NetSuite: The Impressive Growth Will Continue

NetSuite (N) is growing at a strong pace. The company recently announced third-quarter revenue of $192.8 million, up 34% year-over-year. The provider of cloud-based technology solutions reported continued sequential and year-over-year growth in its top line due to rising customer traction for the company’s advanced cloud-based solutions, superior suite of omni-channel commerce software and in-demand Enterprise Resource Planning ((ERP)) solutions.

Looking ahead, NetSuite seems well-placed to deliver on its growth due to its product improvements.
Let’s take a look at the reasons why NetSuite’s performance can improve.

The way ahead

Last quarter, NetSuite delivered an impressive 34% year-over-year revenue growth that was ahead of its key competitors such as Salesforce.com, Akamai, VMWare and many more. Further, this quarter is the company’s 13th successive quarter of over 30% year-over-year revenue growth. NetSuite is believed to be the biggest pure-play SaaS ERP provider with nearly 10 times the installs count as against other key ERP providers present in the marketplace.

The accelerated adoption of Software-As-A-Service (SaaS) and innovative ERP solutions provided by NetSuite is expected to drive significant and continued top line growth for the company for the years to come.

NetSuite has witnessed significant incoming business growth prospects from emerging companies having innovative and new business models such as, preta moje and Deliveroo which are believed to transform the world by leveraging innovative cloud solutions from NetSuite and thus drive continued top line growth for the latter.

Positive sentiment

NetSuite has received an impressive long-term consensus growth score of 23.25 from the key investment analysts at Zacks Investment Research. This is primarily driven by the analyst’s healthy sentiments about the growth prospects of the company given its strong balance sheet.

Moreover, a majority of the key investment analysts are highly confident on the growth prospects of NetSuite, given notable business growth opportunities from the new start-ups in the sector, keen on developing superior cloud platform opportunities.

Conclusion

I think that investors should remain invested in NetSuite considering the impressive growth opportunities for the company that are expected to drive solid top line growth. Moreover, NetSuite’s growth efforts are further supported by its strong balance sheet with a cash position of $371.58 million and a total debt of $274.83 million. Hence, NetSuite has enough resources that will allow it to tap the growing opportunity in the end market and drive the long-term performance.
Published on Nov 4, 2015
By Harsh Singh Chauhan

Copyrighted 2016. Content published with author's permission.

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