Juno 2012 Annual Report Download - page 55

Table of Contents
 We monitor the average value for consumer orders delivered in a given period, which we refer to as the average order
value. Average order value represents the average U.S. Dollar amount received for consumer orders delivered during a period. For orders placed
outside the U.S. (principally in the U.K. and the Republic of Ireland), this average U.S. Dollar amount is determined after translating the local currency
amounts received into U.S. Dollars. Average order value includes merchandise revenues and shipping and service fees paid by the consumer, less
discounts and refunds (net of refund-related fees charged to floral network members). Average order values may fluctuate from period to period based
on the average foreign currency exchange rates; product mix; changes in merchandise pricing, shipping and service fees; levels of refunds issued; and
discounts, among other factors.

 We generate a significant portion of our revenues from our pay accounts and they represent one of the most important drivers of
our business model. A pay account is defined as a member who has paid for a subscription to a Content & Media or Communications service, and
whose subscription has not terminated or expired. A subscription provides the member with access to our service for a specific term (for example, a
month or a year) and may be renewed upon the expiration of each term. One time purchases of our services are not considered subscriptions and thus,
are not included in the pay accounts metric. A pay account does not equate to a unique subscriber since one subscriber could have several pay accounts.
In addition, at any point in time, our pay account base includes a number of accounts receiving a free period of service as either a promotion or retention
tool, such as the subscribers receiving our free NetZero 4G mobile broadband service, and a number of accounts that have notified us that they are
terminating their service but whose service remains in effect. In general, the key metrics that affect our revenues from our pay accounts base include the
number of pay accounts and ARPU. A pay account generally becomes a free account following the expiration or termination of the related subscription.
 We monitor ARPU, which is a monthly measure calculated by dividing services revenues generated from the pay accounts of our
Content & Media or Communications segment, as applicable, for a period (after translation into U.S. Dollars) by the average number of segment pay
accounts for that period, divided by the number of months in that period. The average number of pay accounts is the simple average of the number of
pay accounts at the beginning and the end of a period. ARPU may fluctuate significantly from period to period as a result of a variety of factors,
including, but not limited to, the extent to which promotional, discounted or retention pricing is used to attract new, or retain existing, paying
subscribers; changes in the mix of pay services and the related pricing plans; increases or decreases in the price of our services; the timing of pay
accounts being added or removed during a period; and for the Content & Media segment the average foreign currency exchange rate between the U.S.
Dollar and the Euro.
 To evaluate the retention characteristics of our membership base, we also monitor the percentage of pay accounts that terminate or expire,
which we refer to as our average monthly churn rate. Our average monthly churn rate is calculated as the total number of pay accounts that terminated or
expired in a period divided by the average number of pay accounts for that period, divided by the number of months in that period. Our average monthly
churn percentage may fluctuate from period to period due to our mix of subscription terms, which affects the timing of subscription expirations, and
other factors. We make certain normalizing adjustments to the calculation of our churn percentage for periods in which we add a significant number of
pay accounts due to acquisitions. For our Communications segment pay accounts, we do not include in our churn calculation dial-up accounts canceled
during the first 30 days of service unless the accounts have upgraded from free accounts, although a number of such accounts will be included in our
account totals at any given measurement date. Additionally, we do not include NetZero 4G mobile broadband service accounts canceled during
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