During the call, we'll be referring to both GAAP and non-GAAP financial measures. The reconciliation of our GAAP to non-GAAP financial information is provided in our press release and on our website. All of the nonrevenue financial measures we will discuss today are non-GAAP unless we state that the measure is a GAAP measure.The primary purpose of today's call to discuss our second quarter 2012 results. However, some of the information discussed during this call, including any financial outlook we provide, may constitute forward-looking statements within the meaning of U.S. federal securities laws. These statements are subject to risks, uncertainties and assumptions and are based on financial information available as of today. We disclaim any obligation to update any forward-looking statements or outlook. Risks and uncertainties that would cause our results to differ materially from those expressed or implied by any such forward-looking statements include those summarized in the press release that we issued today. These risks and additional risks are also described in detail in reports that we file from time to time with the SEC, including our most recent 10-K and 10-Q filings, which I encourage you to read. With that, I'll now turn the call over to Zach Zachary Nelson Thank you, Ron. In the quarter that saw many traditional enterprise software companies struggle, NetSuite had one of its best quarters ever. We saw continued growth in our financial metrics and exceeded our previously stated outlook on revenue, cash flow and non-GAAP EPS significantly. And the continued execution against our core strategies allows us to increase our full year outlook for revenue and non-GAAP EPS. On the top line, we posted record revenue with $74.7 million, exceeding our stated outlook of $73 million to $73.5 million. And we finished with a record deferred revenue balance, up 38% year-over-year.
On the bottom line, we had our best quarter ever. Non-GAAP operating income grew 172% year-over-year, and non-GAAP operating margin ended at a record 7.5%. Non-GAAP net income grew 192% year-over-year, and we tripled our earnings per share from Q2 of 2011 by delivering non-GAAP EPS of $0.06 per share. This also exceeded our stated outlook of $0.03 to $0.04 per share.In addition to overachievement on revenue and EPS, cash flow from operations grew by 80% over Q2 of 2011 to $15.2 million, exceeding our previously stated outlook on cash flow for the quarter of $13.5 million to $14 million. Profitability, viewed through the lens of cash flow, grew to an impressive 28% operating cash flow margin. These many record results are a testament to our strong execution against our mission to provide companies cloud-based, integrated systems that deliver unprecedented control of and visibility into their business operations. As well, our overperformance in the quarter and the first half is a demonstration of our continued execution against the strategy we have laid out over the past several years. Our strategy of providing a suite of applications designed to run business, combined with our move upmarket to bring the benefits of the suite to larger companies and the verticalization of the suite to bring the benefit of the suite to many different industries, continues to pay dividends for NetSuite, our stockholders and our customers. There was no better place to see the success of our strategy and its impact on customers than in our SuiteWorld conference held during Q2. Once again, SuiteWorld was a phenomenal success with roughly 70% more attendees than our event the prior year. Customer wins at Land O'Lakes and Procter & Gamble showed the continued success of our move upmarket. And announced wins at fast-growth companies like Square, Airbnb, Evernote and Playdom show next-generation companies are also betting on NetSuite as their platform for the future.
And we finished the second quarter with great customer momentum. During the quarter, we added 329 new customers. Average business selling price jumped almost 30% year-over-year to well over $50,000 in first year contract value.SuiteWorld also provided further proof of the growth and success of our SuiteCloud platform. SuiteCloud provides a platform for third-party application developers and resellers to extend the core NetSuite application to meet customer and market requirements. Read the rest of this transcript for free on seekingalpha.com