Record Revenue of $34.1M, up 47% over Q1 2007

Record Unique Log-ins Exceeding 1 million

SAN MATEO, Calif. — May 1, 2008 — NetSuite Inc. (NYSE: N), a leading vendor of on-demand, integrated business management software suites that provide Accounting / ERP (Enterprise Resource Planning), CRM (Customer Relationship Management) and Ecommerce software for small businesses, medium-sized organizations and divisions of large companies today announced operating results for its first quarter ended March 31, 2008.

NetSuite announced record revenue for the first quarter ended March 31, 2008. Total revenue for the first quarter was $34.1 million, a 47% increase over the first quarter of 2007, and an 8% increase over the fourth quarter of 2007. The first quarter of 2008 marked the 34th consecutive quarter of increased revenue for NetSuite.

On a GAAP basis, net loss for the first quarter of 2008 was $(2.0 million), or $(0.03) per share, compared to $(9.3 million), or $(1.24) per share in the first quarter of 2007, an improvement of 78%.

Net loss on a non-GAAP basis for the first quarter of 2008 was $(420,000), or $(0.01) per share, compared with $(2.3 million), or $(0.04) per share in the first quarter of 2007, an improvement of 82%.

Net loss on a non-GAAP basis excludes stock-based compensation. A reconciliation of net loss and net loss per share on a non-GAAP basis to their comparable measures on a GAAP basis is provided below in a table immediately following the Condensed Consolidated Statements of Operations.

Revenue from the Americas for the first quarter of 2008 was $27.8 million, while revenue from international regions outside of the Americas was $6.3 million. The Company added more than 400 new customers in the first quarter. The NetSuite platform had in excess of one million unique log-ins during the first quarter, making it one of the most widely used software-as-a-service applications in the world.

“Our first quarter 2008 results and record financial performance are the result of continued execution against our product, distribution and partnership strategies,” said Zach Nelson, CEO of NetSuite. “With the recent introduction of NetSuite OneWorld and our groundbreaking alliance with BT, we continue to extend our leadership in cloud computing and set the stage for continued success.”

Outlook
Based on information as of May 1, 2008, NetSuite is providing the following outlook for its second quarter of 2008 and its full fiscal year 2008:

Q2 FY08: For thesecond quarter of2008, NetSuite expects total revenue in the range of $36.0 million to $36.7 million. Non-GAAP net loss, which excludes the impact of stock-based compensation expense, is expected to be in the range of $(1.0 million) to $(250,000). Non-GAAP net loss per share is expected to be in the range of approximately $(0.02) to $(0.00). Weighted average shares for the quarter are estimated to be approximately 60.6 million shares.

Full Year FY08: For thefull year 2008, NetSuite expects total revenue in the range of $154 million to $157 million. Non-GAAP net loss, which excludes the impact of stock-based compensation expense, is expected to be in the range of $(2.5 million) to $(0.5 million). Non-GAAP net loss per share is expected to be in the range of approximately $(0.04) to $(0.01). Weighted average shares for the year are estimated to be approximately 61.3 million shares.

Conference Call
NetSuite will host a conference call to discuss its first quarter 2008 results at 2:00 p.m. Pacific Standard Time today. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company’s Investor Relations Website at http://www.netsuite.com/investors. In addition, an archive of the webcast can be accessed through the same link for at least 30 days. Participants may also call into the conference call by calling 800-896-8445 domestically and 785-830-1916 internationally. A replay of the call will be available at 888-203-1112 or 719-457-0820, passcode 8009849, until midnight (PST) May 2, 2008.