Stamps.com 2015 Annual Report Download - page 37

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2015 2014
Revenues    
Service $ 176,672 $ 115,696
Product 18,283  16,883
Insurance 11,732  9,217
CustomizedPostage  7,229  5,450
Other 41  23
Totalrevenues $ 213,957 $ 147,269
Revenueasapercentageoftotalrevenues    
Service 83%  79%
Product 9%  11%
Insurance  5%  6%
CustomizedPostage  3%  4%
Other  0%  0%
Totalrevenues  100%  100%
TABLE OF CONTENTS
Revenue by Product
Thefollowingtableshowsourcomponentsofrevenueandtheirrespectivepercentagesoftotalrevenuefortheperiodsindicated
(inthousandsexceptpercentage):
Ourrevenueisderivedprimarilyfromfivesources:(1)serviceandtransactionrelatedrevenuesfromourUSPSmailingand
shippingservices,ourmulti-carriershippingservicesandourmailingandshippingintegrations;(2)productrevenuefromthedirect
saleofconsumablesandsuppliesthroughourSuppliesStores;(3)packageinsurancerevenuefromourbrandedinsuranceofferings;(4)
CustomizedPostagerevenuefromthesaleofPhotoStampsandPictureItPostagepostagelabels;and(5)otherrevenue,consistingof
advertisingrevenuederivedfromadvertisingprogramswithourexistingcustomers.
Forservicerevenue,weearnrevenueinseveraldifferentways:(1)customersmaypayusamonthlyfeebasedonasubscription
plan;(2)customersmayqualifyunderourUSPSpartnershiptohavetheirservicefeeswaivedorrefundedandthenweare
compensateddirectlybytheUSPS;(3)customersmaypayusafeepershippinglabelprinted;(4)wemayearncompensationby
offeringcustomersadiscountedpostageratethatisprovidedtothecustomersbyourpartners;and(5)wemayearnothertypesof
revenuesharesorothercompensationfromspecificcustomersorpartners.
Servicerevenueincreased53%to$176.7millionin2015from$115.7millionin2014.The53%increaseinservicerevenue
consistedofa14%increaseinourannualaveragepaidcustomersand35%increaseinourannualaverageservicerevenueperpaid
customer.
Productrevenueincreased8%to$18.3millionin2015from$16.9millionin2014.Theincreaseisprimarilyattributabletoan
increaseinsalesofmailingandshippinglabelsandlabelprintersaswecontinuetogrowourcustomerbase.Postageprintedtypically
helpsdrivesalesofconsumablessuppliessuchaslabels.Totalpostageprintedbycustomersusingourmailingandshippingsolutions
in2015was$2.7billion,a51%increasefromthe$1.8billionprintedin2014.
Insurancerevenueincreased27%to$11.7millionin2015from$9.2millionin2014.Theincreaseininsurancerevenuewas
primarilyattributabletoouracquisitionswhosesolutionstargetshippingcustomerswhoaremorelikelythanmailingcustomersto
purchaseinsurance.
CustomizedPostagerevenueincreased33%to$7.2millionin2015from$5.4millionin2014.Theincreasewasprimarily
attributableto(1)anincreaseinPhotoStampshighvolumebusinessand(2)theadditionofPictureItPostageasaresultofourEndicia
acquisition.TheincreaseinCustomizedPostagerevenuewaspartiallyoffsetbyadecreaseinPhotoStampsrevenuefromordersplaced
throughthePhotoStampswebsite.Thedecreaseinrevenuefromwebsiteordersisprimarilyattributabletoareductioninour
PhotoStampssalesandmarketingspendingin2015comparedwith2014.
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