NetSuite Reports Robust Q1 Sales Growth, Plans E-Commerce App Company Acquisition


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The step in NetSuite's e-commerce efforts is combining customer transactional history with "rich behavioral data," Nelson said. And that's where Bronto Software comes in, which San Mateo, Calif.-based NetSuite is buying in a cash and equity transaction valued at about $200 million.

Bronto's commerce marketing automation platform is used by more than 1,400 brands. NetSuite plans to combine Bronto with its B2B and B2C SuiteCommerce cloud application set.

"With the acquisition, we are once again leapfrogging the competition by bringing together our next-generation omnichannel commerce platform with Bronto's next-generation omnichannel marketing automation system," Nelson said.

NetSuite said it expects to complete the acquisition sometime in the second quarter, subject to closing conditions and regulatory approvals.

NetSuite has pursued a growth strategy since the company's beginning and has yet to report a profit using generally accepted accounting principles (GAAP). For the just-completed quarter, the company reported a net loss of $22.7 million.

But that's only 2 percent higher than in last year's first quarter, on 34 percent more revenue. The company's quarterly losses peaked at $29.3 million in last year's third quarter and narrowed to $25.3 million in the fourth quarter.

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