Summit Research maintained a Buy rating on Interactive Intelligence (NASDAQ: ININ), and cut the price target to $33.00 (from $41.00), following the company's 4Q earnings report. ININ reported strong 4Q results, yet gave essentially inline 1Q16 and 2016 guidance with Street estimates. Mgmt guided for 2016 cloud revs of $142 to $148M and overall revs of $440M.

Analyst Jonathan Kees commented, "Interactive Intelligence Group (ININ) reported strong 4Q15 (Dec) results yet gave essentially inline guidance 1Q16 (Mar) and 2016 guidance with Street estimates. Mgmt stated that they have already booked around 92% of cloud revenues and half of the legacy premise revenues for the year, which indicates mgmt. conservatism as premise is the wild card in terms of its decline. In 2015, ININ’s premise sales were flat Y/Y despite previous guidance of decline and cloud sales outgrew the market at +61.4% Y/Y. We see cloud sales continuing its high growth trajectory as ININ becomes the market price leader by undercutting its pure cloud competitors with a robust solution. Last Q’s win rate was winning two out of every three RFPs. We see guidance as the floor for 2016 and expect ININ’s cloud to continue to outgrow the market and peers. While we may have been early with our BUY on this transformation story from premise towards cloud, we believe ININ should eventually dominate the market with its highly competitive and feature rich solution, and expect topline growth as well as margin expansion with greater scale. We reduce our price target to $33 from $41 based on 1.6x 2016 sales of $441.6M and introduce 2017 estimates of $013 non-GAAP eps on $525.5M sales."

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Shares of Interactive Intelligence closed at $23.79 yesterday.