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NetSuite (NYSE: N) is one of the top players in the cloud-computing sector. In fact, three of the four most recent tech IPOs -- OpenTable (NASDAQ: OPEN), SolarWinds (NYSE: SWI), and LogMeIn (NASDAQ: LOGM) -- use the company's software to do things like manage customer relationships, financials, ecommerce, and so on.
This momentum is helping to boost NetSuite's top line. Despite the recessionary headwinds, the company's revenues increased 10% to $40.3 million, according to the Q2 report. While there was a net loss of $5 million, or $0.08 per share, NetSuite posted positive cash flows of $1.4 million.
In the quarter, the company snagged 270 customers. What's more, there was growth in the average selling price of NetSuite's software.
The company is also getting traction from its acquisitions. Last year, NetSuite purchased OpenAir, so as to get a footprint in the services automation space (which is fairly large). Then a few weeks ago, the company struck a deal to purchase QuickArrow, which will be integrated into OpenAir's business. In all, the division will have more than 80,000 subscribers.
However, as is often the case with tech stocks, investors got somewhat overeager on NetSuite. In this morning's trading, the shares fell 13% to $12.20.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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