NetSuite harvests $131m revenue thanks to cloud growth

NetSuite enjoys revenue growth but SuiteWorld absorbed millions

NetSuite has reported its first $100m quarter of recurring revenue for its Q2 financial results for 2014, but it still incurred a net loss of more than $23m for the quarter.

Overall, NetSuite reported a 30 percent increase in revenue over the same period in 2013 to rake in $131.8m, but it still saw net losses increase by $3m compared with the same period in 2013.

Some of that loss could be attributed to NetSuite’s recent acquisition of Venda. Ronald Gill, NetSuite’s chief financial officer, revealed on a conference call that the acquisition cost the company more than $50m in a combination of cash and stocks.

Gill went on to point out other business expenses including $60m worth of spending on sales and marketing.

Part of this expense was due to the company’s SuiteWorld event, though Gill defended this outlay: “The team did a good job of managing that spend and strong attendance and partnership participation helped offset the cost as well.”

In spite of the loss, NetSuite cited the 30 percent year-on-year increase in revenue and a 19 percent increase in operating cash flow as proof the company is heading in the right direction.

The $100m recurring revenue figure was also touted as a “break-out moment” for the company. Zach Nelson, CEO of NetSuite, believes the company’s vision of building a system to allow a business to be run entirely from the cloud is core to propelling its future revenue ambitions.

“We are well on our way [to] achieving our goal to be the leading provider of next-generation business systems and to achieve $1bn and beyond in annual revenue,” added Nelson.

Cloud is powering the healthy second-quarter revenues of several companies.

SAP found that the cloud elements of its business are fuelling its revenues, while Amazon touted strong growth of its Amazon Web Services division despite an overall loss of $126m for the business.

If the article suppose to have a video or a photo gallery and it does not appear on your screen, please Click Here

25 July 2014 | 2:02 pm – Source: v3.co.uk

Leave a Reply

Your email address will not be published.