Stamps.com 2013 Annual Report Download - page 29

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Results of Operations
Years Ended December 31, 2013 and 2012
Total revenue increased 11% to $127.8 million in 2013 from $115.7 million in 2012. PC Postage revenue, which includes service revenue,
product revenue and insurance revenue, was $123.1 million in 2013, an increase of 12% from $110.0 million in 2012. PhotoStamps revenue
decreased 17% to $4.7 million in 2013 from $5.7 million in 2012. Other revenue decreased 86% to $1,000 in 2013 from $7,000 in 2012.
The following table sets forth the breakdown of revenue for 2013 and 2012 and the resulting percent change (revenue in $000s):
Core PC Postage revenue in 2013 was $120.2 million, an increase of 12% from $107.0 million in 2012. Non-
Core PC Postage revenue in 2013
was $2.9 million, a decrease of 5% from $3.0 million in 2012.
The following table sets forth the breakdown of PC Postage revenue, which includes Core PC Postage revenue and Non-
Core PC Postage
revenue for 2013 and 2012 and the resulting percent change (revenue in $000s):
The increase in Core PC Postage revenue was primarily attributable to an increase in paid customers. Annual average paid customers increased
11% to 466,000 in 2013 from 421,000 in 2012. The decrease in Non-
Core PC Postage revenue was primarily attributable to lower marketing
spend in the online enhanced promotion channel.
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 number of paid customers (000s) in the period for our Core PC Postage business:
The following table sets forth the growth in paid customers and average annual revenue per paid customer for our Core PC Postage business:
25
Table of Contents
2013
2012
% Change
Revenues
Service
$
99,013
$
88,173
12
%
Product
16,580
14,710
13
%
Insurance
7,515
7,120
6
%
PC Postage Revenue
123,108
110,003
12
%
PhotoStamps
4,710
5,651
(17
%)
Other
1
7
(86
%)
Total revenues
127,819
115,661
11
%
2013
2012
% Change
Core PC Postage Revenue
$
120,232
$
106,979
12
%
Non
-Core PC Postage Revenue
2,876
3,024
(5
%)
PC Postage Revenue
123,108
110,003
12
%
Year
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Annual
Average
2013
465
467
464
468
466
2012
413
418
419
435
421
2013
2012
% Change
Average paid customers for the year (000s)
466
421
11
%
Average annual revenue per paid customer
$
258
$
254
2
%
Core PC Postage Revenue (000s)
$
120,232
$
106,979
12
%