NetSuite Rises on Q2 Sales, Names McGeever as President

Shares of the cloud software business company NetSuite rose by more than 3 percent in after-hours trading after the company reported second-quarter sales growth that outdistanced the estimates of analysts.

NetSuite rose to $95 a share after posting revenue of $177.3 million, beating the $172 million consensus. It reported profit of two cents a share on a non-GAAP basis, which was in line with the consensus view, down from six cents a share in the year-ago quarter. On a GAAP basis, NetSuite reported a loss of 41 cents a share.

The company also announced separately that CEO Zach Nelson had relinquished the title of president and promoted COO and former CFO Jim McGeever into that role. McGeever was also appointed to the board of directors. He joined NetSuite in 2000 as its 15th employee. He’ll be in charge of working with customers, NetSuite’s product and its hiring activities.

The San Mateo, Calif.-based supplier of financial software delivered to companies via the cloud was created after a series of conversations among Oracle founder Larry Ellison (its biggest shareholder), NetSuite’s founder and now-Chairman Evan Goldberg and Salesforce.com founder and CEO Marc Benioff. The same conversation begat Salesforce, too, but NetSuite — which was first known as NetLedger — launched first.

NetSuite has since evolved an app that many other cloud software companies rely on to run daily operations. Customers include Box, Jive Software, DocuSign and Evernote, and the company has recently begun to reach deeply into traditional industries like retail and consumers products: Lionel, the 114-year-old manufacturer of model trains and cars, and retailer Williams-Sonoma are clients as well.

This article originally appeared on Recode.net.

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