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UNITED ONLINE INC
FORM 10-K
(Annual Report)
Filed 02/23/10 for the Period Ending 12/31/09
Address 21301 BURBANK BOULEVARD
WOODLAND HILLS, CA 91367
Telephone 8182873000
CIK 0001142701
Symbol UNTD
SIC Code 7370 - Computer Programming, Data Processing, And
Industry Computer Services
Sector Technology
Fiscal Year 12/31
http://www.edgar-online.com
© Copyright 2010, EDGAR Online, Inc. All Rights Reserved.
Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

Table of contents

  • Page 1
    UNITED ONLINE INC FORM 10-K (Annual Report) Filed 02/23/10 for the Period Ending 12/31/09 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 21301 BURBANK BOULEVARD WOODLAND HILLS, CA 91367 8182873000 0001142701 UNTD 7370 - Computer Programming, Data Processing, And Computer ...

  • Page 2
    ...ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2009 Or 1 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-33367 UNITED...

  • Page 3
    ... check mark whether the Registrant is a shell company (as defined in Rule 12b-2) of the Act). Yes 1 At June 30, 2009, the aggregate market value of voting stock held by non-affiliates of the Registrant, based on the last reported sales price of the Registrant's common stock on such date reported by...

  • Page 4
    ... Independence Principal Accounting Fees and Services 86 86 86 86 86 PART IV. Item 15. Exhibits, Financial Statement Schedules Signatures In this document, "United Online," "UOL," the "Company," "we," "us" and "our" refer to United Online, Inc. and its subsidiaries. 87 93 This Annual Report on...

  • Page 5
    ...-up Internet access providers NetZero, Inc. ("NetZero") and Juno Online Services, Inc. ("Juno"). In 2004, our Internet access revenues began to decline and we began diversifying our business to include other consumer Internet offerings in an effort to provide new growth opportunities for the Company...

  • Page 6
    ... have become increasingly dependent on floral network services to provide incoming order volume to offset business lost to the Internet, supermarket and mass merchant channels; and Traditional retail florists and nationwide floral marketers have expanded their product offerings to include a larger...

  • Page 7
    ... business, including the ability to send, receive and deliver floral orders. Additional products and services offered by providers of floral network services include: point-of-sale technology systems and services, credit card processing services, ecommerce Web site services, and telephone answering...

  • Page 8
    ... marketing medium for their products and services. Most social networking Web sites are free to the user and primarily generate revenues from a wide variety of sources that include online advertising and transactions related to Web site content such as online games, applications or virtual goods...

  • Page 9
    ... a small number of national providers account for a significant majority of the U.S. dial-up market. AOL, EarthLink and our Internet access subsidiaries, NetZero and Juno, on a combined basis reported approximately 7.2 million dial-up pay accounts at December 31, 2009. Some dial-up pay accounts also...

  • Page 10
    ... 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 pointof-sale and related technology services and systems that enable its floral network members...

  • Page 11
    ...advertising fees. We had approximately 4.9 million social networking pay accounts at December 31, 2009. During the quarter ended December 31, 2009, our average monthly revenue per social networking pay account was $2.53 per month. Basic Membership. Basic membership on our Classmates Web site is free...

  • Page 12
    ... by marketing on, or in conjunction with, complementary Web sites and services; increase monetization by incorporating loyalty programs into our services, by offering additional pay services to our members and by developing new sources of revenue consistent with our value proposition of connecting...

  • Page 13
    ... our service and offers to decrease costs and increase our ability to personalize offers to our members. Communications Our principal Communications pay service is dial-up Internet access, offered under the NetZero and Juno brands. We also offer broadband services, email, Internet security services...

  • Page 14
    ... pricing for our broadband Internet access services ranges from $9.95 to $43.95, which includes certain new customer promotions that feature discounted fees for a limited number of months and revert to a standard rate at the end of the discount period. Pricing also varies due to connection speed...

  • Page 15
    ...www.ftd.com , www.interflora.co.uk and www.interflora.ie Web sites. Classmates Media Our social networking services have historically generated advertising revenues primarily from providing third-party offers to Classmates paying members after they have completed the pay account registration process...

  • Page 16
    ...Internet and television; and direct marketing campaigns. These activities are designed to drive prospective accounts to call our toll-free telephone numbers to purchase our services, or to visit our Web sites and download our software. In most distribution arrangements, we pay a fee for each new pay...

  • Page 17
    ... customers for memberships and subscriptions to our various floral network services, including access to the FTD and Interflora brands and the Mercury Man logo, access to the floral network, credit card processing services, e-commerce Web site services, online advertising tools, and telephone...

  • Page 18
    ... Web sites continue to grow, users may be able to locate individuals from their past, free of charge in certain cases, without having to use a niche Web site or other online search service. As a result of the growth of the social networking market and minimal barriers to entry, a number of companies...

  • Page 19
    ...in advance with a credit card. Other payment options for some of our pay services include automated clearing-house ("ACH"), personal check or money order, or via a customer's local telephone bill. Internet access pay accounts that elect to pay with a personal check or money order are not provisioned...

  • Page 20
    ... to assist our members and customers in verifying and updating their account information. In addition, we offer traditional email support and certain of our services provide live telephone support as well. Our customer relationship management and support infrastructure includes employees at our...

  • Page 21
    ... executive officers of the Registrant. Available Information Our corporate Web site is www.unitedonline.com . On this Web site, we make available, free of charge, our annual, quarterly and current reports (including all amendments to such reports), changes in the stock ownership of our directors and...

  • Page 22
    ...our businesses in a number of ways including reduced demand, more aggressive pricing for similar products and services by our competitors, decreased spending by advertisers, increased credit risks, increased credit card failures, a loss of customers, and increased use of discounted pricing plans for...

  • Page 23
    ... as a result of the decrease in our dial-up Internet access pay accounts. In addition, our Communications segment has derived significant advertising revenues from search, and we are in the process of changing Internet search providers. Changes to the terms of our search agreement or difficulties or...

  • Page 24
    ... credit card processors. Key systems include, without limitation, billing; Web site and database management; order transmission, fulfillment and processing including the system for transmitting orders through the floral network; customer support; telecommunications network management; advertisement...

  • Page 25
    ... and may also adversely impact our business, financial condition and cash flows. One of our strategic objectives is to acquire businesses, services or technologies that will provide us with an opportunity to diversify the products and services we offer, leverage our assets and core competencies...

  • Page 26
    ...or increase in the associated costs could adversely affect our business and results of operations. Our emails generate the majority of the traffic on our social networking Web sites and are the most important driver of member activity for our online loyalty marketing service. A significant number of...

  • Page 27
    ...third parties include our marketing offers in the emails they send. An increase in the number of members or customers who elect to not receive, or are unable to receive, our emails could adversely affect our business and results of operations. From time to time, Internet service providers block bulk...

  • Page 28
    ... as servicing of the debt, could be limited; the interest rates under the credit agreements will fluctuate and, accordingly, interest expense may increase; and if we make voluntary prepayments on our debt, we will have to accelerate the related discount accretion and debt issuance cost amortization...

  • Page 29
    ... do not carry key-person life insurance on any of our employees. Foreign, state and local governments may attempt to impose additional income taxes, sales and use taxes, value-added taxes or other taxes on our business activities and Internet-based transactions, including our past sales, which could...

  • Page 30
    ... the repatriation of earnings; increased financial accounting, tax and reporting burdens and complexities; disruption of our ongoing business and significant diversion of management attention from day-to-day responsibilities; localization of our services, including translation into foreign languages...

  • Page 31
    ...from $0.20 per share of common stock to $0.10 per share of common stock. Changes in our business needs, including working capital and funding for acquisitions, or a change in tax laws relating to dividends, among other factors, could cause our Board of Directors to decide to cease the payment of, or...

  • Page 32
    ..., such as those that use Web sites, toll-free telephone numbers and catalogs. The floral network services market is highly competitive as well, and retail florists and supermarkets may choose from a few floral network service providers that offer similar products and services. In the U.S., our key...

  • Page 33
    ... to provide our customers high-quality products and a high level of customer service. Our business depends, in part, on the ability of our independent floral network members and third-party suppliers who fulfill our orders to do so at high-quality levels. We work with our floral network members and...

  • Page 34
    ..., we could incur substantial tax liabilities for past sales and lose future sales as a result of the increased tax cost that would be borne by the customer. Also, states may seek to reclassify the status of Internet order gatherers, such as our FTD consumer business, as persons that are deemed to...

  • Page 35
    ... our marketing or other expenditures. As a result of competition, our number of members, revenues, cash flows, and profitability could be adversely affected. Failure to increase or maintain the number of pay accounts for our online social networking services could cause our business and financial...

  • Page 36
    ... or active free social networking members, or a decline in the activity of those members, could result in decreased pay accounts, decreased content on our Web sites and decreased advertising revenues. A decline in the number of registered or active online loyalty marketing service members could...

  • Page 37
    ... introductory rates, offer additional free periods of service, offer additional features at little or no additional cost to the consumer, or reduce the standard pricing of our services. Measures such as these could decrease our revenues and our average revenue per dial-up Internet access pay account...

  • Page 38
    ... and operations facilities, customer support and technology centers or for any additional sales offices. For additional information regarding our obligations under leases, see Note 15-"Commitments and Contingencies" to our Consolidated Financial Statements included in this Annual Report on Form 10...

  • Page 39
    ... in May 2001, lawsuits were filed in the United States District Court for the Southern District of New York against NetZero, Inc. ("NetZero"), certain officers and directors of NetZero and the underwriters of NetZero's initial public offering, Goldman Sachs Group, Inc., BancBoston Robertson Stephens...

  • Page 40
    ... to that, NetZero common stock had been quoted on NASDAQ under the symbol "NZRO" since September 23, 1999. The following table sets forth, for the quarters indicated, the high and low sales prices per share of our common stock as reported on the NASDAQ. 2008 High Low High 2009 Low First Quarter...

  • Page 41
    ... stock units that vest and from the stock awards that are issued, the portion of those shares with a fair market value equal to the amount of the employee withholding taxes due, which is accounted for as a repurchase of common stock. We then pay the applicable withholding taxes in cash. Common stock...

  • Page 42
    ... of United Online, Inc. under the Securities Act of 1933, as amended, or the Exchange Act. The following graph compares, for the five-year period ended December 31, 2009, the cumulative total stockholder return for the Company's common stock, The Nasdaq Global Select Market (U.S. companies) Index...

  • Page 43
    ... financial statements and related notes and Management's Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Annual Report on Form 10-K. The following table presents the consolidated statements of operations data for the years ended December 31, 2009...

  • Page 44
    ... Communications segment services are Internet access and email. On a combined basis, our Web properties attract a significant number of Internet users, and we offer a broad range of Internet marketing services for advertisers. Segment Definitions We report our businesses in three reportable segments...

  • Page 45
    ... the number of pay accounts at the beginning and end of a period. ARPU may fluctuate from period to period as a result of a variety of factors, including, but not limited to, changes in the mix of pay services and the related pricing plans; the use of promotional or retention pricing to attract new...

  • Page 46
    ... online loyalty marketing members who have earned or redeemed points during such period. Communications segment active accounts include all Communications segment pay accounts as of the date presented combined with the number of free Internet access and email accounts that logged on to our services...

  • Page 47
    ... critical accounting policies in the preparation of our consolidated financial statements: Revenue Recognition FTD Segment Revenue Recognition -Products revenues and related cost of revenues are generally recognized when products are delivered to the customers. Shipping and service fees charged...

  • Page 48

  • Page 49
    ... offer alternative payment methods to credit cards for certain pay service plans. These alternative payment methods currently include use of ACH, payment by personal check or money order, or payment through a local telephone company. In circumstances where payment is not received in advance, revenue...

  • Page 50
    ... of Contents is specified in the sales agreement for each advertising customer. As the earning activities take place, activity measurement data (examples include the number of emails delivered and the number of responses received) is accumulated and the related revenue is recorded. Probability of...

  • Page 51
    ... of evaluating goodwill. These reporting units each constitute a business or group of businesses for which discrete financial information is available and is regularly reviewed by segment management. The goodwill related to our acquired businesses is specific to each reporting unit and the goodwill...

  • Page 52
    ... a number of factors, including projections of the amounts and timing of future revenues and cash flows, assumed discount rates and other assumptions. Under the market approach, using the guideline company method, a reporting unit's fair value is estimated based on multiples of the cash-free market...

  • Page 53
    ... to direct marketing offers delivered by MyPoints, purchase goods or services from advertisers, engage in certain promotional campaigns of advertisers, or engage in other specified activities. The member redemption liability is estimated based upon the weighted-average cost and number of points...

  • Page 54
    ... FTD services revenues consist of fees charged to its floral network members for access to the FTD and Interflora brands and the Mercury Man logo, access to the floral networks, credit card processing services, e-commerce Web sites services, online advertising tools, and telephone answering, order...

  • Page 55
    ...www.ftd.com , www.interflora.co.uk and www.interflora.ie Web sites. Classmates Media Our online social networking services have historically generated advertising revenues primarily from providing third-party offers to Classmates members after they have completed the pay account registration process...

  • Page 56
    ...and services include advertising and promotion expenses; fees paid to distribution partners, third-party advertising networks and co-registration partners to acquire new pay and free accounts; personnel and overhead-related expenses for marketing, merchandising, customer service, and sales personnel...

  • Page 57
    ...customer support personnel. In addition, general and administrative expenses include, among other costs, professional fees for legal, accounting and financial services; insurance; occupancy and other overhead-related costs; office relocation costs; non-income taxes; and expenses incurred and credits...

  • Page 58
    ... 31, to December 31, 2009 2008 Classmates Media Communications Year Ended December 31, 2009 2008 2007 Year Ended December 31, 2009 2008 2007 Revenues: Services $ Products Advertising Total revenues Operating expenses: Cost of revenues Sales and marketing Technology and development General and...

  • Page 59
    assets Total operating expenses Segment income (loss) from operations - 175,867 - - - - 283 - 468,917 331,370 177,229 182,926 165,242 141,288 178,248 223,010 $ 76,928 $ (149,405) $ 58,793 $ 47,309 $ 28,177 56 69,945 $ 79,190 $ 97,074

  • Page 60
    ... (in thousands): Year Ended December 31, 2008 2007 2009 Segment revenues: FTD Classmates Media Communications Intersegment eliminations Consolidated revenues $ 545,845 ...income (loss) was as follows for each period presented (in thousands): Year Ended December 31, 2008 2007 2009 Segment income...

  • Page 61
    ... a number of factors, including those discussed throughout the results of operations discussion, we anticipate revenues and operating income will decrease in 2010 as compared to 2009. Cost of Revenues. Consolidated cost of revenues increased by $202.5 million, or 94%, to $417.4 million for the year...

  • Page 62
    ... and 12.0%, respectively, of our total segment cost of revenues for the year ended December 31, 2009, compared to 52.0%, 19.9% and 28.1%, respectively, for the year ended December 31, 2008. Sales and Marketing Expenses. Consolidated sales and marketing expenses increased by $29.8 million, or 17%, to...

  • Page 63
    ... related to interest on our credit facilities, including accretion of discounts and amortization of debt issue costs. Other Income (Expense), net. Other income, net increased by $4.3 million to $4.2 million for the year ended December 31, 2009, compared to other expense, net of $48,000 for the year...

  • Page 64
    ... public filings of FTD Group, Inc. are available at the SEC's Web site at www.sec.gov . Year Ended December 31, 2008 (Combined) 2009 % Change (in thousands, except average order value and average currency exchange rates) Revenues Operating expenses: Cost of revenues Sales and marketing Technology...

  • Page 65
    ... in advertising revenues due to the termination of the post-transaction sales agreements, we anticipate continued increases in quarterly year-over-year revenues in 2010 when compared to 2009; however, the anticipated increases are contingent upon a number of factors, including economic conditions...

  • Page 66
    ... for the year ended December 31, 2009, compared to $230.2 million for the year ended December 31, 2008. The increase in Classmates Media revenues was primarily due to a $12.5 million increase in services revenues as a result of a 22% increase in our average number of pay accounts from 3.8 million...

  • Page 67
    ... online social networking pay accounts. Although we experienced a net increase in Classmates Media pay accounts in the year ended December 31, 2009, this increase was largely due to an increase in our offerings of discounted pricing plans, with a significant number of the new pay accounts generated...

  • Page 68
    ... number of dial-up Internet access pay accounts from 1.6 million for the year ended December 31, 2008 to 1.2 million for the year ended December 31, 2009, partially offset by an increase in ARPU. The decrease in Communications revenues was also due to a $3.0 million decrease in advertising revenues...

  • Page 69
    ... costs. In addition, Communications cost of revenues decreased as a result of a $2.8 million decrease in customer support- and billing-related costs due to a decrease in the number of dial-up Internet access pay accounts, a $0.7 million decrease in costs associated with our Web hosting business...

  • Page 70
    ... December 31, 2008, compared to 22.8% for the prior-year period. The increase of $97.7 million was primarily related to $107.1 million of cost of revenues associated with our FTD segment, which is included in consolidated cost of revenues from August 26, 2008 (date of acquisition) and, to a lesser...

  • Page 71
    ... shares of common stock and restricted stock units awarded in the first quarter of fiscal 2008; and the effect of restricted stock units awarded in 2007 to members of senior management in connection with the execution or renewal of employment agreements. Also, the resignation of an executive officer...

  • Page 72
    ...segment's cost structure within a mature business for dial-up Internet access services. In addition, we recognized $0.4 million in restructuring charges in the year ended December 31, 2007 for termination benefits paid to certain employees associated with our Web hosting and photo sharing businesses...

  • Page 73
    ... which have lower-priced subscription plans compared to U.S. online social networking pay accounts. The increase in Classmates Media revenues was also due to a $3.9 million increase in advertising revenues as a result of increased advertising revenues associated with our online loyalty marketing and...

  • Page 74
    ... customer support, overhead and personnel-related costs associated with our online social networking services as a result of growth in the business and an increase in headcount, partially offset by decreased costs associated with our online loyalty marketing service. The decrease in cost of revenues...

  • Page 75
    ... revenues decreased as a result of a $3.5 million decrease in customer supportand billing-related costs in the year ended December 31, 2008, compared to the year ended December 31, 2007, as a result of a decrease in the number of dial-up Internet access pay accounts and a decrease in the hourly rate...

  • Page 76
    ...million increase in personnel-related expenses and, a $1.2 million increase in consulting fees. The increase as a percentage of revenues was largely attributable to continued declines in revenues as a result of continuing declines in the number of dial-up Internet access pay accounts. Communications...

  • Page 77
    ... Company's financial statement presentation. Historical public filings of FTD Group, Inc. are available at the SEC's Web site at www.sec.gov . Year Ended December 31, 2008 2007 % Change (in thousands, except average order value and average currency exchange rates) Revenues Operating expenses: Cost...

  • Page 78
    ... 12.3 million shares of United Online common stock, subject to the payment of cash in lieu of fractional shares of United Online, Inc. common stock. The FTD acquisition was funded, in part, with the net proceeds from (i) a $60 million term loan under a senior secured credit agreement with Silicon...

  • Page 79
    ...-owned subsidiary of United Online and the direct parent of FTD Group, Inc.) and its subsidiaries. In addition, the obligations under the UOL Credit Agreement are secured by a lien on substantially all of the assets of the guarantors, including a pledge of all of the outstanding capital stock of the...

  • Page 80
    ... was offset by a $26.7 million decrease in working capital, primarily related to a decrease in deferred revenue in 2009, compared to the prior-year period, resulting from an increase in the number of pay accounts with discounted promotional pricing plans in our Classmates Media segment as well as...

  • Page 81
    ... the restricted stock units that vest and the stock awards that are issued, the portion of those shares with a fair market value equal to the amount of the employee withholding taxes due. We then pay the applicable withholding taxes in cash. The withholding of these shares, although accounted for as...

  • Page 82
    ... volatility and disruption in the securities and credit markets may restrict our ability to raise any such additional funds, at least in the near term. Year Ended December 31, 2008 compared to Year Ended December 31, 2007 Net cash provided by operating activities increased by $36.8 million, or 28...

  • Page 83
    ...options and proceeds from our employee stock purchase plan; a $3.2 million increase in repurchases of common stock in connection with shares withheld upon vesting of restricted stock awards and restricted stock units to pay applicable employee withholding taxes; and a $2.9 million decrease in excess...

  • Page 84
    ... the terms of the related leases. In addition, standby letters of credit are maintained by FTD to secure credit card processing activity. Other Commitments In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners...

  • Page 85
    ... consolidated financial statements. Software -In October 2009, the FASB issued ASU No. 2009-14, Software-Certain Revenue Arrangements That Include Software Elements , as codified in ASC 985. The amendments in this update change the accounting model for revenue arrangements that include both tangible...

  • Page 86
    ... in an annual increase in our interest expense related to our debt of approximately $3.3 million. Prior to 2009, we had interest rate risk related to our short-term investments portfolio. As a result, we were exposed to the impact of interest rate changes and changes in the market values of our...

  • Page 87
    ... and expenses. A 10% adverse change in overall foreign currency exchange rates over an entire year would result in a reduction of reported annual revenues of approximately $17.1 million and a reduction of reported annual income before income taxes of approximately $2.4 million. These estimates...

  • Page 88
    ...because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management assessed the effectiveness of the Company's internal control over financial reporting at December 31, 2009. In making this assessment, management used the criteria set forth...

  • Page 89
    ... Transactions". ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES The information required by Item 14 is included under the caption "Proposal Two: Ratification of Independent Registered Public Accounting Firm" in our definitive proxy statement relating to our 2010 annual meeting of stockholders to be...

  • Page 90
    ... Accounts F-48 F-52 All other schedules have been omitted because the information required to be set forth therein is not applicable, not required or is shown in the consolidated financial statements or notes related thereto. 3. Exhibits: The agreements included as exhibits to this Annual Report...

  • Page 91
    ...to Agreement and Plan of Merger, dated July 16, 2008, among United Online, Inc., UNOLA Corp. and FTD Group, Inc. 3.1 Amended and Restated Certificate of Incorporation 3.2 Amended and Restated Bylaws 3.3 Certificate of Designation for Series A Junior Participating Preferred Stock (included in Exhibit...

  • Page 92
    ...Stock Incentive Plan 10.14 Form of Option Agreement for Classmates Online, Inc. 2004 Stock Plan 10.15 Amended and Restated United Online, Inc. Severance Benefit Plan 10.16 Employment Agreement between the Registrant and Mark R. Goldston... 000-33367 000-33367 2/27/2009 2/27/2009 5/12/2008 10/27/2004 ...

  • Page 93
    ... United Online, Inc. and Mark R. Goldston 10.40 Restricted Stock Unit Issuance Agreement Amendment Agreement between United Online, Inc. and Mark R. Goldston 10.41 Restricted Stock Unit Issuance Agreement Amendment Agreement between United Online, Inc. and Scott H. Ray 10.42 Restricted Stock Unit...

  • Page 94
    .... and Paul E. Jordan 10.46 Restricted Stock Unit Issuance Agreement(s) Amendment Agreement between United Online, Inc. and Robert J. Taragan 10.47 United Online, Inc. 2009 Management Bonus Plan 10.48 Office Lease between LNR Warner Center, LLC and NetZero, Inc. 10.49 Commitment Letter, dated April...

  • Page 95
    ... Financial Officer pursuant to Section 906 of the SarbanesOxley Act of 2002 (b) Exhibits X X X 000-33367 000-33367 000-33367 2/23/2010 2/23/2010 2/23/2010 The exhibits filed as part of this report are listed in Item 15(a)(3) of this Annual Report on Form 10-K. (c) Financial Statement Schedules...

  • Page 96
    ... 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on February 23, 2010. UNITED ONLINE, INC. By: /s/ MARK R. GOLDSTON Mark R. Goldston Chairman, President and Chief Executive Officer KNOW ALL PERSONS BY THESE PRESENT, that each...

  • Page 97
    Table of Contents Signature Title Date /s/ KENNETH L. COLEMAN Director Kenneth L. Coleman /s/ DENNIS HOLT Director Dennis Holt /s/ HOWARD G. PHANSTIEL Director Howard G. Phanstiel /s/ CAROL A. SCOTT Director Carol A. Scott 94 February 23, 2010 February 23, 2010 February 23, 2010 February 23, 2010

  • Page 98
    ... provisions are required to make the statements in this Form 10-K not misleading. Additional information about the Company may be found elsewhere in this Annual Report on Form 10-K and in the Company's other public filings, which are available without charge through the SEC's Web site at www.sec.gov...

  • Page 99
    ... 2001 Stock Incentive Plan Form of Option Agreement for 2001 Supplemental Stock Incentive Plan Form of Option Agreement for Classmates Online, Inc. 2004 Stock Plan Amended and Restated United Online, Inc. Severance Benefit Plan Employment Agreement between the Registrant and Mark R. Goldston First...

  • Page 100
    ... Classmates Media Corporation and Mark R. Goldston 10.21 Employment Agreement ... Amended and Restated Employment Agreement between Classmates Online, Inc. and Steven B. McArthur 10...2009 10/30/2007 2/27/2009 11/10/2008 2/27/2009 10/30/2007 12/30/2008 08/17/2009 10/30/2007 12/30/2008 10/30/2007 2/27/2009...

  • Page 101
    .... and Paul E. Jordan 10.46 Restricted Stock Unit Issuance Agreement(s) Amendment Agreement between United Online, Inc. and Robert J. Taragan 10.47 United Online, Inc. 2009 Management Bonus Plan 10.48 Office Lease between LNR Warner Center, LLC and NetZero, Inc. 10.49 Commitment Letter, dated April...

  • Page 102
    ... 11, 2008, among United Online, Inc., the lenders party thereto from time to time and Silicon Valley Bank, as administrative agent 21.1 List of Subsidiaries 23.1 Consent of Independent Registered Public Accounting Firm 24.1 Power of Attorney (see signature page of this Annual Report on Form 10-K) 31...

  • Page 103
    ... of Contents UNITED ONLINE, INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Comprehensive Income (Loss) Consolidated Statements of Stockholders...

  • Page 104
    ... of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was...

  • Page 105
    ... of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of...

  • Page 106
    ...UNITED ONLINE, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) December 31, 2009 2008 Assets Current assets: Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts of $8,777 and $4,327 at December 31, 2009 and 2008, respectively Deferred tax...

  • Page 107
    ... of Contents UNITED ONLINE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Year Ended December 31, 2008 2007 2009 Revenues: Services Products Total revenues Operating expenses: Cost of revenues-services Cost of revenues-products Sales and marketing Technology...

  • Page 108
    ... of Contents UNITED ONLINE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (in thousands) Year Ended December 31, 2008 2007 2009 Net income (loss) Change in unrealized gain (loss) on short-term investments, net of tax of $0, $(102) and $184 for the years ended December 31, 2009, 2008...

  • Page 109
    ... stock units Repurchases of common stock Issuance of common stock in connection with acquisition Dividends paid on shares outstanding and restricted stock units Dividends payable on restricted stock units Stock-based compensation Change in unrealized loss on short-term investments, net of tax Change...

  • Page 110
    Net income Balance at December 31, 2009 - 84,958 $ - 8 $ - 518,580 $ - (26,963 ) $ 70,085 (58,974) $ 70,085 432,651 The accompanying notes are an integral part of these consolidated financial statements. F-7

  • Page 111
    ... UNITED ONLINE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2009 2008 2007 Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Stock-based...

  • Page 112
    ... a significant number of Internet users and the Company offers a broad array of Internet marketing services for advertisers. United Online, Inc. is a Delaware corporation that commenced operations in 2001 following the merger of Internet access providers NetZero, Inc. and Juno Online Services, Inc...

  • Page 113
    ...POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS (Continued) The most significant areas of the consolidated financial statements that require management judgment and which are susceptible to possible change in the near term include the Company's revenue recognition, business combinations, goodwill and...

  • Page 114
    ..., are amortized using the straight-line method over the shorter of the lease term or up to ten years. Upon the sale or retirement of property or equipment, the cost and related accumulated depreciation or amortization is removed from the Company's consolidated financial statements with the resulting...

  • Page 115
    ...UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS (Continued) required to make judgments about assumptions market participants would use in estimating the fair value...

  • Page 116
    ...CONSOLIDATED FINANCIAL STATEMENTS (Continued) 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS (Continued) test goodwill and indefinite-lived intangible assets for impairment at least annually at the reporting unit level. The Company tests...

  • Page 117
    ...UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS (Continued) management or other personnel, significant negative industry or economic trends, changes in the Company...

  • Page 118
    ... as deferred revenue. The Company offers alternative payment methods to credit cards for certain pay service plans. These alternative payment methods currently include use of automated clearing-house ("ACH"), payment by personal check or money order, or payment through a local telephone company. In...

  • Page 119
    ... and services include advertising and promotion expenses; fees paid to distribution partners, third-party advertising networks and co-registration partners to acquire new pay and free accounts; personnel and overhead-related expenses for marketing, merchandising, customer service and sales personnel...

  • Page 120
    ... is established. The Company amortizes these costs using the greater of the straight-line method over a period of three to five years or the revenue method prescribed by ASC 985. At December 31, 2009 and 2008, the net book value of capitalized computer software costs related to the internal...

  • Page 121
    ... include, among other costs, professional fees for legal, accounting and financial services; insurance; occupancy and other overhead-related costs; office relocation costs; non-income taxes; and expenses incurred and credits received as a result of certain legal settlements or reserves. Stock...

  • Page 122
    ... UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING PRONOUNCEMENTS (Continued) per share is an earnings allocation formula that determines earnings per share for common stock...

  • Page 123
    ...its consolidated financials statements. 2. SEGMENT INFORMATION Segment revenues and segment income (loss) from operations were as follows (in thousands): Year Ended December 31, 2009 Classmates Media Communications FTD Total Services Products Advertising Total segment revenues Segment income from...

  • Page 124
    ... UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2. SEGMENT INFORMATION (Continued) A reconciliation of segment revenues to consolidated revenues was as follows for each period presented (in thousands): Year Ended December 31, 2008 2007 2009 Segment revenues: FTD...

  • Page 125
    ... Other current assets consisted of the following (in thousands): December 31, 2009 2008 Prepaid expenses Income taxes receivable Gift cards related to member redemption liability Floral-related inventories, net Other Total Property and Equipment Property and equipment consisted of the following...

  • Page 126
    Table of Contents UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 3. BALANCE SHEET COMPONENTS (Continued) Depreciation expense, including the amortization of leasehold improvements, for the years ended December 31, 2009, 2008 and 2007 was $24.8 million, $21.4 million and ...

  • Page 127
    ... FINANCIAL STATEMENTS (Continued) 4. GOODWILL, INTANGIBLE ASSETS AND OTHER LONG-LIVED ASSETS (Continued) Intangible Assets Intangible assets consisted of the following (in thousands): December 31, 2009 Accumulated Amortization Gross Value Net Pay accounts and free accounts Customer contracts...

  • Page 128
    ... UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 5. CREDIT AGREEMENTS (Continued) borrowed $60 million thereunder. The net proceeds of the term loan under the UOL Credit Agreement were used to finance, in part, the acquisition of FTD. The term loan under the UOL Credit...

  • Page 129
    ...31, 2009, the interest rate on the UOL Credit Agreement was 6.00%. The interest rate on the FTD Credit Agreement term loan A was 5.75% and the interest rate on the FTD Credit Agreement term loan B was 6.75%. Subject to certain exceptions, United Online, Inc. is required to make quarterly prepayments...

  • Page 130
    F-26

  • Page 131
    ...Contents UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 5. CREDIT AGREEMENTS (Continued) UOL Credit Agreement (commencing in the second quarter of 2009). Subject to certain exceptions, FTD Group, Inc. is required to make annual prepayments of a portion of the term loans...

  • Page 132
    Table of Contents UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 7. FAIR VALUE MEASUREMENTS The provisions of ASC 820 related to nonfinancial assets and liabilities became effective for the Company on January 1, 2009, and did not have a material impact on the Company's ...

  • Page 133
    ...portion of those shares with a fair market value equal to the amount of the employee withholding taxes due, which is accounted for as a repurchase of common stock. The Company then pays the applicable withholding taxes in cash. The amounts remitted in the years ended December 31, 2009, 2008 and 2007...

  • Page 134
    Table of Contents UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 8. STOCKHOLDERS' EQUITY (Continued) In January, April and July 2008, United Online, Inc.'s Board of Directors declared quarterly cash dividends of $0.20 per share of common stock. The dividends were paid on...

  • Page 135
    ...over a nine-month to three-year period, either monthly or annually. Stock option grants expire after ten years unless canceled earlier due to termination of employment or Board of Directors service. Certain stock option grants are immediately exercisable for unvested shares of common stock, with the...

  • Page 136
    ... United Online, Inc. (the "Compensation Committee") approved grants of 1.0 million restricted stock units with a grant-date fair value equal to $6.5 million to certain members of the Company's senior management. Each restricted stock unit entitles the recipient to receive one share of United Online...

  • Page 137
    Table of Contents UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 9. STOCK-BASED COMPENSATION PLANS (Continued) stock upon vesting. The restricted stock units will vest as to one-third of the total number of shares awarded annually over a three-year period beginning ...

  • Page 138
    ... UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 9. STOCK-BASED COMPENSATION PLANS (Continued) Stock Options The following table summarizes stock option activity during the years ended December 31, 2007, 2008 and 2009: WeightedAverage Remaining Contractual Life (in years...

  • Page 139
    ... UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 9. STOCK-BASED COMPENSATION PLANS (Continued) The fair value of employee stock purchase plan shares was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended...

  • Page 140
    Table of Contents UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 10. INCOME TAXES (Continued) The provision for income taxes was comprised of the following (in thousands): Year Ended December 31, 2008 2007 2009 Current: Federal State Foreign Deferred: Federal State ...

  • Page 141
    ...UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 10. INCOME TAXES (Continued) The significant components of net deferred tax balances were as follows (in thousands): December 31, 2009 2008 Deferred tax assets: Net operating loss and foreign tax credits carryforwards Stock...

  • Page 142
    Table of Contents UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 10. INCOME TAXES (Continued) The changes in gross unrecognized tax benefits for the years ended December 31, 2009, 2008 and 2007 were as follows, excluding interest and penalties (in thousands): Balance at ...

  • Page 143
    ... UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 11. NET INCOME (LOSS) PER SHARE The following table sets forth the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): Year Ended December 31, 2008 2007 2009...

  • Page 144
    ... from the Company's marketing expertise to attract consumers to FTD's Web sites and thousands of floral network members while cross-selling FTD products and services to the Company's then-existing member base of over 50 million registered domestic consumer accounts having similar demographic...

  • Page 145
    ... million, including expenses incurred in connection with the transaction. The following table summarizes the components of the purchase price (in thousands): Cash consideration, net Stock consideration (12.3 million shares of United Online common stock valued at $10.29) Transaction costs Total $ 306...

  • Page 146
    ... Company's consolidated financial statements since the Closing Date. The following unaudited pro forma information assumes the FTD acquisition occurred at January 1, 2008 and 2007 (in thousands, except per share amounts): Year Ended December 31, 2008 Year Ended December 31, 2007 Revenues Net income...

  • Page 147
    ... excess of fair value over carrying value of the Classmates Online, MyPoints and Communications reporting units at the annual impairment assessment date, the Company determined that an interim impairment assessment was not required for these reporting units. However, in order to validate the...

  • Page 148
    ... lease arrangements and to secure credit card processing activity. The standby letters of credit remain in effect, generally, at declining levels through the terms of the related leases. Certificates of deposit of $1.1 million and $1.9 million maintained by the Company in connection with certain of...

  • Page 149
    ... in May 2001, lawsuits were filed in the United States District Court for the Southern District of New York against NetZero, Inc. ("NetZero"), certain officers and directors of NetZero and the underwriters of NetZero's initial public offering, Goldman Sachs Group, Inc., BancBoston Robertson Stephens...

  • Page 150
    ...ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 15. COMMITMENTS AND CONTINGENCIES (Continued) those investors material portions of the restricted number of NetZero shares issued in connection with the offering; and (ii) the underwriters had entered into agreements with customers...

  • Page 151
    ...UNITED ONLINE, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 16. QUARTERLY FINANCIAL DATA (UNAUDITED) (in thousands, except per share data) Quarter Ended September 30, June 30, December 31, March 31, Year ended December 31, 2009: Revenues Cost of revenues Operating income Net income...

  • Page 152
    ...UNITED ONLINE, INC. SCHEDULE I-CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARENT COMPANY BALANCE SHEETS (in thousands) December 31, 2009... liabilities Intercompany payables Long-term debt Total current liabilities Long-term debt Total liabilities Total ... part of these financial statements. F-48

  • Page 153
    Table of Contents UNITED ONLINE, INC. PARENT COMPANY STATEMENTS OF OPERATIONS (in thousands) Year Ended December 31, 2008 2007 2009 Revenues Operating expenses: General and administrative Total operating expenses Operating loss Interest income Intercompany interest income Interest expense Other ...

  • Page 154
    ... of Contents UNITED ONLINE, INC. PARENT COMPANY STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31, 2008 2007 2009 Net cash provided by operating activities Cash flows from investing activities: Purchases of short-term investments Proceeds from maturities of short-term investments...

  • Page 155
    ... Company's share of net income (loss) of its subsidiaries is included in net income (loss) using the equity method. The Parent Company financial statements should be read in conjunction with the consolidated financial statements of United Online, Inc. for the corresponding years. Under the terms...

  • Page 156
    ... at Beginning of Period Tax Valuation Allowance Charged to Income Tax Provision Charged to Other Accounts Tax Valuation Allowance Credited to Income Tax Provision Balance at End of Period Valuation allowance for deferred tax assets: Year ended December 31, 2009 Year ended December 31, 2008...

  • Page 157

  • Page 158
    Exhibit 10.15 AMENDED AND RESTATED UNITED ONLINE, INC. SEVERANCE BENEFIT PLAN AND SUMMARY PLAN DESCRIPTION Amended and Restated Effective January 1, 2010

  • Page 159
    ... severance pay, except such terms as are set forth in a written agreement signed by an authorized officer of the Company or one of its subsidiaries and in effect at the time of the applicable termination of employment. This Plan supplements any such written agreements to provide all terms that...

  • Page 160
    ... a tender or exchange offer made directly to the stockholders of United Online, Inc., or (ii) a change in the composition of the Board of Directors of United Online, Inc. ("Board") over a period of thirty-six (36) consecutive months or less such that a majority of the Board members ceases, by reason...

  • Page 161
    ... as a result of a Resignation for Good Reason during the Transaction Protection Period. Unless otherwise determined by the Chief Executive Officer of United Online, Inc., the Involuntary Termination provisions of the Plan shall only apply in the event of a Change in Control or Corporate Transaction...

  • Page 162
    ... and information concerning your work to your manager; and (ii) you have provided your manager with all passwords and passcodes you have created for documents, email and electronic files that you created or used on Company's computers and computer systems. 8. On or before your employment termination...

  • Page 163
    ... is upheld on governmental, judicial or other review.) 3. You resign your employment with the Company or any Covered Subsidiary (other than a resignation constituting an Involuntary Termination). 4. You terminate your employment prior to the date of termination set by your Employer in its notice of...

  • Page 164
    ... on the business of the Company or other Employer relating to your employment. For purposes of this provision "comparable employment" means employment within 50 miles of your prior employment site and at least 100% of your prior base pay. 9. Your termination results from long-term or permanent...

  • Page 165
    ...be one year of base pay. The Severance Payment Benefit amount for Senior Vice Presidents and Vice Presidents shall be six (6) months of base pay. The amounts for Presidents, Executive Vice Presidents, Senior Vice Presidents and Vice Presidents shall apply whether or not the termination occurs during...

  • Page 166
    ... date of your Layoff Termination, except as otherwise provided through COBRA, you will cease participation in all employee benefits and benefit plans the Company makes available to its employees, in accordance with the terms and conditions of such benefits and benefit plans. In accordance with COBRA...

  • Page 167
    ...benefit than the benefit you receive under the Plan, you may submit a signed, written application to the Chief Personnel Officer of the Company within ninety (90) days after the effective date of your Layoff Termination or Involuntary Termination. 2. Denial of Application for Benefits . In the event...

  • Page 168
    ...are set forth in a written agreement signed by an authorized officer of the Company or any subsidiary of the Company. This policy supplements any such written agreements to provide all terms that are not otherwise expressly set forth in those written agreement. E. Plan Amendment or Termination . The...

  • Page 169
    ... Company or any other member of the Employer Group, which right is hereby expressly reserved, to terminate the employment of any individual at any time for any reason, without cause. VI. STATEMENT OF ERISA RIGHTS As a participant in the United Online, Inc. Severance Benefit Plan (the "Plan"), you...

  • Page 170
    Administration, U.S. Department of Labor, listed in your local telephone directory or contact the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. 13

  • Page 171
    ... of Plan: Plan Costs: IN WITNESS WHEREOF, UNITED ONLINE, INC. HAS CAUSED THIS AMENDED AND RESTATED SEVERANCE BENEFIT PLAN AND SUMMARY PLAN DESCRIPTION TO BE EXECUTED ON ITS BEHALF BY ITS DULY AUTHORIZED OFFICER ON THE DATE AND YEAR INDICATED BELOW. UNITED ONLINE, INC. By: /s/ Mark R. Goldston Title...

  • Page 172
    SCHEDULE A LIST OF COVERED SUBSIDIARIES PARTICIPATING IN THE PLAN AS OF JANUARY 1, 2010 NetZero, Inc. Juno Internet Services, Inc. United Online Advertising Network, Inc. Classmates Online, Inc. MyPoints.com, Inc. FTD.COM, Inc. Florists' Transworld Delivery, Inc.

  • Page 173
    ... corporation NetZero, Inc., a Delaware corporation (also dba Bluelight Internet Service) Opobox, Inc., a Delaware corporation Stayfriends GmbH Trombi Acquisition SARL United Online Advertising Network, Inc., a Delaware corporation (dba United Online Media Group) United Online Web Services, Inc...

  • Page 174
    QuickLinks Exhibit 21.1

  • Page 175
    ...333-149324, 333-155261, and 333-157599) of United Online, Inc. of our report dated February 23, 2010 relating to the financial statements, financial statement schedules and the effectiveness of internal control over financial reporting, which appears in this Form 10-K. /s/ PricewaterhouseCoopers LLP...

  • Page 176
    QuickLinks Exhibit 23.1 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

  • Page 177
    ... ACT OF 2002 I, Mark R. Goldston, certify that: 1. I have reviewed this Annual Report on Form 10-K of United Online, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light...

  • Page 178
    QuickLinks CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECURITIES EXCHANGE ACT RULES 13A-14 AND 15D-14 AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

  • Page 179
    ... 31.2 CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECURITIES EXCHANGE ACT RULES 13A-14 AND 15D-14 AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Scott H. Ray, certify that: 1. I have reviewed this Annual Report on Form 10-K of United Online, Inc.; 2. Based on my...

  • Page 180
    QuickLinks CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECURITIES EXCHANGE ACT RULES 13A-14 AND 15D-14 AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

  • Page 181
    ... SARBANES-OXLEY ACT OF 2002 I, Mark R. Goldston, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge: (a) The Annual Report on Form 10-K of United Online, Inc. for the year ended December 31, 2009, as filed with the...

  • Page 182
    QuickLinks CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

  • Page 183
    ...pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge: (a) The Annual Report on Form 10-K of United Online, Inc. for the year ended December 31, 2009, as filed with the Securities and Exchange Commission fully complies with the requirements of Section 13(a) or 15(d) of the...

  • Page 184
    QuickLinks CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002