NetSuite has reported its first $100m quarter of recurring revenue for its Q2 financial results for 2014, but it still incurred a net loss of more than $23m for the quarter.
Overall, NetSuite reported a 30 percent increase in revenue over the same period in 2013 to rake in $131.8m, but it still saw net losses increase by $3m compared with the same period in 2013.
Some of that loss could be attributed to NetSuite's recent acquisition of Venda. Ronald Gill, NetSuite's chief financial officer, revealed on a conference call that the acquisition cost the company more than $50m in a combination of cash and stocks.
Gill went on to point out other business expenses including $60m worth of spending on sales and marketing.
Part of this expense was due to the company's SuiteWorld event, though Gill defended this outlay: "The team did a good job of managing that spend and strong attendance and partnership participation helped offset the cost as well."
In spite of the loss, NetSuite cited the 30 percent year-on-year increase in revenue and a 19 percent increase in operating cash flow as proof the company is heading in the right direction.
The $100m recurring revenue figure was also touted as a "break-out moment" for the company. Zach Nelson, CEO of NetSuite, believes the company's vision of building a system to allow a business to be run entirely from the cloud is core to propelling its future revenue ambitions.
"We are well on our way [to] achieving our goal to be the leading provider of next-generation business systems and to achieve $1bn and beyond in annual revenue," added Nelson.
Cloud is powering the healthy second-quarter revenues of several companies.
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