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NETSUITE REVS RISE 34 PERCENT Featured

Zach Nelson, NetSuiteIt's practically a formula—NetSuite's GAAP loss rose and the cloud software company showed strong revenue growth. That was the story as the company this week released results for its first quarter ended March 31. The loss rose to $22.2 million, up from just over $13 million in last year's corresponding period. Revenue reached $123 million in the most recently completed period, a rise of 34 percent from $91.6 million a year earlier. Non-GAAP income rose to $4.4 million, up 58 percent over $2.8 million a year ago.

And another part of the standard formula—CEO Zach Nelson took shots at competitors. "Workday is like the Tasmanian tiger," he said. [A species generally thought to have become extinct in the 1930s, but some think may still wander the wilds of Tasmania]. The fact that both Nelson and SAP in its first quarter earnings call this month took shots at Workday suggests that company is viewed as a possible threat. Otherwise, it was the usual slap at SAP, which Nelson cited as continuing to lose revenue in its core market [although not addressing the German company's growth in subscription revenue], and all the other client-server players that don't have true cloud products. The size of NetSuite customers also continued to grow with the average selling price of deals up 50 percent from a year ago as the company added 310 customers during the first quarter. Sales of OneWorld represented 40 percent of new business, a new high for that product. And NetSuite had 2,550 employees at the end of the quarter, up 31 percent over a year earlier, with the largest growth in product development and sales.

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