NetSuite, a company providing on-demand, integrated business management software suites for mid-market enterprises and divisions of large companies, today announced its financial results for the fourth quarter and fiscal 2008.
Despite the current economy, the company reported record growth with total revenue for the year reaching $152.5 million, a year-over-year increase of 40.5 percent. Total revenue for the fourth quarter was $41.4 million, a 30.5 percent increase over the fourth quarter of 2007.
For the year ended 2008, revenue from the Americas was $123.4 million, while revenue gained from international regions was $29.1 million.
In addition, the company added close to 350 new customers in the fourth quarter and ended the year with over 6,600 active companies.
Zach Nelson (News - Alert), CEO of NetSuite, could not be happier with the company’s recent success despite a very difficult economic environment.
“I am especially excited that we posted the first non-GAAP profitable quarter in the company's history even against the headwinds of global economic challenges," said Nelson. "Furthermore, we posted record quarterly and annual revenue, reached a record average selling price and grew our bookings significantly quarter over quarter. This is a strong performance in any quarter, and is especially impressive with business spending on equipment and software falling 27.8 percent, the worst in a half century."
According to Nelson, what led to the company’s success in the fourth quarter and fiscal 2008 is its unique business strategy and great tactical execution.
“Our strategy of providing an integrated suite of applications delivered on-demand to small- and medium-sized businesses is even more applicable in times when cost-reduction and productivity improvements are necessary for survival," explained Nelson.
Regardless of economic challenges, the company has remained strong and has not let the recession delay its innovation plans. The company kicked off 2009 by taking home the 2008 Product of the Year Award from Customer Interaction Solutions magazine for its OneWorld cloud computing solution.
Launched in 2008, NetSuite OneWorld enables multinational and multi-subsidiary companies to manage their global business operations in real-time. This is yet another in the long list of awards that NetSuite (News - Alert) has received in 2008.
"Again, we are proud to distinguish the greatest achievements in the advancement of call centers, CRM and teleservices technologies in 2008," said Executive Group Publisher and Editor-in-Chief of Customer Interaction Solutions magazine Nadji Tehrani. "These companies have proven that they are dedicated to quality and excellence in solutions that benefit the customer experience as well as ROI for the companies that use them. We're proud to honor their achievements."
Also in January, NetSuite held a series of events at the New York Stock Exchange to discuss the changing role of the Chief Financial Officer during tough economic times.
The CFO Strategy Series identified solutions that financial leaders can adopt to help them cut operation costs and create a productive business environment. Attendees gained insight from two technology innovators, NetSuite CEO Zach Nelson and William McNee, president and CEO of Saugatuck Technology and former head of global research strategy for Gartner.
A few weeks ago, NetSuite announced the expansion of the NetSuite ReNewForce program, a marketing incentive targeted at salesforce.com customers to help them benefit from customer relationship management (CRM).
By implementing this solution, businesses seeking new sales opportunities will achieve greater value across their operations. As an on-demand suite with built-in integration and business analytics, NetSuite offers significantly more value than the standalone salesforce.com SFA application for much smaller price tag (News - Alert).
According to the company, the NetSuite ReNewForce program has been successful in reducing costs and enhancing customer service for customers since its initial launch last October. The program will remain active through March 2009, enabling salesforce.com customers that are up for renewal the chance to switch to the more robust NetSuite business management system.
Earlier today, NetSuite announced that Iron Mountain Digital, a global provider of enterprise Software- and Storage-as-a-Service solutions for backup and archiving, had deployed NetSuite OneWorld to better manage its billing operations.
With this solution, Iron Mountain (News - Alert) Digital was able to combine multiple disparate billing software systems into one unified billing system. In addition, the company can operate with a single real-time view of its billing operations and can communicate with customers of its data protection and archival services around the world. Iron Mountain can do this without sacrificing the range of different subscription and per-usage billing software models attached to its services.
For those who were unable to listen to the teleconference, an audio replay and archived Webcast is available on NetSuite's Investor Relations Web site.
Michelle Robart is a contributing editor for TMCnet. To read more of Michelle's articles, please visit her columnist page.
Edited by Michelle Robart