NetSuite Inc. (N) - NYSE
  • Today, 3:03 PM
    | Today, 3:03 PM
  • Today, 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, or Enterprise Resource Planning 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.
    | Today, 11:59 AM | 2 Comments
  • Today, 9:30 AM
    • NetSuite (NYSE:N): Q2 EPS of $0.08 beats by $0.05.
    • Revenue of $230.8M (+30.2% Y/Y) in-line.
    • Shares +18.3% PM.
    • Press Release
    | Today, 9:30 AM
  • Today, 9:16 AM
    • Oracle (ORCL) and NetSuite (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%
    | Today, 9:16 AM | 6 Comments
  • Today, 9:16 AM
    | Today, 9:16 AM
  • Tue, Jul. 12, 3:00 PM
    | Tue, Jul. 12, 3:00 PM | 2 Comments
  • 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 »
    | Mon, May 23, 4:28 PM
  • 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."
    | Thu, Apr. 21, 1:09 PM | 2 Comments
  • 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, Feb. 5, 11:01 AM | 19 Comments
  • 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
    | Fri, Jan. 29, 4:56 PM | 1 Comment
  • Tue, Jan. 26, 8:22 AM
    • Cloud ERP/e-commerce software firm NetSuite (NYSE:N), cloud marketing automation software firm Marketo (NASDAQ:MKTO), and cloud HR/payroll software firm Paylocity (NASDAQ:PCTY) have each been downgraded to Underperform by BofA/Merrill ahead of their calendar Q4 reports.
    • Separately, Piper's Katherine Egbert has cut her NetSuite target by $6 to $72, while reiterating an Underweight rating. She expects NetSuite to deliver in-line Q4 results when the company reports on Thursday afternoon, with "some potential for upside in 2016 guidance" thanks to the Bronto Software acquisition. "N's premium multiple seems reflective of the unique ownership structure, potential M&A and relatively low float. A multiple closer to the high 20%'s revenue and billings growth rate would make the stock a more compelling buy in our view."
    • Paylocity is down 2.3% premarket; NetSuite and Marketo haven't yet moved. Paylocity, which soared post-earnings in November, reports on Feb. 4. Marketo, which briefly dropped post-earnings in October, reports on Feb. 9.
    | Tue, Jan. 26, 8:22 AM | 1 Comment
  • Oct. 23, 2015, 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
    | Oct. 23, 2015, 3:07 AM
  • Sep. 4, 2015, 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.
    | Sep. 4, 2015, 9:48 AM | 1 Comment
  • Jul. 23, 2015, 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
    | Jul. 23, 2015, 5:43 PM
  • Jul. 6, 2015, 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.
    | Jul. 6, 2015, 10:40 AM
  • May 5, 2015, 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.
    | May 5, 2015, 3:08 PM | 18 Comments
Company Description
NetSuite, Inc. engages in the provision of cloud-based business management application suites. The company provides cloud-based financials and enterprise resource planning software suites. It offers a broad suite of applications, including accounting, customer relationship management,... More
Sector: Technology
Industry: Business Software & Services
Country: United States