Stamps.com 2012 Annual Report Download - page 34

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The following table sets forth the breakdown of revenue for 2011 and 2010 and the resulting percent change (revenue in $000s):
The following table sets forth the breakdown of PC Postage revenue, which includes Core PC Postage revenue and Non-
Core PC Postage
revenue for 2011 and 2010 and the resulting percent change (revenue in $000s):
The increase in Core PC Postage revenue was driven by both an increase in paid customers and an increase in average revenue per paid
customer. Average revenue per paid customer increased 10% to $20.20 in 2011 from $18.25 in 2010. Annual average paid customers increased
11% to 372,000 in 2011 from 337,000 in 2010.
We define paid customers for the quarter as ones from whom we successfully collected service fees at least once during that quarter, and we
define average paid customers for the year as the average of the paid customers for each of the four quarters during the year.
The following table sets forth the total number of paid customers in the period that were originally acquired through our Core PC Postage
channels (in thousands):
The following table sets forth the growth in paid customers and average annual revenue per paid customer for customers originally acquired
through our Core PC Postage channel:
The increase in paid customers in 2011 was primarily attributable to (1) our increased customer acquisition spending in these channels leading to
an increase in the number of customers acquired and (2) reductions in our paid customer churn rates.
For our Core PC Postage Business, our average annual and monthly Core PC Postage revenue per paid customer in 2011 was $242 and $20.20
respectively, which increased by 11% compared to $219 and $18.25, respectively in 2010. The increase in average revenue per paid customer
was primarily attributable to (1) higher monthly fees from our high volume shipping and enterprise customer segments, (2) an increase in the
average store revenue per paid customer driven by the increased usage of our service and (3) an increase in insurance purchases driven by our
focus on shipping and new insurance features.
Table of Contents
2011
2010
% Change
Revenues
Service
$
75,535
$
64,607
17
%
Product
13,465
11,725
15
%
Insurance
4,321
2,023
114
%
PC Postage Revenue
93,321
78,355
19
%
PhotoStamps Revenue
8,258
7,162
15
%
Other
6
27
(78
%)
Total revenues
$
101,585
$
85,544
19
%
2011
2010
% Change
Core PC Postage Revenue
$
90,150
$
73,814
22
%
Non
-Core PC Postage Revenue
3,171
4,541
(30
%)
Total PC Postage Revenue
$
93,321
$
78,355
19
%
Year
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Annual
Average
2011
360
368
374
385
372
2010
336
338
334
340
337
Core PC Postage Revenue
2011
2010
% Change
Average paid customers for the year (in thousands)
372
337
10
%
Average annual revenue per paid customer
$
242
$
219
11
%
Core PC Postage Revenue
($000s)
$
90,150
$
73,814
22
%
30