Enom 2011 Annual Report Download - page 47

systems, such as our Omniture web analytics tool, contain estimates for our customer websites using our social media tools and may use data compiled from
certain customer websites. We periodically review and refine our methodology for monitoring, gathering, and counting page views in an effort to improve the
accuracy of our measure.
• RPM: We define RPM as Content & Media revenue per one thousand page views.
Registrar Metrics
• domain: We define a domain as an individual domain name paid for by a third-party customer where the domain name is managed through our
Registrar service offering. Beginning July 1, 2011, the number of net new domains has been adjusted to include only new registered domains added
to our platform for which we have recognized revenue. This metric does not include any of the company’s owned and operated websites.
• average revenue per domain: We calculate average revenue per domain by dividing Registrar revenues for a period by the average number of
domains registered in that period. The average number of domains is the simple average of the number of domains at the beginning and end of the
period.
The following table sets forth additional performance highlights of key business metrics for the periods presented:
2009 to
2010 2010 to
2011
Year ended December 31, %
Change %
Change
2009 2010 2011
Content & Media Metrics (1)
Owned & operated
Page views (in millions) 6,849 8,234 10,378 20 % 26 %
RPM $ 10.69 $ 13.45 $ 15.14 26 % 13 %
Network of customer websites
Page views (in millions) 10,009 13,155 17,436 31 % 33 %
RPM $ 3.45 $ 3.20 $ 2.77 (7)% (13)%
RPM ex-TAC $ 2.39 $ 2.28 $ 2.06 (5)% (10)%
Registrar Metrics (1)
End of Period # of Domains (2) (in millions) 9.1 11.0 12.7 21 % 15 %
Average Revenue per Domain (2) $ 10.11 $ 9.96 $ 10.08 (1)% 1 %
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(1) For a discussion of these period to period changes in the number of page views, RPM, end of period domains and average revenue per domain and how
they impacted our financial results, see “Results of Operations” below.
(2) Beginning July 1, 2011, the number of net new domains has been adjusted to include only new registered domains added to our platform for which we
have recognized revenue. Excluding the impact of this change, end of period domains at December 31, 2011 would have increased 22% and average
revenue per domain during the year ended December 31, 2011 would have decreased 2%, each compared to the corresponding prior-year periods.
Opportunities, Challenges and Risks
To date, we have derived the majority of our revenue through the sale of advertising in connection with our Content & Media service offering and
through domain name registration subscriptions in our Registrar service offering. Our advertising revenue is primarily generated by advertising networks,
which include both performance based Internet advertising, such as cost-per-click where an advertiser pays only when a user clicks on its advertisement, and
display Internet advertising where an advertiser pays when the advertising is displayed. For the year ended December 31, 2011, the majority of our advertising
revenue was generated by our relationship with Google. We deliver online advertisements provided by Google on our owned and operated websites as well as
on certain of our customer websites where we share a portion of the advertising revenue. For the years ended December 31, 2010 and 2011, approximately
29% and 33%, respectively, of our total consolidated revenue was derived from our advertising and content arrangements with Google. Google maintains the
direct relationships with the advertisers and provides us with cost-per-click and display advertising services.
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