Cloud software provider Netsuite has reported a US$70.4 million calendar year net loss, despite its rapidly accelerating revenue growth.
The company, which provides Cloud-based financials, enterprise resource planning and omni-Channel commerce software suites, posted a fourth quarter net loss of US$20.2 million, or US$(0.27) per share, as compared to a net loss of US$9.6 million, or $(0.13) per share, in the fourth quarter of 2012.
The net loss for the year was US$70.4 million, or US$(0.95) per share, as compared to a net loss of US$35.2 million, or US$(0.50) per share, in 2012.
However, in welcome news for shareholders, revenue for the fourth quarter of 2013 was US$115.0 million, representing a 35 per cent increase over the prior year.
Revenue for the year was US$414.5 million, a year-over-year increase of 34 per cent. While cash flow from operations was US$17.3 million in the fourth quarter of 2013, an increase of US$3.9 million, or 29 per cent, over the same period last year.
Yearly cash flow from operations was US$62.2 million, an increase of US$7.9 million, or 15 per cent, compared to the prior year.
NetSuite chief executive Zach Nelson said 2013 was the fourth year in a row the company had delivered accelerating revenue growth.
"Our continued execution and growth bear witness to the fact, that as companies move their core business applications to the Cloud, they are moving to NetSuite and leaving the pre-cloud solutions of Microsoft, Sage and SAP behind," he said.