we believe that determining and executing on a strategy to receive , process and deliver online orders , which we refer to collectively as fulfillment , is critical to success for online sellers . therefore , it will be increasingly important for us to facilitate and optimize fulfillment services on behalf of our customers , which in turn may result in additional research and development investment . we believe our 2017 acquisition of a fulfillment platform will further enhance our fulfillment offering and strategy . focus on employees . none of our success would be possible without our team . we strive to provide our employees competitive compensation and benefits programs to help drive the success of our customers . we increased headcount by 5.7 % from december 31 , 2016 to december 31 , 2017 to help drive revenue growth and support our overall operations . shifts in foreign currency . our operations in the united kingdom were impacted by the 4.5 % decline in the average exchange rate of the british pound sterling against the u.s. dollar for the year ended december 31 , 2017 as compared to the prior year . the decline of the british pound sterling against the u.s. dollar resulted in a $ 0.7 million decrease in revenue for the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 . seasonality . our revenue fluctuates as a result of seasonal variations in our business , principally due to the peak consumer demand and related increased volume of our customers ' gmv during the year-end holiday season . as a result , we have historically had higher revenue in our fourth quarter than other quarters due to increased gmv processed through our platform , resulting in higher variable subscription fees . opportunities and risks dynamic e-commerce landscape . we will need to continue to innovate in the face of a rapidly changing e-commerce landscape if we are to remain competitive , and we will need to effectively manage our growth , especially related to our international expansion . retailers and branded manufacturers . as consumer preferences potentially shift from smaller retailers , we need to continue to add large retailers and branded manufacturers as profitable customers . these customers generally pay a lower percentage of gmv as fees to us based on the relatively higher volume of their gmv processed through our platform . to help drive our future growth , we have made significant investments in our sales force and allocated resources focused on growing our customer base of large retailers and branded manufacturers . we continue to focus our efforts on increasing value for our customers to support higher rates . increasing complexity and fragmentation of e-commerce . although e-commerce continues to expand as retailers and branded manufacturers continue to increase their online sales , it is also becoming more complex and fragmented due to the hundreds of channels available to retailers and branded manufacturers and the rapid pace of change and innovation across those channels . in order to gain consumers ' attention in a more crowded and competitive online marketplace , many retailers and an increasing number of branded manufacturers sell their merchandise through multiple online channels , each with its own rules , requirements and specifications . in particular , third-party marketplaces are an increasingly important driver of growth for a number of large online retailers and branded manufacturers , and as a result we need to continue to support multiple channels in a variety of geographies in order to support our targeted revenue growth . as of december 31 , 2017 , we supported 89 marketplaces , up from over 70 at december 31 , 2016 . global growth in e-commerce . we believe the growth in e-commerce globally presents an opportunity for retailers and branded manufacturers to engage in international sales . however , country-specific marketplaces are often the market share leaders in their regions , as is the case for alibaba in asia . in order to help our customers capitalize on this potential market opportunity , and to address our customers ' needs with respect to cross-border trade , we intend to continue to invest in our international operations , specifically in the asia pacific region . doing business overseas involves substantial challenges , including management attention and resources needed to adapt to multiple languages , cultures , laws and commercial infrastructure , as further described in this report under the caption `` risks related to our international operations . `` our senior management continuously focuses on these and other trends and challenges , and we believe that our culture of innovation and our history of growth and expansion will contribute to the success of our business . we can not , however , assure you that we will be successful in addressing and managing the many challenges and risks that we face . 33 key financial and operating metrics the average revenue generated by our customers is a primary determinant of our revenue . we calculate this metric by dividing our revenue for a particular period by the average monthly number of customers during the period , which is calculated by taking the sum of the number of customers at the end of each month in the period and dividing by the number of months in the period . we typically calculate average revenue per customer in absolute dollars on a rolling twelve-month basis , but we may also calculate percentage changes in average revenue per customer on a quarterly basis in order to help us evaluate our period-over-period performance . story_separator_special_tag our improved gross margin is a result of our strategic efforts to achieve increasing scale in our business operations . operating margin improved by 890 basis points to ( 12.2 ) % during the year ended december 31 , 2016 due to our 12.5 % increase in revenue , which exceeded the increases in our cost of revenue and operating expenses of 6.9 % and 3.6 % , respectively , as a result of a strategic effort to strengthen margins in our business . total other income ( expense ) other income ( expense ) consists primarily of : interest received on our cash and cash equivalents ; interest expense on our capital leases ; and the net effect of foreign currency revaluation gains and losses . comparison of 2017 to 2016 other income ( expense ) increased by $ 0.1 million to $ 0.3 million for the year ended december 31 , 2017 primarily due to interest income on our cash and cash equivalents . comparison of 2016 to 2015 other income ( expense ) increased by $ 0.1 million to $ 0.2 million for the year ended december 31 , 2016 primarily due to interest income on our cash and cash equivalents . income tax expense ( benefit ) our provision for income taxes consists of provisions for federal , state , and foreign income taxes . we operate in an international environment with operations in various locations outside of the united states . accordingly , our combined income tax rate is a composite rate reflecting our operating results in various locations and the applicable rates . 41 comparison of 2017 to 2016 income tax expense was $ 0.3 million for the year ended december 31 , 2017 compared to an income tax benefit of $ 5.7 million for the year ended december 31 , 2016 . the change was primarily due to the release of a valuation allowance in the fourth quarter of 2016 on deferred tax assets in several of our foreign jurisdictions totaling $ 5.3 million . the release of the valuation allowance was the result of our evaluation of the likelihood of potential tax benefits related to our foreign subsidiaries ' most recent three years of operating results and projections of future profitability , which primarily resulted from a change in our global transfer pricing methodology . comparison of 2016 to 2015 income tax benefit was $ 5.7 million for the year ended december 31 , 2016 compared to an income tax benefit of $ 0.2 million for the year ended december 31 , 2015 primarily due to the release of a valuation allowance in the fourth quarter of 2016 on deferred tax assets in several of our foreign jurisdictions totaling $ 5.3 million noted above . story_separator_special_tag font-size:10pt ; `` > a $ 5.5 million increase in prepaid expenses and other assets , primarily related to certain customer arrangements for which we collect and remit monthly activity-based fees incurred for specific channels on behalf of our customers ( we record the amounts due from customers as a result of these arrangements as other receivables ) . these decreases in cash were partially offset by increases in cash due to a $ 5.2 million increase in accounts payable and accrued expenses , primarily driven by timing of payments to our vendors and a one-time charge in connection with our decision to enter into vdas related to our potential unpaid sales tax obligations ; and a $ 3.6 million increase in deferred revenue as a result of an increased number of customers prepaying for subscription services invoiced on a semi-annual and annual basis . investing activities our cash used in investing activities consisted of : $ 2.8 million of capital expenditures primarily related to the purchase of computer equipment ; $ 2.2 million for the acquisition of hublogix , net of cash acquired ; and $ 0.3 million of internal-use software development costs . financing activities our cash used in financing activities consisted of : $ 2.8 million used for the repayment of capital leases ; $ 2.7 million used for the payment of taxes related to the net-share settlement of restricted stock units ; partially offset by $ 1.4 million in cash received upon the exercise of stock options . 2016 operating activities our cash provided by operating activities consisted of a net loss of $ ( 8.0 ) million adjusted for certain non-cash items totaling $ 15.1 million , which consisted of stock-based compensation expense , depreciation and amortization expense , bad debt expense and other non-cash items , principally the amortization of a lease incentive obligation related to our new corporate headquarters . the net increase in cash resulting from changes in assets and liabilities of $ 4.5 million primarily consisted of : a $ 4.7 million increase in deferred revenue as a result of an increased number of customers prepaying for subscription services invoiced on a semi-annual and annual basis ; and a $ 3.7 million increase in accounts payable and accrued expenses , primarily related to activity-based fees incurred for specific channels on behalf of our customers . these increases in cash were partially offset by decreases in cash due to a $ 2.0 million increase in prepaid expenses and other assets , primarily related to certain customer arrangements for which we collect and remit monthly activity-based fees incurred for specific channels on behalf of our customers ( we record the amounts due from customers as a result of these arrangements as other receivables ) . the increase is partially offset by the receipt of cash for a lease incentive related to our new corporate headquarters ; and a $ 1.9 million increase in accounts receivable as a result of increased billings , primarily driven by an increase in average contract size as well as more semi-annual and annual contracts being invoiced . 44 investing activities our cash used in investing activities consisted of : $ 1.8 million of capital

liquidity and capital resources we derive our liquidity and operating capital primarily from cash flows from operations . based on our current level of operations and anticipated growth , we believe our future cash flows from operating activities and our existing cash balances will be sufficient to meet our cash requirements for at least the next 12 months . during this period , we expect our capital expenditure requirements to approximate a range of $ 2.0 million to $ 4.0 million , which will primarily consist of computer hardware and purchased software . working capital the following table summarizes our cash and cash equivalents , accounts receivable and working capital as of the end of each of the last three years : replace_table_token_7_th our cash at december 31 , 2017 was held for working capital purposes . we do not enter into investments for trading or speculative purposes . our policy is to invest any cash in excess of our immediate requirements in investments designed to preserve the principal balance and provide liquidity . accordingly , our cash is invested primarily in demand deposit accounts and short-term money market accounts . of our total cash and cash equivalents , approximately 10 % was held outside of the united states at december 31 , 2017 . our international operations primarily consist of selling and marketing and research and development functions supported by our u.s. operations , and we are dependent on our u.s. operations for our international working capital needs . if our cash and cash equivalents held outside of the united states were ever needed for our operations inside the united states , we could be required to accrue and pay u.s. taxes to repatriate these funds .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources we derive our liquidity and operating capital primarily from cash flows from operations . based on our current level of operations and anticipated growth , we believe our future cash flows from operating activities and our existing cash balances will be sufficient to meet our cash requirements for at least the next 12 months . during this period , we expect our capital expenditure requirements to approximate a range of $ 2.0 million to $ 4.0 million , which will primarily consist of computer hardware and purchased software . working capital the following table summarizes our cash and cash equivalents , accounts receivable and working capital as of the end of each of the last three years : replace_table_token_7_th our cash at december 31 , 2017 was held for working capital purposes . we do not enter into investments for trading or speculative purposes . our policy is to invest any cash in excess of our immediate requirements in investments designed to preserve the principal balance and provide liquidity . accordingly , our cash is invested primarily in demand deposit accounts and short-term money market accounts . of our total cash and cash equivalents , approximately 10 % was held outside of the united states at december 31 , 2017 . our international operations primarily consist of selling and marketing and research and development functions supported by our u.s. operations , and we are dependent on our u.s. operations for our international working capital needs . if our cash and cash equivalents held outside of the united states were ever needed for our operations inside the united states , we could be required to accrue and pay u.s. taxes to repatriate these funds .
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 Suspicious Activity Report : we believe that determining and executing on a strategy to receive , process and deliver online orders , which we refer to collectively as fulfillment , is critical to success for online sellers . therefore , it will be increasingly important for us to facilitate and optimize fulfillment services on behalf of our customers , which in turn may result in additional research and development investment . we believe our 2017 acquisition of a fulfillment platform will further enhance our fulfillment offering and strategy . focus on employees . none of our success would be possible without our team . we strive to provide our employees competitive compensation and benefits programs to help drive the success of our customers . we increased headcount by 5.7 % from december 31 , 2016 to december 31 , 2017 to help drive revenue growth and support our overall operations . shifts in foreign currency . our operations in the united kingdom were impacted by the 4.5 % decline in the average exchange rate of the british pound sterling against the u.s. dollar for the year ended december 31 , 2017 as compared to the prior year . the decline of the british pound sterling against the u.s. dollar resulted in a $ 0.7 million decrease in revenue for the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 . seasonality . our revenue fluctuates as a result of seasonal variations in our business , principally due to the peak consumer demand and related increased volume of our customers ' gmv during the year-end holiday season . as a result , we have historically had higher revenue in our fourth quarter than other quarters due to increased gmv processed through our platform , resulting in higher variable subscription fees . opportunities and risks dynamic e-commerce landscape . we will need to continue to innovate in the face of a rapidly changing e-commerce landscape if we are to remain competitive , and we will need to effectively manage our growth , especially related to our international expansion . retailers and branded manufacturers . as consumer preferences potentially shift from smaller retailers , we need to continue to add large retailers and branded manufacturers as profitable customers . these customers generally pay a lower percentage of gmv as fees to us based on the relatively higher volume of their gmv processed through our platform . to help drive our future growth , we have made significant investments in our sales force and allocated resources focused on growing our customer base of large retailers and branded manufacturers . we continue to focus our efforts on increasing value for our customers to support higher rates . increasing complexity and fragmentation of e-commerce . although e-commerce continues to expand as retailers and branded manufacturers continue to increase their online sales , it is also becoming more complex and fragmented due to the hundreds of channels available to retailers and branded manufacturers and the rapid pace of change and innovation across those channels . in order to gain consumers ' attention in a more crowded and competitive online marketplace , many retailers and an increasing number of branded manufacturers sell their merchandise through multiple online channels , each with its own rules , requirements and specifications . in particular , third-party marketplaces are an increasingly important driver of growth for a number of large online retailers and branded manufacturers , and as a result we need to continue to support multiple channels in a variety of geographies in order to support our targeted revenue growth . as of december 31 , 2017 , we supported 89 marketplaces , up from over 70 at december 31 , 2016 . global growth in e-commerce . we believe the growth in e-commerce globally presents an opportunity for retailers and branded manufacturers to engage in international sales . however , country-specific marketplaces are often the market share leaders in their regions , as is the case for alibaba in asia . in order to help our customers capitalize on this potential market opportunity , and to address our customers ' needs with respect to cross-border trade , we intend to continue to invest in our international operations , specifically in the asia pacific region . doing business overseas involves substantial challenges , including management attention and resources needed to adapt to multiple languages , cultures , laws and commercial infrastructure , as further described in this report under the caption `` risks related to our international operations . `` our senior management continuously focuses on these and other trends and challenges , and we believe that our culture of innovation and our history of growth and expansion will contribute to the success of our business . we can not , however , assure you that we will be successful in addressing and managing the many challenges and risks that we face . 33 key financial and operating metrics the average revenue generated by our customers is a primary determinant of our revenue . we calculate this metric by dividing our revenue for a particular period by the average monthly number of customers during the period , which is calculated by taking the sum of the number of customers at the end of each month in the period and dividing by the number of months in the period . we typically calculate average revenue per customer in absolute dollars on a rolling twelve-month basis , but we may also calculate percentage changes in average revenue per customer on a quarterly basis in order to help us evaluate our period-over-period performance . story_separator_special_tag our improved gross margin is a result of our strategic efforts to achieve increasing scale in our business operations . operating margin improved by 890 basis points to ( 12.2 ) % during the year ended december 31 , 2016 due to our 12.5 % increase in revenue , which exceeded the increases in our cost of revenue and operating expenses of 6.9 % and 3.6 % , respectively , as a result of a strategic effort to strengthen margins in our business . total other income ( expense ) other income ( expense ) consists primarily of : interest received on our cash and cash equivalents ; interest expense on our capital leases ; and the net effect of foreign currency revaluation gains and losses . comparison of 2017 to 2016 other income ( expense ) increased by $ 0.1 million to $ 0.3 million for the year ended december 31 , 2017 primarily due to interest income on our cash and cash equivalents . comparison of 2016 to 2015 other income ( expense ) increased by $ 0.1 million to $ 0.2 million for the year ended december 31 , 2016 primarily due to interest income on our cash and cash equivalents . income tax expense ( benefit ) our provision for income taxes consists of provisions for federal , state , and foreign income taxes . we operate in an international environment with operations in various locations outside of the united states . accordingly , our combined income tax rate is a composite rate reflecting our operating results in various locations and the applicable rates . 41 comparison of 2017 to 2016 income tax expense was $ 0.3 million for the year ended december 31 , 2017 compared to an income tax benefit of $ 5.7 million for the year ended december 31 , 2016 . the change was primarily due to the release of a valuation allowance in the fourth quarter of 2016 on deferred tax assets in several of our foreign jurisdictions totaling $ 5.3 million . the release of the valuation allowance was the result of our evaluation of the likelihood of potential tax benefits related to our foreign subsidiaries ' most recent three years of operating results and projections of future profitability , which primarily resulted from a change in our global transfer pricing methodology . comparison of 2016 to 2015 income tax benefit was $ 5.7 million for the year ended december 31 , 2016 compared to an income tax benefit of $ 0.2 million for the year ended december 31 , 2015 primarily due to the release of a valuation allowance in the fourth quarter of 2016 on deferred tax assets in several of our foreign jurisdictions totaling $ 5.3 million noted above . story_separator_special_tag font-size:10pt ; `` > a $ 5.5 million increase in prepaid expenses and other assets , primarily related to certain customer arrangements for which we collect and remit monthly activity-based fees incurred for specific channels on behalf of our customers ( we record the amounts due from customers as a result of these arrangements as other receivables ) . these decreases in cash were partially offset by increases in cash due to a $ 5.2 million increase in accounts payable and accrued expenses , primarily driven by timing of payments to our vendors and a one-time charge in connection with our decision to enter into vdas related to our potential unpaid sales tax obligations ; and a $ 3.6 million increase in deferred revenue as a result of an increased number of customers prepaying for subscription services invoiced on a semi-annual and annual basis . investing activities our cash used in investing activities consisted of : $ 2.8 million of capital expenditures primarily related to the purchase of computer equipment ; $ 2.2 million for the acquisition of hublogix , net of cash acquired ; and $ 0.3 million of internal-use software development costs . financing activities our cash used in financing activities consisted of : $ 2.8 million used for the repayment of capital leases ; $ 2.7 million used for the payment of taxes related to the net-share settlement of restricted stock units ; partially offset by $ 1.4 million in cash received upon the exercise of stock options . 2016 operating activities our cash provided by operating activities consisted of a net loss of $ ( 8.0 ) million adjusted for certain non-cash items totaling $ 15.1 million , which consisted of stock-based compensation expense , depreciation and amortization expense , bad debt expense and other non-cash items , principally the amortization of a lease incentive obligation related to our new corporate headquarters . the net increase in cash resulting from changes in assets and liabilities of $ 4.5 million primarily consisted of : a $ 4.7 million increase in deferred revenue as a result of an increased number of customers prepaying for subscription services invoiced on a semi-annual and annual basis ; and a $ 3.7 million increase in accounts payable and accrued expenses , primarily related to activity-based fees incurred for specific channels on behalf of our customers . these increases in cash were partially offset by decreases in cash due to a $ 2.0 million increase in prepaid expenses and other assets , primarily related to certain customer arrangements for which we collect and remit monthly activity-based fees incurred for specific channels on behalf of our customers ( we record the amounts due from customers as a result of these arrangements as other receivables ) . the increase is partially offset by the receipt of cash for a lease incentive related to our new corporate headquarters ; and a $ 1.9 million increase in accounts receivable as a result of increased billings , primarily driven by an increase in average contract size as well as more semi-annual and annual contracts being invoiced . 44 investing activities our cash used in investing activities consisted of : $ 1.8 million of capital

