Classmates.com 2009 Annual Report Download - page 10

Download and view the complete annual report

Please find page 10 of the 2009 Classmates.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 184

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184

Table of Contents
also allow its consumer businesses to process peak order flow substantially above that of its average daily order flow.
Floral Network Business. FTD provides a comprehensive suite of products and services that promote revenue growth and enhance the
operating efficiencies of its floral network members, including services that enable such members to receive, send and deliver floral orders.
Floral network members include traditional retail florists, as well as other retailers offering floral and related products and services, that are
located primarily in the U.S., Canada, the U.K., and the Republic of Ireland. The large network of affiliated floral network members provides an
order fulfillment vehicle for our consumer business and allows FTD to offer same-day delivery capability (subject to certain limitations) to
nearly 100% of U.S., Canadian, U.K., and Irish populations. Additionally, FTD is part of a large international network of floral retailers that
enables FTD to market consumer products for delivery in more than 150 countries.
FTD products and services available to floral network members include: access to the FTD and Interflora brands and the Mercury Man
logo, supported by various marketing and advertising campaigns; access to the floral network; credit card processing services; e-commerce Web
site services; online advertising tools; and telephone answering, order-taking, transmission and clearing-house services. FTD also provides point-
of-sale and related technology services and systems that enable its floral network members to transmit and receive orders and manage several
back office functions of a floral retailer's business, including accounting, customer relationship management, direct marketing campaigns, and
delivery route management. FTD also acts as a national wholesaler to its floral network members, providing branded and non-branded hard
goods and cut flowers as well as packaging, promotional products and a wide variety of other floral-related supplies.
Our strategy for the FTD segment includes the following key elements: attract and retain consumer customers and generate additional order
volume through innovative marketing initiatives; further expand FTD's consumer product offerings; increase the number of florists in the floral
network and expand the penetration of our floral network products and services with existing floral network members; increase FTD's presence
in alternative retail channels such as supermarkets and mass merchants; and expand FTD's range of marketing and distribution partnerships.
Classmates Media
Our Classmates Media services include online social networking under the Classmates brand and online loyalty marketing under the
MyPoints brand. Our Classmates Media services also include international online social networking under the StayFriends and Trombi brands.
For additional information regarding our Classmates Media segment, see Note 2—"Segment Information" of the Notes to the Consolidated
Financial Statements, which appears in Part II, Item 8 of this Annual Report on Form 10-K.
Online Social Networking
Our social networking Web sites enable users to locate and interact with acquaintances from their past, with school affiliations as the
primary focus. Led by our flagship Classmates Web site ( www.classmates.com ) that serves the U.S. and Canada, our social networking
properties comprise a large and diverse population of users, with over 60 million registered accounts at December 31, 2009.
Using our interactive tools and features, our members have contributed to our social networking Web sites a substantial amount of distinct,
relevant pieces of content, such as names, high school affiliations, profiles, biographies, interests, and photos. Our large membership base and
the extensive user-generated content posted on our Web sites assist us in acquiring new members, and we receive tens of thousands of new free
account registrations each day. We believe this valuable content also
9