Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Interactive Intelligence Group (Nasdaq: ININ) are losing their connection today, down by as much as a whopping 28%, after the company reported disappointing third-quarter earnings last night.

So what: The Voice over Internet Protocol, or VoIP, software maker rang up revenue of $52.1 million, with earnings per share of $0.29. Both of these figures were short of analysts' consensus estimates, which called for sales of $53.5 million and profit of $0.31 per share, despite the fact that revenue jumped by 25%.

Now what: Following the results, the stock also saw a downgrade from Dougherty & Co., who cut the stock from "buy" to "neutral," while trimming its price target from $45 to $35. The Dougherty analyst cited two risks that contributed to the decision: orders shifting to Communication-as-a-Service, or CaaS, which adds uncertainty, as well as an extension of the sales cycle from macroeconomic conditions. I happen to like Acme Packet (Nasdaq: APKT) as a better pick with exposure to the migration toward VoIP, although that stock has had its fair share of ups and downs.

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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Interactive Intelligence Group and Acme Packet. 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.