Stamps.com 2013 Annual Report Download - page 35

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The following table sets forth the breakdown of PC Postage revenue, which includes Core PC Postage revenue and Non-Core PC Postage
revenue for 2012 and 2011 and the resulting percent change (revenue in $000s):
The increase in Core PC Postage revenue was driven by both an increase in average revenue per paid customer and an increase in paid
customers. Average revenue per paid customer increased 5% to $21.18 in 2012 from $20.20 in 2011. Annual average paid customers increased
13% to 421,000 in 2012 from 372,000 in 2011.
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:
The increase in paid customers is primarily driven by an increased number of new customers acquired, which was driven by our increased spend
in Core PC Postage marketing channels, while our lost customer churn rates remained at levels that were consistent with the prior year.
For our Core PC Postage Business, our average annual and monthly Core PC Postage revenue per paid customer in 2012 was $254 and $21.18
respectively, which increased by 5% compared to $242 and $20.20, respectively in 2011. The increase in average revenue per paid customer
was primarily attributable to (1) higher service revenue from our high volume shipping and enterprise customer segments and (2) an increase in
insurance revenue per paid customer driven by our focus on shipping and new insurance features.
31
Table of Contents
2012
2011
% Change
Core PC Postage Revenue
$
106,979
$
90,150
19
%
Non
-Core PC Postage Revenue
3,024
3,171
(5
%)
PC Postage Revenue
110,003
93,321
18
%
Year
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Annual
Average
2012
413
418
419
435
421
2011
360
368
374
385
372
Core PC Postage Business
2012
2011
% Change
Average paid customers for the year (000s
)
421
372
13
%
Average annual revenue per paid customer
$
254
$
242
5
%
Core PC Postage Revenue
(
$000s)
$
106,979
$
90,150
19
%