Friday, May 07 2010
News and Analysis
NetSuite needs a new metric for its earnings calls – the ratio of time spent discussing the results for the quarter compared to the time spent trashing the competition. It reached a new high this week as CEO Zach Nelson did his customary attack on SAP and its BusinessByDesign, which is coming to market in force this summer after a long delay. But he also dealt out harsh comments to Microsoft which had offered a deal for NetSuite customers who moved to Dynamics.
Nelson referred to Microsoft as offering users the opportunity “to move back 15 years,” and described the mid-market rival’s applications as “designed before the Worldwide Web even existed.” Outside of that, executives said the call highlighted results that were another quarter of record performance. However, NetSuite lost $7.2 million in the first quarter ended March 31, 84.6 percent more than the year-earlier loss of $3.9 million on increased expenses. First quarter revenue was $43.9 million, up 4.5 percent from $41.6 million in last year’s corresponding quarter. Somehow, when I listen to the attacks on the competition, the words from the theme from the movie “Ghostbusters” keep ringing in my head: “I ain’t afraid of no ghosts.” Must be the spring pollen. Also interesting was the description of two incidents of downtime in April, one that Nelson said affected 75 percent of customers that lasted 33 minutes and one soon after that of 17 minutes that hit 95 percent of customers. Nelson said NetSuite’s uptime for the trailing 12 months was 99.97 percent, although it wasn’t clear what the percentage was for April. The information was solicited by an analyst's question - NetSuite did not volunteer it.
Last modified on Sunday, 16 June 2013
Bob Scott has been informing and entertaining the mid-market financial software community with his email newsletters for 10 years. And he has been covering this market through print publications for 18 years, first as technology editor of Accounting Today and then as the Editor of Accounting Technology from 1997 through 2009. He has covered the traditional tax and accounting profession during the same time and continues to address that as executive editor of the Progressive Accountant.