High level;

  • 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

Interestingly NetSuite made a Q1 loss of $7.7M, the exact same loss as in Q1 last year. Interesting that with an increase in revenue, the loss remains the same.

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.

In the commentary, NetSuite CEO Zach Nelson took the expected swipes at SAP. That works for awhile but the market will want to see some movement on ongoing losses and some guidance around a move towards profitability.

I’m looking forward to hearing more about this next month at NetSuite’s SuiteWorld event in San Francisco.

Ben Kepes

Ben Kepes is a technology evangelist, an investor, a commentator and a business adviser. Ben covers the convergence of technology, mobile, ubiquity and agility, all enabled by the Cloud. His areas of interest extend to enterprise software, software integration, financial/accounting software, platforms and infrastructure as well as articulating technology simply for everyday users.

2 Comments
  • Very interesting stuff. How would you explain that $7.7M loss? Could it be the “usual SaaS problem”, i.e. economies of scale still haven’t reached a point that can pay-off? BTW, how may many users does NetSuite have?

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