Digital River Inc., an e-commerce software company, said Thursday its fourth-quarter profit rose more than 24 percent on strong global growth in its core business.
Earnings were $20.3 million, or 46 cents per share, compared with a profit of $16.4 million, or 36 cents per share, in the year-earlier period.
Adjusted earnings were $24 million or 53 cents per share, up from $21.6 million, or 47 cents per share a year earlier. Analysts polled by Thomson Financial expected, on average, profit of 53 cents per share.
Revenue rose 17 percent to $96.9 million from $83 million, above analysts estimates of $95.8 million.
Digital River builds and manages online businesses for software publishers, consumer technology manufacturers, distributors, online retailers and affiliates.
Strong growth in the company's core software business across a wide array of global clients continues to grow, helping results, Chief Executive Joel Ronning said in a release.
Digital River said it plans on investing about $20 million into its business, and an additional $10 million in capital. The Eden Prairie, Minn., said it will use the money to boost its software business and consumer electronics and games units, among others.
"These investments will improve the efficiency of our business and accelerate growth in complementary markets where we see substantial opportunities," Ronning said.
For the full year, Digital River posted profit of $70.8 million, or $1.58 per share, on revenue of $349.3 million.
Shares fell $2.75, or 10 percent, to $33.75 in aftermarket trading, as the company's outlook for the first quarter and full year came short of Wall Street estimates.
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