Enom 2014 Annual Report Download - page 49

Download and view the complete annual report

Please find page 49 of the 2014 Enom annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

46
As a percentage of revenue:
Year ended December 31,
2014
2013
2012
Revenue:
Service revenue ................................................................................................ 79.9% 93.2 % 100.0%
Product revenue ................................................................................................ 20.1% 6.8 % 0.0%
Total revenue ................................................................................................. 100.0% 100.0 % 100.0%
Operating expenses:
Service costs (exclusive of amortization of intangible assets) ......................... 25.1% 24.5 % 26.2%
Product costs .................................................................................................... 15.1% 4.7 % 0.0 %
Sales and marketing.......................................................................................... 11.6% 17.3 % 18.8%
Product development ........................................................................................ 17.0% 15.4 % 15.0%
General and administrative ............................................................................... 29.2% 25.4 % 26.0%
Goodwill impairment charge ............................................................................ 134.7% 0.0 % 0.0%
Amortization of intangible assets ..................................................................... 22.2% 17.4 % 15.6%
Total operating expenses ............................................................................... 254.9% 104.7 % 101.6%
Loss from operations ........................................................................................... -154.9% -4.7 % -1.6 %
Interest income ................................................................................................. 0.2% 0.0 % 0.0 %
Interest expense ................................................................................................ -2.8% -0.7 % -0.3 %
Other income (expense), net ............................................................................. 0.4% 0.0 % 0.0%
Loss from continuing operations before income taxes ........................................ -157.1% -5.4 % -1.9%
Income tax benefit (expense) .............................................................................. 8.5% -1.4 % -0.5%
N
et loss from continuing operations ................................................................... -148.6% -6.8 % -2.3%
N
et income (loss) from discontinued operations ................................................. -6.5% -2.8 % 5.3%
N
et income (loss) ................................................................................................ -155.1% -9.6 % 3.0 %
Revenue
Revenue by service line was as follows (in thousands):
Year ended December 31, % Change
2014
2013
2012
2014 to 2013 2013 to 2012
Content & Media revenue ............... $ 137,038 $ 195,080 $ 207,640 -30 % -6%
Marketplaces revenue ..................... 35,391 14,331 - 147 % N/A
Total revenue ................................ $ 172,429 $ 209,411 $ 207,640
Content & Media Revenue
Content & Media revenue decreased by $58.0 million, a 30% decline to $137.0 million for the year ended December 31, 2014,
as compared to $195.1 million for the same period in 2013. Visits decreased by 1%, to 4,004 million visits in the year ended
December 31, 2014 from 4,032 million visits in the year ended December 31, 2013 primarily due to declines in desktop visits from
eHow.com, Cracked.com and Livestrong.com, partially offset by mobile visit growth across most of our online properties and desktop
visit growth from our international and customer web pages hosted by our content services. RPV decreased by 29%, to $34.22 in the
year ended December 31, 2014 from $48.39 in the year ended December 31, 2013, primarily due to lower ad monetization yields from
cost-per-click advertising, our strategic reduction in higher yielding direct sold display advertising, and a mix shift to lower ad
monetizing visits from mobile and international users.
Content & Media revenue decreased by $12.6 million, a 6% decline to $195.1 million for the year ended December 31, 2013, as
compared to $207.6 million for the same period in 2012. Visits increased 4%, to 4,032 million visits in the year ended December 31,
2013 from 3,861 million visits in the year ended December 31, 2012 primarily due to significant mobile visit growth across all of our
online properties, partially offset by declines in desktop visits resulting from reductions in search engine referral traffic. RPV
decreased by 10%, to $48.39 in the year ended December 31, 2013 from $53.78 in the year ended December 31, 2012, primarily due
to lower revenue associated with less content delivered year-over-year under the YouTube Channels agreement as we satisfied our
final content delivery requirements in the first quarter of 2013, as well as a decline in our Pluck and IndieClick businesses, and a mix
shift to lower monetizing visits from mobile and international users.