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.
So what: For the first quarter, non-GAAP EPS was $0.03 and GAAP EPS was a loss of $0.12. Revenue increased 21% from the year-ago quarter, with subscription and support revenue up 20% and calculated billings (revenue plus the change in deferred revenue) up 30%.
Now what: Positives included the increase in calculated billings, a record average selling price, and management's comment that the company was "hitting the tipping point" as it entered 2011. Still, management lowered guidance for non-GAAP EPS for 2011 to $0.13 to $0.15 from $0.16 to $0.19, citing the need to pay overseas workers with a weaker dollar. While cloudmania could continue to drive the stock, a weakening dollar could be a drag on profits for years to come and make it even harder for Netsuite to grow into its triple-digit P/E ratio.
Interested in more info on Netsuite? Add it to your watchlist by clicking here.
Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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