Yesterday, 11:54 AM
- Salesforce (CRM -2.2%), ServiceNow (NOW -2.2%), Paylocity (PCTY -5.8%), Castlight (CSLT -4.1%), Cornerstone OnDemand (CSOD -3.6%), InContact (SAAS -2.2%), and Zendesk (ZEN -2.1%) are selling off after cloud ERP/HR/e-commerce software vendor NetSuite (N -11.7%) offered light Q1 and 2015 sales guidance to go with a Q4 beat. The Nasdaq is down 0.4%.
- As one would expect, NetSuite states forex has much to do with its guidance. On the CC (transcript), CFO Ronald Gill noted "the weighted average value of the foreign currencies in which we recognize international revenue has fallen more than 8% against the dollar." However, it's worth noting only 27% of NetSuite's Q4 revenue was international.
- NetSuite's Q4 numbers were solid: Subscription/support revenue grew 34%, and billings rose 34% to $201M (well above revenue of $157.9M). 54 customers were added for NetSuite's SuiteCommerce e-commerce software platform - CEO Zach Nelson humbly observes that was more than 3x the 17 customer adds rival Demandware (DWRE -1.6%) reported for Q3 (a seasonally weaker quarter).
- ServiceNow, the top player in the cloud IT service desk software market, provided above-consensus guidance on Wednesday.
Thu, Jan. 29, 8:51 PM
- NetSuite (NYSE:N) guides on its Q4 CC for Q1 revenue of $160M-$162M, below a $162.6M consensus. Full-year guidance is for revenue of $715M-$725M vs. a $722.9M consensus.
- The cloud ERP/HR software vendor ended Q4 with a deferred revenue balance of $300.9M, +42% Y/Y. Subscription/support revenue rose 36% in Q4 to $126.7M, and professional services revenue 46% to $31.2M. Operating expenses rose 36% to $128.3M.
- Shares didn't budge in AH trading. NetSuite has plenty of company among enterprise software firms in offering a conservative outlook, as forex pressures hit the industry at large.
- Q4 results, PR
Thu, Jan. 29, 4:16 PM
Wed, Jan. 28, 5:35 PM
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Nov. 3, 2014, 5:30 PM
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Oct. 23, 2014, 5:58 PM| Comment!
Oct. 23, 2014, 4:17 PM
Oct. 22, 2014, 5:35 PM
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Oct. 22, 2014, 1:22 PM
- Enterprise software vendors are having a rough day after VMware (VMW -5.6%) provided light Q4 guidance to go with a Q3 beat.
- On its CC (transcript), VMware also reported its bookings fell Q/Q in Q3. They were hurt by Russian and German softness, and a failure to close a major enterprise license agreement (ELA) with a federal client. ELAs made up 29% of Q3 bookings, down from 37% in Q2.
- Rivals Oracle (ORCL -1.5%), Red Hat (RHT -3.3%), and Citrix (CTXS -1.5%) are among the decliners, as are Splunk (SPLK -4.7%), Tableau (DATA -2.8%), Qlik (QLIK -2.5%), and MicroStrategy (MSTR -0.9%). Oracle provided light guidance last month.
- Several enterprise cloud software stocks are also selling off: N -2.5%. VEEV -2.9%. ZEN -4.2%. CSOD -2.3%. SAAS -3.2%. NOW -1.7%.
- Nomura and Raymond James have downgraded VMware. Nomura thinks 2015 guidance (expected in January) will also be light, and believes slow vSphere server virtualization growth (affected by competition and high penetration rates) will remain a headwind, given it's still over half of VMware's business. "Growth has to come from the vCloud Suite ... other newer products are just too small still to matter."
- Some of those "other newer products" are doing well: VMware's end-user computing license bookings (boosted by the AirWatch acquisition) rose over 60% Y/Y in Q3, and its much-hyped NSX software-defined networking platform now has 250+ paying customers (up from just 100 a few months ago).
- A slew of enterprise tech names sold off on Monday in response to IBM's Q3 report. Big Blue's software sales fell 2% Y/Y in Q3, after rising 1% in Q2. CA, Citrix, and ServiceNow report after the bell.
Aug. 28, 2014, 2:45 PM
- Workday (WDAY -4.7%) has received several target hikes after beating FQ2 estimates and upping its FY15 (ends Jan. '15) guidance. But there have also been some cautious notes focused on cloud HR/financial software giant's valuation.
- Citi observes Workday trades at 15x 2015E sales, and says it has trouble seeing upside catalysts at current levels. Goldman points out Workday is trading at 11x estimated enterprise value/billings even if its upside scenario plays out.
- Cantor (target raised to $121) sees several reasons to be bullish. Among them: The ramp of Workday's recently-launched recruiting product; the pending launch of Workday Student; an enterprise software upgrade cycle; strong international growth (echoes of Salesforce); and expected announcements at the November Workday Rising conference.
- Wedbush (target raised to $106) expects new big data/analytics products to be shown off at the conference. It also sees room for a fresh guidance hike in 3 months, though it thinks it might be smaller than yesterday's hike.
- Workday used its CC (transcript) to hike its FY15 billings guidance by $50M to $940M-$960M (above revenue guidance of $760M-$770M). FQ3 billings guidance is at $225M-$230M (above revenue guidance of $200M-$205M).
- Salesforce (CRM -2%) and several other cloud software names are following Workday lower. CSOD -3.3%. MKTO -3.3%. DWRE -2.2%. JIVE -1.6%. N -1.4%.
Aug. 6, 2014, 5:30 PM
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Jul. 30, 2014, 3:58 PM
- Ultimate Software (ULTI +7.4%) beat Q2 estimates on the back of a 26% Y/Y increase in recurring revenue (84% of total revenue). The cloud HR software vendor also disclosed on its CC (transcript) it added three new enterprise clients with 10K or more employees; the largest has 40K.
- Full-year guidance for 23% revenue growth (25% recurring growth) has been reiterated. Q3 guidance for revenue of $127M is roughly in-line with a $127.3M consensus.
- A number of cloud software peers have also rallied. Cloud HR/talent management peers Workday (WDAY +6.5%) and Cornerstone OnDemand (CSOD +5.1%) are among the biggest gainers, but others are also doing quite well. CRM +2.7%. NOW +4.7%. LPSN +5.3%. MKTO +4.1%. CNQR +4.8%. JIVE +3.6%. N +4.2%.
Jul. 24, 2014, 6:54 PM
- NetSuite (NYSE:N) guides on its Q2 CC for 2014 revenue of $545M-$550M and EPS of $0.24-$0.26; the former is above a $544.2M consensus, while the latter is below a $0.27 consensus. Q3 EPS is expected to be in a range of $0.03-$0.04, below an $0.08 consensus.
- Subscription/support revenue rose 32% Y/Y to $105.8M, professional services/other revenue rose 25% to $25.9M. The deferred revenue balance rose 39% Y/Y to $252.2M.
- Shares +0.9% AH. Q2 results, PR.
Jul. 24, 2014, 4:12 PM
Jul. 23, 2014, 5:35 PM
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Apr. 28, 2014, 5:48 PM
- NetSuite (N) guides on its CC for 2014 revenue of $540M-$545M, up from a prior $535M-$540M and above a $539.8M consensus.
- Q1 billings growth was 33% vs. 35% in Q4, and boosted by a 90% Y/Y increase in ASP and a doubling of $200K+ deals. NetSuite, historically focused on the mid-market, has been ramping its efforts to sell its cloud ERP, CRM, and e-commerce offerings to larger enterprises.
- Shares +2.9% AH.
- Q1 results, details
N vs. ETF Alternatives
NetSuite, Inc., provides software application suite. It offers software suites such as accounting/enterprise resource planning, customer relationship management, professional services automation & ecommerce functionality to businesses & others.
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