OPINION: Digital River is the largest player in its core market with a broad, albeit somewhat dated, service offering. The company’s overall revenues of $400 million are growing modestly at under 5% p.a. (MGI estimates). The revenue trajectory for the Platform business of $330 million is flat to down as it has been steadily losing market share to more agile competitors. The firm provides an all-in-one commerce platform including order management on a rev-share basis. Revenues are highly concentrated with a few key customers, e.g., Microsoft (25%). The lack of modularity, an outdated architecture, and perceptions of high prices are all challenges that the management team needs to address. The company has attempted a restructuring, but sales of assets have not generated the resources necessary for a true redirect.

USE CASE: Mid to large businesses looking for fulfillment of a physical and digital product mix on a global scale.

COMPETITORS: Avangate, cleverbridge, FastSpring, PayPro Global, and best of breed Agile Monetization tool suppliers

About MGI 360 Ratings: MGI 360 Ratings score is a uniform 0 to 100 supplier rating system comprised of 149 unique data points. The scores condense hundreds of hours of research into simple, easy to understand ratings and recommendations to clearly demonstrate differences amongst software vendors. The overall score is comprised of five equally weighted major categories that account for up to 20 points in Product, Management, Channels, Strategy, and Finance. Learn more about MGI 360 Ratings.