Support.com 2014 Annual Report Download - page 27

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Table of Contents
Results of Operations
The following table presents certain Consolidated Statements of Operations data for the periods indicated as a percentage of total revenue:
Year Ended December 31,
2014 2013 2012
Revenue:
Services 93% 85% 80%
Software and other 7 15 20
Total revenue 100 100 100
Cost of revenue:
Cost of services 73 49 52
Cost of software and other 1 1 2
Total cost of revenue 74 50 54
Gross profit 26 50 46
Operating expenses:
Research and development 6 7 9
Sales and marketing 9 17 25
General and administrative 14 13 17
Amortization of intangible assets and other 1 1 2
Total operating expenses 30 38 53
Income (loss) from operations (4) 12 (8)
Interest income and other, net 0 1 0
Income (loss) from continuing operations, before income taxes (3) 13 (8)
Income tax provision 1 1 0
Income (loss) from continuing operations, after income taxes (4) 12 (8)
Income from discontinued operations, after income taxes 0 0 0
Net income (loss) (4)% 12% (8)%
Years Ended December 31, 2014, 2013, and 2012:
Revenue
($ in thousands) 2014
% Change
2013 to 2014 2013
% Change
2012 to 2013 2012
Services $ 77,272 3% $ 74,867 30% $ 57,622
Software and other 5,719 (57)% 13,296 (7)% 14,332
Total revenue $ 82,991 (6)% $ 88,163 23% $ 71,954
Services. Services revenue consists primarily of fees for technology services generated from our partners. We provide these services remotely, generally using service delivery personnel who utilize our
proprietary technology to deliver the services. Services revenue is also comprised of the licensing of Nexus. Services revenue for the year ended December 31, 2014 increased by $2.4 million from 2013. The
increase was mainly due to continued growth in our Comcast programs. For the year ended December 31, 2014, services revenue generated from our partnerships was $70.9 million compared to $70.6 million for
2013. For the year ended December 31, 2014, direct services revenue was $6.4 million compared to $4.2 million for 2013.
Services revenue for the year ended December 31, 2013 increased by $17.2 million from 2012. The increase was due primarily to continued growth in our partner programs, primarily the programs for
Comcast. For the year ended December 31, 2013, services revenue generated from our partnerships was $70.6 million compared to $54.4 million for 2012. Direct services revenue was $4.2 million compared to $3.2
million for 2012.
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