Enom 2014 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 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

F-31
Supplemental Pro forma Information (unaudited)
Supplemental information on an unaudited pro forma basis, as if the 2014 and 2013 acquisitions had been consummated as of
January 1, 2013, is as follows (in thousands):
Year ended December 31,
2014
2013
Revenue....................................................................................... $ 174,691 $ 222,790
N
et loss ....................................................................................... $ (272,988) $ (24,484)
The unaudited pro forma supplemental information is based on estimates and assumptions which we believe are reasonable and
reflect amortization of intangible assets as a result of the acquisitions. The pro forma results are not necessarily indicative of the
results that have been realized had the acquisitions been consolidated in the tables above as of January 1, 2013.
16. Business Segments
We operate in one operating segment. Our chief operating decision maker (“CODM”) manages our operations on a consolidated
basis for purposes of evaluating financial performance and allocating resources. The CODM reviews separate revenue information for
its Content & Media and Marketplace offerings. All other financial information is reviewed by the CODM on a consolidated basis. All
of the Company’s principal operations and assets are located in the United States.
Revenue derived from the Company’s Content & Media and Marketplaces is as follows (in thousands):
Year ended December 31,
2014
2013
2012
Content & Media ............................................................................... $ 137,038 $ 195,080 $ 207,640
Marketplaces ..................................................................................... 35,391 14,331 -
Total revenue .................................................................................... $ 172,429 $ 209,411 $ 207,640
Revenue by geographic region, as determined based on the location of our customers or the anticipated destination of use was as
follows:
Year ended December 31,
2014
2013
2012
Domestic ........................................................................................... $ 152,437 $ 196,499 $198,967
International ...................................................................................... 19,992 12,912 8,673
Total revenue .................................................................................... $ 172,429 $ 209,411 $ 207,640
17. Concentrations
Concentrations of Credit and Business Risk
Financial instruments that potentially subject us to a concentration of credit risk consist of cash and cash equivalents, marketable
securities and accounts receivable.
At December 31, 2014, our cash and cash equivalents and marketable securities were maintained primarily with six major U.S.
financial institutions and three foreign banks. We also have used two Internet payment processors in both periods. Deposits with these
institutions at times exceed the federally insured limits, which potentially subject us to concentration of credit risk. We have not
experienced any losses related to these balances and believe that there is minimal risk.
A substantial portion of our advertising revenue is generated through arrangements with one advertising network partner. We
may not be successful in renewing any of these agreements, or if they are renewed, they may not be on terms as favorable as current
agreements. We may not be successful in renewing our agreements with advertising network partners on commercially acceptable
terms.