Enom 2012 Annual Report Download - page 63

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58
As a percentage of revenue:
Year ended December 31,
2010 2011 2012
Revenue 100.0 % 100.0 % 100.0 %
Operating expenses: — —
Service costs (exclusive of amortization of intangible assets) 51.9 % 48.0 % 47.6 %
Sales and marketing 9.7 % 11.5 % 12.2 %
Product development 10.5 % 11.7 % 10.7 %
General and administrative 14.8 % 18.3 % 16.6 %
Amortization of intangible assets 13.3 % 14.5 % 10.7 %
Total operating expenses 100.2 % 104.0 % 97.7 %
Income (loss) from operations (0.2)% (4.0)% 2.3 %
Other income (expense) — —
Interest income — % — % — %
Interest expense (0.3)% (0.3)% (0.2)%
Other income (expense), net (0.1)% (0.1)% — %
Total other expense (0.4)% (0.4)% (0.2)%
Income (loss) before income taxes (0.6)% (4.4)% 2.1 %
Income tax expense (1.5)% (1.3)% (0.5)%
Net income (loss) (2.1)% (5.7)% 1.6 %
Revenue
Revenue by service line was as follows:
% Change
Year Ended December 31, 2010 to
2011 2011 to
2012 2010 2011 2012
(In thousands)
Content & Media:
Owned and operated websites $ 110,770 $ 157,089 $ 178,511 42% 14%
Network of customer websites 42,140 48,361 67,888 15% 40%
Total Content & Media 152,910 205,450 246,399 34% 20%
Registrar 100,026 119,416 134,179 19% 12%
Total revenue $ 252,936 $ 324,866 $ 380,578 28% 17%
Content & Media Revenue from Owned and Operated Websites
2012 compared to 2011. Content & Media revenue from our owned and operated websites increased by $21.4 million, or
14%, to $178.5 million for the year ended December 31, 2012, as compared to $157.1 million for the same period in 2011. The
increase was largely due to increased page views partially offset by decreased RPMs. Page views on our owned and operated
websites increased by 27%, from 10,378 million page views in the year ended December 31, 2011 to 13,192 million page views
in the year ended December 31, 2012. RPMs on our owned and operated websites decreased by 11%, from $15.14 in the year
ended December 31, 2011 to $13.53 in the year ended December 31, 2012. The page view increase included the impact of a
website product enhancement we implemented in the second quarter of 2011 with respect to the presentation of photo-centric
content on certain of the Company's owned and operated sites, which did not impact advertising impressions. Excluding the
impact of such change, we estimate that during the year ended December 31, 2012, page views would have increased
approximately 19% and RPMs would have decreased 4%, compared to the corresponding prior year. The remaining increase in
underlying page views was due primarily to growth in traffic, including rapid growth in traffic from mobile devices, to our
content published during or before 2011 on our largest owned and operated websites including eHow.com and Cracked.com.