Yesterday, 9:39 AM
- Outlook for NetSuite's (N -0.2%) Q4 to furthermore not be provided, attributed to pending deal with Oracle (ORCL -0.6%).
- FY 2016 revenue guidance had been set at $955M-$975M. Updated figures not provided.
- Q3 results – revenue of $243.9M (+26% Y/Y, $6.01M below estimates), recurring revenue from subscription and support of $190M (+23% Y/Y), non-recurring revenue from professional services and other of $53.9M (+41% Y/Y), cash flows from operations of $62M (+126% Y/Y) and net income of $16.1M (vs. $2.6M Y/Y)
- No conference call to be held.
- Press release
Yesterday, 9:09 AM
Tue, Oct. 18, 10:06 PM
- Among a cache of Colin Powell emails released by hackers was a presentation prepared in May for the Salesforce.com (NYSE:CRM) board (on which sits Powell) titled "M&A Target Review."
- Partial presentation slides
- The 60-slide document identified 14 possible acquisition targets. Among them were Adobe Systems (NASDAQ:ADBE), whose market cap of $53.7B is above that of Salesforce, and Pegasystems (NASDAQ:PEGA), with a $2.3B valuation.
- The list also included Demandware, which Salesforce ended up buying, and LinkedIn, which the company lost in a bidding war with Microsoft.
- Others: Workday (NYSE:WDAY), ServiceNow (NYSE:NOW), NetSuite (NYSE:N), Tableau (NYSE:DATA), Veeva Systems (NYSE:VEEV), BOX, Zendesk (NYSE:ZEN), HubSpot (NYSE:HUBS).
- CEO Marc Benioff earlier this month when fending off complaints about his interest in Twitter: “We look at a lot of things and we pass on almost everything."
Fri, Oct. 7, 9:43 AM
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
- ACTG, AFL, AIV, AJG, ALDW, ALGN, ALJ, AMZN, ARII, ATEN, ATR, AUY, BCOV, BGS, BIDU, BOOM, BRKS, CAA, CATM, CBL, CBS, CENX, CHMT, CLD, CLMS, COLM, COWN, CPHD, CPT, CUBE, CWST, CY, DECK, DGI, DGII, DLR, DTLK, ECOL, EEP, EGO, EHTH, EIX, ELLI, EMN, EQC, ES, ESS, EXPE, EYES, FE, FET, FICO, FII, FIX, FLS, FPO, FR, FTNT, GIMO, GNMK, GOOG, HIG, HLS, IM, INVA, INVN, ISIL, ITGR, IXYS, KAMN, KBR, KLAC, KRG, LEG, LMNX, LPLA, LYV, MATW, MOBL, MSCC, MSTR, MTD, N, NGVC, NR, NSR, OMCL, OUTR, PCCC, PDFS, PFG, PXLW, QGEN, QSII, RGA, RMD, ROVI, RSG, RTEC, SB, SBAC, SKYW, SNMX, SPNC, SRCL, STMP, STRZA, SYNA, TCO, TFSL, THG, TLGT, TNDM, UCTT, ULH, VCRA, VDSI, VRSN, WDC, WLK, WRI, WYNN, YRCW
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
- NetSuite (NYSE:N): Q1 EPS of $0.11 beats by $0.08.
- Revenue of $216.58M (+31.4% Y/Y) beats by $3.24M.
Wed, Apr. 27, 5:35 PM
- ABAX, ACHC, AEM, AIV, AJG, ALDR, ALGN, AMCC, AMGN, AMZN, ARII, ATEN, ATHN, ATR, ATRC, AZPN, BCOV, BGS, BIDU, BMRN, BOOM, BRKS, BVN, CATM, CENX, CHDN, CHE, CHMT, CLD, CLW, COHR, COLM, COWN, CPHD, CPT, CUBE, DDR, DGII, DLR, ECOL, EHTH, ELLI, EMN, EPAY, EPR, ESS, EXLS, EXPE, EYES, FET, FII, FLEX, FLS, FPO, GB, GILD, GIMO, GNW, GRPN, HELE, HIG, HT, HTH, HURN, HWAY, INVA, IPHI, ISBC, JNPR, KBR, KRG, LEG, LNKD, LOGM, LPLA, MATW, MMSI, MOBL, MOH, MSA, MSCC, N, NATI, NFG, NPTN, NR, NSIT, NSR, NUS, OFIX, OMCL, OUTR, P, PCCC, PDFS, PFG, PODD, PXLW, QLIK, RGA, RGC, ROVI, RRC, RSG, SCSS, SGEN, SHOR, SKYW, SMCI, SNMX, SPN, SPNC, SRCL, STRZA, SWKS, SYNA, TEP, TLGT, TMST, TNDM, TRMB, TXTR, VCRA, VDSI, VGR, VR, VRSN, WDC, YRCW
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."