Classmates.com 2007 Annual Report Download - page 40

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unless the account uses the same member identifier. As a result, total active accounts may not represent total unique 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 and a number of
accounts that have notified us that they are terminating their service but whose service remains in effect.
The following table sets forth, for the dates or three-month periods presented, as applicable, our pay accounts (at the end of the period),
segment revenues, ARPU (monthly average for the period), churn (monthly average for the period) and active accounts (at the end of the period).
(a)
December 31,
2007
September 30,
2007
June 30, 2007
March 31, 2007
December 31,
2006
Consolidated:
Total pay accounts(a) (in thousands)
5,349
5,239
5,118
4,984
4,854
Churn(a)
4.6
%
4.8
%
4.6
%
4.7
%
4.7
%
Classmates Media:
Segment revenues (in thousands)
$
53,273
$
49,972
$
47,740
$
42,434
$
42,006
% of Total revenues
42.5
%
39.4
%
36.3
%
32.7
%
32.1
%
Pay accounts (in thousands)
3,199
2,983
2,710
2,433
2,169
% of Total pay accounts
59.8
%
56.9
%
53.0
%
48.8
%
44.7
%
Segment churn
4.7
%
4.6
%
4.6
%
4.5
%
4.8
%
ARPU
$
3.26
$
3.33
$
3.32
$
3.22
$
3.31
Segment active accounts(b) (in millions)
12.6
(c)
12.8
11.7
11.4
11.2
Communications:
Segment revenues (in thousands)
$
72,137
$
76,853
$
83,677
$
87,417
$
88,780
% of Total revenues
57.5
%
60.6
%
63.7
%
67.3
%
67.9
%
Pay accounts(a) (in thousands):
Access
1,786
1,886
2,016
2,158
2,282
Other
364
370
392
393
403
Total Communications pay accounts
2,150
2,256
2,408
2,551
2,685
% of Total pay accounts
40.2
%
43.1
%
47.0
%
51.2
%
55.3
%
Segment churn(a)
4.4
%
4.9
%
4.7
%
4.9
%
4.6
%
ARPU
$
9.28
$
9.45
$
9.61
$
9.43
$
9.46
Segment active accounts (in millions)
3.3
3.5
3.7
3.9
4.0
Growth in pay accounts during the quarter ended September 30, 2007 includes a loss of 18,000 pay accounts resulting from the
Company's decision to exit our photo sharing business. Growth in pay accounts during the quarter ended December 31, 2007 includes a
loss of 6,000 pay accounts resulting from the Company's decision to exit our VoIP business. Excluding the loss of photo sharing and
VoIP customers related to the Company's decisions to exit these businesses, Communications segment churn would have been 4.7% in
the quarter ended September 30, 2007 and 4.3% in the quarter ended December 31, 2007, and consolidated churn would have been 4.6%
in the quarter ended September 30, 2007 and 4.5% in the quarter ended December 31, 2007.
(b)
The numbers of active international accounts prior to the quarter ended June 30, 2007 were derived by dividing the actual total number of
visits to the Web sites during the period by an estimate of the number of times a user returned to the Web sites during the period.
(c)
We believe the actual number of Classmates Media segment active accounts for the quarter ended December 31, 2007 was approximately
12.8 million, although a technical reporting issue interfered with our ability to collect certain visit data for a brief period.
38