Zach Nelson, NetSuiteNetSuite continued its march into the Tier 1 financial software space during the third quarter ended September 30. In this week's webcast, CEO Zach Nelson said the cloud company beat all forecasts, saw high growth across all industry groups and set a record for $1-million plus deals. "Most of them are single tier—full-blown replacement of software that was done 20 years ago," he said. He also ascribed the much of growth to global systems integrators.

"The thing that has been driving our growth is success with the SIs and the channel in general," he said. Financial results had the usual pattern—a GAAP loss, non-GAAP income and double-digit revenue hikes. The net loss was $29.3 million, a 75-percent increase from $16.6 million in last year's corresponding period as the operating loss doubled to $25.8 million. Non-GAAP income of $8.3 million increased by 11 percent over a year earlier. Revenue was $143.7 million, up 34 percent from $106.9 million. Average selling price rose 41 percent and the company sees room for more. The financial pattern will hold as NetSuite pumps money into product development and sales and marketing. Product spending rose 44.2 percent and S&M 42.6 percent. And Nelson probably set a record in the number competitors trashed, taking a swipe a "stone-age software" vendors, Sage, Microsoft and SAP, and at less-frequent target in the government market. "The Deltek product, talk about an old product," he said.

Last modified on Friday, 24 October 2014
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