Juno 2013 Annual Report Download - page 40

Table of Contents
We report our businesses in two reportable segments:
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On November 1, 2013, United Online, Inc. consummated the separation of FTD Companies, Inc. (together with its subsidiaries, "FTD") from
United Online, Inc. through a tax-free distribution of all FTD Companies, Inc. common stock held by United Online, Inc. to United Online, Inc.'s
stockholders (the "FTD Spin-Off Transaction"). On October 31, 2013, immediately prior to the completion of the FTD Spin-Off Transaction, United
Online, Inc. implemented a one-for-seven reverse stock split of shares of United Online, Inc. common stock. Accordingly, the financial condition,
results of operations and cash flows of FTD have been presented as discontinued operations for all periods presented. Further, except as noted, all
United Online, Inc. common stock share information and related per share amounts have been adjusted to reflect the one-for-seven reverse stock split of
shares of United Online, Inc. common stock.
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We review a number of key business metrics to help us monitor our performance and trends affecting our businesses, and to develop forecasts and
budgets. These key measures include the following:
 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, with the exception of our free mobile
broadband service, 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 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 business 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
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Content & Media Social networking services and products and a loyalty marketing service
Communications Internet access services and devices, including dial-up, mobile broadband, DSL, email, Internet security and web hosting
services