NetSuite: Cloud-based ERP Revenues Rise 29 Percent
NetSuite (NYSE: N), the cloud-based ERP company, says Q2 2012 revenues rose 29 percent to $74.4 million. The company had a $9.9 million net loss, but shares still rose slightly nearly 7 percent in after-hours trading. The reason: NetSuite is raising its full-year outlook for revenue and non-GAAP EPS (earnings per share).
The company frequently credits channel partners for its success, empowering VARs to help customer migrations from on-premises ERP (enterprise resource planning) to cloud-based financial software. In its most recent quarter, CEO Zach Nelson said the company exceeded its previously stated outlook on revenue.
Still, competition could intensify in the coming months. Microsoft continues to upgrade and enhances its cloud-based Dynamics business. And SAP’s cloud-based ERP system, called BusinessByDesign, gained a software development kit (SDK) this week. The kit could allow channel partners to write application extensions for SAP’s cloud program.
NetSuite has frequently targeted SAP and Microsoft in its marketing and sales campaigns, but the company rarely targets Oracle — likely because Oracle CEO Larry Ellison is a long-time NetSuite investor.