NetSuite results show loss and growth

Online financial software providers, NetSuite, have announced a GAAP basis net loss of $5m (£3m) in its latest quarterly results.

The company released its quarter two results which showed it had a GAAP basis net loss of $5m equating to $0.08 per share. It added that non-GAAP net income for Q2 2009 had grown to $687,000 compared with a net loss of $900,000 for Q2 2008.

NetSuite said it continues to grow as total revenues increased by 10% to $40.3m compared with the same period last year equating to a third quarter of consecutive growth.

Total revenue from the US accounted for $32.5m and international revenue accounted for $7.8m.

The company attributed part of the growth to its increase in sales prices for products. The average sales price grew by 33% compared with prices in the last quarter.

Zach Nelson, CEO of NetSuite, said: 'We’re particularly pleased that we not only acquired more new customers during the quarter, but we did so at a higher average sales price.'

'We remain on target to achieve our objective of posting break-even operating cash flow for 2009' he added.

Nelson continued: 'As customers accelerate their movement to cloud computing we believe NetSuite will continue to take share from our competitors.'

Other highlights for the quarter include that the accounting software by NetSuite was accredited by the ICAEW. The institute will only accredit software it believes complies with accounting software guidelines including VAT and audit tracking and reporting, as well as allowing users to customise the finance function.

Kamlesh Rajyaguru, senior product manager at NetSuite the accreditation allowed gave clients added confidence in the system which ensured that its online software was secure.

Further reading:

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