One of the leaders in web-based business applications – NetSuite (NYSE: N) – posted its Q4 results yesterday. And, while the recession is a drag, the company was still able to keep up its momentum.
Quarterly revenues increased 30.5% to $41.4 million, with 350 new customers (the total is now at 6,600). In fact, the company generated non-GAAP net income of $0.01 per share or $534,000.
Essentially, NetSuite is an alternative to expensive payroll/CRM systems. That is, the company sells its software as a subscription (which actually has resulted in a nice recurring revenue stream).
Also, NetSuite's OneWorld product continues to get traction. The application is geared for larger organizations, which have diverse subsidiaries. The offering now has more than 200 customers.
Interestingly enough, NetSuite may be somewhat resistant to the slowdown in the economy. How? Well, corporate customers will need to find ways to cost-effectively deal with necessary software functions. And, for the most part, NetSuite has a competitive offering.
In today's trading, NetSuite's shares are up 7.48% to $8.48.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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