Time & Model
Value, growth at reasonable price, contrarian, idiosyncratic research

What Is NetSuite Worth?

NetSuite (NYSE:N) is a "cloud" company. They provide SaaS ERP services to medium businesses and subsidiaries of larger organizations. In addition, they do:

  1. Omnichannel commerce software suites,
  2. Customer relationship management software,
  3. Ecommerce and retail management software,
  4. Professional services automation software,
  5. Human capital management software.

They have many additional activities. They generate revenue in two ways:

  1. By selling the software itself over the internet via subscription -- a.k.a. SaaS.
  2. By providing professional services related to their software.

On this, they haven't been very successful at all -- at least financially speaking. If we go all the way back to FY 2002, the company has never been profitable on a GAAP basis. Yes, you read that right, the company has...

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