ELLI Firm states it's unchanged $39.00 tgt is incrementally conservative,
02-Aug-13 07:45 ET
Elli Mae: Color on the Quarter
•FBR Capital Markets note Ellie Mae reported revenue and pro forma earnings results that met expectations and provided Q3 guidance above expectations. More importantly, the company delivered the highest sequential increase ever in SaaS users and another record level of user bookings. Firm believes Q2 results reflect the company's solid execution as it was able to deliver results even in a challenging market, offsetting some of the concern on the impact of rising rates. Firm reiterates its outperform rating.
•Wunderlich notes ELLI announced strong 2Q13 results yesterday. EPS matched firm's $0.29 forecast as some 2H13 spending was made earlier in the year to support its still accelerated growth. Strong total customer adds continue to argue for strong organic growth although guidance envisions sideways-to-down revenues in 2H13, a likely overly conservative stance. Firm states it's unchanged $39.00 tgt is incrementally conservative, as it could now argue for a multiple above leading SaaS players given its sector-leading profitability and growth profile. Firm reiterates Buy rating.
•Stock is up approx 1% in pre-market trading.