Overall, NetSuite's second quarter was nothing to complain about.
First, the cloud management software provider reported a net loss of $9.9 million, or 14 cents a share, for the second quarter (statement) on a GAAP basis.
But NetSuite really fared better when looking at earnings on a non-GAAP basis, with that net income rising 192 percent year-over-year to $4.8 million, or 6 cents a share -- up from $1.6 million the same time last year.
That's on top of a revenue of $74.7 million, a 29 percent increase from Q2 2011.
Wall Street was expecting NetSuite to report profit of 4 cents a share on a revenue of $73.38 million.
Much like Western Digital executives boasted on Wednesday, NetSuite CEO Zach Nelson commented in prepared remarks that Netsuite shined in a "quarter that saw many enterprise software companies struggle."
We saw continued improvements across 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.
For the outlook, NetSuite executives will provide guidance for the third quarter of 2012 during a conference call this afternoon.
Q2, by the numbers:
- Subscription and support revenue was $61.0 million, a 27 percent increase on an annual basis
- Cash flows from operations were $15.2 million, up by 80 percent from Q2 2011
UPDATE: NetSuite executives waited until the quarterly conference call on Thursday afternoon to provide guidance for the third quarter of 2012.
Chief financial officer Ron Gill announced that NetSuite is projecting a revenue of $77.5 million to $78 million for the third quarter of 2012 with non-GAAP earnings between 5 and 6 cents per share.
For 2012 overall, NetSuite raised its outlook significantly. The original forecast was revenue falling between $295 million to $300 million with earnings between 19 and 21 cents per share.
NetSuite is now expecting earnings of 21 to 22 cents per share on a revenue falling between $300 million and $305 million.