Stamps.com 2015 Annual Report Download - page 41

2014 2013 % Change
Revenues      
Service $ 115,696 $ 99,013  17%
Product  16,883  16,580  2%
Insurance  9,217  7,515  23%
MailingandShippingRevenue  141,796  123,108  15%
PhotoStamps  5,450  4,710  16%
Other  23  1  2200%
Totalrevenues  147,269  127,819  15%
TABLE OF CONTENTS
acquireandretaincustomers.Totheextentwearenotabletoachieveourtargetincreaseinspendingandacquireandretaincustomers,
thiswouldnegativelyimpactour2016Mailingandshippingrevenuegrowthexpectations.WeexpectCustomizedPostagerevenueto
increasein2016comparedto2015.Highvolumebusinessorderscanfluctuatesignificantlyfromquartertoquarterandtherefore
historicaltrendsmaynotbeindicativeoffutureresultsforcustomizedpostagerevenue.
Weexpectedoursalesandmarketingspendtoincreasein2016comparedto2015.Wewillcontinuetomonitorourcustomer
metricsandthestateoftheeconomyandadjustourlevelofspendingaccordingly.Salesandmarketingspendisexpensedintheperiod
incurredwhiletherevenueandprofitsassociatedwiththeacquiredcustomersareearnedoverthecustomers’lifetime.Asaresult,
increasedsalesandmarketingspendinfutureperiodscouldresultinareductioninoperatingprofitandcashflowcomparedtopast
periods.
Weexpectresearchanddevelopmentexpensestobehigherin2016ascomparedto2015.
Weexpectgeneralandadministrativeexpensestobehigherin2016ascomparedto2015.Theincreaseisexpectedtobepartially
offsetbyareductioninacquisitionandcorporatedevelopmentrelatedcostsincurredin2015asaresultoftheEndiciaacquisition.
Weexpectourstockbasedcompensationexpensetobehigherin2016comparedto2015basedontheincreaseinexpenseinthe
fourthquarter.
Wedonotexpecttoincurcontingentconsiderationchargesin2016astheShipStationearn-outperiodwascompletedasof
December31,2015.
Taxexpense(benefit)in2015maynotbeindicativeof2016taxexpense(benefit)duetofactorsthatimpacttaxableincome
comparedtobookincomewhichcanchangefromquarter-to-quarter.
Asdiscussedabove,ourexpectationsaresubjecttosubstantialuncertaintyandourresultsaresubjecttomacro-economicfactors
andotherfactorswhichcouldcausethesetrendstobeworsethanourcurrentexpectationorwhichcouldcauseactualresultstobe
materiallydifferentthanourcurrentexpectations.Theseexpectationsare“forwardlookingstatements”,aremadeonlyasofthedateof
thisReportandaresubjecttothequalificationandlimitationsontheforward-lookingstatementsdiscussiononpage1ofPartIofthis
ReportandtherisksandotherfactorssetforthinItem1A“RiskFactors”.Ourbusinesshasgrownthroughacquisitionduring2014and
2015;howevertheexpectationsabovedonotassumeanyfutureacquisitionsordispositions,anyofwhichcouldhaveasignificant
impactonourcurrentexpectations.Asdescribedinourforward-lookingstatementsdiscussion,wedonotundertakeanyobligationto
releasepubliclyanyrevisionstoourforward-lookingstatementstoreflecteventsorcircumstancesafterthedateofthisReport.
Years Ended December 31, 2014 and 2013
Totalrevenueincreased15%to$147.3millionin2014from$127.8millionin2013.Mailingandshippingrevenue,which
includesservicerevenue,productrevenueandinsurancerevenue,was$141.8millionin2014,anincreaseof15%from$123.1million
in2013.PhotoStampsrevenueincreased16%to$5.4millionin2014from$4.7millionin2013.
Thefollowingtablesetsforththebreakdownofrevenuefor2014and2013andtheresultingpercentchange(revenuein
thousands):
37