PRSS 2017 Annual Report

33 Results of Operations The following table presents the components of our statement of operations as a percentage of net revenue: Year Ended December 31, 2017 2016 Net revenue 100.0 % 100.0 % Cost of net revenue 61.3 59.1 Gross profit 38.7 40.9 Operating expense: Sales and marketing 25.1 22.7 Technology and development 14.1 12.5 General and administrative 11.8 10.0 Impairment charges — 20.4 Restructuring costs — 2.1 Total operating expense 51.0 67.7 Loss from operations (12.3) (26.8) Interest income 0.2 0.1 Interest expense — — Other income 0.1 0.4 Loss before income taxes (12.0) (26.3) Provision (benefit) for income taxes — (0.4) Net loss (12.0)% (25.9)% Effective tax rate — % 1.5 % We monitor several key operating metrics including: Year Ended December 31, 2017 2016 Variance % Variance (in thousands, except for percentages and average order size data ) CafePress.com orders 1,607 2,070 (463) (22)% Retail Partner Channel orders 1,114 1,018 96 9 % Total orders 2,721 3,088 (367) (12)% CafePress.com average order size $ 38.46 $ 39.35 $ (0.89) (2)% Retail Partner Channel average order size $ 21.63 $ 20.25 $ 1.38 7 % Total average order size $ 31.57 $ 33.06 $ (1.49) (5)% CafePress.com revenue $ 61,756 $ 81,558 $ (19,802) (24)% Retail Partner Channel revenue 23,929 20,650 3,279 16 % Total revenue $ 85,685 $ 102,208 $ (16,523) (16)%