Stamps.com 2010 Annual Report Download - page 39

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TABLE OF CONTENTS
The following table sets forth our results of operations as a percentage of total revenue for the periods indicated:
Revenue
Service revenue decreased 0.3% to $61.4 million in 2009 from $61.6 million in 2008. The slight decrease in service revenue
consisted of a 5% increase in service revenue from customers acquired through our non-enhanced promotion channels, which
was more than offset by a 32% decrease in service revenue from customers acquired through our enhanced promotion channel.
The 5% increase in service revenue from customers through our non-enhanced promotion channels consisted of a 2% increase in
successfully billed customers and a 3% increase in average service revenue per customer. As a percentage of total revenue,
service revenue increased to 75% in 2009 from 73% in 2008, primarily as a result of the decrease in revenue from our
PhotoStamps product.
Product revenue increased 8% to $10.7 million in 2009 from $9.9 million in 2008. The increase in product revenue was
primarily attributable to the following: (1) growth in our paid customer base; (2) marketing our Supplies Store to our existing
customer base; (3) additional SKUs we added to our Supplies Store; and (4) growth in postage printed, which helps drive sales
of consumable supplies such as labels. Total postage printed by customers using our service during 2009 was $354 million, an
11% increase from $319 million in 2008. Store orders increased by 7% in 2009 compared to 2008 while the average revenue per
store order increased by 1% in 2009 compared to 2008. As a percentage of total revenue, product revenue increased slightly to
13% in 2009 from 12% in 2008, primarily as a result of the decrease in revenue from our PhotoStamps product.
Twelve months ended
December 31,
2009
2008
Total Revenues:
Service
74.7
%
72.5
%
Product
13.0
%
11.7
%
Insurance
2.0
%
1.8
%
PhotoStamps
10.3
%
14.0
%
Other
0.0
%
0.0
%
Total revenues
100.0
%
100.0
%
Cost of revenues:
Service
14.4
%
12.2
%
Product
4.9
%
4.2
%
Insurance
0.6
%
0.6
%
PhotoStamps
8.0
%
10.0
%
Other
27.9
%
0.0
%
Total cost of revenues
72.1
%
27.0
%
Gross profit
73.0
%
Operating expenses:
38.6
%
Sales and marketing
10.6
%
39.5
%
Research and development
15.8
%
9.9
%
General and administrative
65.0
%
18.3
%
Total operating expenses
7.1
%
67.7
%
Income from operations
1.1
%
5.3
%
Other income, net
8.2
%
3.4
%
Income before income taxes
0.7
%
8.7
%
(Benefit) provision for income taxes
7.5
%
-
3.3
%
Net income
2009
12.0
%