NetSuite revenues on the increase

Peter Dinham
Tuesday, 05 May 2009 11:18

IT Industry - Strategy

In the midst of the economic downturn, business management software SaaS vendor, NetSuite, has achieved a revenue increase of 22 percent to US$41.6 million for the first quarter this year over the same period in 2008.

Of the US$41.6 million in revenues, US$33.6 million was from sales in the Americas, with other regions around the world contributing revenue of US$8.0 million.

In other financial results released today, NetSuite says that, on a GAAP basis, net loss for the first quarter of 2009 was US$3.7 million, or US$(0.06) per share, as compared to US$2.0 million, or US$(0.03) per share, in the first quarter of 2008.  Non-GAAP net income for the first quarter of 2009 was US$1.0 million, or US$0.02 per share, as compared to a non-GAAP net loss of US$420,000, or US$(0.01) per share, for the first quarter of 2008.

NetSuite CEO, Zach Nelson says the company delivered results that not only met its goals, but also indicated that it continued to “take market share and execute on our strategic initiatives of moving up market and extending the NetSuite platform.”
 
“In particular, our growth of non-GAAP profitability from the prior quarter was impressive.”

Nelson said that items presented on a non-GAAP basis excluded expenses related to stock-based compensation and the amortisation of intangible assets.

In a rundown on highlights of the company’s first quarter operation this year, Nelson pointed to a number of activities, including the appointment of former New York Stock Exchange president Catherine Kinney to its board of directors; announcement of the SuiteCloud Ecosystem, a range of on-demand products, development tools and services; and,  the launch of NetSuite’s multi-channel retail management suite, a new vertical suite for North American retailers that allows retailers to easily manage multiple locations with a sophisticated point of sale (“POS”) system.