Stamps.com 2015 Annual Report Download - page 42

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2014 2013 % Change
   
CoreMailingandShippingRevenue $ 139,672 $ 120,232  16%
Non-CoreMailingandShippingRevenue 2,124  2,876  (26%)
MailingandShippingRevenue 141,796  123,108  15%
2014 2013 % Change
   
Averagepaidcustomersfortheyear 500  466  7%
Averageannualrevenueperpaidcustomer $ 280 $ 258  8%
CoreMailingandShippingRevenue $ 139,672 $ 120,232  16%
TABLE OF CONTENTS
Coremailingandshippingrevenuein2014was$139.7million,anincreaseof16%from$120.2millionin2013.Non-Core
mailingandshippingrevenuein2014was$2.1million,adecreaseof26%from$2.9millionin2013.
Thefollowingtablesetsforththebreakdownofmailingandshippingrevenue,whichincludesCoremailingandshippingrevenue
andNon-Coremailingandshippingrevenuefor2014and2013andtheresultingpercentchange(revenueinthousands):
TheincreaseinCoremailingandshippingrevenuewasdrivenbybothanincreaseinannualaveragepaidcustomersandan
increaseinannualaveragerevenueperpaidcustomer.Annualaveragepaidcustomersincreased7%to500,000in2014from466,000
in2013.Annualaveragerevenueperpaidcustomerincreased8%to$280in2014from$258in2013.ThedecreaseinNon-Core
mailingandshippingrevenuewasprimarilyattributabletolowermarketingspendintheonlineenhancedpromotionchannel.
Wedefinepaidcustomersforthequarterasonesfromwhomwesuccessfullycollectedservicefees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
   
2014 492 492 500 514 500
2013 465 467 464 468 466
ThefollowingtablesetsforththegrowthinpaidcustomersandaverageannualrevenueperpaidcustomerforourCoremailing
andshippingbusiness(inthousandsexceptaverageannualrevenueperpaidcustomer):
Theincreaseinpaidcustomerswasprimarilydrivenby(1)ahighernumberofStamps.comnewpaidcustomerscomparedtothe
prioryearasaresultofourincreasedspendinginCoremailingandshippingmarketingchannels,(2)theadditionofnewpaid
customersfromShipStationandShipWorksasaresultofouracquisitionsin2014,and(3)ourcustomerchurnratesremainedatlevels
thatwereconsistentwiththeprioryear.
ForourCoreMailingandShippingBusiness,ouraverageannualandmonthlyCoremailingandshippingrevenueperpaid
customerin2014was$280and$23.27,respectively,whichincreasedby8%comparedto$258and$21.51,respectively,in2013.The
increaseinaveragerevenueperpaidcustomer(“ARPU”)wasprimarilytheresultoftheadditionofnewpaidcustomersfromour
acquisitionsofShipStationandShipWorkswheretheARPUforthosenewlyacquiredpaidcustomerswashigherascomparedtothe
ARPUfromtheexistingStamps.comsmallbusinesscustomersaswellasgrowthinStamps.com’shighvolumeshippingbusiness.
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