 | ) | |||
Proceeds from issuance of common stock under employee stock plans | 10,207 | 9,127 | |||||
Payment of issuance costs relating to common stock issued in public offering | (15 | ) | — | ||||
Tax payments related to shares withheld for vested restricted stock units | (11,401 | ) | (4,037 | ) | |||
Net cash provided by (used in) financing activities | (1,762 | ) | 3,010 | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (167,703 | ) | 10,213 | ||||
CASH AND CASH EQUIVALENTS, Beginning of period | 380,907 | 34,396 | |||||
CASH AND CASH EQUIVALENTS, End of period | $ | 213,204 | $ | 44,609 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 370 | $ | 145 | |||
Cash paid for income taxes | $ | 463 | $ | 129 | |||
Supplemental disclosure of non-cash investing and financing activities: | |||||||
Fixed asset purchases accrued but not paid | $ | 3,172 | $ | 3,709 | |||
Stock-based compensation capitalized to property and equipment | $ | 2,178 | $ | 1,125 |
Ellie Mae, Inc. | |||||||||||||||
NON-GAAP RECONCILIATION | |||||||||||||||
(UNAUDITED) | |||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||
Three Months ended June 30, | Six Months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 18,823 | $ | 10,588 | $ | 28,422 | $ | 13,094 | |||||||
Depreciation and amortization | 8,943 | 4,725 | 16,282 | 8,679 | |||||||||||
Amortization of intangible assets | 1,078 | 1,492 | 2,156 | 2,949 | |||||||||||
Other income, net | (762 | ) | (162 | ) | (1,263 | ) | (361 | ) | |||||||
Income tax provision (benefit) | (836 | ) | 6,258 | (5,429 | ) | 7,474 | |||||||||
EBITDA | 27,246 | 22,901 | 40,168 | 31,835 | |||||||||||
Stock-based compensation expense | 8,510 | 8,018 | 16,361 | 14,708 | |||||||||||
Adjusted EBITDA | $ | 35,756 | $ | 30,919 | $ | 56,529 | $ | 46,543 | |||||||
Gross profit | $ | 65,858 | $ | 61,645 | $ | 124,092 | $ | 108,639 | |||||||
Stock-based compensation expense(1) | 1,675 | 1,132 | 3,119 | 2,102 | |||||||||||
Amortization of intangible assets(1) | 767 | 1,174 | 1,534 | 2,313 | |||||||||||
Adjusted gross profit | $ | 68,300 | $ | 63,951 | $ | 128,745 | $ | 113,054 | |||||||
Net income | $ | 18,823 | $ | 10,588 | $ | 28,422 | $ | 13,094 | |||||||
Stock-based compensation expense | 8,510 | 8,018 | 16,361 | 14,708 | |||||||||||
Amortization of intangible assets | 1,078 | 1,492 | 2,156 | 2,949 | |||||||||||
Income tax effects of adjustments(2) | (10,178 | ) | (3,290 | ) | (19,783 | ) | (6,374 | ) | |||||||
Adjusted net income(2) | $ | 18,233 | $ | 16,808 | $ | 27,156 | $ | 24,377 | |||||||
Shares used to compute adjusted net income per share | |||||||||||||||
Basic | 34,028,553 | 29,578,630 | 33,866,233 | 29,643,779 | |||||||||||
Diluted | 35,908,813 | 31,188,599 | 35,771,565 | 31,279,512 | |||||||||||
Adjusted net income per share | |||||||||||||||
Basic | $ | 0.54 | $ | 0.57 | $ | 0.80 | $ | 0.82 | |||||||
Diluted | $ | 0.51 | $ | 0.54 | $ | 0.76 | $ | 0.78 |
Ellie Mae, Inc. | |||||||||||||||
NON-GAAP RECONCILIATION - (continued) | |||||||||||||||
(UNAUDITED) | |||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||
Three Months ended June 30, | Six Months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net cash provided by operating activities(3) | $ | 36,443 | $ | 33,266 | $ | 35,021 | $ | 23,206 | |||||||
Acquisition of property and equipment and internal-use software, net | (24,512 | ) | (11,529 | ) | (47,278 | ) | (31,939 | ) | |||||||
Free cash flow | $ | 11,931 | $ | 21,737 | $ | (12,257 | ) | $ | (8,733 | ) | |||||
(1) Amount represents the cost of revenues portion of stock-based compensation expense and amortization of intangible assets. | |||||||||||||||
(2) The prior period amount has been adjusted to include the tax effects of the adjustments to net income to conform to the current period presentation. | |||||||||||||||
(3) As a result of the Company’s adoption of ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Shared-Based Payment Accounting (“ASU 2016-09”) in the first quarter of 2017, the Company has retrospectively applied the standard to its condensed consolidated statements of cash flows in which the Company no longer classifies the excess tax benefits from employee stock plans as a reduction from operating cash flows. This resulted in a $1.2 million increase in net cash provided by operating activities and a corresponding $1.2 million decrease in net cash provided by financing activities for the six months ended June 30, 2016. |
Ellie Mae, Inc. | |||||||||||||||
NON-GAAP RECONCILIATION | |||||||||||||||
(UNAUDITED) | |||||||||||||||
(in thousands, except share and per share amounts) | |||||||||||||||
Third Quarter 2017 Projected Range | Fiscal 2017 Projected Range | ||||||||||||||
Net Income | $ | 7,000 | $ | 8,000 | $ | 40,000 | $ | 42,000 | |||||||
Depreciation and amortization | 9,600 | 9,700 | 36,000 | 37,000 | |||||||||||
Amortization of intangible assets | 1,100 | 1,100 | 4,300 | 4,300 | |||||||||||
Income tax provision/other | 2,700 | 3,100 | (3,300 | ) | (3,000 | ) | |||||||||
EBITDA | 20,400 | 21,900 | 77,000 | 80,300 | |||||||||||
Stock-based compensation expense | 10,000 | 10,500 | 37,000 | 37,500 | |||||||||||
Adjusted EBITDA | $ | 30,400 | $ | 32,400 | $ | 114,000 | $ | 117,800 | |||||||
Net Income | $ | 7,000 | $ | 8,000 | $ | 40,000 | $ | 42,000 | |||||||
Stock-based compensation expense | 10,000 | 10,500 | 37,000 | 37,500 | |||||||||||
Amortization of intangible assets | 1,100 | 1,100 | 4,300 | 4,300 | |||||||||||
Income tax effects of adjustments | (4,250 | ) | (4,550 | ) | (28,500 | ) | (29,500 | ) | |||||||
Adjusted net income | $ | 13,850 | $ | 15,050 | $ | 52,800 | $ | 54,300 | |||||||
Shares used to compute non-GAAP net income per share | |||||||||||||||
Basic | 34,400,000 | 34,700,000 | 33,800,000 | 34,000,000 | |||||||||||
Diluted | 36,100,000 | 36,300,000 | 36,000,000 | 36,200,000 | |||||||||||
Projected net income per share | |||||||||||||||
Basic | $ | 0.20 | $ | 0.23 | $ | 1.18 | $ | 1.24 | |||||||
Diluted | $ | 0.19 | $ | 0.22 | $ | 1.11 | $ | 1.16 | |||||||
Adjusted net income per share | |||||||||||||||
Basic | $ | 0.40 | $ | 0.43 | $ | 1.56 | $ | 1.60 | |||||||
Diluted | $ | 0.38 | $ | 0.41 | $ | 1.47 | $ | 1.50 |
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