Stamps.com 2015 Annual Report Download - page 37
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Please find page 37 of the 2015 Stamps.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.2015 2014
Revenues
Service $ 176,672 $ 115,696
Product 18,283 16,883
Insurance 11,732 9,217
CustomizedPostage 7,229 5,450
Other 41 23
Totalrevenues $ 213,957 $ 147,269
Revenueasapercentageoftotalrevenues
Service 83% 79%
Product 9% 11%
Insurance 5% 6%
CustomizedPostage 3% 4%
Other 0% 0%
Totalrevenues 100% 100%
TABLE OF CONTENTS
Revenue by Product
Thefollowingtableshowsourcomponentsofrevenueandtheirrespectivepercentagesoftotalrevenuefortheperiodsindicated
(inthousandsexceptpercentage):
Ourrevenueisderivedprimarilyfromfivesources:(1)serviceandtransactionrelatedrevenuesfromourUSPSmailingand
shippingservices,ourmulti-carriershippingservicesandourmailingandshippingintegrations;(2)productrevenuefromthedirect
saleofconsumablesandsuppliesthroughourSuppliesStores;(3)packageinsurancerevenuefromourbrandedinsuranceofferings;(4)
CustomizedPostagerevenuefromthesaleofPhotoStampsandPictureItPostagepostagelabels;and(5)otherrevenue,consistingof
advertisingrevenuederivedfromadvertisingprogramswithourexistingcustomers.
Forservicerevenue,weearnrevenueinseveraldifferentways:(1)customersmaypayusamonthlyfeebasedonasubscription
plan;(2)customersmayqualifyunderourUSPSpartnershiptohavetheirservicefeeswaivedorrefundedandthenweare
compensateddirectlybytheUSPS;(3)customersmaypayusafeepershippinglabelprinted;(4)wemayearncompensationby
offeringcustomersadiscountedpostageratethatisprovidedtothecustomersbyourpartners;and(5)wemayearnothertypesof
revenuesharesorothercompensationfromspecificcustomersorpartners.
Servicerevenueincreased53%to$176.7millionin2015from$115.7millionin2014.The53%increaseinservicerevenue
consistedofa14%increaseinourannualaveragepaidcustomersand35%increaseinourannualaverageservicerevenueperpaid
customer.
Productrevenueincreased8%to$18.3millionin2015from$16.9millionin2014.Theincreaseisprimarilyattributabletoan
increaseinsalesofmailingandshippinglabelsandlabelprintersaswecontinuetogrowourcustomerbase.Postageprintedtypically
helpsdrivesalesofconsumablessuppliessuchaslabels.Totalpostageprintedbycustomersusingourmailingandshippingsolutions
in2015was$2.7billion,a51%increasefromthe$1.8billionprintedin2014.
Insurancerevenueincreased27%to$11.7millionin2015from$9.2millionin2014.Theincreaseininsurancerevenuewas
primarilyattributabletoouracquisitionswhosesolutionstargetshippingcustomerswhoaremorelikelythanmailingcustomersto
purchaseinsurance.
CustomizedPostagerevenueincreased33%to$7.2millionin2015from$5.4millionin2014.Theincreasewasprimarily
attributableto(1)anincreaseinPhotoStampshighvolumebusinessand(2)theadditionofPictureItPostageasaresultofourEndicia
acquisition.TheincreaseinCustomizedPostagerevenuewaspartiallyoffsetbyadecreaseinPhotoStampsrevenuefromordersplaced
throughthePhotoStampswebsite.Thedecreaseinrevenuefromwebsiteordersisprimarilyattributabletoareductioninour
PhotoStampssalesandmarketingspendingin2015comparedwith2014.
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