GURUFOCUS.COM » STOCK LIST » Technology » Software » Interactive Intelligence Group Inc (NAS:ININ) » Definitions » Gross Margin %

Interactive Intelligence Group (Interactive Intelligence Group) Gross Margin % : 64.40% (As of Sep. 2016)


View and export this data going back to 1999. Start your Free Trial

What is Interactive Intelligence Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Interactive Intelligence Group's Gross Profit for the three months ended in Sep. 2016 was $71.1 Mil. Interactive Intelligence Group's Revenue for the three months ended in Sep. 2016 was $110.4 Mil. Therefore, Interactive Intelligence Group's Gross Margin % for the quarter that ended in Sep. 2016 was 64.40%.


The historical rank and industry rank for Interactive Intelligence Group's Gross Margin % or its related term are showing as below:


ININ's Gross Margin % is not ranked *
in the Software industry.
Industry Median: 41.73
* Ranked among companies with meaningful Gross Margin % only.

Interactive Intelligence Group had a gross margin of 64.40% for the quarter that ended in Sep. 2016 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Interactive Intelligence Group was 0.00% per year.


Interactive Intelligence Group Gross Margin % Historical Data

The historical data trend for Interactive Intelligence Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Interactive Intelligence Group Gross Margin % Chart

Interactive Intelligence Group Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 68.77 67.22 64.44 60.13 60.70

Interactive Intelligence Group Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 60.23 61.87 59.33 63.44 64.40

Competitive Comparison of Interactive Intelligence Group's Gross Margin %

For the Software - Application subindustry, Interactive Intelligence Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Interactive Intelligence Group's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Interactive Intelligence Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Interactive Intelligence Group's Gross Margin % falls into.



Interactive Intelligence Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Interactive Intelligence Group's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin % (A: Dec. 2015 )=Gross Profit (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=237.2 / 390.862
=(Revenue - Cost of Goods Sold) / Revenue
=(390.862 - 153.62) / 390.862
=60.70 %

Interactive Intelligence Group's Gross Margin for the quarter that ended in Sep. 2016 is calculated as


Gross Margin % (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=71.1 / 110.407
=(Revenue - Cost of Goods Sold) / Revenue
=(110.407 - 39.31) / 110.407
=64.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Interactive Intelligence Group  (NAS:ININ) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Interactive Intelligence Group had a gross margin of 64.40% for the quarter that ended in Sep. 2016 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Interactive Intelligence Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Interactive Intelligence Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Interactive Intelligence Group (Interactive Intelligence Group) Business Description

Traded in Other Exchanges
N/A
Address
Interactive Intelligence Group Inc was incorporated in Indiana in April 2011. The Company is a provider of software and services designed to improve the customer experience. It offers a suite of applications that provides customers with a multichannel communications platform that is delivered on-premises or through the cloud. Its software applications provide a range of pre-integrated inbound and outbound communications functionality. Its solutions are used by businesses and organizations in industries including teleservices, insurance, banking, accounts receivable management, utilities, healthcare, retail, technology, government and business services. Its solutions can be deployed via its cloud model using a data center, on-premises at the customer's site, as hybrid cloud/on-premises solutions, or as a managed service in which it manages the communications solution for the customer. The Company has different competitors, including inContact, Inc., Five9, Inc., and the Echopass solution, which was acquired by Genesys Telecommunications Laboratories, Inc. ("Genesys"). In the on-premises contact center market, its primary competitors are Avaya, Cisco, Microsoft, Mitel Networks Corp, and ShoreTel. Its registered trademark includes "Interactive Intelligence". The Company is subject to compliance with federal, state and local provisions.
Executives
Mitchell E Daniels director 2800 ROCKCREEK PARKWAY, NORTH KANSAS CITY MO 64117
Richard A Reck director 128 HILLCREST AVENUE HINSDALE IL 60521-4736
Mark E Hill director 12900 NORTH MERIDIAN, SUITE 200, CARMEL IN 46032
Thomas J Fisher officer: Chief Services Officer 7601 INTERACTIE WAY, INDIANAPOLIS IN 46278

Interactive Intelligence Group (Interactive Intelligence Group) Headlines