Ellie Mae

Investment Analysis Clubs Saul’s Investing Discussions
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Saul I was looking further into Elli to rebut you on this stock. But as I looked into it I realized that I agree with you. While I think that they will do better than the S&P, I do not think that it is the best place for capital today. (In the interest of full disclosure I did keep a smaller position so I would keep looking at the numbers).

The fourth quarter revenue was up 53% YOY and revenue was up 26% for the full year while industry volume was down an estimated 38%. Sounds great, right.

But the Net income, with tax provisions, was the same as 2012 when revenue was up 60 from 2012. And the share base increased. Disappointing.

rev 2012 101 M, 2014 161 M
income 2012 21.1 M, 2014 21.6 M
shares 2012 25.5 M, 2014 29.6 M

I am glad you got me digging into the numbers.

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Hi Flygal, thanks for looking into it and presenting those interesting results. 60% more revenue with the same Net Income is definitely troubling. And all the time they kept saying: “We’re just spending for one or two more quarters”. They’re saying the same thing now, too.

Saul

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