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NetSuite Inc. (N)

  • Fri, Oct. 23, 3:07 AM
    • In addition to slightly missing Q3 revenue estimates (while slightly beating on EPS), NetSuite (NYSE:N) guided on its earnings call (transcript) for Q4 revenue of $202M-$205M and EPS of $0.04, below a consensus of $208.3M and $0.06.
    • CFO Ron Gill suggested that in addition to forex (a year-long headwind), Q4 sales will be affected by the lack of "a big spike" in professional services revenue similar to what was seen a year earlier, and the fact revenue recognition for a major deal won't occur "for some time yet."
    • The cloud business app vendor saw calculated billings rose 36% Y/Y in Q3 to $222M, topping revenue of $192.8M (+34%). That led the deferred revenue balance to rise 39% to $377M, and op. cash flow to grow 69% to $27.5M.
    • Shares finished after hours trading down 4.1%.
    • Q3 results, PR
    | Fri, Oct. 23, 3:07 AM | Comment!
  • Thu, Oct. 22, 4:13 PM
    • NetSuite (NYSE:N): Q3 EPS of $0.03 beats by $0.01.
    • Revenue of $192.82M (+34.2% Y/Y) misses by $0.57M.
    • Press Release
    | Thu, Oct. 22, 4:13 PM | Comment!
  • Wed, Oct. 21, 5:35 PM
  • Mon, Oct. 19, 11:27 AM
    • Arguing the transition to cloud subscriptions will have a larger impact on near-term license/maintenance revenue than previously forecast, Pac Crest's Brendan Barnicle has downgraded Oracle (ORCL -1.9%) to Sector Weight.
    • Barnicle's FY16 (ends May '16) revenue and EPS estimates have respectively been cut by $800M and $0.14 to $37.2B and $2.56. Consensus is at $37.8B and $2.62. In September, Oracle guided for 3%-4% FY16 constant currency software/cloud revenue growth, with SaaS/PaaS cloud revenue rising 50% and on-premise software revenue rising 0%-1%.
    • JMP downgraded last week on concerns about growing competition from Amazon. Shares are less than $2 away from a 52-week low of $35.14.
    • In other news, Oracle says it now has over 1,300 customers (only 300+ in production for now) for its cloud ERP apps. Clients include Athenahealth, Evite, and Irving Materials.
    • NetSuite (N +0.7%) is a major player in the SMB cloud ERP software space. Meanwhile, on-premise ERP giant SAP made its core apps available via cloud subscriptions last year. Large enterprises have generally been more cautious about adopting cloud ERP apps than they have been about adopting cloud CRM and HR apps.
    | Mon, Oct. 19, 11:27 AM | 2 Comments
  • Fri, Sep. 4, 9:48 AM
    • Raymond James has downgraded NetSuite (NYSE:N) to Underperform. Shares have fallen below $85 for the first time since last October.
    • BNP Paribas upgraded NetSuite a week ago. Shares go for 7x 2016E revenue, or perhaps ~6x forward billings.
    | Fri, Sep. 4, 9:48 AM | 1 Comment
  • Thu, Jul. 23, 5:43 PM
    • NetSuite (NYSE:N) has used its Q2 earnings call to hike its full-year sales guidance to $735M-$745M from $730M-$743M; consensus is at $739.6M. EPS guidance of $0.21 is slightly below a $0.22 consensus.
    • Also: NetSuite has announced COO Jim McGeever is the company's new president, replacing CEO Zach Nelson. McGeever, who will continue reporting to Nelson, is also joining the board. He'll now be in charge of "all customer, vertical, product and human resource activities;" as COO, he was already in charge of sales, service, and support teams.
    • The cloud ERP/HR/e-commerce software firm's shares have risen to $95.00 AH.
    • Q2 results, PR
    | Thu, Jul. 23, 5:43 PM | Comment!
  • Thu, Jul. 23, 4:13 PM
    • NetSuite (NYSE:N): Q2 EPS of $0.02 in-line.
    • Revenue of $177.28M (+34.5% Y/Y) beats by $5.13M.
    • Press Release
    | Thu, Jul. 23, 4:13 PM | Comment!
  • Wed, Jul. 22, 5:35 PM
  • Thu, Jul. 16, 3:39 PM
    | Thu, Jul. 16, 3:39 PM | 8 Comments
  • Mon, Jul. 6, 10:40 AM
    • Piper has downgraded NetSuite (NYSE:N) to Underweight.
    • The cloud ERP/HR/e-commerce software vendor is now down 19% YTD. Shares fell in April due to the guidance and billings figures provided with a Q1 beat.
    | Mon, Jul. 6, 10:40 AM | Comment!
  • Mon, Jun. 29, 5:07 PM
    • Jason Maynard, formerly a Wells Fargo software analyst - some of his previous thoughts can be found here - has been named NetSuite's (NYSE:N) EVP of strategy and corporate development.
    • Maynard will be responsible for "overall strategy and plans for new partnerships and new markets."
    | Mon, Jun. 29, 5:07 PM | Comment!
  • Tue, May 5, 3:08 PM
    • Bloomberg reports Microsoft (MSFT -1.2%) is "evaluating a bid" for Salesforce (CRM +4.8%) after Salesforce was approached by another potential suitor. Salesforce is reportedly working with two banks to determine a response.
    • Bloomberg cautions Microsoft isn't currently in talks with the cloud CRM software giant, whose market cap stands at $49B. There was plenty of speculation Microsoft was the company that (per Bloomberg) recently approached Salesforce. SAP has denied being interested, and Oracle has suggested it isn't. A source says Microsoft has "long expected it might compete for Salesforce if it was for sale."
    • Salesforce has jumped on the report. If Microsoft pursues a bid, activist ValueAct Capital (has a board seat) might raise objections.
    • The report comes as Microsoft announces a partnership with cloud ERP/HR/e-commerce software vendor NetSuite (N +3%) to integrate NetSuite's apps with Office 365 apps and Azure services, and to make Azure NetSuite's "preferred cloud infrastructure platform." Microsoft struck an Office 365-focused partnership with Salesforce last year. NetSuite has received a lift from Bloomberg's report.
    | Tue, May 5, 3:08 PM | 18 Comments
  • Wed, Apr. 29, 3:02 PM
    • After following markets lower most of today, enterprise cloud software vendors have jumped thanks to a Bloomberg report stating cloud CRM software giant Salesforce ($51B market cap) has been approached by a potential buyer, and is working with bankers to field offers.
    • Gainers include Workday (WDAY +6%), ServiceNow (NOW +4.3%), NetSuite (N +4.3%), Marketo (MKTO +2.7%), Zendesk (ZEN +1.2%), Cornerstone OnDemand (CSOD +1.6%), Castlight (CSLT +2.4%), and Jive Software (JIVE +1.5%).
    • Though the cloud software market has seen plenty of M&A activity, a Salesforce deal would easily be its largest. Workday ($17.5B market cap) is the second-largest enterprise cloud pure-play. ServiceNow ($11.6B) is #3.
    | Wed, Apr. 29, 3:02 PM | 2 Comments
  • Fri, Apr. 24, 6:47 PM
    • Though NetSuite (NYSE:N) beat Q1 estimates, it guided on its Q1 CC (transcript) for Q2 revenue of $170M-$172M and EPS of $0.03-$0.04, below a consensus of $172.1M and $0.06. A strong dollar is blamed (26% of Q1 revenue was international).
    • Not counting the impact of the Bronto Software acquisition (announced yesterday morning, expected to close in early June), full-year revenue and EPS guidance of $715M-$725M and $0.32 is maintained. Counting Bronto, guidance is now at $730M-$743M and $0.23. Bronto is expected to contribute $40M-$45M to 2016 revenue.
    • Calculated billings rose 28% Y/Y in Q1 to $174M, topping revenue of $164.8M. However, growth slowed from Q4's 34%, and was below revenue growth of 34%. NetSuite thinks forex had a 5% impact on billings growth, up from Q4's 2%.
    • The deferred revenue balance rose 3% Q/Q and 36% Y/Y to $323.4M. GAAP operating expenses rose 29% Y/Y to $131.4M. A record number of $250K+ deals were struck.
    • NetSuite also guided light in January.
    • Q1 results, PR
    | Fri, Apr. 24, 6:47 PM | Comment!
  • Thu, Apr. 23, 4:21 PM
    • NetSuite (NYSE:N): Q1 EPS of $0.11 beats by $0.06.
    • Revenue of $164.82M (+34.0% Y/Y) beats by $3.28M.
    • Press Release
    | Thu, Apr. 23, 4:21 PM | Comment!
  • Thu, Apr. 23, 9:28 AM
    • Bronto Software provides a cloud marketing automation software platform used by over 1,400 brands, including Armani and Timex. NetSuite (NYSE:N) is buying the company for $200M in cash and stock.
    • NetSuite "declares Bronto to be the number one email marketing provider to retailers ranked on the Internet Retailer Top 1000," and argues its offerings complement NetSuite's SuiteCommerce e-commerce infrastructure software platform (used by over 3K brands).
    • CEO Zach Nelson: "This combination, for the first time ever, ties a rich marketing automation system with a cloud-based omnichannel commerce platform ... Just as customers demand seamless cross-channel shopping experiences, they increasingly expect companies to communicate consistently through all of their digital experiences on site, at stores, in email or through social or mobile."
    • The marketing automation space has already seen plenty of M&A - past deals include Salesforce's purchase of ExactTarget and Oracle's purchases of Responsys and Eloqua. Remaining independent players include publicly-traded Constant Contact, HubSpot, and Marketo.
    • Last year, NetSuite bought Venda, provider of a cloud-based platform for handling online, mobile, and social e-commerce interactions.
    | Thu, Apr. 23, 9:28 AM | Comment!
Company Description
NetSuite Inc is engaged in providing cloud-based financials / Enterprise Resource Planning and omnichannel commerce software suites. It also offers financial management, CRM, Ecommerce, and HCM that enable companies to manage its business operations.