CEO Zach Nelson said, “The indirect channel is a great story in North America. The indirect channel grew faster than the direct” in producing revenue. As to results, the loss grew to $9.9 million in the most recently ended period, up from $9.8 million in last year’s corresponding period. But it is clear what Wall Street values is the non-GAAP income, which hit $4.8 million for the quarter, up sharply from $1.6 million a year earlier. Revenue rose to $74.7 million, an increase of 29.2 percent from $69.3 million in the second quarter of 2011. Apparently to its surprise, the company had a 29-percent increase in average selling price. That measure had risen so much in 2011 that NetSuite wasn’t looking for a lot. But larger customers and customers who bought more modules pushed the ASP up. Based on the brisk half, the company raised its revenue forecast to $300 million to $305 million from the previous $295 million to $300 million.
NETSUITE REVS AND CHANNEL STRONG
NetSuite’s results for the second quarter ended June 30 following the same formula we have seen now in several periods – revenue up nicely, a slight increase in GAAP loss and a good increase in non-GAAP earnings. And toss in the usual bashing of the competition. But you might want to add that channel revenue grew by 50 percent.
