June 10, 2009
Netezza Q1 earning call transcript
I finally read the Netezza Q1 earnings call transcript, put out by Seeking Alpha. Highlights included:
- Netezza got 14 new-name accounts and 21 follow-on deals. Average sale in both groups was right around $1 million.
- The economy is tough, deals are slipping, and nobody knows for sure what will happen.
- Netezza’s main head-to-head competitors are Oracle and Teradata. Netezza claims good but not perfect win rates against each, but concedes that those vendors (especially Oracle) of course get other deals Netezza never sees.
- Netezza characterizes Teradata as offering its multiple product lines, trying to upsell many customers from cheaper to more expensive product lines, and being selectively aggressive about pricing. None of this is surprising to me.
- 80% of Netezza’s Q1 revenue, and perhaps even a higher fraction of new-name accounts, was in four vertical markets: “Digital media,” telecom, government, and financial services.
- Some time over the next few months, Netezza will give at least some more clarity about future products.
One tip for the Netezza folks, by the way, from this former stock analyst — you should never use the word “certainly” about a deal you haven’t closed yet. “Almost surely” could be OK, but “certainly” — well, it certainly was not the thing to say.
Categories: Application areas, Data warehouse appliances, Data warehousing, Investment research and trading, Market share and customer counts, Netezza, Oracle, Pricing, Telecommunications, Teradata, Web analytics
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