Netsuite Results Beat Street Expectations
Nesuite, based in San Mateo, Calif., reported per-share earnings of 6 cents on a non-GAAP basis, double the consensus that analysts had projected. Revenue for the quarter was $69.3 million, which also beat the consensus and represented year-over-year growth of 30 percent. Cash flow from operations, at $10.6 million, was up 58 percent. Calculated billings — the sum of revenue plus the change in deferred revenue, and a key indicator of future revenue given Netsuite’s subscription-based business — rose 26 percent to $78 million.
Netsuite shares rose during the regular trading session to $50.47, up $2.45 or more than 5 percent, before the results were reported. The shares fell 89 cents or 1.75 percent in after-hours trading.
Netsuite’s statement is below.
NETSUITE ANNOUNCES FIRST QUARTER 2012 FINANCIAL RESULTS
• Record Q1 Revenue of $69.3 Million, a 30% Year-over-Year Increase
• Recurring Revenue Grows 27% Year-over-Year to $58.0 Million
• Non-GAAP Net Income Grows 116% Year-over-Year
• Operating Cash Flow Grows 58% Year-over-Year to $10.6 Million
SAN MATEO, Calif. – April 26, 2012 – NetSuite Inc. (NYSE: N), the industry’s leading provider of cloud-based financials / ERP software suites, today announced operating results for its first quarter ended March 31, 2012.
Total revenue for the first quarter of 2012 was $69.3 million, representing a 30% increase over the prior year. Subscription and support revenue for the first quarter of 2012 was $58.0 million, representing a 27% increase over the same period in the prior year.
Calculated billings, defined as revenue plus the change in deferred revenue, were $77.9 million for the first quarter of 2012, a 26% increase over the first quarter of 2011.
Cash flow from operations was $10.6 million in the first quarter of 2012, an increase of $3.9 million, or 58%, over the same period last year.
On a GAAP basis, net loss for the first quarter of 2012 was $7.7 million, or $(0.11) per share, as compared to a net loss of $7.7 million, or $(0.12) per share, in the first quarter of 2011.
Non-GAAP net income for the first quarter of 2012 was $4.1 million, or $0.06 per share, as compared to non-GAAP net income of $1.9 million, or $0.03 per share, in the first quarter of 2011.
“NetSuite’s Q1 results continue the momentum of 2011 as companies large and small accelerate their move from pre-Web client/server solutions to NetSuite’s cloud-based offerings. Our great Q1 reinforces that this migration from legacy offerings like Microsoft Dynamics GP/Great Plains, Sage and SAP to NetSuite continues unabated in 2012,” said Zach Nelson, CEO of NetSuite. “All companies, even non-technology companies, have realized they are cloud companies, and to effectively transition their business to this new model of reaching customers, they need to build their enterprise around an application suite like NetSuite that was designed to support operations in the Cloud Age.”