Stamps.com 2015 Annual Report Download - page 19

TABLE OF CONTENTS
ITEM 1A. RISK FACTORS.
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:
• 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,strategicbusinesspartnersandother
carriers;and
•Generaleconomicfactors.
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.
If we do not successfully attract and retain skilled personnel for permanent management and other key personnel positions, we
may not be able to effectively implement our business plan.
Oursuccessdependslargelyontheskills,experienceandperformanceofthemembersofourseniormanagementandotherkey
personnel.Anyoftheseindividualscanterminatehisorheremploymentwithusat
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