Digital River 2010 Annual Report Download - page 5

Proven: E-Commerce Anytime,
Anywhere, Anyway.
WINNING NEW BUSINESS
Companies come to Digital River because we know what it takes
to build, manage and grow online businesses around the clock
and around the world. They stay with us because we help them
win customers and drive global sales. One very visible sign of
our success can be found in our growing portfolio of world-
class clients. In 2010, we made tremendous progress growing
our enterprise commerce business across software, consumer
electronics and games, as well as diversifying into new markets.
In software, we have spent more than 15 years earning our
reputation as the global leader in digital downloads. In 2010,
we successfully completed our largest and most complex global
launch to date when we went live with Microsoft Office 2010.
In addition, we won new contracts to drive new business-to-
business sales, expanding our relationships with companies such
as Adobe, VMware and Autodesk, among others.
Consumer electronics is another market where we believe
we are now the clear leader in providing global, business-to-
consumer e-commerce solutions. In 2010, I am proud to say we
signed new or expanded agreements with some of the biggest
brands in the world, including Acer, Lenovo, Logitech, Nikon,
Research In Motion (RIM), Samsung, Sony, Western Digital and
others. We believe our momentum in this market will continue
to be fueled by the shift to multi-channel, direct-to-consumer
strategies. We successfully facilitated the shift from physical to
digital delivery in the software market in the early 2000’s and
we’re in a strong position to lead a transformation once again
in consumer electronics.
Games also is a market where we continued to expand our
footprint, winning additional business with market leaders, such
as Electronic Arts, Activision, Ubisoft, THQ, CapCom and Mattel.
Our client wins in the first half of 2010 turned the second half
of the year into the busiest client delivery period in the history of
the company. During the back half of 2010, we completed over
200 online commerce projects, which included the launch of over
100 new stores. This pace is continuing into 2011, as we expand
business with existing clients and sign more new deals.
DIVERSIFYING FOR GROWTH
In 2010, we not only successfully grew our enterprise commerce
business in software, consumer electronics and games, but also
expanded further into the education and payments markets. As
a result of these expansion efforts, we exited the year a more
diversified business with more opportunities for growth than
ever before.
In the education market, we grew our presence through an
acquisition of a leading education software reseller. As a result,
we are now reaching more than three quarters of the 55-plus
million students in grades kindergarten through 12 and over half
of the 18-plus million students in higher education. When you
combine this new distribution channel with our affiliate network
and software partnership with Softonic, we can now offer our
clients access to millions of potential customers around the
globe. This global distribution channel is a significant competitive
differentiator for Digital River and you will continue to see us
invest in it in the future.
In the payments market, we capitalized on our more than
15 years of experience processing online transactions and
introduced Digital River World Payments. This new stand-alone
solution offers a single connection to a payments gateway
and an unparalleled product offering, ranging from payment
processing to tax, fraud, foreign exchange and subscriptions
services. The solution, which can be sold to anyone taking online
orders – including e-retail, travel, entertainment and online
services – provides us with yet another opportunity to expand
our business into new vertical markets.