Cloud-based ERP firm NetSuite has recorded impressive revenue growth for its third quarter, but also saw losses increase.
Revenue was $79.8m, up 31% from the $60.9m recorded during the third quarter last year.
However an increase in revenue did not help the company’s net income. Losses for the quarter increased from $6.9m a year ago to $7.9m this time.
Despite the loss CEO Zach Nelson was in bullish mood, claiming these results were affected by a very good third quarter last year.
On a conference call with journalists and analysts, Nelson said: "Third quarters are typically somewhat difficult, with summer vacations, much of the quarter’s activity is delayed into the third month of the quarter. In NetSuite’s case, last year’s Q3 was remarkably strong, making the comparison even more difficult."
"A deeper look at some key metrics reveals what is driving this momentum, and a big part of our success can be attributed to our move upmarket, both in terms of selling to larger midsized companies, as well as to continued success of our two-tier ERP strategy in large enterprises," he added.
Nelson added that the company added around 300 new customers during the quarter, while average selling price climbed 11%. Nelson also said NetSuite had increased the number of big deals it was signing, with more deals worth over $200,000 signed this quarter than ever before.
The company has raised its guidance for the remainder of its financial year.
