TechnologyNetSuite results show loss and growth

NetSuite results show loss and growth

Online financial software provider's Q2 results show losses of $5m but total revenue growth of 10%

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:

Netsuite draws on Sage fears

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