logo
Share SHARE
FONT-SIZE Plus   Neg

NetSuite Loss Widens, But Tops Estimate; Stock Up - Update

Software maker NetSuite Inc. (N), 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The Justice Department has initiated a probe to find out if airlines are colluding to limit seating capacity in order to benefit from higher airfares. Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud has pledged to give away his entire wealth amounting to $32 billion for charity. He said the fund will be utilized for cultural understanding, develop communities, empower women, enable youth, provide vital disaster relief and create a more tolerant and accepting world. Toyota accepted the resignation of its Chief Communications Officer Julie Hamp, following her arrest in Japan for allegedly mailing banned painkillers to her address in Japan from U.S.
comments powered by Disqus
RELATED NEWS
Trade N now with 
Follow RTT