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

The 10-second takeaway
For the quarter ended March 31 (Q1), Digital River beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Digital River reported revenue of $113.7 million. The seven analysts polled by S&P Capital IQ anticipated revenue of $102.6 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $102.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.33. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.20 per share. Non-GAAP EPS of $0.33 for Q1 were 10% higher than the prior-year quarter's $0.30 per share. GAAP EPS were -$0.35 for Q1 versus $0.14 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 66.4%, much worse than the prior-year quarter. Operating margin was 1.1%, 590 basis points worse than the prior-year quarter. Net margin was -10.0%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $91.2 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $399.5 million. The average EPS estimate is $0.59.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 302 members out of 333 rating the stock outperform, and 31 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Digital River a green thumbs-up, and four 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 $16.00.

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