Support.com 2011 Annual Report Download - page 25
Download and view the complete annual report
Please find page 25 of the 2011 Support.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.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15 -
16 -
17 -
18 -
19 -
20 -
21 -
22 -
23 -
24 -
25 -
26 -
27 -
28 -
29 -
30 -
31 -
32 -
33 -
34 -
35 -
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
 |
 |
“Forward-Looking Statements and Risk Factors”
Support.com is a provider of cloud-based technology services and software for consumers and small business.
Our technology services and software products help install, set up, connect, secure, repair and optimize personal computers, printers, tablets,
smartphones, digital cameras, gaming devices, music players, servers, networks, and other technology. We offer one-time and subscription services,
and perpetual as well as subscription period licenses of our software products.
Our Personal Technology Experts (“PTEs”) deliver our services to customers online and by telephone, leveraging our proprietary cloud-based
technology platform. They generally work from their homes rather than in brick and mortar facilities. Our software products include tools designed to
address some of the most common technology issues including computer maintenance, optimization and security.
We market our services through channel partners and directly. Our channel partners include leading retail, Internet service provider, and
technology brands. We market our software products directly, principally online, and through channel partners. We offer free trial versions to
encourage customers to experience the products before buying and free versions to encourage customers to upgrade to premium versions for which
we charge license fees. Our sales and marketing efforts principally target North American customers.
Total revenue for the year ended December 31, 2011 increased by $9.6 million, or 22%, from 2010. Services revenue for the year ended
December 31, 2011 increased by $4.9 million, or 15%, from 2010. The increase in services revenue was primarily driven by expansion of the
Comcast program. Software revenue for the year ended December 31, 2011 increased by $4.7 million, or 39%, from 2010. The increase in software
revenue was driven by growth in an existing channel partnership, optimization of the monetization of our ARO product, and the availability of
favorably-priced advertising inventory during the first half of 2011. The introduction of new software products such as SUPERAntiSpyware also
contributed to the year-over-year increase in software revenue.
Cost of Services for the year ended December 31, 2011 grew by 12% from 2010 as we added delivery agents to support revenue growth. Cost
of Software and Other for year ended December 31, 2011 grew by 28% from 2010, driven by higher royalty rate payments to third-party
developers. Gross margin for the year ended December 31, 2011 was 41%, an increase of 5 points from 2010, driven mainly by an increased
percentage of software in the revenue mix.
Operating expenses for the year ended December 31, 2011 grew 18% from 2010, driven primarily by the addition of sales agents to support
new services programs and increased advertising spend to grow software revenues.
Our key financial goals for 2012 are to continue to grow and diversify revenue, increase gross margin, and achieve profitability. Our strategies
for achieving our goals include expanding existing services programs, increasing software revenues, growing our customer base, enhancing service
delivery efficiency, optimizing contact center sales operations, and extending our cloud-based technology platform to support each of the foregoing
strategies.
We intend the following discussion of our financial condition and results of operations to provide information that will assist in understanding
our financial statements, the changes in certain key items in those financial statements from year to year, and the primary factors that accounted for
those changes, as well as how certain accounting principles, policies and estimates affect our financial statements.
23
EDGAR Stream is a copyright of Issuer Direct Corporation, all rights reserved.