NetSuite Shares Popped: What You Need to Know

Updated

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of NetSuite (NYS: N) have popped today by upward of 10% after the company reported fourth-quarter earnings last night.

So what: Both top and bottom lines came in better than hoped, with revenue stacking up to $64.1 million and earnings per share of a nickel. Analysts were looking for just $63.4 million in sales and $0.04 per share in profit.

Now what: CEO Zach Nelson said the company's quarter benefited from "being the disrupter rather than a disruptee," as its cloud software kept growing market share. He said the business continued to accelerate all year and the fourth quarter could be considered the company's best quarter ever. Next quarter's revenue is expected between $67.5 million and $68 million, a notch higher than the $67 million consensus.

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