NetSuite Recognizes Partners for 22 Percent Growth in 2011
For cloud ERP/CRM/e-commerce solution provider NetSuite, 2011 was a good year. The company posted yearly revenue of $236.3 million, a figure that represents 22 percent year-over-year growth and sets a new record. In fact, in the fourth quarter of 2011 alone, NetSuite generated a similarly record-setting $64.1 million in revenue, a 23 percent increase from 2010, which handily beat Wall Street expectations.
That’s the good news. The bad news: NetSuite posted an overall loss of $32 million, or 48 cents per share, in 2011, despite its record-setting revenues and notably strong Wall Street performance.
As usual, NetSuite’s official earnings statement drills down into the nitty-gritty. But here are some bullet-pointed highlights, culled from the wasteland of numbers by ZDNet’s Larry Dignan:
- NetSuite’s fourth-quarter subscription and support revenue was $54.2 million, up 23 percent from a year ago.
- Calculated billings in the fourth quarter were $78.7 million, up 36 percent from a year ago.
- The company delivered 2011 cash flow from operations of $36.3 million, up 99 percent from a year ago.
- NetSuite ended the year with $141.4 million in cash and equivalents.
But for TalkinCloud readers, the most important statistic comes from the earnings call: NetSuite’s overall channel grew 50 percent, with the North American channel growing 150 percent on its own. NetSuite CEO Zachary Nelson attributed that growth to the fact that its service provider and VAR partners took some time to get up to speed with the cloud, but in 2011 the switch was flipped. Nelson said he is counting on partners to continue to do well for NetSuite in 2012.
“We knew it would take time for the channel to change their business model,” Nelson said. “I would reinforce how well our channel is doing.”
Keep watching TalkinCloud for more updates on NetSuite as they arise — and make sure you watch our weekly Talkin’ Cloud Stocks Index updates for more insight on NetSuite’s market performance following this announcement.
