It must be nice to be in an emerging industry -- at least when it's a popular one.

When a new technology runs afoul of public opinion, a la Taser International (NASDAQ:TASR), the experience is not fun for management or investors alike. In contrast, when a new kind of business enjoys the sorts of rave reviews that online banking and billpay services currently garner, it's champagne and caviar all around. That's pretty much the current feeling among investors in online banking software provider Online Resources (NASDAQ:ORCC). The company just reported yet another dynamite quarter, and judging from growth forecasts, the good times won't be ending any time soon.

In Wednesday evening's Q3 2005 quarterly earnings release, Online Resources reported year-over-year increases in revenues and profits of 38% and 31%, respectively. Granted, exactly none of those gains filtered down to the per-share level. Profits per diluted share remained stuck at last year's $0.09 thanks to a flood of new shares into the market -- both actual, in the form of the firm's Q1 secondary offering and further shares issued in the course of making acquisitions, and potential, in the form of stock options that have become "in the money" as a result of Online Resources' rising share price.

Longtime shareholders won't be pleased to hear that, but consolation comes in two forms. First, the company anticipates continued strong growth through the end of this year, with 2005 per-share earnings expected to grow 75% over 2004's numbers -- much faster than revenue growth. Online Resources also raised the floor on its earnings guidance by a penny, from the most recent expectation of $0.33 to $0.36 in profits per diluted share to $0.34 to $0.36 as of Oct. 19. Second, the same share dilution that sidelined per-share profit growth in Q3 helped swell the company's treasury to $54 million.

Speaking of cash . the company again failed to include a cash flow statement with its earnings release (a gap that, to its credit, the company is considering filling). However, on its post-earnings-release conference call with analysts, Online Resources revealed the most important bit of information from that document: Free cash flow for the quarter came in at $1.4 million. Add that to the $5.2 million generated in H1 2005, and the company is now trending toward about $8.8 million in FCF for the year, giving it an enterprise value-to-free cash flow ratio of 27.

Pricey? It sure seems so. But if Online Resources keeps growing in the 30% range, even that high price could be justifiable.

Further resourceful Foolishness:

The Motley Fool has kicked off its ninth annual Foolanthropy campaign! Nominate your favorite charities on our Foolanthropy discussion board through Nov. 1. For guidelines on what makes a charity Foolish, visit .

Fool contributor Rich Smith owns shares of Taser, but not of Online Resources. Taser is a Motley Fool Rule Breakers pick. The Fool has a disclosure policy.