NetSuite Announces Q4 and FY10 Results

# Record Q4 Revenue of US$52.1 Million, a 21% Year-over-Year increase# Record 2010 Revenue of US$193.1 Million, 16% Growth over Prior Year# 2010 Recurring Revenue Grows 18% Year-over-Year to US$164.0 Million# Record Q4 Non-GAAP Operating Margin of 6.8%# Record 2010 Non-GAAP Net Income Grows 151% Year-over-Year# Record 2010 Operating Cash Flow NetSuite Inc., the industry's leading provider of cloud-based financials / ERP software suites, today announced operating results for its fourth quarter and fiscal year ended December 31, 2010.

The fourth quarter of 2010

Total revenue for the fourth quarter of 2010 was US$52.1 million, representing a 21% increase over the prior year. Subscription and support revenue for the fourth quarter was US$44.2 million, representing 21% growth over the same period in the prior year. Total revenue for the year was US$193.1 million, a year-over-year increase of 16%.

"2010 was a great year for NetSuite. We are seeing an acceleration of enterprises large and small moving to cloud computing, and our ten year head start in delivering cloud business applications bodes then for us in 2011 as companies continue to move their core business applications from outdated and costly client-server offerings from Microsoft, SAP and others to NetSuite solutions that have cloud computing at their core," said Zach Nelson, CEO of NetSuite.

About NetSuite NetSuite Inc. is the industry's leading provider of cloud-based financials / Enterprise Resource Planning software suites. Should the contingency arise to financials/ERP software suites, NetSuite offers a broad suite of applications, including accounting, Customer Relationship Management, Professional Services Automation and Ecommerce that enable companies to manage most of their core business operations in its single integrated suite. NetSuite's "real-time dashboard" research provides an easy-to-use view into up-to-date, role-specific business information. For more information about NetSuite, please visit www.netsuite.com.

Cautionary Note Regarding Forward-Looking Statements This press release and NetSuite's scheduled conference call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to, among other things, expectations, plans, prospects and financial results for NetSuite, including, nevertheless not limited to, our expectations regarding our products, market demand, future revenues, revenue and market share growth. These forward-looking statements are based upon the current expectations and beliefs of NetSuite's management as of the date of this press release and conference call, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release and while the conference call are based on information available to the Company as of the date thereof, and NetSuite disclaims any obligation to update these forward-looking statements.

In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the market for on-demand services may develop more slowly than expected or than it has in the past; continued adverse and unpredictable macro-economic conditions or reduced investments in on-demand applications and information research spending; quarterly operating results may fluctuate more than expected; unexpected disruptions of service at the Company's data center may occur; a security breach may impact operations; risks associated with material defects or errors in the Company's software or the effect of undetected computer viruses could impact operations; the risk of technological developments and innovations by others; our ability to successfully identify other businesses and technologies for acquisition that will complement our business and the ability to successfully acquire and integrate those businesses and technologies; the risk of loss of power or disruption in Internet service; failure to manage growth; failure to protect and enforce our intellectual property rights; the ability to manage operations when faced with competitive pricing and marketing strategies by competitors or changing macro-economic conditions; the risk of losing key employees; increased demands on employees and costs associated with operating as a public company; evolving government regulation of the Internet and Ecommerce; changes to current accounting rules; and general political or destabilizing events, including war, conflict or acts of terrorism; and other risks and uncertainties.

Non-GAAP Financial Measures The Company's stated results include certain non-GAAP financial measures, including non- GAAP operating income/(loss), net income/(loss), weighted average shares outstanding, and net income/(loss) per share. Non-GAAP operating income/(loss) and Non-GAAP net income/(loss) excludes expenses related to stock-based compensation expense, amortization of intangible assets and transaction costs for business combinations. Non-GAAP operating income/(loss) and Non-GAAP net income/(loss) excludes these expenses as they are often excluded by other companies to help investors understand the operational performance of their business, and in the case of stock-based compensation, can be difficult to predict. The Company believes these adjustments provide useful comparative information to investors.

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