I do not often listen to quarterly earnings calls. I did to NetSuite’s 1Q call yesterday. It was a good primer to SuiteWorld coming up in a couple of weeks.
Besides CEO Zach Nelson is always entertaining. Zach did not disappointment with statements of competitors “cloudwashing” and the need to put some “out of their misery” and a quip about an executive just hired from a competitor “certainly knows what not to do now”. He is also a huge sports fan and his excitement at doing the call overlooking the Durham Bulls stadium near Raleigh, NC was palpable.
The results did not disappoint either. It is the eighth consecutive quarters of 30%-plus revenue growth. The call transcript is here
I liked two major themes in the call which deepen NetSuite’s differentiation I see in the cloud ERP space.
NetSuite continues to do well in two-tier ERP situations. HP Software ($ 4 billion division of HP) has finished a 6 month NetSuite deployment supporting 15 countries. HP is a major SAP customer and partner and as I described in SAP Nation “Tiers of Joy” is a strategy a number of SAP shops are looking at.
NetSuite continues to do well in “omni-channel” retail and distribution sectors as I have written before. As Zach said “we are seeing number of large retailers walking through NetSuite’s doors for customer visits”.
They also announced the acquisition of Bronto, a marketing automation software vendor focused on that vertical.. Zach called it “the most widely used email marketing platform in the Internet retailer list of top thousand retailers.”
As Zach said it will give NetSuite a chance to “seamlessly combine customer transactional history with rich behavioral data.”
I look forward to hearing more on each of these focus areas at SuiteWorld.