The company's quarterly revenue beat analyst estimates and its adjusted earnings were in line with views, but investors may have been hoping for more: NetSuite shares fell $1.82, or 6.5 percent, to $26 in after-hours trading. The stock finished regular trading up 27 cents at $27.82.
For the October-December quarter, NetSuite reported a loss of $6.4 million, or 10 cents per share, compared with a loss of $6.5 million, or 10 cents per share, in the 2009 fourth quarter.
Excluding one-time items, NetSuite earned 4 cents per share, matching the average estimate of analysts polled by FactSet.
Revenue rose 21 percent year over year to $52.1 million. Analysts were expecting $50.9 million in revenue.
Subscription and support revenue, which makes up the vast majority of the company's overall revenue, climbed 21 percent to $44.2 million.
But expenses rose, too, climbing 22 percent to $42.2 million. The change was due mostly to a large increase in sales and marketing expenses.
For the full 2010 year, NetSuite's loss totaled $27.5 million, or 43 cents per share, compared with a loss of $23.3 million, or 38 cents per share, the year before.