NetSuite Q2 Earnings Beat Street Estimates Handily
Netsuite, the cloud-based business software company, just announced its quarterly earnings for the period ended June 30, and they reflect why the company’s shares have been one of the best performers on the New York Stock Exchange this year.
On a non-GAAP basis, Netsuite reported per-share earnings of five cents on sales of $101 million. That was better than what analysts had expected: Two cents per share on sales of $100.6 million. Sales rose 35 percent from the year-ago period.
Recurring revenue, a key metric for cloud software companies that sell their software on a subscription basis, grew 39 percent. Sales through resellers — or “channel partners,” in industry parlance — grew 70 percent.
“If there was any question that mission-critical business applications were moving to NetSuite, this quarter should provide the answer,” CEO Zach Nelson said in a statement. Just today, the company said that Hailo, the company behind the taxi-hailing app, had become a customer.
Always quick to point out where his main rival is tripping up, Nelson compared NetSuite’s results to those of the German business software giant SAP, which fell by about 7 percent year on year in its most recent quarter.