<PAGE>
Exhibit 99.1
Reclassified Statements of Operations
Digital River, Inc.
Statements of Operations - as reclassified for net revenue recognition
(unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
1999 Qtr. Ended Qtr. Ended Qtr. Ended Qtr. Ended
March 31 June 30 September 30 December 31 Year
------------------------------------------ -------------- ------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C>
Revenue $ 1,903 $ 3,065 $ 4,017 $ 5,522 $ 14,507
Costs and expenses:
Direct cost of services 126 156 264 255 801
Network and infrastructure 866 917 940 1,711 4,434
Sales and marketing 3,559 4,281 4,760 4,783 17,383
Product research and development 2,341 2,456 2,686 2,768 10,251
General and administrative 901 1,016 1,041 1,043 4,001
Depreciation and amortization 348 400 490 314 1,552
Amortization of goodwill and
acquisition related costs - 1,302 3,275 2,309 6,886
Total costs and expenses 8,141 10,528 13,456 13,183 45,308
Loss from operations (6,238) (7,463) (9,439) (7,661) (30,801)
Interest income 894 785 751 718 3,148
Net loss $ (5,344) $ (6,678) $(8,688) $(6,943) $(27,653)
Net loss per share $ (.27) $ (.33) $ (.42) $ (.33) $ (1.36)
Weighted average shares outstanding 19,632 20,169 20,604 20,889 20,312
</TABLE>
<TABLE>
<CAPTION>
2000 Qtr. Ended Qtr. Ended Qtr. Ended Nine mos. ended
March 31 June 30 September 30 September 30
------------------------------------------ -------------- ------------- --------------- ----------- --------------------
<S> <C> <C> <C> <C> <C>
Revenue $ 6,883 $ 6,635 $ 7,607 $ 21,125
Costs and expenses:
Direct cost of services 295 275 421 991
Network and infrastructure 1,791 1,957 1,888 5,636
Sales and marketing 6,478 6,965 6,247 19,690
Product research and development 3,663 4,429 2,857 10,949
General and administrative 1,235 1,222 1,151 3,608
Depreciation and amortization 703 640 896 2,239
Amortization of goodwill and
acquisition related costs 5,394 4,334 2,603 12,331
Total costs and expense 19,559 19,822 16,063 55,444
Loss from operations (12,676) (13,187) (8,456) (34,319)
Interest income 685 554 382 1,621
Net loss $(11,991) $(12,633) $ (8,074) $(32,698)
<PAGE>
Net loss per share $ (.58) $ (.60) $ (.37) $ (1.55)
Weighted average shares outstanding 20,775 21,100 21,598 21,164
</TABLE>
<PAGE>
Digital River, Inc.
Statements of Operations -- as reclassified for net revenue recognition
(unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
Year ended December 31,
---------------------------------------------------
1996 1997 1998 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenue $ 16 $ 420 $ 3,424 $ 14,507
Costs and expenses:
Direct cost of services 2 23 116 801
Network and infrastructure 86 580 1,836 4,434
Sales and marketing 57 1,446 9,310 17,383
Product research and development 131 877 3,140 10,251
General and administrative 402 837 3,111 4,001
Depreciation and amortization 35 195 604 1,552
Amortization of goodwill and
acquisition related costs - - - 6,886
Total costs and expenses 713 3,958 18,117 45,308
Loss from operations (697) (3,538) (14,693) (30,801)
Interest income 8 53 895 3,148
Net loss $(689) $(3,485) $(13,798) $(27,653)
Net loss per share $ (.13) $ (.46) $ (1.01) $ (1.36)
Weighted average shares outstanding 5,333 7,514 13,691 20,312
</TABLE>
