NetSuite, the Software as a Service (SaaS) provider, has reported its third straight quarter of growth since its floatation 11 months ago.
The company, which has enjoyed 36 consecutive growth quarters since launch, reported revenue of $40.4 million (25.25 million) for the quarter, up 44 per cent on the same quarter last year, and up 11 per cent from the second quarter of this year.
However, non-GAAP losses rose to $6.2 million (3.87 million) from $1.8 million in the same quarter last year and $900,000 (562,500) in the second quarter of 2008. The increase was attributed to unfavourable foreign exchange rates and the revaluation of assets and liabilities following the acquisition of OpenAir in June.
International sales now account for 18 per cent of total revenue, while the company added more than 300 customers in the third quarter.
Despite the challenging economic outlook both in the US and in key international NetSuite markets such as the UK, the company remained upbeat, suggesting that economic pressure on businesses may in fact create opportunities for it to expand its market share.
"While market conditions remain unpredictable, we believe that the cost-reduction and productivity enhancements provided by NetSuite's on-demand integrated suite will be highly sought after by customers as they navigate through these turbulent times," said Zach Nelson, chief executive of NetSuite.
The company yesterday announced plans to target SAP customers with big discounts to encourage them to switch, having made a similar overture to customers of Salesforce.com that were due to renew their contracts with the vendor.
