Netsuite Beats Estimates in Debut

SAN FRANCISCO - In its debut report as a public company, NetSuite(N) beat Wall Street's fourth-quarter expectations and gave in-line guidance for the first quarter.

Revenue at the San Mateo, Calif. on-demand software company rose 57% to $31.7 million, from $20.2 million in the same period of 2006. Analysts polled by Thomson Financial were expecting revenue of $30.5 million.

The company, which offers Web-hosted business software services, reported a net loss of $3.3 million, or 22 cents a share, vs. a loss of $8.1 million, or $1.25 a share, in the year-ago period.

Excluding items, NetSuite lost a penny a share. Analysts were anticipating a loss of 4 cents a share.

Shares were up 51 cents, or 2.2%, to $24 in after-hours trading. The company went public Dec. 20 at $26. The stock gained 36.5% on its first trading day and has declined steadily since.

The company projected first-quarter revenue of $33 million to $34 million and a loss of 1 to 2 cents a share, excluding items. Analysts were expecting $33.7 million, or a loss of 2 cents a share.

For the full year, revenue will range from $153 million to $156 million and a per-share loss of 1 to 4 cents, less items. Analysts were projecting a top line of $152.8 million and a loss of 3 cents a share.

>To order reprints of this article, click here: Reprints