Digital River 2007 Annual Report Download - page 3

revenue
in millions of dollars
To Digital River’s
Shareholders:
I’m pleased to
report that we made
significant progress
in 2007, further
strengthening our
position as a leading
provider of global
e-commerce solutions.
During the year, we handled online transactions
in approximately 180 countries and 25 currencies,
hosted sites in nearly 20 languages, and processed
payments in over 30 payment methods. Digital River
has become the worldwide expert that more than
40,000 clients trust to build, manage and grow
their global e-commerce businesses. Our ability to
manage the complexities and risks associated with
global e-commerce continues to set us apart from
our competition and earn us business with some of
the world’s leading brands. In 2007, international
markets represented a significant portion of our
business, generating 43 percent of our gross
e-commerce sales.
We recorded $349.3 million in full year revenue
in 2007, a 13 percent increase over 2006. Our net
income totaled $70.8 million, a 16 percent increase
over 2006. During the year, we demonstrated
growing financial flexibility and maintained a
solid balance sheet, which was strengthened by
full year net cash provided by operations of
$146.4 million, an increase of 25 percent from
the prior year. We ended 2007 with approximately
$697 million in cash and investments. In addition
in 2007, your Board of Directors authorized a
$200 million common stock repurchase program,
which we believe will be completed by the end
of the second quarter of 2008. This authorization
demonstrates the confidence the Board has in our
financial strength, vision and strategy.
$349million
2003 2004 2005 2006 2007
$300
200
100
0
349
307
220
154
101
Revenue in 2007 exceeded $349 million and has grown
at a 36% compound annual growth rate since 2003.