Digital River, a provider of outsourced e-commerce services, reported third quarter revenue of $75.3 million, an increase of 42% from $53.2 million in the same quarter last year. For the first nine months of the year, revenue was up 41% to $224.6 million from $158.9 million in the first three quarters of 2006.
Net income for the third quarter was $14.8 million, including $3.5 million in stock-based compensation, up from $12.4 million in the 2006 quarter when there was no stock-based compensation expense.
The company projects revenue in the fourth quarter of $82.4 million and for the full year of $345 million. That full-year figure would represent 12% growth over the company’s 2006 revenue of $307.6 million.
“Our ability to execute on our business objectives contributed to our solid third quarter financial performance and strong cash flows,” says Joel Ronning, CEO. “The announcements this week of our expanded relationships with Symantec and Microsoft serve as further testimony to our ability to grow our business and deliver a compelling value proposition for our clients.” Digital River operates online stores where customers can download software from Microsoft and Symantec, a provider of security technology.
Digital River says it builds and manages e-commerce services for more than 40,000 software publishers, manufacturers, distributors and online retailers. The Minneapolis-based company also owns e-mail service provider BlueHornet Networks.
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