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UPDATE: Interactive shares rise after smaller-than-expected loss

November 4, 2014

Interactive Intelligence Group Inc. lost money in the third quarter, but shares rose Monday night and Tuesday morning after results beat Wall Street estimates.

The Indianapolis-based software firm on Monday reported a loss of $2.1 million, or 10 cents a share, compared with profit of $1.6 million, or 8 cents a share, in the same period last year.

Analysts polled by Thompson Reuters projected a loss of 19 cents per share.

Shares closed Monday at $47.40 each prior to the earnings release, but rose more than 9 percent, to $52.01 in after-hours trading. Shares continued to climb Tuesday morning, to $53.25, up 11.6 percent since Monday's closing.

Revenue for the quarter was up nearly 15 percent from a year ago, to $89.5 million.

Total orders increased 46 percent from the third quarter of 2013, with cloud-based orders up 104 percent, representing 68 percent of total orders.

But operating expenses were up 22 percent in the quarter and have been running higher this year, partially because of “increased sales and marketing expenses to capture cloud market share,” the company said.

Company officials said the cloud-based solutions segment was one of Interactive's fastest-growing income generators, up 70 percent year-over-year, to $14.7 million.

“This quarter showed further evidence of our success in generating more revenue from our cloud-based services,” company founder and CEO Donald E. Brown said in written remarks.

Company officials said they expect a full-year 2014 operating losses of $7 to $8 million, or 20 cents to 23 cents per share, compared with prior guidance of a loss of 33 cents to 37 cents a share.
 

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