Stamps.com 2012 Annual Report Download - page 28

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When we refer to our "Core PC Postage revenue," we are referring to revenues from service, product and insurance generated by customers in
our Core PC Postage business and when we refer to our "Non-
Core PC Postage revenue," we are referring to revenues from service, product and
insurance generated by customers in our Non-Core PC Postage business. When we refer to our “Total PC Postage revenue,”
we are referring to
both Core PC Postage and Non-Core PC Postage revenues generated from all service, product and insurance revenues.
When we refer to our "Core PC Postage marketing channels," we are referring to our marketing channels targeted at acquiring small business,
enterprise and high volume shipping customers. These channels include partnerships, online advertising, affiliate channel, direct mail,
traditional media advertising and others. When we refer to our "Non-
Core PC Postage marketing channel," we are referring to the online
enhanced promotion marketing channel.
Within our PC Postage business, we believe it is useful to discuss Core and Non-
Core PC Postage because they target different customer types
and as a result may represent differing trends. For example, Core PC Postage generally targets businesses and Non-
Core PC Postage generally
targets consumers.
Results of Operations
Years Ended December 31, 2012 and 2011
Total revenue increased 14% to $115.7 million in 2012 from $101.6 million in 2011. PC Postage revenue, including service revenue, product
revenue and insurance revenue, in 2012 was $110.0 million, an increase of 18% compared to $93.3 million in 2011. Core PC Postage revenue
increased 19% to $107.0 million in 2012 from $90.2 million in 2011. Non-
Core PC Postage revenue decreased 5% to $3.0 million in 2012 from
$3.2 million in 2011. PhotoStamps revenue decreased 32% to $5.7 million in 2012 from $8.3 million in 2011. Other revenue increased 9% to
$7,000 in 2012 from $6,000 in 2011.
The following table sets forth the breakdown of revenue for 2012 and 2011 and the resulting percent change (revenue in $000s):
The following table sets forth the breakdown of PC Postage revenue, which includes Core PC Postage revenue and Non-
Core PC Postage
revenue for 2012 and 2011 and the resulting percent change (revenue in $000s):
The increase in Core PC Postage revenue was driven by both an increase in average revenue per paid customer and an increase in paid
customers. Average revenue per paid customer increased 5% to $21.18 in 2012 from $20.20 in 2011. Annual average paid customers increased
13% to 421,000 in 2012 from 372,000 in 2011.
Table of Contents
2012
2011
% Change
Revenues
Service
$
88,173
$
75,535
17
%
Product
14,710
13,465
9
%
Insurance
7,120
4,321
65
%
PC Postage Revenue
110,003
93,321
18
%
PhotoStamps
5,651
8,258
(32
%)
Other
7
6
9
%
Total revenues
115,661
101,585
14
%
2012
2011
% Change
Core PC Postage Revenue
$
106,979
$
90,150
19
%
Non
-Core PC Postage Revenue
3,024
3,171
(5
%)
PC Postage Revenue
110,003
93,321
18
%
24