Digital River, Inc. Earnings Cheat Sheet: Beats Estimates with a Swing Up

Digital River, Inc. (NASDAQ:DRIV) climbed to a profit in the second quarter and beat Wall Street’s expectations in the process. Digital River, Inc provides end-to-end global e-commerce and marketing solutions to a variety of companies in software, consumer electronics, computer games, video games, and other markets.

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Digital River Earnings Cheat Sheet for the Second Quarter

Results: Swung to a profit of $291,000 (one cent per diluted share) in the quarter. Digital River, Inc. had a net loss of $2.5 million or a loss 7 cents per share in the year earlier quarter.

Revenue: Rose 13.1% to $92.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DRIV reported adjusted net income of 17 cents per share. By that measure, the company beat the mean estimate of 4 cents per share. Analysts were expecting revenue of $92.3 million.

Quoting Management: “I am pleased to report we delivered a solid second quarter, significantly improving all earnings measures compared to last year,” said Joel Ronning, Digital River’s CEO. “While we have a cautious outlook for the second half of the year, we remain optimistic about our long-term growth opportunities. We have not seen a time of greater industry transformation or opportunity. We fully intend to leverage this period to our advantage by expanding existing client relationships, pursuing new markets and capitalizing on new product innovation.”

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the second quarter of the last fiscal year, which saw a 15.3% decrease.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 24 cents versus a mean estimate of net income of 20 cents per share.

Competitors to Watch: Microsoft Corporation (NASDAQ:MSFT), Akamai Technologies, Inc. (NASDAQ:AKAM), EasyLink Services Intl. Corp. (NASDAQ:ESIC), PFSweb, Inc. (NASDAQ:PFSW), eBay Inc. (NASDAQ:EBAY), GSI Commerce, Inc. (NASDAQ:GSIC), Oracle Corporation (NASDAQ:ORCL), Premiere Global Services, Inc. (NYSE:PGI), Tier Technologies, Inc. (NASDAQ:TIER), and Symantec Corporation (NASDAQ:SYMC).

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(Source: Xignite Financials)

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