General Consultant Discussion

Netsuite truly has a charmed life. The tech press obviously adores them enough that semi-major publications just let Netsuite write their headlines. Non-GAAP profit is great - but to my knowledge it's not comparable to anything. It's like in my old CPA days when the partners sat around saying ""if we could only collect on all our receivables we'd really be making some money"" . Problem is that often the receivables were for projects that customers hadn't authorized (and would be written off), were for projects that went way over budget (and would be written off). So far as I know Netsuite does not have a receivable problem - but it's a real load of BS in my opinion to trot out NON-GAAP earnings year after year. There should be a special stock market category for NON-GAAP reporters so that the companies can all be compared to each other there. How can you compare Netsuite (other than earnings growth) to anyone in the ERP space? And last I checked Netsuite's gross revenues were in the $300-$400 million range (2012 was $ 308 million) which is relatively tiny compared to other ERP companies. http://www.zdnet.com/netsuite-delivers-finest-q1-in-company-history-with-91-6m-in-revenue-7000014529/

http://quicktake.morningstar.com/stocknet/secdocuments.aspx?symbol=n

Seeking Alpha does a good job of providing the Netsuite earnings call transcript from yesterday. Here are my highlights: -- Q1 was a strong quarter on the new customer front. We added roughly 325 total new customers -- average selling price that was 14% higher than the prior year (last year the ASP or average selling price grew 21%). I don't see where the analysts asked the question of WHAT was the ASP but I believe (could be wrong) that it's somewhere around $45,000/year. -- Our channel sales efforts continue to show great success and accelerated to 50% growth year-over-year. -- the number of deals greater than $100,000 growing by more than 40% year-over-year. -- growth in sales to larger companies is propelled by our NetSuite OneWorld product -- sold the highest number ever of OneWorld deals during the quarter, and OneWorld represented more than 40% of our new business sales in Q1. -- more than 3,000 B2B and B2C websites that use SuiteCommerce to transact business online -- Year-over-year, the United States was the fastest-growing geographic area on a revenue basis, and approximately 26% of our revenue for Q1 was generated outside the U.S. -- You saw companies like Blytheco, Sage's largest reseller last year began to build the NetSuite practice. You see things like McGladrey, who's I think, arguably is Microsoft Great Plains' biggest reseller, doing very well on NetSuite today. -- if you look at the history of NetSuite, we began by being NetLedger. We sold accounting online. Guess what? Nobody wants accounting online. That's not their problem. Their problem is how data moves across their company, how business processes get automated. Of course, accounting is important in that. Accounting needs to come out of that but what they really want is a suite of applications that they can use to run their core business processes. And literally, every one of our customers buys the entire suite. -- We haven't changed our per-user pricing at all. It's still $99 per user per month on average. (Note: I think this is a real starter price - and you would typically add a lot to this including minimum # of users, add'l functionality).

http://seekingalpha.com/article/1374191-netsuite-management-discusses-q1-2013-results-earnings-call-transcript?part=single&goback=%2Egmp_3253582%2Egde_3253582_member_235900191

Thanks, Wayne. Very illuminating.