- Cloud ERP/HR/e-commerce software vendor NetSuite beat Q1 estimates, reported strong deferred revenue growth, and hiked its 2014 top-line guidance.
- Meanwhile, Pac Crest is reiterating an Outperform for Workday (WDAY +8.8% - competes to an extent with NetSuite) and Splunk (SPLK +5.6%), and thinks the companies, along with Neutral-rated Salesforce (CRM +3.6%), can attract growth investors at current levels. The firm adds the companies are trading below their average price/sales multiples for the last 3 years.
- Workday is down 38%, and Splunk 47%, from their respective 52-week highs. But the companies still both go for ~12x FY16E (ends Jan. '16) sales. Price/billings multiples are a bit lower, but still steep.
- Several other enterprise cloud software vendors are joining NetSuite, Workday, and Salesforce in rallying on an up day for the Nasdaq. NOW +7.7%. CSOD +5.6%. ULTI +4%. DWRE (a NetSuite rival) +3.2%.