According to its conference call, things look good for NetSuite (Nasdaq: N), which offers an on-demand enterprise resource planning (ERP) platform for small and medium size businesses. Yet, it wasn't enough for investors. So far in today's trading, the stock price is down 16% to $18.72.
But, on its face, the Q1 report was strong. Revenues spiked 47% to $34.1 million and the net loss fell from $9.28 million to $2 million.
In fact, NetSuite had more than one million log-ins for the quarter and there were more than 400 new customers. Then again, the company continues to innovate – with new offerings like OneWorld, which is a good fit with multinational companies.
At the same time, NetSuite is striking key deals for distribution. For example, there is a new alliance with BT (NYSE: BT).
No doubt, Wall Street can get jittery – especially in the short run. But, NetSuite likes to say that it is gunning for the "Fortune 5 Million" businesses, which is a multi-billion market opportunity. And despite attempts from competitors – like SAP (NYSE: SAP), which recently scaled back its plans – NetSuite is still positioned nicely.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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