Digital River (Nasdaq: DRIV) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Digital River beat expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.

Gross margins increased, operating margins dropped, and net margins contracted.

Revenue details
Digital River booked revenue of $112.0 million. The 13 analysts polled by S&P Capital IQ looked for a top line of $104.2 million. Sales were 15% higher than the prior-year quarter's $97.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.45. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.33 per share on the same basis. GAAP EPS of $0.12 for Q4 were 14% lower than the prior-year quarter's $0.14 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 85.6%, 250 basis points better than the prior-year quarter. Operating margin was 5.3%, 280 basis points worse than the prior-year quarter. Net margin was 3.9%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $104.4 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $420.1 million. The average EPS estimate is $1.20.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 317 members out of 343 rating the stock outperform, and 26 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Digital River a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Digital River is hold, with an average price target of $23.88.

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