Digital River Earnings: Everything You Must Know Now

Digital River Inc. (NASDAQ:DRIV) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Digital River Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 80% to $0.04 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Rose 1.91% to $92.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Digital River Inc. reported adjusted EPS income of $0.04 per share. By that measure, the company beat the mean analyst estimate of $0.03. It beat the average revenue estimate of $91.11 million.

Quoting Management: “We reported solid financial results in the second quarter, exceeding revenue expectations and delivering earnings at the high end of our guidance range. Our payments revenue continues to be a major contributor to our top line growth,” said David Dobson, Digital River’s CEO. “In addition, we made good progress on our strategic transformation, advancing toward an open API-driven commerce-as-a-service, expanding our partner ecosystem and preparing for the launch of a state-of-the-art data center to better serve our global customers. Our transformation is on track, and increasing the value we deliver for our customers and shareholders remains our top priority.”

Key Stats (on next page)…

Revenue decreased 18.64% from $113.69 million in the previous quarter. EPS decreased 87.88% from $0.33 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.16 to a profit $0.07. For the current year, the average estimate has moved down from a profit of $0.78 to a profit of $0.60 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)