NetSuite Increases Channel Bookings by 40 Percent in FY2013

NetSuite experienced 35 percent year-over-year growth in revenue in the fourth quarter of fiscal 2013 and 34 percent annual year-over-year growth, representing $115 million and $414.5 million, respectively. And, according to the company, much of the growth is due to significantly increased channel reseller bookings.

The cloud-based financials and enterprise resource planning (ERP) provider was a “record year for the company, noted Zachary Nelson, NetSuite’s president and CEO.

“Our continued execution and growth bear witness to the fact, that as companies move their core business applications to the cloud they are moving to NetSuite and leaving the pre-cloud solutions of Microsoft, Sage and SAP behind,” said Nelson said in a prepared statement.

During the Q4/FY2013 earnings call, Nelson explained that although the year started out with the company losing its longtime sales leader, NetSuite quickly recovered and transitioned into what has so far been its best year to date. Much of that success is due to the company’s channel, which experienced 40 percent growth in bookings over the year.

Some quarters, such as Q2, showed even stronger channel growth for the company. As Nelson noted in July, the channel helped to raise quarterly revenue above $100 million for the first time. During Q2, channel bookings increased 70 percent—a clear sign the company’s channel partner program is enabling its resellers.

“I’m pleased to say that we also saw the rate of new business growth accelerate over the prior year. All in all, the great execution of our distribution organization and partners around the world allowed us to deliver record Q4 and 2013 revenue,” Nelson said during the earnings call.

NetSuite has been moving up in the world and made the No. 10 spot on Talkin’ Cloud’s Top 100 Cloud Services Providers List 2013. Its core go-to-market strategy revolving around the channel seems to be what is driving that success.