NetSuite turns in solid Q1 results

TalkBack 1 of 1:

• Thread View
• Flat View

Good results?

Dennis,

No disrespect, but I fail to see how you could possibly construe NS Q1
results as "solid" and constituting an "upward trend". Consider the
following:

Q2 revenue guidance below consensus
FY 09 revenue guidance significantly below consensus
Significant decline of OneWorld as a percent of revenue, quarter over
quarter
40% reduction in new customer adds (albeit deal size did increase
some, but not 40%)
Signifcant deferred revenue decline
Significant cash burn ($4MM)

Add to these the same old NetSuite stories:
No visibility into customer churn rates
ONE data center, in arguably one of the most disaster-prone areas in
North America, if not the world.
Countless negative customer experience blogs.

Also, the reliance of non-GAAP measures to reflect both operating
and net income is - by definition - flawed. Given some creative
leeway, one could probably make GM look profitable by 'non-gaap'
measures.

Until NS shows some real strategic direction (moving upmarket with a
product that can't support the move doesn't cut it), I just fail to see
how any results as poor as Q12009 could be "positive".

Don't forget... the Q1 earnings call resulted in 1 analyst downgrade, 1
re-iteration of 'sell', as well as a $4 (25%+!) drop in the stock price
within a few days of the results being released.

Posted by: mkesker-22980506775892760274980333949847   Posted on: 06/23/09 You are currently: a Guest | Members login | Terms of Use

Alert moderator to an offensive message

Subscribe to this discussion via Email or RSS

SponsoredWhite Papers, Webcasts, and Downloads

• The True Costs of Virtual Server Solutions VMware In an economic environment that is repeatedly heralding the message "do ... Download Now
• Building the Virtualized Enterprise with VMware Iinfrastructure VMware VMware virtualization software has been adopted by over 120,000 enterprise ... Download Now
• Three Steps You Need to Know to Stop Data Loss Varonis Sensitive data exposed to misuse or loss... it is the stuff of nightmares ... Download Now