inContact Posts Huge Earnings Jump for Q1 2013
May 03, 2013
inContact, a provider of cloud contact center software, increased earnings by 39 percent over Q4 2012, its biggest jump ever, the company has reported.
"Q1 was the strongest bookings quarter in inContact's history, fueled by the increasing momentum of cloud adoption and our growing win rate in larger enterprise deals,” said Paul Jarman, inContact CEO, in a statement. “We closed a total of 57 contracts, 39 with new customers and 18 with existing customers. In addition, we continued to experience very positive momentum in our reseller channel during the quarter."
The software segment revenue for the company totaled $16.2 million for the quarter, which ended March 31, an increase of $3.9 million or 31 percent from $12.3 million in Q1 2012. Telecom segment revenue for Q1 2013 was $15.5 million for the quarter, a jump of $2.2 million or 17 percent from $13.3 over the last quarter of 2012, driven by increases in software-related telecom revenue.
The numbers mark the tenth-consecutive quarter that software and software-related telecom revenue has increased for the company.
"We are experiencing great traction across a wide variety of vertical markets, and are seeing an increasing frequency of large enterprises moving to the cloud,” Jarman added. “We are extremely encouraged by our strong start to the year and are well positioned to meet our guidance and growth commitments for the remainder of 2013."
The Q1 2013 software segment gross margin was 60 percent versus 59 percent in Q1 2012, and excluding non-cash charges, non-GAAP software segment gross margin was 72 percent for the quarter, versus 71 percent in Q1 2012. This increase in gross margin is principally attributable to revenue increases in 2013 as well as operational efficiencies and leverage in international infrastructure investments made in Q4 of 2011. First quarter 2013 telecom segment gross margin was 35 percent versus 30 percent in Q1 2012.
The financial results come on the heels of upbeat news about several recent “wins” for the company. Last month, inContact announced a leading regional bank had chosen it to unify its multistate contact operations center, and a global outsourcer selected inContact to support a number of financial, insurance and healthcare industries.
Edited by Rachel Ramsey