NetSuite Q1 Keeps Up Revenue Growth Momentum

NetSuite (N) on Monday reported a first quarter net loss $22.2 million on revenues of $123 million. The company reported during an earnings call that the revenues marked the seventh consecutive quarter of more than 30 percent revenue growth.

“Our business model is playing out in a way that we think is favorable for NetSuite, our customers and our shareholders, both in the short and in the long term,” Zach Nelson, CEO of the cloud-based financials and enterprise resource planning (ERP) provider told investors.

NetSuite CFO Ron Gill said recurring revenues from subscription and support grew to $99.4 million in Q1 2014, a 34 percent increase from the previous year. He added that non-recurring revenues, which come primarily from professional services, grew to $23.6 million for the quarter, up 33 percent over the same period in the previous year.

The company’s non-GAAP net income for the first quarter of 2014 was $4.4 million, a 57 percent increase over the same period in first quarter of 2013. The first quarter gap loss of $22.2 million was wider than the $13 million loss from the same period last year.

NetSuite revealed a new promotion during the call: Sales Worldwide Verticals and Channels Senior Vice President Marc Huffman, who has been with the company for more than ten years, will now be in charge of running the company’s global sales organization as the company’s president of worldwide sales and distribution.

Commenting on the Huffman promotion, Nelson said, “I think it’s really symbolic of the fact that we are gaining depth across the board, not just in our sales organization, but across the company.”

Now, instead of Netsuite’s regional sales organization of North America, Asia-Pacfic and EMEA reporting to the company’s COO, Jim McGeever, they will now report to Huffman. This will allow McGeever to focus more on vertical industries and customer engagement.

“We are the only omnichannel commerce cloud-based solution out there on the planet,” he said. “Point of sale, online, single system — NetSuite’s the only answer.”

Earlier in the day, the company announced that four new partners — Allunna, CuriousRubik, FMT Consultants and One Vision LLC — have joined the NetSuite Solution Provider Program.

NetSuite shares are up 2.87 percent to $75.70 in after-market trading.

Follow CJ Arlotta on Twitter @cjarlotta and Google+ for further updates on the story above.