Stamps.com 2013 Annual Report Download - page 15

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You should carefully consider the following risks and the other information in this Report and our other filings with the Securities and Exchange
Commission (the “SEC”) before you decide to invest in our company or to maintain or increase your investment. The risks included in this
section are not exhaustive, and additional factors could adversely affect our business and financial performance. We operate in a very
competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for management to predict all
such risk factors, nor can it assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors,
may cause actual results to differ materially from those contained in any forward-looking statements.
If any of the following risks actually occur,
our business, results of operations or financial condition would likely suffer. In that case, the trading price of our common stock could decline,
and you may lose all or part of your investment.
This Report contains forward-looking statements based on the current expectations, assumptions, estimates and projections about us and the
Internet.
See the discussion of forward-looking statements on page 1 of Part I of this Report.
Risks Related to Our Business
We may not successfully implement strategies to increase the adoption of our services and products, which would limit our growth,
adversely affect our business and cause the price of our common stock to decline.
Our continuing profitability depends on our ability to successfully implement our strategy of increasing the adoption of our services and
products. Factors that might cause our revenues, margins and operating results to fluctuate include the factors described below in this section as
well as:
We may implement pricing plans and promotions that may adversely affect our future revenues and margins.
Our ability to generate gross margins depends upon our ability to generate significant revenues from a large base of active customers. In order to
attract customers in the future, we may run special promotions and offers, such as trial periods, discounts on fees, postage and supplies, and other
promotions. In addition, we may offer new pricing plans for new and existing customers. We cannot be sure that customers will be receptive to
future fee structures and special promotions that we may implement. Even though we have established a sizeable customer base, we still may not
generate sufficient gross margins to remain profitable. In addition, our ability to generate revenues or sustain profitability could be adversely
affected by the special promotions or additional changes to our pricing plans.
11
Table of Contents
ITEM 1A.
RISK FACTORS.
• The costs of our marketing programs to establish and promote our brands;
• The demand for our services and products;
• Our ability to develop and maintain strategic distribution relationships;
• The number, timing and significance of new products or services introduced by us and by our competitors;
• Our ability to develop, market and introduce new and enhanced products and services on a timely basis;
• The level of service and price competition;
• Our operating expenses;
• USPS regulation and policies relating to PC Postage;
• The modification or termination of financial compensation arrangements with the USPS; and
• General economic factors.