NetSuite Leaps in Aftermarket Trading as Company Unveils Aggressive Growth Plans (N)
2/1/2013 3:11:28 AM
Although NetSuite Inc. (NYSE: N) said that its losses widened in the fiscal fourth quarter as rising expenses outpaced strong revenue-growth, shares rallied 7.16% in aftermarket trading after the cloud-computing and enterprise software reported better than expected non-GAAP earnings and unveiled its aggressive growth strategy for fiscal 2013.
“To take advantage of our leadership position and market opportunity, we're going continue to invest aggressively in 2013,” said, the Chief Executive, Zach Nelson to analysts in a conference call.
- For the quarter ended December 31, NetSuite reported net loss of $9.6 million or 13 cents a share, compared to a loss of $7.6 million or 11 cents a share, in the year earlier quarter
- After excluding onetime times such as stock based compensation and other items, adjusted earnings came in at 6 cents a share, beating analysts’ consensus forecast for 4 cents a share, according to a data compiled by FactSet Research
- Revenue during the period leaped 33 percent to $85 million, while analysts’ forecast was for $83 million
- For fiscal 2012, NetSuite reported a net loss of $35.2 million or 50 cents a share, on revenue of $308.8 million— a 31% revenue growth. Non-GAAP earnings for 2012 came in at 26 cents a share
Nelson said that company would expand aggressively in fiscal 2013 by adding more salespeople and offices. The Company expects revenue to be in the range of $397 million to $402 million. Analysts’ consensus forecast is for revenue of $396.4 million.
“We plan to add more sales people than we have during any year in our history. We will invest incrementally in brand marketing, and we'll continue to expand our sales, as we expand our product capabilities to meet the needs of small, medium and large companies across many industries. As we have for the last two years, we plan to front load as much of this investment as possible in Q1 and Q2,” added Nelson.