Interactive Intelligence Group Inc. ININ, a global provider of software and services designed to improve the customer experience, has announced financial results for the three and six months ended June 30, 2014.
“Our second-quarter revenues show the ongoing shift of our business to the cloud and were primarily impacted by lower than expected on-premises orders as well as the deferral of revenues from two sizable contracts we expected to recognize,” said Interactive Intelligence founder and CEO Dr. Donald Brown. “The shift to the cloud market is accelerating and will continue to result in more revenues being deferred to future quarters leading to greater overall growth of recurring revenue. Given the ongoing demand for our cloud-based offering and the strength of our pipeline globally, we remain committed to making investments that drive the growth of our business. With the release of our new multi-tenant Interactive Intelligence PureCloud offering expected in October, the company remains well positioned to gain market share and reduce cost of delivery.”
Second-Quarter 2014 Financial Highlights:
- Orders: Excluding the largest cloud-based order in the company's history that was received in the same quarter last year, total orders increased by 12 percent from the second quarter of 2013, with cloud-based orders up 69 percent and representing 52 percent of total orders. Including this large cloud-based order, total orders decreased by 38 percent year-over-year. During the quarter, the company signed 39 orders over $250,000, including 10 orders over $1 million.
- Revenues: Total revenues were $79.8 million, up 5 percent from the 2013 second quarter. Recurring revenues, including support fees from on-premises license agreements and fees from cloud-based customers, increased 27 percent to $44.6 million and accounted for 56 percent of total revenues. Cloud-based revenues increased 77 percent to $13.9 million. Product revenues were $21.5 million and services revenues $13.7 million, compared to $27.9 million and $13.2 million, respectively, in the second quarter of 2013.
- Total Deferred Revenues: Deferred revenues increased to $111.9 million, up from $108.3 million as of June 30, 2013. In addition, the amount of unbilled future cloud-based revenues increased to $224.8 million from $136.0 million at the end of the 2013 second quarter. The combination of deferred and unbilled future cloud-based revenues grew to $336.7 million, up 38 percent from $244.3 million as of June 30, 2013.
- Operating Income (Loss): GAAP operating loss was $(11.5) million, compared to GAAP operating income of $849,000 in the same quarter last year. Non-GAAP* operating loss was $(6.6) million, compared to non-GAAP operating income of $3.8 million in the second quarter of 2013. The year-over-year decline was primarily due to lower than anticipated product revenues, combined with increased sales and marketing expenses to capture cloud market share, and increased research and development expenses to accelerate time-to-market of Interactive Intelligence PureCloud℠.
- Income Taxes: Income tax benefit for the second quarter was $4.6 million. The company's estimated annual effective tax rate is 41.0 percent.
-
Net Income (Loss): GAAP net loss was $(6.8) million, or $(0.33)
per diluted share based on 20.9 million weighted average shares
outstanding, compared to GAAP net income in the same quarter of 2013
of $2.9 million, or $0.14 per diluted share based on 20.9 million
weighted average diluted shares outstanding. GAAP net income for the
second quarter of 2013 included an income tax benefit primarily
related to a change in transfer pricing implemented in the second
quarter of 2013.
Non-GAAP net loss for the second quarter was $(3.7) million, or $(0.18) per diluted share, compared to non-GAAP net income of $3.4 million, or $0.16 per diluted share in the same quarter of 2013.
- Cash, Cash Equivalents and Investments: Cash, cash equivalents and investments totaled $86.0 million as of June 30, 2014, compared to $104.9 million as of March 31, 2014.
- Cash Flows: The company used $1.4 million for operating activities in the quarter and used $4.9 million for capital expenditures, which included continued expansion of its cloud infrastructure and $9.3 million in connection with an acquisition.
* A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included with this press release. An explanation of these measures is also included below under the heading “Non-GAAP Measures.”
Six Months Ended 2014 Financial Highlights:
- Orders: Excluding the largest cloud-based order in the company's history received during the second quarter of 2013, total orders increased by 26 percent from the first six months of 2013, and cloud-based orders were up 112 percent over the first six months of 2013. Including this large cloud-based order, total orders decreased by 12 percent year-over-year. Cloud-based orders comprised 55 percent of total orders during the first six months of 2014. The company signed 73 orders over $250,000, including 19 orders over $1 million.
- Revenues: Total revenues were $159.3 million, an increase of 7 percent over the first six months of 2013. Recurring revenues increased 28 percent to $88.0 million and accounted for 55 percent of total revenues. Cloud-based revenues increased 80 percent to $26.9 million. Product revenues were $44.4 million, down 21 percent, and services revenues were $26.9 million, up 9 percent compared to the first six months of 2013.
- Operating Income (Loss): GAAP operating loss was $(16.3) million for the first six months of 2014, compared to GAAP operating income of $4.3 million over the same period last year. Non-GAAP operating loss was $(7.6) million for the first six months of 2014, compared to non-GAAP operating income of $10.0 million during the same period last year. The year-over-year decline was primarily due to lower than anticipated product revenues, combined with increased sales and marketing expenses to capture cloud market share, and increased research and development expenses to accelerate time-to-market of PureCloud℠.
-
Net Income (Loss): GAAP net loss for the first six months of
2014 was $(9.4) million, or $(0.45) per diluted share based on 20.8
million weighted average shares outstanding, compared to GAAP net
income for the same period in 2013 of $4.4 million, or $0.21 per
diluted share based on 20.8 million weighted average diluted shares
outstanding. GAAP net income for the six months ended June 30, 2013
included an income tax benefit primarily driven by a change in
transfer pricing implemented during the second quarter of 2013.
Non-GAAP net loss for the first six months of 2014 was $(4.1) million, or $(0.20) per diluted share, compared to non-GAAP net income of $7.0 million, or $0.33 per diluted share during the same period in 2013.
- Cash, Cash Equivalents and Investments: Cash, cash equivalents and investments totaled $86.0 million as of June 30, 2014, compared to $107.8 million as of Dec. 31, 2013.
- Cash Flows: The company generated $3.8 million in cash flow from operations during the six months ended June 30, 2014, and used $13.1 million for capital expenditures, which included continued expansion of its cloud infrastructure and $9.3 million in connection with an acquisition.
Additional Second-Quarter 2014 and Recent Highlights:
- The company signed West Interactive (a subsidiary of West Corp.) as an Elite Partner, which enables West to provide sales, service and support nationwide for the entire suite of Interactive Intelligence business communications solutions.
- Interactive Intelligence announced the launch of Interactive Intelligence PureCloud, a highly scalable, multi-tenant suite of cloud-based services for communications, collaboration and customer engagement that leverages the latest open source technologies.
- Interactive Intelligence was named Frost & Sullivan's 2014 North American Contact Center Systems Company of the Year.
- CRM magazine named Interactive Intelligence its Service Leader winner in the category of interactive voice response.
Interactive Intelligence will host a conference call today at 4:30 p.m. Eastern time (EDT) featuring Dr. Brown and the company's CFO, Stephen R. Head. A live Q&A session will follow opening remarks.
To access the teleconference, please dial 1 877.324.1969 at least five minutes prior to the start of the call. Ask for the teleconference by the following name: “Interactive Intelligence second-quarter earnings call.” The teleconference will also be broadcast live on the company's investor relations' page at http://investors.inin.com. An archive of the teleconference will be posted following the call.
About Interactive Intelligence
Interactive Intelligence Group Inc. ININ is a global provider of software and services designed to improve the customer experience. The company's 6,000-plus customers worldwide have benefitted from its cloud and on-premises solutions for contact center, unified communications, and business process automation. Interactive Intelligence is among Software Magazine's 2013 Top 500 Global Software and Service Providers, and has received a Frost & Sullivan Company of the Year Award for the last five consecutive years. In addition, Glassdoor honored Interactive Intelligence with its 2014 Employees' Choice Award as one of the Best Places to Work in the U.S., and Mashable ranked Interactive Intelligence second on its 2014 list of the Seven Best Tech Companies to Work For. The company was founded in 1994 and employs more than 2,000 people worldwide. Interactive Intelligence is headquartered in Indianapolis, Indiana and has offices throughout North America, Latin America, Europe, Middle East, Africa and Asia Pacific. It can be reached at +1 317.872.3000 or info@inin.com. Visit Interactive Intelligence on the Web at www.inin.com; on Twitter at www.inin.com/twitter; on Facebook at www.inin.com/facebook; or on LinkedIn at www.inin.com/linkedin.
Non-GAAP Measures
The non-GAAP measures shown in this release include revenue which was not recognized on a GAAP basis due to purchase accounting adjustments, exclude non-cash stock-based compensation expense, certain acquisition-related expenses and the amortization of certain intangible assets related to acquisitions by the company, and adjust for non-GAAP income tax expense. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included with the financial information included in this press release. These measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP measures used by other companies. Stock-based compensation expense and amortization of intangibles related to acquisitions are non-cash and non-GAAP income tax expense is pro forma based on non-GAAP earnings. Management believes that the presentation of non-GAAP results, when shown in conjunction with corresponding GAAP measures, provides useful information to management and investors regarding financial and business trends related to the company's results of operations. Further, our management believes that these non-GAAP measures improve management's and investors' ability to compare the company's financial performance with other companies in the technology industry. Because stock-based compensation expense, certain acquisition-related expenses and amortization of intangibles related to acquisitions amounts can vary significantly between companies, it is useful to compare results excluding these amounts. Our management also reviews financial statements that exclude stock-based compensation expense, certain acquisition-related expenses and amortization of intangibles amounts related to acquisitions for its internal budgets.
Forward Looking Statements
This release may contain certain forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: rapid technological changes and competitive pressures in the industry; worldwide economic conditions and their impact on customer purchasing decisions; the company's ability to maintain profitability; to manage successfully its growth; to manage successfully its increasingly complex third-party relationships resulting from the software and hardware components being licensed or sold with its solutions; to maintain successful relationships with certain suppliers which may be impacted by the competition in the technology industry; to maintain successful relationships with its current and any new partners; to maintain and improve its current products; to develop new products; to protect its proprietary rights and sensitive customer information adequately; improve the company's brand and name recognition; to successfully integrate acquired businesses; and other factors described in the company's SEC filings, including the company's latest annual report on Form 10-K.
Interactive Intelligence is the owner of the marks INTERACTIVE INTELLIGENCE, its associated LOGO and numerous other marks. All other trademarks mentioned in this document are the property of their respective owners.
Interactive Intelligence Group, Inc. | ||||||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
(unaudited) |
||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
2014 | 2013 | 2014 |
2013 |
|||||||||||||||
Revenues: | ||||||||||||||||||
Product | $ | 21,548 | $ | 27,909 | $ | 44,394 | $ | 55,900 | ||||||||||
Recurring | 44,617 | 35,106 | 88,026 | 68,933 | ||||||||||||||
Services | 13,665 | 13,227 | 26,858 | 24,647 | ||||||||||||||
Total revenues | 79,830 | 76,242 | 159,278 | 149,480 | ||||||||||||||
Costs of revenues: | ||||||||||||||||||
Costs of product | 6,553 | 7,214 | 13,337 | 15,092 | ||||||||||||||
Costs of recurring | 15,924 | 10,024 | 30,639 | 19,957 | ||||||||||||||
Costs of services | 11,298 | 9,846 | 21,815 | 17,707 | ||||||||||||||
Amortization of intangible assets | 137 | 49 | 186 | 98 | ||||||||||||||
Total costs of revenues | 33,912 | 27,133 | 65,977 | 52,854 | ||||||||||||||
Gross profit | 45,918 | 49,109 | 93,301 | 96,626 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Sales and marketing | 30,151 | 26,040 | 57,649 | 49,541 | ||||||||||||||
Research and development | 15,906 | 13,168 | 29,705 | 25,692 | ||||||||||||||
General and administrative | 10,898 | 8,584 | 21,325 | 16,198 | ||||||||||||||
Amortization of intangible assets | 476 | 468 | 948 | 931 | ||||||||||||||
Total operating expenses | 57,431 | 48,260 | 109,627 | 92,362 | ||||||||||||||
Operating income (loss) | (11,513 | ) | 849 | (16,326 | ) | 4,264 | ||||||||||||
Other income (expense): | ||||||||||||||||||
Interest income, net | 275 | 250 | 557 | 449 | ||||||||||||||
Other income (expense) | (190 | ) | 27 | (386 | ) | (1,375 | ) | |||||||||||
Total other income (expense) | 85 | 277 | 171 | (926 | ) | |||||||||||||
Income (loss) before income taxes | (11,428 | ) | 1,126 | (16,155 | ) | 3,338 | ||||||||||||
Income tax benefit | (4,630 | ) | (1,775 | ) | (6,793 | ) | (1,020 | ) | ||||||||||
Net income (loss) | $ | (6,798 | ) | $ | 2,901 | $ | (9,362 | ) | $ | 4,358 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||||
Foreign currency translation adjustment | $ | 97 | $ | 16 | $ | 656 | $ | 121 | ||||||||||
Unrealized investment loss - net of tax | (9 | ) | (196 | ) | (26 | ) | (228 | ) | ||||||||||
Comprehensive income (loss) | $ | (6,710 | ) | $ | 2,721 | $ | (8,732 | ) | $ | 4,251 | ||||||||
Net income (loss) per share: | ||||||||||||||||||
Basic | ||||||||||||||||||
Diluted | $ | (0.33 | ) | $ | 0.15 | $ | (0.45 | ) | $ | 0.22 | ||||||||
(0.33 | ) | 0.14 | (0.45 | ) | 0.21 | |||||||||||||
Shares used to compute net income (loss) per share: | ||||||||||||||||||
Basic | 20,851 | 19,946 | 20,771 | 19,826 | ||||||||||||||
Diluted | 20,851 | 20,935 | 20,771 | 20,847 | ||||||||||||||
Interactive Intelligence Group, Inc. | ||||||||||||||||||
Reconciliation of Supplemental Financial Information | ||||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
Unaudited | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
2014 |
2013 | 2014 |
2013 |
|||||||||||||||
Recurring revenue, as reported |
$ | 44,617 | $ | 35,106 | $ | 88,026 | $ | 68,933 | ||||||||||
Purchase accounting adjustments | 5 | 63 | 10 | 148 | ||||||||||||||
Non-GAAP recurring revenue | $ | 44,622 | $ | 35,169 | $ | 88,036 | $ | 69,081 | ||||||||||
Recurring revenue gross profit as reported | $ | 28,693 | $ | 25,082 | $ | 57,387 | $ | 48,976 | ||||||||||
Purchase accounting adjustments | 5 | 63 | 10 | 148 | ||||||||||||||
Non-cash stock-based compensation expense | 367 | 208 | 674 | 375 | ||||||||||||||
Non-GAAP recurring revenue gross profit | $ | 29,065 | $ | 25,353 | $ | 58,071 | $ | 49,499 | ||||||||||
Non-GAAP recurring revenue gross margin | 65.1 | % | 72.1 | % | 66.0 | % | 71.7 | % | ||||||||||
Services revenue gross profit as reported | $ | 2,367 | $ | 3,381 | $ | 5,043 | $ | 6,940 | ||||||||||
Non-cash stock-based compensation expense | 115 | 67 | 221 | 116 | ||||||||||||||
Non-GAAP services revenue gross profit | $ | 2,482 | $ | 3,448 | $ | 5,264 | $ | 7,056 | ||||||||||
Non-GAAP services revenue gross margin | 18.2 | % | 26.1 | % | 19.6 | % | 28.6 | % | ||||||||||
Total revenue, as reported | $ | 79,830 | $ | 76,242 | $ | 159,278 | $ | 149,480 | ||||||||||
Purchase accounting adjustments | 5 | 63 | 10 | 148 | ||||||||||||||
Non-GAAP total revenue | $ | 79,835 | $ | 76,305 | $ | 159,288 | $ | 149,628 | ||||||||||
Gross Profit, as reported | $ | 45,918 | $ | 49,109 | $ | 93,301 | $ | 96,626 | ||||||||||
Revenue adjustments | 5 | 63 | 10 | 148 | ||||||||||||||
Acquired technology | 137 | 49 | 186 | 98 | ||||||||||||||
Non-cash stock-based compensation expense | 482 | 275 | 895 | 491 | ||||||||||||||
Non-GAAP gross profit | $ | 46,542 | $ | 49,496 | $ | 94,392 | $ | 97,363 | ||||||||||
Non-GAAP gross margin | 58.3 | % | 64.9 | % | 59.3 | % | 65.1 | % | ||||||||||
Operating income (loss), as reported | $ | (11,513 | ) | $ | 849 | $ | (16,326 | ) | $ | 4,264 | ||||||||
Purchase accounting adjustments | 1,218 | 607 | 1,744 | 1,218 | ||||||||||||||
Non-cash stock-based compensation expense | 3,696 | 2,361 | 6,936 | 4,535 | ||||||||||||||
Non-GAAP operating (loss) income | $ | (6,599 | ) | $ | 3,817 | $ | (7,646 | ) | $ | 10,017 | ||||||||
Non-GAAP operating margin | -8.3 | % | 5.0 | % | -4.8 | % | 6.7 | % | ||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 30, | June 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Net income (loss), as reported |
$ | (6,798 | ) | $ | 2,901 | $ | (9,362 | ) | $ | 4,358 | ||||||||
Purchase accounting adjustments: | ||||||||||||||||||
Increase to revenues | 5 | 63 | 10 | 148 | ||||||||||||||
Reduction of operating expenses: | ||||||||||||||||||
Customer Relationships | 431 | 423 | 858 | 841 | ||||||||||||||
Technology | 137 | 49 | 186 | 98 | ||||||||||||||
Non-compete agreements | 45 | 45 | 90 | 90 | ||||||||||||||
Acquisition Costs | 600 | 27 | 600 | 41 | ||||||||||||||
Total | 1,218 | 607 | 1,744 | 1,218 | ||||||||||||||
Non-cash stock-based compensation expense: | ||||||||||||||||||
Cost of recurring revenues | 367 | 208 | 674 | 375 | ||||||||||||||
Cost of services revenues | 115 | 67 | 221 | 116 | ||||||||||||||
Sales and marketing | 1,037 | 817 | 2,133 | 1,625 | ||||||||||||||
Research and development | 1,352 | 693 | 2,306 | 1,309 | ||||||||||||||
General and administrative | 825 | 576 | 1,602 | 1,110 | ||||||||||||||
Total | 3,696 | 2,361 | 6,936 | 4,535 | ||||||||||||||
Non-GAAP income tax expense adjustment | (1,815 | ) | (2,512 | ) | (3,410 | ) | (3,152 | ) | ||||||||||
Non-GAAP net income (loss) | $ | (3,699 | ) | $ | 3,357 | $ | (4,092 | ) | $ | 6,959 | ||||||||
Diluted EPS, as reported | $ | (0.33 | ) | $ | 0.14 | $ | (0.45 | ) | $ | 0.21 | ||||||||
Purchase accounting adjustments | 0.06 | 0.03 | 0.08 | 0.06 | ||||||||||||||
Non-cash stock-based compensation expense | 0.18 | 0.11 | 0.33 | 0.22 | ||||||||||||||
Non-GAAP income tax expense adjustment | (0.09 | ) | (0.12 | ) | (0.16 | ) | (0.16 | ) | ||||||||||
Non-GAAP diluted EPS |
$ | (0.18 | ) | $ | 0.16 | $ | (0.20 | ) | $ | 0.33 | ||||||||
Interactive Intelligence Group, Inc. | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
(in thousands) | ||||||||||
June 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
Assets |
(unaudited) |
|||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 34,534 | $ | 65,881 | ||||||
Short-term investments | 38,664 | 32,162 | ||||||||
Accounts receivable, net | 64,957 | 80,414 | ||||||||
Deferred tax assets, net | 27,673 | 23,684 | ||||||||
Prepaid expenses | 26,317 | 21,989 | ||||||||
Other current assets | 19,372 | 13,566 | ||||||||
Total current assets | 211,517 | 237,696 | ||||||||
Long-term investments | 12,784 | 9,787 | ||||||||
Property and equipment, net | 42,907 | 36,919 | ||||||||
Goodwill | 46,026 | 37,298 | ||||||||
Intangible assets, net | 25,357 | 20,613 | ||||||||
Other assets, net | 18,701 | 10,909 | ||||||||
Total assets | $ | 357,292 | $ | 353,222 | ||||||
Liabilities and Shareholders' Equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 9,148 | $ | 8,727 | ||||||
Accrued liabilities | 18,145 | 15,162 | ||||||||
Accrued compensation and related expenses | 13,842 | 17,494 | ||||||||
Deferred product revenues | 10,399 | 10,412 | ||||||||
Deferred services revenues | 79,886 | 81,630 | ||||||||
Total current liabilities | 131,420 | 133,425 | ||||||||
Long-term deferred revenues | 21,590 | 23,914 | ||||||||
Deferred tax liabilities, net | 1,901 | 2,388 | ||||||||
Other long-term liabilities | 7,423 | 4,140 | ||||||||
Total liabilities | 162,334 | 163,867 | ||||||||
Shareholders' equity: | ||||||||||
Preferred stock | - | - | ||||||||
Common stock | 210 | 205 | ||||||||
Additional paid-in-capital | 184,402 | 170,072 | ||||||||
Accumulated other comprehensive loss | (1,046 | ) | (1,676 | ) | ||||||
Retained earnings | 11,392 | 20,754 | ||||||||
Total shareholders' equity | 194,958 | 189,355 | ||||||||
Total liabilities and shareholders' equity | $ | 357,292 | $ | 353,222 | ||||||
Interactive Intelligence Group, Inc. | ||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||
(in thousands) | ||||||||||
Six Months Ended | ||||||||||
June 30, | ||||||||||
2014 | 2013 | |||||||||
(unaudited) | ||||||||||
Operating activities: |
||||||||||
Net income (loss) | $ | (9,362 | ) | $ | 4,358 | |||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||
Depreciation | 7,175 | 5,023 | ||||||||
Amortization | 1,134 | 1,029 | ||||||||
Other non-cash items | 363 | 1,255 | ||||||||
Stock-based compensation expense | 6,936 | 4,535 | ||||||||
Excess tax benefit from stock-based payment arrangements | - | (525 | ) | |||||||
Deferred income tax | (4,658 | ) | 729 | |||||||
Accretion of investment discount | (161 | ) | (385 | ) | ||||||
Loss on disposal of fixed assets | 23 | - | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable | 12,201 | (1,903 | ) | |||||||
Prepaid expenses | (4,274 | ) | (3,592 | ) | ||||||
Other current assets | (2,718 | ) | (6,115 | ) | ||||||
Accounts payable | 421 | 278 | ||||||||
Accrued liabilities | 2,793 | (6,807 | ) | |||||||
Accrued compensation and related expenses | (3,652 | ) | (1,962 | ) | ||||||
Deferred product revenues | (15 | ) | 6,025 | |||||||
Deferred services revenues | (4,066 | ) | 10,271 | |||||||
Other assets and liabilities | 1,702 | 585 | ||||||||
Net cash provided by operating activities | 3,842 | 12,799 | ||||||||
Investing activities: |
||||||||||
Sales of available-for-sale investments | 22,785 | 13,576 | ||||||||
Purchases of available-for-sale investments | (32,167 | ) | (22,100 | ) | ||||||
Purchases of property and equipment | (13,078 | ) | (12,893 | ) | ||||||
Capitalized internal use software cost | (6,339 | ) | (208 | ) | ||||||
Acquisitions, net of cash | (9,297 | ) | (725 | ) | ||||||
Unrealized (gain) loss on investment | 18 | (54 | ) | |||||||
Net cash used in investing activities | (38,078 | ) | (22,404 | ) | ||||||
Financing activities: | ||||||||||
Proceeds from stock options exercised | 4,971 | 7,569 | ||||||||
Proceeds from issuance of common stock | 543 | 404 | ||||||||
Tax withholding on restricted stock awards | (2,625 | ) | (899 | ) | ||||||
Excess tax benefit from stock-based payment arrangements | - | 525 | ||||||||
Net cash provided by financing activities | 2,889 | 7,599 | ||||||||
Net decrease in cash and cash equivalents | (31,347 | ) | (2,006 | ) | ||||||
Cash and cash equivalents, beginning of period | 65,881 | 45,057 | ||||||||
Cash and cash equivalents, end of period | $ | 34,534 | $ | 43,051 | ||||||
Cash paid during the period for: | ||||||||||
Interest | $ | - | $ | - | ||||||
Income taxes | 1,687 | 6,954 | ||||||||
Other non-cash item: | ||||||||||
Purchases of property and equipment payable at end of period | $ | 892 | $ | 355 | ||||||
Supplemental Data | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||
2013 |
2014 | |||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 |
Total |
|||||||||||||||||||||||||
Margins (GAAP): | ||||||||||||||||||||||||||||||||
Product | 71.9 | % | 74.2 | % | 75.5 | % | 78.4 | % | 75.2 | % | 70.3 | % | 69.6 | % | 70.0 | % | ||||||||||||||||
Recurring | 70.6 | % | 71.4 | % | 69.5 | % | 67.6 | % | 69.7 | % | 66.1 | % | 64.3 | % | 65.2 | % | ||||||||||||||||
Services | 31.2 | % | 25.6 | % | 28.9 | % | 20.6 | % | 26.3 | % | 20.3 | % | 17.3 | % | 18.8 | % | ||||||||||||||||
Overall | 64.9 | % | 64.4 | % | 64.5 | % | 64.2 | % | 64.5 | % | 59.6 | % | 57.5 | % | 58.6 | % | ||||||||||||||||
Year-over-year Revenue Growth (GAAP): | ||||||||||||||||||||||||||||||||
Product | 44.0 | % | 41.9 | % | 20.6 | % | 28.3 | % | 32.8 | % | -18.4 | % | -22.8 | % | -20.6 | % | ||||||||||||||||
Recurring | 22.4 | % | 23.6 | % | 28.6 | % | 25.2 | % | 25.0 | % | 28.3 | % | 27.1 | % | 27.7 | % | ||||||||||||||||
Services | 100.6 | % | 96.8 | % | 74.1 | % | 41.2 | % | 73.0 | % | 15.5 | % | 3.3 | % | 9.0 | % | ||||||||||||||||
Overall | 38.8 | % | 39.2 | % | 31.5 | % | 28.7 | % | 34.1 | % | 8.5 | % | 4.7 | % | 6.6 | % | ||||||||||||||||
Orders: | ||||||||||||||||||||||||||||||||
Over $1 million | 8 | 13 | 12 | 15 | 48 | 9 | 10 | 19 | ||||||||||||||||||||||||
Between $250,000 and $1 million | 31 | 30 | 35 | 48 | 144 | 25 | 29 | 54 | ||||||||||||||||||||||||
Number of new customers | 74 | 89 | 67 | 86 | 316 | 54 | 70 | 124 | ||||||||||||||||||||||||
Average new customer order: | ||||||||||||||||||||||||||||||||
Overall | $ | 335 | $ | 272 | $ | 503 | $ | 485 | $ | 394 | $ | 516 | $ | 352 | $ | 423 | ||||||||||||||||
Cloud-based | 788 | 427 | 796 | 836 | 717 | 935 | 472 | 655 | ||||||||||||||||||||||||
ININ-G
Interactive Intelligence
Stephen R. Head, Chief Financial Officer,
+1 317-715-8412
steve.head@inin.com
or
ICR,
Inc.
Seth Potter, Investor Relations, +1 646-277-1230
seth.potter@icrinc.com
or
Interactive
Intelligence
Christine Holley, Senior Director of Market
Communications, +1 317-715-8220
christine.holley@inin.com
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