Digital River 2011 Annual Report Download - page 3

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1
Dear Shareholders:
Your company delivered strong financial results in 2011. Among the many highlights:
• Totalrevenueincreased9.6percentto$398millionfrom$363millionin2010;
• Incomefromoperationsgrewto$20million,representinganincreaseofmore
 than57percentfromlastyear;
• Strong cash ow from operations increased the year-end balance of cash,
 short-termandlong-terminvestmentstonearly$820million;
• Andyourcompanyrepurchasedapproximately$80millionofcommonstock.
Enterprise Commerce
Enterprise Commerce, which includes revenue from the sale of software and games,
consumer electronics and global payment services, grew 10 percent last year. In a
world of convergence where software, apps, software-as-a service (SaaS) and “clouds”
blur the lines of digital content, revenue from software and games commerce grew
admirably in 2011, increasing 22 percent from the previous year. We expect to see
continued growth in software and games revenue as more digital goods move online
in the future. Consumer electronics revenue grew 17 percent last year. We expect more
manufacturers will build out enhanced online channels over the coming years and we
are well positioned to grow their direct-to-buyer revenue. Our payments team saw
record commerce volume in 2011, managing more than $10 billion in online
transactions for our clients and increasing our global payment revenue by 42 percent
from the previous year.
2011 INCOME FROM
OPERATIONS INCREASED
MORE THAN 57% FROM
LAST YEAR.
22% INCREASE IN
SOFTWARE AND GAMES
COMMERCE REVENUE.