By Pete Barlas, Investor's Business Daily
Posted 10:48 AM ET
Shares of NetSuite (N) hit an all-time high Friday, up more than 3% in mid-morning trading, at an all-time high, after the enterprise cloud software company late Thursday reported fourth quarter earnings that handily beat analyst views.
But comments by NetSuite's CEO rankled some executives at rival SAP (SAP), one of the world's leading business software companies.
NetSuite is a maker of cloud computing-based enterprise resource planning, customer relationship management and other software applications.
During a conference call Thursday with analysts, Zach Nelson, NetSuite's chief executive, fired a few salvos at two of his company's rivals for stumbling in their attempt capture a share of the cloud market, as IBD reported.
In an email sent late Thursday to IBD, an SAP spokesman fired back at NetSuite with a number of points to underscore SAP's progress in cloud computing, a system that lets companies access data and applications via the Internet "cloud."
SAP's "cloud run rate is approaching 850 million euros or more than $1.15 billion; that run-rate is more than three times that of NetSuite's (at $85 million quarterly revenue for an annual run-rate of $340 million)," SAP spokesman Scott Behles wrote in the email.
SAP shares rose 1.5% intraday. Microsoft (MSFT), which Nelson said NetSuite is taking share from, rose more than 1%.
NetSuite Thursday reported Q4 revenue of $85 million, up 33%, and projected Q1 revenue of $90.5 million to $91 million.
SAP also says it has 20 million cloud users, more than any other cloud vendor.
"SAP is gaining market share — growing twice as fast as the software market and significantly faster than our nearest competitor," Behles wrote. "Our customers are showing they prefer cloud solutions from SAP; we won over 250 new cloud customers in Q4 alone."
On Thursday's call, Nelson said NetSuite added more than 400 customers last quarter, which he said was "a threshold we have not seen in more than three years."