NetSuite, the US-based software-as-a-service (SaaS) provider with UK customers including Carphone Warehouse and BT, has announced a sharp rise in turnover, reflecting the growing interest in hosted applications by both small and large businesses.
The company reported revenue for the first quarter of $34.1 million (17 million), up 47 per cent on the first quarter of 2007, and eight per cent up quarter on quarter.
Losses at the company, which floated on the New York Stock Exchange five months ago narrowed to $2 million (1 million), compared to $9.3 million (4.6 million) in the first quarter of 2007.
Revenue from its international operations, including the UK, accounted for $6.3 million (3.15 million), while overall the company added over 400 new customers and over one million unique log-ins in the quarter.
"Our first quarter 2008 results and record financial performance are the result of continued execution against our product, distribution and partnership strategies," said Zach Nelson, chief executive of NetSuite. "With the recent introduction of NetSuite OneWorld and our alliance with BT, we continue to extend our leadership in cloud computing and set the stage for continued success."
NetSuite is one of a number of companies benefitting from the growth in popularity of SaaS products. Companies are increasingly turning to such products to simplify and update their application base, to provide on-demand scaling in capacity-driven environments such as telesales and customer service, and as a cost-effective and rapid approach for providing IT resources to new business units.
