NetSuite Reports 50-Percent Channel Sales Growth In Q1

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While continuing to grow its SMB customer base, NetSuite is increasingly counting big companies among its sales wins. Nelson said the number of sales contracts valued at $100,000 or more grew 40 percent year-over-year. Average deal size increased 14 percent in the quarter. Sales of NetSuite's OneWorld application suite, which is designed for global companies, accounted for 40 percent of new business deals in the quarter, Nelson said.

The company also reported strong growth in its Ecommerce cloud applications.

"I think we're probably in, sort of, the third inning of the channel re-architecting itself for cloud solutions," Nelson said, in response to a question about where the channel stands in re-inventing itself for the cloud computing market. "software-as-a-service was enormously disruptive to the traditional VAR channel." He cited several solution providers, including Sage partner Blytheco and Microsoft partner RSM McGladrey, which are both building cloud-computing practices based on NetSuite's products.

NetSuite is holding its SuiteWorld conference for customers and partners in San Jose in May, and Nelson promised "major announcements" about new products and technologies. "On the partnership front, we have many announcements slated, several of which will surprise the market," he said.

Nelson said 2013 will be "a year of investment," noting that the company has been aggressively hiring sales personnel and talent for the company's product development operations. In the quarter, the company added 175 employees, many of them in sales.

For the current quarter, NetSuite is forecasting sales to reach between $100 million and $101 million. And because of the strong first quarter, the company raised its revenue forecast for all of 2013 to between $404 million to $408 million, up from $397 million to $402 million.


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