Bob Scott reporting in his weekly Insights column.
NetSuite focused on its top line for the third quarter ended September 30 registering its thirteenth consecutive quarter of more than 30 percent year-over-year revenue growth. Meanwhile, CEO Zach Nelson noted in this week’s earnings webcast the company plans to continue investing in growth. The cloud software company’s loss rose to $37.3 million for the most recently ended period, an increase of $27.3 million in red ink a year earlier. Revenue reached $192.8 million, a 34-percent increase from $177.3 million in last year’s corresponding period. NetSuite often contrasts non-GAAP income with GAAP losses, but this time non GAAP net income dropped to $2.6 million, down 68.7 percent from $8.3 million. However, NetSuite reduced its operating loss to $33.4 million from $35.8 million as it kept the increase of operating expenses down to $160.1 million, a rise of 3.9 percent $154 million, a year earlier. The notable movement there was in G&A which dropped to $21.8 million, off 14.9 percent from $25.6 million. Nelson said the company grew the sales organization by almost 48 percent while the service staff grew more than by 50 percent. That growth needs to be digested and he continued, “We are going to evaluate the level of investment in 2016 very aggressively.” Nelson said the company’s “bias” will be to invest horizontally and across verticals. He also noted, “We have had great success in ramping productivity in the mid-market, which is just slightly down.”