Demandware Q4 Earnings Decline, Yet Top Street View

(RTTNews) - Demandware, Inc. (DWRE), a provider of enterprise cloud commerce solutions, Tuesday reported a decrease in earnings for the fourth quarter, despite revenue growth, primarily due to higher expenses. Earnings, however, beat analysts' estimates by a penny.

Separately, Demandware announced its Chief Financial Officer and Executive Vice President Scott Dussault decided to step down to pursue other career opportunities. Dussault plans to serve as CFO of the company through June 6, and will be available as adviser through early June 2015. The company said it will be initiating a search for a replacement.

Earnings attributable to common stockholders declined to $1.8 million, or $0.05 per share, from $3.22 million, or $0.10 per share, a year earlier.

Excluding stock-based compensation, the company reported earnings of $5.66 million, or $0.16 per share, compared with $5.46 million, or $0.17 per share, a year earlier.

On average, 13 analysts polled by Thomson-Reuters estimated the company's earnings to be $0.15 for the quarter. Analysts' estimates typically exclude one-time items.

For the three months to December, operating expenses rose to $25.88 million from $16.65 million last year.

Total revenue increased to $35.54 million from $26.32 million a year earlier. Subscription revenue was $33.46 million compared with $22.87 million a year earlier.