NetSuite Q2 Results: Record Revenue As Cloud Partners Engage
NetSuite shares are rallying today (July 29). The reason: NetSuite’s Q2 revenues rose 23 percent to $57.8 million, an impressive showing for the cloud and SaaS ERP specialist. During the quarter, NetSuite also won a 45,000 seat recurring revenue deal — the company’s largest engagement to date. There are also signs that NetSuite’s channel partners — VARs, integrators and cloud services providers (CSPs) — are gaining momentum.
According to NetSuite’s press release:
- Calculated bookings grew 30 percent to $62.6 million
- Operating cash flow hit $8.4 million, a record for the company
- NetSuite scored the the largest number of new customers in two years.
And in a webcast, NetSuite CEO Zach Nelson talked up a few other key stats, including a $40,000 rise in average deal size, a big deal global pipeline boost of 85%, and some returning strength in European deals.
But for TalkinCloud readers, the standout statistic is a full 50% boost in channel participation in NetSuite deals from last year. And as for that huge customer win — 45,000 seats — it’s unclear if a partner was involved, but NetSuite says that it’s going from merely supporting tier 2 subsidiaries to rolling out industry-specific capabilities for corporate headquarters down.
The company has increased its outlook, raising revenue guidance to between $233 million and $235 million this year. It seems that NetSuite’s backing of VARs and Oracle’s backing of NetSuite are both paying off.
NetSuite is the latest member of the Talkin’ Cloud Stock Index to deliver strong quarterly results. VMware, Amazon, and Google have also revealed strong quarterly performance in recent weeks. We’ll update the stock index after the market closes on July 29, to give you a feel for the index’s latest weekly performance.
Back at NetSuite we have to point out one other key statistic: Despite all the growth and upbeat reaction on Wall Street, NetSuite generated a $9.8 million net loss for the quarter. But investors seem to be impressed by the top-line growth.