Stamps.com 2015 Annual Report Download - page 36

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2015 2014 % Change
Revenues    
Service $ 176,672 $ 115,696  53%
Product 18,283  16,883  8%
Insurance 11,732  9,217  27%
MailingandShippingRevenue 206,687  141,796  46%
CustomizedPostage 7,229  5,450  33%
Other 41  23  77%
Totalrevenues $ 213,957 $ 147,269  45%
2015 2014 % Change
   
Averagepaidcustomersfortheyear 581  512  14%
Averageannualrevenueperpaidcustomer $ 356 $ 277  28%
MailingandShippingRevenue $ 206,687 $ 141,796  46%
TABLE OF CONTENTS
Thefollowingtablesetsforththebreakdownofrevenuefor2015and2014andtheresultingpercentchange(revenuein
thousands):
Wedefine“PaidCustomers”forthequarterasonesfromwhomwesuccessfullycollectedservicefeesorotherwiseearned
revenue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intheperiodforourCoremailingandshippingbusiness(in
thousands):
Year
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Annual
Average
   
2015 557 565 569 633 581
2014 506 505 512 525 512
ThefollowingtablesetsforththegrowthinpaidcustomersandaverageannualrevenueperpaidcustomerforourMailingand
shippingbusiness(inthousandsexceptaverageannualrevenueperpaidcustomer):
Theincreaseinpaidcustomersisprimarilytheresultof(1)ahighernumberofStamps.compaidcustomerscomparedtotheprior
yearasaresultofourincreasedspendinginourMailingandshippingsalesandmarketingchannels,(2)theadditionofpaidcustomers
fromShipStationandShipWorksasaresultofouracquisitionsin2014and(3)theadditionofpaidcustomersfromEndiciaasaresult
ofouracquisitioninthefourthquarterof2015.
Theincreaseinouraverageannualrevenueperpaidcustomer(“ARPU”)wasprimarilytheresultof(1)theadditionofpaid
customersfromouracquisitionsofShipStation,ShipWorksandEndiciawheretheARPUforthosepaidcustomersishigheras
comparedtotheARPUfromtheexistingStamps.comcustomersand(2)thegrowthinourhighvolumeshippingbusinesswherewe
havetheabilitytobettermonetizepostagevolumeascomparedtomonthlyflatratesubscriptionfees.
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