Shutterfly 2008 Annual Report Download - page 31

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seek to expand our customer base by empowering our existing customers with sharing and collaboration services (such as Shutterfly Gallery, the Nexo platform, and
Shutterfly Collections), and by conducting integrated marketing and advertising programs. Total customers have increased on an annual basis for each year since inception, and
we anticipate that this trend will continue.
Average Order Value.
Average order value is net revenues for a given period divided by the total number of customer orders recorded during that same period. We seek to
increase average order value as a means of increasing net revenues. Average order value has increased on an annual basis for each year since 2000, and we anticipate that this
trend will continue in the future.
Total Number of Orders.
We closely monitor total number of orders as a leading indicator of net revenue trends. We recognize the net revenues associated with an order
when the products have been shipped and all other revenue recognition criteria have been met. Orders are typically processed and shipped within two business days after a
customer places an order. Total number of orders has increased on an annual basis for each year since 2000, and we anticipate that this trend will continue in the future.
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