Classmates.com 2006 Annual Report Download - page 31

Account Metrics
At December 31, 2006, we had approximately 4.9 million pay accounts and approximately 20.1 million active accounts. A pay account
represents a unique billing relationship with a customer who subscribes to one or more of our pay services. “Active” accounts include total pay
accounts as well as free users who have logged onto our access, social-networking, email or VoIP services during the preceding 31 days. Active
accounts also include those free hosted Web sites that have received at least one visit during the preceding 90 days; the number of free photo-
sharing users that logged on to the service at least once within the preceding 90 days; and the number of MyPoints’ members who earned or
spent points within the preceding 90 days. The following table sets forth (in thousands), for the dates presented, an analysis of our pay accounts.
In general, we count and track pay accounts and free accounts by unique member identifiers. Users have the ability to register for separate
services under separate brands and member identifiers independently. We do not track whether a pay account has purchased more than one of
our services unless the account uses the same member identifier. As a result, total active free accounts may not represent unique free users. At
any point in time, our pay account base includes a number of accounts receiving a free period of service as either a promotion or retention tool, a
number of accounts that have notified us that they are terminating their service but whose service is still in effect and may also include a few
thousand internal test accounts.
We have made the decision to curtail our efforts with respect to our VoIP services, although the plans have not yet been finalized. Our VoIP
services had approximately 9,000 pay accounts and approximately 182,000 active accounts as of December 31, 2006.
Results of Operations
The following tables set forth (with dollars in thousands), for the periods presented, selected historical statements of operations data. The
information contained in the tables below should be read in conjunction with Liquidity and Capital Resources, Financial Commitments and
Critical Accounting Policies and Estimates included in this Item 7 as well as the consolidated financial statements and notes thereto included
elsewhere in this Annual Report on Form 10-K.
30
December 31,
2006
September 30,
2006
June 30,
2006
March 31,
2006
December 31,
2005
Communications:
Access
2,282
2,425
2,556
2,751
2,855
Other
317
323
330
321
313
Total
2,599
2,748
2,886
3,072
3,168
Content & Media:
Social networking
2,169
2,079
2,029
1,945
1,766
Other
86
85
81
76
75
Total
2,255
2,164
2,110
2,021
1,841
Total pay accounts
4,854
4,912
4,996
5,093
5,009