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

Printer-friendly version Email this CRN article

Cloud application vendor NetSuite reported 34 percent sales growth in its first quarter Thursday. And the company's cloud e-commerce application offerings are an increasingly important part of those sales.

The company's e-commerce application sales are about to accelerate: Also Thursday, NetSuite said it had struck a deal to acquire Bronto Software, a Durham, N.C.-based developer of cloud-based commerce marketing automation applications.

NetSuite reported revenue of $164.8 million for its fiscal first quarter ended March 31, up 34 percent from $123.0 million in the first quarter of 2014.

[Related: SAP Reports Strong Q1 Sales Growth, But Slimmer Profits]

The quarterly sales figure included $133 million in recurring subscription and support revenue, also up 34 percent year-over-year, and $31.8 million in revenue from professional services. NetSuite's recurring revenue is now on an annual run rate of half a billion dollars, CEO Zach Nelson noted in a conference call with financial analysts Thursday.

NetSuite's core products are its NetSuite and NetSuite OneWorld ERP and financial management applications. But the company's SuiteCommerce line of end-to-end "omnichannel" applications is quickly becoming a significant contributor to NetSuite's top line.

Nelson said that during the first quarter, 25 percent more customers added SuiteCommerce to their NetSuite application deployments than in the same quarter in 2014. He also emphasized the broad applicability of the SuiteCommerce application set by noting that 50 percent of the new customer adoptions were outside the retail sector.

"The enormous investment we have made in SuiteCommerce is paying off," Nelson said, without disclosing specific sales figures.

Printer-friendly version Email this CRN article