NetSuite cuts losses but fails to hit expectations in Q3

Long time SAP-baiting rival NetSuite has been able to cut its losses in the third quarter but saw its billings for its One World service drop raising fears that the Software as a Service specialist is losing ground. As well as its traditional rival SAP, which finally launched its Business By Design

Long time SAP-baiting rival NetSuite has been able to cut its losses in the third quarter but saw its billings for its One World service drop raising fears that the Software as a Service specialist is losing ground.

As well as its traditional rival SAP, which finally launched its Business By Design hosted service a couple of months ago, NetSuite is also coming under pressure from Microsoft which is stepping up the pressure in the ERP business intelligence arena.

For its third quarter, ended 30 September NetSuite delivered a 19% increase in revenues to $49.7m compared to the same period last year and it cut its operating loss from just shy of $8m to $6.6m

But the vendor failed to show an increase in subscriptions for its service at the rate Wall Street had been expecting producing a 13% increase instead of the 15-20% analysts had been looking for.

In his statement accompanying the results Zach nelson, CEO of NetSuite, couldn't resist having a pop at it's latest rival Microsoft.

"Our record results and raised outlook reinforce that customers are running to the NetSuite Cloud from pre-web applications like Microsoft Dynamics great Plains," he added that it had raised its outlook for the full fiscal year.

 

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