NetSuite posts $100m net losses for 2014

UploadsNewsArticle4500776main

The software vendor NetSuite posted net losses of $100m (£66.3m) for last year, according to generally accepted accounting principles (GAAP), dropping even further from a net loss $70.4m (£46.7m) in 2013.

The figures come despite an increase in year-on-year revenues, which grew by a third to total $556.3m (£369m) for 2014, and cash flow from operations which went up by 20% to $74.9m (£49.7m) in the same period.

Zach Nelson, chief executive of NetSuite, said: "Our record results for the quarter and fiscal year 2014 contrast with the results announced by legacy on-premise software companies as the cloud and NetSuite disrupt the business software landscape."

"Fiscal year 2014 represents a fifth consecutive year of accelerating recurring revenue growth, which, based on public disclosures, we believe is a record unmatched by any publicly-traded on-premise or cloud software company during the last five years."

Some analysts have argued that GAAP numbers do not take account of the business model used by cloud and Software-as-a-Service (SaaS) providers, which can spend generous amounts on sales and marketing with the promise of recouping it on recurring contracts, whose value is said no to be well gauged by GAAP.

By NetSuite’s own accounting principles the firm made $25m (£16.6m) last year, up from $19.9m (£13.2m) in 2013.

Share prices on the New York Stock Exchange soared to $109 (£72.3) in after-hours trading following the announcement, but have settled back to just under $107 (£70.9) at the time of writing.

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *

Favourites

  • Favorite list is empty.
FavoriteLoadingClear favorites

Your favorite posts saved to your browsers cookies. If you clear cookies also favorite posts will be deleted.