Digital River 2004 Annual Report Download - page 6

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India, Japan, Malaysia, Australia, Singapore and South Korea. To support our global sales efforts, we advanced our
e-commerce platform, adding a digital rights management technology, multi-lingual customer services and global payment
processing capabilities. During the fourth quarter, more than 30 percent of our business was generated in
international markets.
Key market opportunities in 2005
During the coming year, we intend to build even more value into our model by delivering what we believe to be the world’s
largest network of buyers to our market. In short, this means delivering more customers to our clients. To accomplish this
goal, we anticipate four initiatives will be particularly key for Digital River in 2005:
The expansion of our online sales network – One of our primary jobs in 2005 is to further externalize the digital catalog
that we have amassed, marketing it through an expanding network of software
publishers, online portals, content sites and online retailers. In effect, we believe
that over time Digital River can become the world’s largest hub for the online
sales of digital products.
The continued delivery of strategic marketing services – We intend to contin-
ue to drive significant revenue through our strategic marketing programs to help
our clients increase customer acquisition and retention and maximize lifetime value.
Increased penetration in European and Asia Pacific markets – Growth rates
in international geographies are expected to continue to outpace the United
States. We plan to further align our global operations, products and services to
create a more unified go-to-market strategy and help clients accelerate entry into
worldwide markets.
Continued enhancement and adoption of our remote control tool set – We plan to provide our clients with expanded
self-service and remote control over their e-commerce site content, catalogs and marketing campaigns.
Leading the industry in global online sales and delivery of digital products
2004 was a tremendous year for Digital River. In addition to the progress we made in many areas of our business, we
continue to benefit from the significant market shift that is occurring from physical boxed product to digital delivery. In
fact between 2003 and 2004, we saw digital download levels increase more than four-fold and handled nearly four terabytes
per day of digital downloads across our five global data centers. We accomplished all this while maintaining 99.97 percent
uptime and minimizing incremental costs.
As we close 2004, we want to say thank you. We appreciate the ongoing support and confidence of our employees, clients
and stockholders. Looking forward, we are very optimistic about 2005 and believe we are well positioned to continue to
lead and transform the industry in the global online sales and delivery of digital products.
Sincerely,
We believe we are well
positioned to continue to
lead and transform the
industry in the global
online sales and delivery
of digital products.
-Joel A. Ronning, Chief Executive Officer
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