Digital River (Nasdaq: DRIV) reported earnings on July 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Digital River beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share contracted to a loss.

Margins dropped across the board.

Revenue details
Digital River reported revenue of $92.5 million. The eight analysts polled by S&P Capital IQ expected revenue of $91.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.04. The eight earnings estimates compiled by S&P Capital IQ predicted $0.03 per share. Non-GAAP EPS of $0.04 for Q2 were 80% lower than the prior-year quarter's $0.20 per share. GAAP EPS were -$0.03 for Q2 compared to $0.01 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 65.3%, much worse than the prior-year quarter. Operating margin was -7.2%, 830 basis points worse than the prior-year quarter. Net margin was -0.9%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $92.5 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $400.0 million. The average EPS estimate is $0.60.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 297 members out of 324 rating the stock outperform, and 27 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 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 $15.67.

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