(Update Dec 18) The company raised its IPO price range: now it’s between $16 and $19. I am NOT bidding it.
WR Hambrecht sent me an email about Open IPO. This got me to read its prospectus. NetSuite is a new kind of software company co-founded by Larry Ellison, the founder and chairman of Oracle. By new I meant they provide “software as service”, vs. the tradtional software companies such as Microsoft, in which a consumer buys product, install it, do some customization, and (possibly) run updates, etc. Quote its prospectus:
“NetSuite is a leading vendor of on-demand, integrated business management application suites for small and medium-sized businesses. We provide a comprehensive suite of enterprise resource planning, or ERP, customer relationship management, or CRM, and e-commerce capabilities that enables customers to manage their critical back-office, front-office and web operations in a single application…We deliver our suite over the Internet as a subscription service using the software-as-a-service or on-demand model. Our revenue has grown from $17.7 million in 2004 to $67.2 million in 2006. For the nine months ended September 30, 2007, we had revenue of $76.8 million. As of September 30, 2007, we had over 5,400 active customers…”