Friday, Feb 04 2011
News and Analysis
For all the optimism expressed, NetSuite lost $6.45 million, compared to $6.54 million in last year’s corresponding quarter. However, since revenue grew to $52.1 million, up 21 percent from just under $43 million, margins improved nicely, which seemed to please the analysts on the company’s conference call yesterday. NetSuite lost $27.5 million for 2010, compared to a loss of $23.3 million in 2009.
Revenue for the year just ended was $193.1 million, an increase of 16 percent from $166.5 million the prior year. The company was willing to pass on increased profits to grow its sales force, which had 30 percent more quota-bearing reps than a year earlier. And CEO Zach Nelson said the company will continue to spend into the growth. There is going to be more sales hiring, although a major effort will be to enlist personnel for enterprise sales. While NetSuite has historically pictured itself as being for companies with fewer than 1,000 employees, that is changing, according to Nelson. “We’re going to invest more in our direct sales force and our partnership sales,” he said. One sign of the changing end user base is that the average customer gained by NetSuite during the quarter was twice as large as the size of the average customer lost.
Last modified on Sunday, 16 June 2013