NetSuite continued to pump money into sales and marketing, spending $83.3 million in that category in the most recently ended period, up 25 percent from $66.7 million a year earlier. Nelson devoted much of his prepared comments for the acquisition of Bronto Software. Bronto will be combined with NetSuite's products to "combine customer transactional history with rich behavior data", which he claimed is a first. Nelson also stated, "We believe the ERP system of the future looks like a website." The company said it surpassed all metrics for which it provided guidance It added more than 350 customers and continue to move upmarket. Nelson said the first quarter said a record for deals valued at more than $250,000. Nelson did mention Infor, which he said was "cloud-washing" old technology and that may be a first mention of Infor. In response to a question, he spent more time talking about competition with Oracle Fusion. Oracle's former chairman Larry Ellison is NetSuite's majority shareholder.
NETSUITE REVS UP 34 PERCENT Featured
Results for NetSuite's first quarter ended March 31 apparently put CEO Zach Nelson in a good mood. It was so good, he barely trashed the competition. He passed on SAP's announcement of its first-quarter results this week and was very kind in mentioning a win at a major H-P division a company that uses SAP. Whatever the reason, revenue rose to $164.8 million for the most recently ended period, an increase of 34 percent from slightly less than $123 million a year earlier. The loss of $22.7 million was only $480,000 higher than in last year's corresponding quarter. On a GAAP basis, the company lost 14 cents for every dollar of revenue, down from 18 cents. Non-GAAP net income was $9 million, more than double $4.4 million a year earlier.
