NetSuite To Channel: Partners Key To Growing Cloud Business8:06 PM EST Fri. Jul. 26, 2013
As NetSuite continues on its hard-charging path to growth in the United States and abroad, partners remain key to making that expansion happen, CEO Zachary Nelson told Wall Street analysts Thursday during its second-quarter earnings call.
Partners continue to be an integral part in ensuring NetSuite's growth by getting the cloud software company's financial, enterprise resource and customer relationship management tools to customers, Nelson said during the call.
NetSuite's worldwide channel business grew by more than 70 percent since the second quarter of 2012, Nelson told analysts. Year-over-year, NetSuite's revenue grew 35 percent, to $101 million, according to the NetSuite earnings report.
On a GAAP basis, the loss for the second quarter of 2013 was $20.4 million, or 28 cents per share, compared to a net loss of $9.9 million, or 14 cents per share, in the second quarter of 2012.
Non-GAAP net income for the second quarter of 2013 was $4 million, or 5 cents per share, as compared to $4.8 million, or 6 cents per share, in the second quarter of 2012.
The overall growth included mid-market and large systems integrators, most notably the multinational company Capgemini, which signed up during the second quarter as an SI partner.
"The Capgemini partnership is indicative of NetSuite's continued move upmarket, as well as our plans to aggressively expand internationally," Nelson said.
"We intend to drive aggressive growth overseas, in areas such as continental Europe and Capgemini will be an important part of that effort."
The U.S. market still represents 75 percent of revenue for San Mateo, Calif.-based NetSuite, Nelson told analysts, but international sales in the second quarter produced about one-fourth of revenue as companies in Europe, Asia, Australia and New Zealand moved to the cloud.
NetSuite will be expanding its channel-only program in those countries, Nelson told analysts.
The company also set its sights of expanding into the contract management sector during the second quarter, which ended June 30.
NetSuite released a new version of its software designed for manufacturers and announced the integration of Autodesk's PLM 360 with NetSuite for manufacturers.
The company also recently announced that it is teaming up with Oracle and Deloitte, the financial services giant, to improve HR management solutions for businesses.
PUBLISHED JULY 26, 2013