NetSuite's Q1 Beats Expectations; Shares Rise After Hours

Shares of cloud business software supplier NetSuite rose by four percent in after-hours trading after the company reported first-quarter results that beat what analysts expected.

NetSuite reported earnings per share of six cents versus the consensus view of two cents, on revenue of $123 million, which rose 34 percent from the year-ago period. Analysts had expected sales of $121 million.

The company also boosted its revenue outlook for 2014 to between $540 million and $545 million, up from $535 million previously.

CEO Zach Nelson took his customary stab at rival SAP in a statement: “There is clearly a changing of the guard taking place in the ERP market as evidenced by NetSuite’s significant market share growth, and by the shrinking core license business of non-cloud ERP vendors such as SAP.”

ERP stands for Enterprise Resource Management, and in English it means software that handles all the crunchy details of managing a business day to day. Sixteen-year-old NetSuite has for years focused primarily on offering cloud-based ERP to small and medium-size businesses. But in recent years the size of its customers has gotten consistently bigger. And it has also expanded into new areas, including human resources software and retail point-of-sale systems.

NetSuite shares have, like those of other cloud companies, declined in recent weeks. Its shares peaked at $119.63, but as of today’s regular session closing the price had fallen by nearly 40 percent to $73.59.

This article originally appeared on Recode.net.

Will you join us?

Our biggest supporters are our readers — and we’re so grateful to everyone who has made a contribution during our September campaign. We’re less than 1,000 contributions away from reaching our goal for the month, which in turn will allow us to say yes more often when our incredible journalists come to us with questions they want to answer and projects they want to pursue. Will you make a contribution before the month ends and support our policy coverage through 2024 and beyond?

One-Time Monthly Annual

$5/month

$10/month

$25/month

$50/month

Other

$

Yes, I'll give $5/month

Yes, I'll give $5/month

We accept credit card, Apple Pay, and Google Pay. You can also contribute via