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.
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