Stamps.com 2009 Annual Report Download - page 33

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TABLE OF CONTENTS
Expectations for 2010
We expect the following trends for 2010 compared with 2009:
Our results are subject to macro economic factors and a continued, prolonged recession, among other factors, could cause
these trends to be worse than our current expectations.
Years Ended December 31, 2008 and 2007
Total revenue in 2008 was $84.9 million, a decrease of 1% from $85.8 million in 2007. PC Postage subscriber related
revenue, including service revenue, product revenue and insurance revenue, in 2008 was $73.0 million, an increase of 9%
compared to $67.0 million in 2007. PhotoStamps revenue in 2008 was $11.9 million, a decrease of 34% compared to $17.9
million in 2007.
PC Postage revenue for customers acquired through our enhanced promotion channel for 2008 was approximately $9.1
million, a decrease of 4% from approximately $9.5 million in 2007. PC Postage revenue for customers acquired through our
non-enhanced promotion channels for 2008 was approximately $63.9 million, an increase of 11% from approximately $57.5
million in 2007.
The following table sets forth the total number of paid customers originally acquired through our non-enhanced promotion
channels on a quarterly basis (in thousands):
• We expect to continue to increase PC postage marketing spend on our non-enhanced promotion channels and expect that
PC Postage revenue for customers acquired through these channels will increase in 2010.
• We expect to continue to reduce PC Postage marketing spend on the enhanced promotion channel and expect that PC
Postage revenue for customers acquired through this channel will decrease in 2010.
• We expect our PhotoStamps marketing spend and revenue to remain constant or decrease in 2010.
• We expect research and development expenses to be modestly higher in 2010.
• We expect General and Administrative expenses to be higher in 2010 driven by higher expected legal spending, which
continues to be a material expense for us.
•
We expect interest income and other income, net to decrease due to lower invested cash balances and lower interest rates.
We believe that the increase in paid customers in 2008 was attributable to our increased customer acquisition spending. For
customers originally acquired through our non-enhanced promotion channels, our average subscriber related monthly revenue
per paid customer in 2008 was $17.16 compared to $17.26 in 2007.
Paid Customers (000)
Year
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
2008
305
314
312
311
2007
267
270
281
293
28