Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

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CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Revenues:        
Service $ 102,685 $ 72,590 $ 195,105 $ 141,696
Product 4,763 4,851 10,477 10,406
Insurance 4,393 4,082 8,833 8,593
Customized postage 4,276 2,467 6,718 5,104
Other 23 23 47 51
Total revenues 116,140 84,013 221,180 165,850
Cost of revenues (exclusive of amortization of intangible assets, which is included in general and administrative expense):        
Service 12,726 8,857 25,402 18,151
Product 1,593 1,642 3,395 3,440
Insurance 1,213 1,266 2,581 2,629
Customized postage 3,557 1,955 5,449 4,122
Total cost of revenues 19,089 13,720 36,827 28,342
Gross profit 97,051 70,293 184,353 137,508
Operating expenses:        
Sales and marketing 22,280 20,082 45,430 41,479
Research and development 11,628 8,131 22,150 16,468
General and administrative 21,451 17,113 40,433 32,375
Total operating expenses 55,359 45,326 108,013 90,322
Income from operations 41,692 24,967 76,340 47,186
Interest expense (932) (905) (1,812) (1,820)
Interest and other income 159 31 189 74
Income before income taxes 40,919 24,093 74,717 45,440
Income tax expense 9,879 9,802 10,539 17,911
Net income $ 31,040 $ 14,291 $ 64,178 $ 27,529
Net income per share        
Basic (in dollars per share) $ 1.83 $ 0.82 $ 3.79 $ 1.58
Diluted (in dollars per share) $ 1.71 $ 0.79 $ 3.54 $ 1.49
Weighted average shares outstanding        
Basic (in shares) 16,930 17,384 16,916 17,370
Diluted (in shares) 18,125 18,192 18,147 18,428