Netsuite Announces Second Quarter 2012 Financial Results
- Q2 Revenue of $74.7M, a 29% Year-over-Year Increase
- Non-GAAP Net Income Grows 192% Year-over-Year
- Operating Cash Flow Grows 80% Year-over-Year to $15.2M
NetSuite Inc., the industry's leading provider of cloud-based financials / ERP software suites, recently announced operating results for its second quarter ended June 30, 2012.
Total revenue for the second quarter of 2012 was $74.7M, representing a 29% increase over the same period in the prior year. Subscription and support revenue for the second quarter of 2012 was $61.0M, representing a 27% increase over the same period in the prior year.
Cash flows from operations were $15.2M in the second quarter of 2012, an increase of $6.7M, or 80%, over the same period last year.
On a GAAP basis, net loss for the second quarter of 2012 was $9.9M, or $(0.14) per share, as compared to a net loss of $9.8M, or $(0.15) per share, in the second quarter of 2011.
Non-GAAP net income for the second quarter of 2012 was $4.8M, or $0.06 per share, as compared to non-GAAP net income of $1.6M, or $0.02 per share, in the second quarter of 2011.
"In a quarter that saw many enterprise software companies struggle, NetSuite had one of its best quarters ever. We saw continued improvements across our financial metrics and exceeded our previously stated outlook on revenue, cash flow and non-GAAP EPS significantly. And the continued execution against our core strategies allows us to increase our full-year outlook for revenue and non-GAAP EPS,” said NetSuite CEO Zach Nelson.
In conjunction with this announcement, NetSuite will host a conference call at 2:00 p.m. PDT (5:00 p.m. EDT) today to discuss our second quarter 2012 financial results and our outlook for the third quarter of 2012 and full year 2012. A live audio webcast and replay of the call, together with detailed financial information, will be available in the Investor Relations section of NetSuite's website at www.netsuite.com/investors. The live call can be accessed by dialing 888-554-1430 (U.S.) or 719-325-2172 (outside the U.S.) and referencing passcode: 235-4836. A replay of the call can also be accessed by dialing 888-203-1112 (U.S.) or 719-457-0820 (outside the U.S.), and referencing passcode: 235-4836.
NetSuite Inc. is the industry's leading provider of cloud-based financials / Enterprise Resource Planning (ERP) software suites. In addition to financials/ERP software suites, NetSuite offers a broad suite of applications, including accounting, Customer Relationship Management (CRM), Professional Services Automation (PSA) and Ecommerce that enables companies to manage most of their core business operations in its single integrated suite. NetSuite's "real-time dashboard" technology provides an easy-to-use view into up-to-date, role-specific business information. For more information about NetSuite, please visit www.netsuite.com.
Non-GAAP Financial Measures
Our stated results include certain non-GAAP financial measures, including non-GAAP operating income, net income, weighted average shares outstanding, and net income per share. Non-GAAP operating income and non-GAAP net income exclude expenses related to stock-based compensation expense, amortization of intangible assets, transaction costs for business combinations and costs associated with the settlement of a patent dispute. Non-GAAP operating income and non-GAAP net income exclude these expenses as they are often excluded by other companies to help investors understand the operational performance of their business, and in the case of stock-based compensation, can be difficult to predict. We believe these adjustments provide useful comparative information to investors.
We consider these non-GAAP financial measures to be important because they provide useful measures of our operating performance and are used by our management for that purpose. In addition, investors often use measures such as these to evaluate the operating performance of a company. Non-GAAP results are presented for supplemental informational purposes only for understanding our operating results. The non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.
SOURCE: NetSuite Inc.