Digital River, Inc. (DRIV), which provides e-commerce solutions to software publishers and consumer technology companies, is on a roll. The complex licensing and subscription management operations of many software companies are outsourced to
EPS of $0.37 also beat the Street’s expectations of $0.34 but slipped 5% compared with the previous year.
Previously, management was optimistic about the economic pressures, claiming that such pressures would lead to increased outsourcing and thus benefit
During the quarter, the company extended its marketForce program. It is a service that will manage clients’ e-mail marketing, search engine optimization, and marketing design programs. The company also introduced the Mass Dynamic Personalization feature, which lets it personalize an offer to a client.
During the quarter, the company continued to grow in software, consumer electronics, and games by expanding and strengthening key relationships. Through its relationship with Capcom, a leading publisher, developer, and distributor of interactive entertainment, the company will now manage digitally distributed content in addition to handling the online sales and physical delivery of Capcom’s products in
There are two major emerging industries: Gaming and SaaS - both of which have extensive licensing/subscription management challenges, and
The stock rose 7% to $41.75 on the announcement of the results. It has slipped since, and is currently trading at $30.73. Given the market conditions, this isn’t so bad, and in fact, I would say, it is a buying opportunity. The company is excellent, so far executing flawlessly.