NetSuite achieves record fourth quarter, fiscal year results, SaaS plays big part

Staff Writers
Wednesday, 11 February 2009 15:32

IT Industry - Market

NetSuite, New York listed (NYSE:N) vendor of on-demand, integrated business management software suites, has achieved record revenues and the company’s first quarter of profitability with the results of the fourth quarter of the 2008 financial year.

In a statement issued in California, the company said its results demonstrated the strength of the Software as a Service model which, it claimed, more and more companies were turning to in tougher times.

Announced operating results for its fourth quarter and fiscal year ended 31 December, 2008 NetSuite said total revenue for the year was US$152.5 million, a year-over-year increase of 40.5 per cent. Total revenue for the fourth quarter was US$41.4 million, a 30.5 per cent increase over the fourth quarter of 2007.
 
NetSuite, which sells its software suites to mid-market enterprises and divisions of large companies, said that on a GAAP basis, net loss for the fourth quarter of 2008 was US$(4.5 million), or US$(0.07) per share, compared to US$(3.3 million), or US$(0.22) per share in the fourth quarter of 2007. On a GAAP basis, net loss for the year ended December 31, 2008 was US$(15.9 million), or US$(0.26) per share, compared to US$(23.9 million), or US$(2.45) per share in 2007.
 
Zach Nelson, CEO of NetSuite, said revenue from the Americas for the year ended 2008 was US$123.4 million, with revenue from international regions totalling US$29.1 million.
 
Nelson said NetSuite had added approximately 350 new customers in the fourth quarter and ended the year with more than 6,600 active companies.

Nelson also announced that non-GAAP net income for the fourth quarter of 2008 was US$534,000, or US$0.01 per share, as compared to a non-GAAP net loss of US$(1.7 million), or US$(0.03) per share, for the third quarter of 2008 and compared to a non-GAAP net loss of US$(842,000), or US$(0.01) per share, for the fourth quarter of 2007.
 
"I'm delighted that NetSuite delivered one of our best quarters to date in what has been a very difficult economic environment. I am especially excited that we posted the first non-GAAP profitable quarter in the company's history even against the headwinds of global economic challenges.

“This is a strong performance in any quarter, and is especially impressive with business spending on equipment and software falling 27.8 per cent, the worst in a half a century.”

An Australian spokesperson for NetSuite said that, among the Australian and New Zealand customers who contributed to NetSuite's success last year, were Break Thru, Campus Living, Carbon Planet, CDX, EcoNova, Energy Matters, Healthinc, Netcat, Sonnet and SureBridge IT.