18 Jul NetSuite Software: A Sign That SaaS Companies Are Immune From A Slump?
According to Patrick Walravens of JMP Securities, NetSuite Software [NYSE symbol: N], the SaaS providers of cloud based business financial software suite, crm and erp (enterprise resource planning) tools, is bucking the impending slump in technology spending.
Wal ravens writes that he does not detect any issues of “higher approval levels, project delays or more scrutiny”. According to him, NetSuite Software’s extremely small presence in Europe is a possible explanation. Just 1% of its sales is in Europe. The company’s main customers are small and medium businesses in the U.S. and Canada.
Meanwhile, NetSuite Software had gone on hiring spree for new sales reps to keep up with the demand. Walverns writes that, in some cases, the company is splitting sales territories to accommodate new hires. It is also signing up new partners, and NetSuite consultants to help expedite and smoothen NetSuite integration.
At this time NetSuite trades at a premium as compared to its rivals Salesforce.com and SAP, when measured by price-to-sales factor.