Profile: United Online Inc (UNTD.OQ)
14 Mar 2014
United Online, Inc. (UOL), incorporated on June 5, 2001, through its operating subsidiaries, is a provider of consumer products and services over the Internet under a number of brands, including FTD, Interflora, Flying Flowers, Flowers Direct, Drake Algar, Classmates, schoolFeed, StayFriends, Trombi, MyPoints, NetZero, and Juno. The Company operates in three segments: FTD Group, Inc. (FTD), Content & Media and Communications. Products revenues in its FTD segment are derived primarily from selling floral, gift and related products to consumers via its Internet Websites and telephone numbers and, to a lesser extent, to UOL's floral network members. Products revenues in its Content & Media segment are derived from the sale of yearbook copies and related shipping fees. During the year ended December 31, 2012, the FTD segment, the Content & Media segment and the Communications segment accounted for 70%, 18% and 12% of consolidated revenues, respectively. Services revenues in its FTD segment are derived from membership fees, order-related fees and services, and subscription and other fees generated from independent members of the FTD and Interflora networks, which it also refer to as its floral network members. Services revenues in its Content & Media and Communications segments are derived from selling subscriptions to consumers. Advertising revenues are derived from a variety of advertising, marketing and media-related initiatives in each of UOL's segments. In June 2012, the Company acquired schoolFeed, Inc. In November 2013, the Company announced that it has completed the separation of FTD Companies, Inc. (FTD) from United Online, Inc. (United Online) through a tax-free dividend involving the distribution of all FTD common stock held by United Online to United Online's stockholders.
FTD is a provider of floral, gift and related products and services to consumers and retail florists, as well as to other retail locations offering floral, gift and related products and services, in the United Sates, Canada, the United Kingdom and the Republic of Ireland. The business uses the FTD and Interflora brands, both supported by the Mercury Man logo. FTD is a floral and gift mass marketer, which it refers to as FTD's consumer business, and a provider of floral network services, which it refers to as FTD's floral network business. FTD is a marketer of flowers and gift items to consumers. FTD operates in the United Sates and Canada, primarily through the www.ftd.com and www.ftd.ca Websites and the 1-800-SEND-FTD telephone number, and in the United Kingdom and the Republic of Ireland, through the www.interflora.co.uk www.flyingflowers.co.uk, www.flowersdirect.co.uk, www.interflora.ie, and www.drakealgar.com Websites and various telephone numbers.
FTD also operates mobile Websites for these same markets that are optimized for mobile phones with Internet connections. While floral arrangements and plants are FTD's primary offerings, FTD also markets and sells gift items, including jewelry, sweets, gift baskets, wine, fruit, and spa products. Consumers place orders at FTD's Websites and, to a much lesser extent, over the telephone. Orders are transmitted to floral network members or third-party suppliers for processing and delivery. The majority of consumer orders are hand-delivered by FTD's floral network members, who provide same-day and future delivery. FTD provides a suite of products and services that promote revenue growth and enhance the operating efficiencies of its floral network members, including services that enable such members to send, receive and deliver floral orders.
Floral network members include traditional retail florists, as well as other retailers offering floral and related products and services, that are located primarily in the United Sates, Canada, the United Kingdom and the Republic of Ireland. FTD products and services available to floral network members include access to the FTD and Interflora brands and the Mercury Man logo, supported by various marketing campaigns; access to the floral networks; credit card processing services; e-commerce Website services; online advertising tools; and clearing-house services, order transmission, and after-hours telephone answering and order taking services, as well as floral-related products, such as fresh flowers and containers. FTD also provides point-of-sale and related technology services and systems. FTD also acts as a national wholesaler to UOL's floral network members, providing hard goods and cut flowers, as well as packaging, promotional products and a range of other floral-related supplies.
Content & Media
UOL’s Content & Media segment provides online nostalgia products and services under the Memory Lane, Classmates, StayFriends, and Trombi brands. Its Content & Media services also include online loyalty marketing under the MyPoints brand. The Company operates its nostalgia services as a platform to enable users to locate and interact with acquaintances from their past, with high school affiliations as the primary focus. Led by its Classmates Website that serves the United Sates and Canada, its nostalgia services consists of a population of users, with approximately 100 million registered accounts, as of December 31, 2012. The primary form of nostalgic content on the Website is digitized versions of high school yearbooks. Visitors to the Website can engage with yearbooks, as well as the other types of nostalgic content, which can facilitate forms of social interaction, such as sharing memorable content with friends and acquaintances or posting comments on the Classmates Website or the Memory Lane page on Facebook. As of December 31, 2012, it had approximately 167,000 digitized high school yearbooks available on the Website.
In addition, to the Company’s Classmates Website, UOL operates five international Websites that offers nostalgia services, primarily as a social networking platform to reconnect friends and acquaintances from high school. It operates StayFriends in Germany, Sweden, Austria, and Switzerland (www.stayfriends.de, www.stayfriends.se, www.stayfriends.at, and www.stayfriends.ch, respectively), and Trombi in France (www.trombi.com). Similar to the Classmates Website, each international Website includes free and pay memberships, although the features of its international pay services differ from those of the Classmates pay services. Its online loyalty marketing service, MyPoints, connects advertisers with its members by allowing members to earn rewards points for engaging in online activities. MyPoints is a free service for consumers who registers and provides certain identifying information to receive direct e-mail marketing and other online loyalty promotions. The MyPoints Website (www.mypoints.com) serves as a shopping portal for UOL's advertising clients and direct sales partners.
The Company’s principal Communications pay service is dial-up Internet access, offered under the NetZero and Juno brands. UOL also offers 4G mobile broadband, DSL, e-mail, Internet security services, Web hosting services and other services. Most of UOL's Communications revenues are derived from dial-up Internet access pay accounts. The Company’s Internet access services consist of dial-up and, to a much lesser extent, broadband services. Its dial-up Internet access services are provided on both a free and pay basis, with the free services subject to hourly and other limitations. Basic pay dial-up Internet access services include Internet access and an e-mail account. In addition, UOL offers accelerated dial-up Internet access services. Its accelerated dial-up Internet access services are also bundled with additional benefits, including pop-up blocking, antivirus software and enhanced e-mail storage. The Company’s dial-up Internet access services are available in more than 12,500 cities across the United Sates and Canada. UOL's broadband Internet access services consist of digital subscriber lines (DSL) services that the Company purchases from third parties and resells under its own brands.
The Company competes with 1-800-FLOWERS.COM, Inc., Proflowers.com, Teleflora, Asda, Marks & Spencer, NEXT, Serenata Flowers, eFlorist, Waitrose/John Lewis, AT&T, Verizon, AOL, EarthLink and MSN.
United Online Inc
21301 Burbank Boulevard
WOODLAND HILLS CA 91367