Interactive Intelligence Group Beats on EPS But GAAP Results Lag

Interactive Intelligence Group (Nasdaq: ININ  ) reported earnings on Nov. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Interactive Intelligence Group met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank to a loss.

Margins contracted across the board.

Revenue details
Interactive Intelligence Group booked revenue of $59.3 million. The seven analysts polled by S&P Capital IQ expected sales of $59.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $52.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.10. The six earnings estimates compiled by S&P Capital IQ anticipated $0.05 per share. GAAP EPS were -$0.02 for Q3 against $0.16 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 65.7%, 110 basis points worse than the prior-year quarter. Operating margin was -1.5%, 1,060 basis points worse than the prior-year quarter. Net margin was -0.8%, 710 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $67.5 million. On the bottom line, the average EPS estimate is $0.26.

Next year's average estimate for revenue is $234.2 million. The average EPS estimate is $0.50.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 368 members out of 393 rating the stock outperform, and 25 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 112 give Interactive Intelligence Group a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Interactive Intelligence Group is outperform, with an average price target of $30.29.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Interactive Intelligence. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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