Tue, Sep. 13, 5:19 PM
- In a Bloomberg interview, Marc Benioff comments that Oracle's (NASDAQ:ORCL) NetSuite (NYSE:N) acquisition marks a "desperation move" and doesn't feel Oracle will become a stronger CRM competitor because of it. He goes on to cite Larry Ellison's largest NetSuite shareholder status and claims the company was something he simply wanted to have.
- The $9.3B, $109 per share deal was announced in July, though some recent pushback by shareholder T. Rowe Price to the terms have complicated its closing.
- Oracle reports Q1 2017 results on Thursday with its share price moderately lower (2.45%) since the NetSuite deal was disclosed. Salesforce (NYSE:CRM), meanwhile, has also realized issues of late, trading down 8% since releasing its Q2 report on the last day of August.
Thu, Jul. 28, 3:03 PM
Thu, Jul. 28, 11:59 AM
- Oracle (ORCL -0.1%) and NetSuite (N +18%) are expected to "coexist in the marketplace forever" according to Oracle CEO Mark Hurd.
- Today's deal signifies a move by Oracle to strengthen its cloud position in the ERP, CRM, e-commerce and PSA spaces.
- Most notably, though, is NetSuite's command of the cloud ERP market. The company notes its solution is "the world's most deployed" and counts more than 30,000 customers in more than 160 countries.
- The buyout immediately enables Oracle's access to NetSuite's clients, typically smaller and more medium-sized businesses than the larger enterprises Oracle has conventionally provided services to.
- Merging Oracle's existing initiatives with NetSuite's platforms and clientele in these spaces registers Oracle increasingly competitive in an enterprise cloud market already filled with strong offerings from Salesforce, Microsoft, SAP, IBM and others.
- Consequently, cloud players comparable in size to NetSuite pre-deal are now up against a much larger opponent.
Thu, Jul. 28, 9:30 AM
Thu, Jul. 28, 9:16 AM
- Oracle (NYSE:ORCL) and NetSuite (NYSE:N) have come to terms on an all-cash $109 per share deal.
- Larry Ellison, executive chairman and chief technology officer of Oracle, is NetSuite's largest shareholder.
- The agreement aims to push Oracle's cloud capabilities further and management feels the deal will have an immediate accretive impact on earnings.
- The sale is expected to close this year pending regulatory and shareholder approvals.
- NetSuite is higher by 18.2% to $108.24. Oracle +0.9%
Thu, Jul. 28, 9:16 AM
- Gainers: EVOK +31%. GRPN +29%. OCN +25%. ALR +20%. N +18%. ESI +15%. TPX +15%. GRUB +13%. LOGI +13%. VSTM +12%. CRUS +11%. ASPS +11%. CHCI +11%. EBIO +11%. AXTI +11%. VNR +9%. SPHS +9%. VGZ +8%. KONA +7%. CLF +6%. ARIA 6%. SPU 5%. YNDX 5%.
- Losers: INFN -32%. ARGS -18%. AVXL -10%. IVTY -10%. F -8%. CIEN -8%. CBD -8%. XCOM -7%. EXAS -6%. WFM -5%.
Wed, Jul. 27, 5:35 PM
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Tue, Jul. 12, 3:00 PM
Mon, May 23, 4:28 PM
- Intuit (INTU +1.5%) gained today, and NetSuite (N -0.8%) declined, after Goldman Sachs saw them going in different directions in a launch of enterprise software coverage.
- The firm's analyst Jesse Hulsing also likes Cornerstone OnDemand (CSOD -0.2%) as a winner in that sector (and Intuit has gotten praise at Goldman for election/tax reasons as well): "We see the most opportunity at the lowest end of the market, where we believe market expansion is occurring for INTU. We also rate CSOD a Buy due to improving underlying fundamentals, M&A optionality, and what we view as an attractive valuation."
- NetSuite is a Sell, though, "on organic billings/bookings deceleration and risk that 2017 consensus estimates are too high." Analysts expect the company to record EPS of $0.72 for 2017 along with revenues of $1.228B.
- Now read Not Even A Buyout Justifies Cornerstone OnDemand's Valuation »
Thu, Apr. 28, 4:19 PM
Wed, Apr. 27, 5:35 PM
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Thu, Apr. 21, 1:09 PM
- Three months ago, cloud/SaaS software firms sold off after cloud IT service management software (ITSM) firm ServiceNow (NOW +14.5%) missed its Q4 billings guidance and offered light 2016 sales guidance. Today, the group is rallying after ServiceNow beat Q1 estimates, provided in-line guidance, and reported billings of $376.7M, up 41% Y/Y and beating guidance of $360M-$365M. The company also reported a 48% Y/Y increase in clients with over $1M in annualized contract value, to 249.
- Cloud gainers include HR/financials software leader Workday (WDAY +2.3%), ERP/commerce software firm NetSuite (N +4.9%), marketing automation software firms Marketo (MKTO +3.1%) and HubSpot (HUBS +3.2%), talent management software firm Cornerstone OnDemand (CSOD +2.9%), customer support software firm Zendesk (ZEN +3.8%), collaboration/project management software firm Atlassian (TEAM +2.6%), enterprise healthcare software firm Castlight (CSLT +5.4%), and life sciences software firm Veeva (VEEV +2.4%). The Nasdaq is nearly flat.
- BTIG's Joel Fishbein has hiked his ServiceNow target by $5 to $85, while reiterating a Buy rating. "Strong results across the board suggest that the company continues to see success both in core ITSM and as a broader enterprise service tool. After enjoying most of its public life as a beat-and-raise stock, 2015 was somewhat messy; strong growth and good [key performance indicators] supportive of the bull thesis were overshadowed throughout the year by minor miscues -- a forecasting error, currency adjustments, and inconsistent billings reporting.
However, 1Q was clean, with strong billings growth, healthy upsells, and metrics showing growing contribution from non-IT services. Law of large numbers is still looming on the horizon but ServiceNow is on the path of being one of a few elite category-leading enterprise SaaS companies. We continue to be buyers of NOW."
Fri, Feb. 5, 11:01 AM
- A long list of enterprise software and security tech names are off sharply after business intelligence/analytics software upstart Tableau (down 45.3%) reported slower-than-expected license revenue growth and issued below-consensus Q1/2016 guidance.
- Also possibly weighing: LinkedIn (down 39.6%), which derives a large % of its revenue from cloud-based recruiting and sales tools for enterprises, issued weak Q1/2016 guidance.
- Given the magnitude of the drops, margin calls and forced selling by funds could be playing a big role. The Nasdaq is down 2.2%.
- Tableau suggested its growth slowdown has to do with softening IT spend and a need to improve sales productivity, but analysts have raised questions about competition from the likes of Microsoft, Amazon, and Qlik. LinkedIn forecast a growth slowdown for its field sales hiring solutions business, while blaming European/Asian macro pressures. The company also noted its display ad business continues declining amid weak industry growth.
- Major enterprise software decliners include Splunk (SPLK -23.7%), Workday (WDAY -15.1%), Adobe (ADBE -7%), Zendesk (ZEN -15.2%), ServiceNow (NOW -13.6%), NetSuite (N -12.4%), Salesforce (CRM -11.2%), Paycom (PAYC -10.6%), Ellie Mae (ELLI -11.5%), Cornerstone OnDemand (CSOD -7.8%), Veeva (VEEV -7.7%), Ultimate Software (ULTI -9%), Luxoft (LXFT -7.5%), Manhattan Associates (MANH -8.5%), Box (BOX -6.6%), Guidewire (GWRE -13.6%), Demandware (DWRE -9.3%), Hortonworks (HDP -9.7%), and Tableau rival Qlik (QLIK -16.6%). The casualty list includes many cloud software firms, as well as several analytics software plays. Previously covered: New Relic, Atlassian.
- Major decliners among security tech firms: Palo Alto Networks (PANW -12%), FireEye (FEYE -8.9%), Rapid7 (RPD -8.6%), CyberArk (CYBR -8.3%), Proofpoint (PFPT -8%), Imperva (IMPV -8.3%), Fortinet (FTNT -6.9%), and Vasco (VDSI -5.1%). The selloff comes in spite of an FQ3 beat and in-line FQ4 guidance from Symantec, which has been losing share to various upstarts.
Fri, Jan. 29, 4:56 PM
- With shares having gone into earnings just $1.54 above a 52-week low of $64.04, NetSuite (NYSE:N) rallied after beating Q4 estimates and guiding on its earnings call (transcript) for 2016 revenue of $950M-$970M (+28-31% Y/Y) and EPS of $0.40-$0.45 vs. a consensus of $959.5M and $0.35.
- Q1 guidance is light: Revenue of $212M-$214M and EPS of $0.02-$0.03 vs. a consensus of $216.6M and $0.08. NetSuite suggested macro uncertainty affected its guidance.
Q4 details: Calculated billings (revenue + change in deferred revenue) rose 28% Y/Y in Q4 to $256.8M, above revenue of $206.2M (+31% Y/Y) but reflecting a slowdown in growth from Q3's 36%. CFO Ronald Gill indicated forex had a 200 bps impact on billings growth.
Spending remained aggressive: Sales/marketing spend rose 32% Y/Y to $95.2M, and R&D spend 36% to $28.7M. Average deal size rose 10% Y/Y, and a record number of $1M+ deals were signed.
- Canaccord upgraded NetSuite to Buy today, while maintaining a $100 target. The firm cited strong demand, a favorable valuation, and expected op. margin growth.
- NetSuite's Q4 results, earnings release
Thu, Jan. 28, 4:12 PM
- NetSuite (NYSE:N): Q4 EPS of $0.05 beats by $0.01.
- Revenue of $206.23M (+30.6% Y/Y) beats by $1.6M.
Wed, Jan. 27, 5:35 PM| Wed, Jan. 27, 5:35 PM | 9 Comments