Indianapolis-based Interactive Intelligence Group Inc. reported a larger loss in the latest quarter, but it beat analyst expectations with the results.
The firm, which sells communication software for call centers and other enterprise functions, said it lost $9.8 million, or 45 cents a share, in the third quarter. In the same period last year, the company lost $2.1 million, or 10 cents a share.
After adjusting for stock-option expenses and non-recurring costs, the loss in the most recent quarter was about $951,000, or 4 cents a share. Analysts surveyed by Zacks expected a loss of 17 cents a share.
The company reported revenue of $97.37 million in the third quarter, up 8.8 percent from the year-ago period, just above what analysts forecast.
Interactive has spent the past several years transitioning to a subscription-based business model from one based on selling software licenses up front. The company said its recurring revenues, which include cloud subscriptions and support fees from on-premise licenses, grew 23 percent from a year ago, to $59.2 million.
Cloud subscriptions drove that growth, swelling 77 percent to $25.9 million.
“The third quarter showed that we are continuing to execute on our strategy to become the leading vendor in the customer engagement market,” founder and CEO Donald Brown said in written remarks. “Increasing cloud subscriptions is an essential part of this strategy, and the impressive jump we saw in the quarter reflected an almost 40 [percent] year-over-year increase in the number of new cloud customers … ."
The company has topped Wall Street earnings predictions for at least the past five quarters. Still, its stock is down about 31 percent for the year. Shares closed at $33.04 each Monday prior to the post-market earnings release, up 2.2 percent on the day.