NetSuite (N)

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See all Bulls Reasons Bulls: Reasons To Buy Short-Term Short Idea, Long-Term Long 100% agree Short-Term Short Idea, Long-Term Long The company is growing at a very healthy pace, posting revenue growth of 71.64%, 64.28%, 56.35% and 57% in the four quarters of 2007 and expects to grow revenue 44% in 2008. While the software is complicated, it is very powerful and well integrated across various modules. As... read more View or Edit Reason 1 votes 100% agree See all Bears Reasons Bears: Reasons To Sell Spreading thin and bad product 100% agree Spreading thin and bad product NetSuite derives 18% of their revenue from international sales and one of the key areas the company plans to focus on is expanding their international sales. Selling in different countries requires localizing the software not only to the language of the target country but also... read more View or Edit Reason 1 votes 100% agree Reduced earnings due to expenditure 0% agree Reduced earnings due to expenditure According to their amended S1 filing, the company plans on spending between $10 and $15 million on capital expenditure including a second data center facility in 2008. The company will most likely take an earnings hit on account of these expenditures as well as for expensing... read more View or Edit Reason 0 votes 0% agree Send the authors a comment or suggestion Be the first to make a suggestion See All Suggestions

Top Contributors Asif Suria Related Articles Salesforce.com (CRM) Microsoft (MSFT) RightNow Technologies (RNOW) SAP AG (SAP)

NetSuite Inc. is a vendor of on-demand, integrated business management application suites for small and medium-sized businesses. The Company provides a suite of enterprise resource planning (ERP), customer relationship management (CRM) and e-commerce capabilities that enables customers to manage their critical back-office, front-office and Web operations in a single application. Its suite serves as a single system for running business operations and is targeted at small and medium-sized businesses (SMBs), as well as divisions of large companies. The Company delivers its suite over the Internet as a subscription service using the software-as-a-service or on-demand model. As of March 31, 2007, it had over 5,300 active customers.

[edit] Business

NetSuite derives 18% of their revenue from international sales and one of the key areas the company plans to focus on is expanding their international sales.

[edit] Trends and Forces

[edit] Research and Development

According to their amended S1 filing, the company plans on spending between $10 and $15 million on capital expenditure including a second data center facility in 2008. The company will most likely take an earnings hit on account of these expenditures as well as for expensing options that are exercised by management and employees.

[edit] Competition

NetSuite is a contender to any company that offers accounting, sales force automation, inventory management and CRM capabilities in a single integrated hosted solution. A single solution that can address the needs of a growing organization without having to spend millions or install infrastructure is music to the ears of any CTO who has worked with disparate systems before and has had to make them talk to each other. Main contenders in this region happen to be Salesforce.com (CRM), Microsoft (MSFT), SAP AG (SAP) and RightNow Technologies (RNOW) who provide similar "Software as a Service" (SaaS) landscape.