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 Incontact (NASDAQ:SAAS) have ended the day more than 6% lower after climbing partway out of a 12% hole that they plunged into at the open, as investors have apparently moderated their disappointment toward the company's mediocre second-quarter earnings report.

So what: Incontact reported revenue of $31.1 million for the second quarter, which missed Wall Street's $32.2 million target despite posting an impressive 19% year-over-year gain. However, the company's narrow $0.03 loss per share was $0.01 better than the $0.04 loss analysts had expected. Gross margin grew on both a GAAP and an adjusted basis.

Incontact's management tweaked its full-year guidance, and the company now expects total revenue to be in the $130 million to $132 million range, which will be driven by 25% to 28% growth in software segment revenue (total growth is in the 18% to 20% range). That comes in disappointingly below Wall Street's $136.1 million consensus for 2013, and is likely to be the main reason for the mild panic seen today.

Now what: Analysts at Benchmark downgraded Incontact to Hold after the report, and Piper Jaffray analysts point out that investors should have "expected" the drop after a steep run-up for the year collided with lowered earnings guidance. However, Piper maintained its $12 price target, and noted that the company's underlying business remains strong. A 20% annual growth rate is nothing to sneeze at -- there's no reason to run for the hills today if you were already in contact with Incontact's shares before the drop.

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