Interactive Intelligence, a global provider of software and services designed to improve the customer experience, has announced financial results for the three and six months ended 30 June, 2013.
“The market is now definitively recognising how Interactive Intelligence takes enterprises’ customer service experiences to new levels,” says Interactive Intelligence founder and CEO Dr. Donald Brown.
“Demand for our solutions remained strong in the quarter as we executed particularly well in the North America and Asia Pacific regions. Our exceptional year-over-year increase in total orders was driven by a more than 400% increase in cloud-based orders, which included the signing of the largest contract in the company’s history.”
“While continuing to drive up-market with our best-in-class contact centre solutions for the enterprise, we recently expanded our product footprint with the introduction of our cloud-based CaaS Small Centre offering specifically designed for contact centres with under 50 agents.
“Considering our strong performance in the quarter and outlook for continued order growth, we remain confident in our long-term business strategy to increase recurring revenues, consistently grow faster than the overall market, and lead the contact centre’s migration to the cloud.”
Second quarter 2013 financial highlights include:
* Orders – total orders increased by 115% from the second quarter of 2012, with cloud-based orders up 469% over the second quarter of 2012 to comprise 64% of total orders. The company signed 43 contracts over $250,000, including 14 over $1-million, up from 36 and 8 orders in the second quarter of 2012, respectively.
* Revenues – total revenues were $76,2-million, an increase of 39% over the second quarter of 2012. Recurring revenues, which include support fees from on-premises license agreements and fees from cloud-based solutions, increased 24% to $35,1-million and accounted for 46% of total revenues.
Cloud-based revenues increased 56% to $7,9-million. Product revenues were $27,9-million and services revenues were $13,2-million, up 42% and 97%, respectively, compared to the second quarter of 2012.
* Total deferred revenues – deferred revenues increased to $108,3-million as of June 30, 2013, from $78,8-million as of June 30, 2012. In addition, the amount of unbilled future cloud-based revenues increased to $136-million from $49,7-million at the end of the 2012 second quarter.
The combination of deferred revenues and unbilled future cloud-based revenues was $244,3-million, up 90% from $128,5-million as of June 30, 2012.
* Operating income – GAAP operating income was $849,000 for the second quarter of 2013, compared to a loss of $1,8-million in same quarter last year. Non-GAAP operating income was $3,8-million for the second quarter of 2013, with a non-GAAP operating margin of 5%, compared to $391,000 and 0,7%, respectively, in the second quarter of 2012.
* Net income – preliminary GAAP net income for the second quarter of 2013 was $1,2-million, or $06 per diluted share based on 20,9-million weighted average diluted shares outstanding. These results compare to GAAP net loss of $1,1-million, or $06 per diluted share, based on 19,2-million weighted average diluted shares outstanding for the same quarter in 2012.
Preliminary Non-GAAP net income for the second quarter of 2013 was $2,9-million, or $0,14 per diluted share, compared to non-GAAP net income of $580,000, or $03 per diluted share, for the same quarter in 2012.
The final determination of the company’s GAAP and non-GAAP net income and earnings per diluted share is subject to the completion of the company’s tax provision. The company expects the preparation of its tax provision to be completed by the filing of its Quarterly Report on Form 10-Q. The preliminary GAAP and non-GAAP net income and earnings per diluted share in this release could change materially.
* Cash, cash equivalents and investments – as of June 30, 2013, cash, cash equivalents, and investments were $87,4-million.
* Cash flows – the company generated $13,6-million in cash flow from operating activities in the second quarter of 2013 and used $9,3-million for capital expenditures, which included expansion of cloud infrastructure to support growth. In addition, $1,9-million was received during the quarter from the exercise of stock options.