Interactive Intelligence Group Inc. saw a smaller profit in the fourth quarter despite higher revenue driven by a significant increase in orders.
The Indianapolis-based developer of communications and interactions-management software said late Monday that it earned $2.3 million, or 11 cents per share, compared with $4.6 million, or 23 cents per share, in the fourth quarter of 2011.
The company attributed the lower profit to increased investments in sales, marketing and research and development, in addition to deferring some revenue to future periods.
Fourth-quarter revenue increased 22 percent, to $70.5 million.
The company’s whopping 119-percent increase in orders was largely driven by a 311-percent surge in cloud-based contracts.
Interactive Intelligence increasingly is selling a lower percentage of its software in a box and more through cloud-based delivery, in which customers access software over the Internet.
“Our strong performance during the fourth quarter led to a record year for orders and revenues,” founder and CEO Donald Brown said in a prepared statement. “The number of our new cloud-based customers reached record levels in the fourth quarter and the total dollar amount of contracts continues growing at a rate significantly higher than the overall market.”
For the entire year, Interactive Intelligence earned $906,000, or 4 cents per share, compared to $14.8 million, or 74 cents per share, in 2011.
Company shares closed Monday at $41.21 each, down from a 52-week high of $42.11 reached Friday.