NetSuite Files for IPO

NetSuite got off to a slow start, but it is finally on a growth path.

The software-as-a-service maker, founded in 1998, filed its first registration statement Monday with the Securites and Exchange Commission for its initial public offering. It expects to issue a small stake to the public, of up to $75 million in shares, through a Dutch auction.

The San Mateo, Calif.-based maker of customer-relationship-management software had revenue of $67.2 million in 2006 and is a smaller competitor to Salesforce.com(CRM Quote), which was founded in 1999 by former Oracle(ORCL Quote) executive Marc Benioff.

NetSuite may even compete with Oracle, yet Oracle CEO Larry Ellison stands to benefit from the IPO: He and his family own approximately 74% of NetSuite, through Tako Ventures, and will retain control of the company.

NetSuite has a way to go to catch up to Salesforce.com, which had revenue of $162.4 million for the quarter ended in April.

But NetSuite's revenue is on a steeper growth curve. Its revenue grew 85% in 2006 and 72%, year over year for the quarter ended in March. Salesforce grew 60% for the year ended in January and 55% for the quarter ended in April.

While growing, NetSuite still has yet to turn a profit: It lost $23.4 million in 2006.

Credit Suisse Securities and WR Hambrecht are underwriters for the IPO.