Financials and ERP business NetSuite has announced its operating results for the fourth quarter 2015 and full financial year and shows revenue for Q4 of $206 million (up from $157 million), representing a 31% increase over the prior year, with full revenue for 2015 at $741 million (up from $556 million), a year-over-year increase of 33%.
However, the net loss for the quarter and year continue to grow. Net loss for the fourth quarter of 2015 was $32.4 million (compared to $25.3 million in the same quarter 2014) and net loss for the year was $124 million, up from $100 million, in 2014.
NetSuite matched their revenue growth with a similar 33% increase in their marketing in 2015, from $290 million in 2014 to $388 million in 2015, a growth that was almost matched in product development, $106 million in 2014 to $135 million in 2015 (27%).
Commenting on the results CEO Zach Nelson (pictured) was customarily bullish. "NetSuite delivered record revenue and powerful record customer growth as thousands of next-generation leaders like Snapchat, mid-size organizations like Lucky Brand, and global enterprises such as American Express Global Business Travel reimagine their business in the cloud on NetSuite.”
He then moved to downright lyrical and announced. “In 2016, the wind is at NetSuite’s back as the world transitions from a time just a couple years back, when few believed that businesses would run mission critical core business applications in the cloud, to today when companies in many industries can’t get there fast enough."
NetSuite also managed to burn through $77 million of their cash reserves during the year; they now have $290 million left which at the current burn-rate means there’s enough for around three years to turn-around the company. Although if they can convert some of their current assets to cash (total assets were up from $922 million to $1.14 billion), they will have a lot longer. The business has also expanded quickly, and the cost of this expansion looks to be the main reason for the losses. The cost of supporting the subscriptions and services increased from $176 million in 2014 to $245 million in 2015 (39%) slowing slightly in Q4 where the increase slowed to 34% ($50.5 million in Q4 2014 to $67.8 million in Q4 2015.
The full financial results are available if you Click here.