Asked if economic factors are impacting the business, Nelson said: "We're a counter cyclical business because we can cut your costs and improve efficiency...Not seeing any impact from any change in general economic conditions." Looking more broadly at the market, Nelson took swipes at SAP, Sage and Microsoft. On SAP, he said: "We've got the code pretty well cracked for upselling existing customers. I still don't think you can buy this product (BBD) - we haven't seen it because you can't buy it...I think they're being a bit disingenuous about completeness." On Microsoft he said: "Great Plains will do anything to keep us out of a deal. " Finally, Nelson claims: "People are running away from Sage."
On more general business building issues, he claims the company is: "Seeing a lot of traction for vertical solutions building on top of the main product with Suite Bundler...We've always seen our market as the gap between QuickBooks and SAP. How we build that is based on verticalization...We can handle the larger customers going forward because we've concentrated the edge cases."
Analysts re bullish about NetSuite's prospects with ThinkEquity estimating revenue at $160 million in 2008, an increase of 48 per cent over 2007 raising to $220 million in 2009. According to The Street: shares were up 51 cents, or 2.2 per cent, to $24 in after-hours trading.
None of the analysts on the call raised any questions about service and support issues