Software maker NetSuite Inc. (N: Quote), Thursday reported a wider fourth-quarter loss, hurt by increased selling and other expenses that offset strong growth in revenues. Nevertheless, excluding items, the company posted a profit that increased from last year and topped Street analysts' estimates, as did revenues. Shares of the company gained more than eight percent in after-hours trade on the Nasdaq.
"In a year that saw Microsoft once again fail to deliver cloud-native ERP solutions, and in a quarter that saw SAP miss their most recent top- and bottom-line forecast as more large enterprises moved to the cloud, NetSuite delivered its best year ever," said NetSuite CEO Zach Nelson.
NetSuite provides cloud-based financials / Enterprise Resource Planning software suites. The San Mateo, California-based company reported fourth-quarter net loss of $9.6 million or $0.13 per share, compared with net loss of $7.6 million or $0.11 per share last year.
Excluding items, adjusted earnings for the quarter were $4.6 million or $0.06 per share, compared with $3.4 million or $0.05 per share in the prior year. On average, 22 analysts polled by Thomson Reuters expected earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter jumped 33 percent to $85 million from $64 million a year ago. Analysts on consensus estimated revenues of $83.04 million for the quarter.
Expenses for the quarter escalated to $67 million from $52 million last year, reflecting mainly higher selling and marketing overheads.
In January, NetSuite said it bought Retail Anywhere, a provider of multi-channel retail management solutions. The acquisition builds on NetSuite's SuiteCommerce platform, delivering the industry's first and only integrated cloud business suite for retailers.
NetSuite closed Thursday's regular trading at $70.23, up $1.28 or 1.86%. In after-hours, the share further gained 8.22% at $76.00. In the past year, the stock has traded in a range of $40.94 - $71.51.
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by RTT Staff Writer
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