NetSuite Inc., the software maker majority-owned by Oracle Corp.’s Larry Ellison, surged to a record after customer gains spurred higher-than-expected sales growth and the company raised its full-year forecast.
Shares of San Mateo, California-based NetSuite jumped 15 percent to $65.40 at the close in New York, the highest since the stock began trading in 2007. The stock has increased 61 percent this year.
NetSuite is working to expand its customer base in the crowded market for online business applications against companies including Salesforce.com Inc., SAP AG, Microsoft Corp. and Oracle. NetSuite yesterday raised its full-year sales forecast to a range of $306.3 million to $306.8 million, from a prior projection of $300 million to $305 million. Analysts on average had projected 2012 revenue of $304 million, according to data compiled by Bloomberg.
“As some traditional enterprise software companies struggled, NetSuite again exceeded our stated outlook and delivered record revenue and non-GAAP EPS,” Chief Executive Officer Zach Nelson said in a statement yesterday.
Full-year earnings excluding some items will be 23 cents to 24 cents a share, higher than a previous range of 19 cents to 21 cents. The average analyst estimate was 23 cents.
Third-quarter sales rose 31 percent to $79.8 million, helped by a 60 percent increase in the number of deals worth more than $200,000 as more mid-size companies added NetSuite products.
The net loss in the quarter widened to $8 million, or 11 cents a share, from $6.9 million, or 10 cents, a year earlier. Profit excluding some items was 8 cents a share, beating analysts’ estimate by 2 cents.