Overstock.com 2005 Annual Report Download - page 54

Three Months Ended
Mar. 31,
2004
June 30,
2004
Sept. 30,
2004
Dec. 31,
2004
Mar. 31,
2005
June 30,
2005
Sept. 30,
2005
Dec. 31,
2005
Additional Operating
Data(1):
Gross bookings (in thousands)
(2) $ 93,412 $ 96,627 $ 114,381 $ 237,021 $ 184,215 $ 163,775 $ 179,480 $ 340,489
Number of orders(3) 1,126,000 1,023,000 1,178,000 2,440,000 1,915,000 1,588,000 1,768,000 3,176,000
Number of new B2C
customers(4) 425,000 414,000 514,000 1,110,000 796,000 611,000 703,000 1,370,000
Average customer acquisition
cost(5) $ 10.24 $ 15.88 $ 18.30 $ 16.90 $ 19.50 $ 22.10 $ 22.92 $ 20.51
(1) The additional operating data sets forth certain operating data relating to our business for the eight most recent quarters for the period ended December 31, 2004.
While we believe that the information in the table above facilitates an understanding of our business and results of operations for the periods presented, such
information is not in accordance with generally accepted accounting principles and should be read in conjunction with the quarterly results of operations data set
forth above. We believe that gross bookings is a metric widely used in our industry and by making this metric available to investors, we believe investors are able
to compare our performance against others in our industry. We believe that investors may use the average customer acquisition cost metric to determine how
efficiently we are able to achieve growth, if any. Again, we believe this metric is widely used in our industry, and providing these values to investors enables
them to make more meaningful comparisons.
(2) Gross bookings excludes bookings related to the auctions and travel businesses (shopping business only).
(3) Number of orders represents the number of individual orders for merchandise through our Websites excluding B2B orders.
(4) Number of new B2C customers represents the number of valid new customer accounts. To establish a valid customer account, a person must provide us with the
following information and purchase merchandise on our B2C Website: a unique e-mail address; a unique password; and a verified credit card account number.
(5) Average customer acquisition cost represents total shopping sales and marketing expense divided by the number of new shopping customers for the period
presented (excluding both new customers and marketing costs for the auctions and travel businesses).
Three Months Ended
Mar. 31,
2004
June 30,
2004
Sept. 30,
2004
Dec. 31,
2004
Mar. 31,
2005
June 30,
2005
Sept. 30,
2005
Dec. 31,
2005
(as a percentage of total revenue)
Revenue
Direct revenue 47.0 % 46.8 % 42.5 % 40.5 % 40.9 % 39.9 % 40.4 % 40.4 %
Fulfillment partner revenue 53.0 53.2 57.5 59.5 59.1 60.1 59.6 59.6
Total revenue 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Cost of goods sold
Direct 42.4 41.8 37.2 33.9 35.1 34.2 34.9 35.7
Fulfillment partner 47.3 46.8 49.4 50.8 49.9 50.7 49.4 49.7
Total cost of goods sold 89.7 88.6 86.6 84.7 85.0 84.9 84.3 85.4
Gross profit 10.3 11.4 13.4 15.3 15.0 15.1 15.7 14.6
Operating expenses:
Sales and marketing expenses 5.3 7.5 9.1 9.1 10.1 9.6 10.6 9.6
Technology 1.7 2.1 2.2 1.3 2.5 4.1 4.8 3.1
General and administrative
expenses 5.9 4.3 4.9 3.7 4.4 5.0 5.9 3.6
Amortization of stock-based
compensation 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0
Total operating expenses 13.1 14.0 16.2 14.1 17.0 18.7 21.3 16.3
Operating income (loss) (2.8 ) (2.6 ) (2.8 ) 1.2 (2.0 ) (3.6 ) (5.6 ) (1.7 )
Interest income 0.1 0.1 0.1 0.3 0.4 0.6 (1.0 ) (0.0 )
Interest expense (0.0 ) (0.0 ) (0.1 ) (0.3 ) (0.9 ) (1.0 ) (0.7 ) (0.4 )
Other income (expense), net 0.0 0.0 0.0 (0.0 ) 0.0 2.8 0.0 0.2
Net income (loss) (2.7 )% (2.5 )% (2.8 )% 1.2 % (2.5 )% (1.2 )% (7.3 )% (1.9 )%
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