Stamps.com 2014 Annual Report Download - page 40

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Years Ended December 31, 2013 and 2012
Total revenue increased 11% to $127.8 million in 2013 from $115.7 million in 2012. Mailing and shipping 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 thousands):
Core mailing and shipping revenue in 2013 was $120.2 million, an increase of 12% from $107.0 million in 2012. Non-
Core mailing and
shipping 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 mailing and shipping revenue, which includes Core mailing and shipping revenue and Non-
Core
mailing and shipping revenue for 2013 and 2012 and the resulting percent change (revenue in thousands):
The increase in Core mailing and shipping 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 mailing and shipping 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.
35
Table of Contents
2013
2012
% Change
Revenues
Service
$
99,013
$
88,173
12
%
Product
16,580
14,710
13
%
Insurance
7,515
7,120
%
Mailing and Shipping Revenue
123,108
110,003
12
%
PhotoStamps Revenue
4,710
5,651
(17
%)
Other
1
(86
%)
Total revenues
127,819
115,661
11
%
2013
2012
% Change
Core Mailing and Shipping Revenue
$
120,232
$
106,979
12
%
Non
-Core Mailing and Shipping Revenue
2,876
3,024
(5
%)
Mailing and Shipping Revenue
123,108
110,003
12
%