Stamps.com (STMP) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	STAMPS.COM INC
Entity Central Index Key	1,082,923
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		16,938,004
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 116,935	$ 106,932
Short-term investments	1,514	1,511
Accounts receivable, net	61,966	62,756
Other current assets	14,763	13,081
Total current assets	195,178	184,280
Property and equipment, net	38,066	36,829
Goodwill	239,705	239,705
Intangible assets, net	93,018	97,027
Deferred income taxes, net	48,064	48,782
Other assets	4,029	3,506
Total assets	618,060	610,129
Current liabilities:
Accounts payable and accrued expenses	83,451	86,205
Deferred revenue	3,824	3,858
Current portion of debt, net of debt issuance costs	6,845	6,329
Total current liabilities	94,120	96,392
Long-term debt, net of debt issuance costs	129,055	141,025
Total liabilities	223,175	237,417
Commitments and contingencies (Note 3)
Stockholders' equity:
Common stock, $.001 par value per share Authorized shares: 47,500 in 2017 and 2016 Issued shares: 31,049 in 2017 and 30,507 in 2016 Outstanding shares: 17,076 in 2017 and 16,897 in 2016	54	53
Additional paid-in capital	886,976	855,344
Treasury stock, at cost, 13,973 shares in 2017 and 13,610 in 2016	(297,676)	(252,981)
Accumulated deficit	(194,478)	(229,715)
Accumulated other comprehensive income	9	11
Total stockholders' equity	394,885	372,712
Total liabilities and stockholders' equity	$ 618,060	$ 610,129

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2017	Dec. 31, 2016
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	47,500	47,500
Common stock, shares issued (in shares)	31,049	30,507
Common stock, shares outstanding (in shares)	17,076	16,897
Treasury stock, shares (in shares)	13,973	13,610

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Service	$ 92,420	$ 69,106
Product	5,714	5,555
Insurance	4,440	4,511
Customized postage	2,442	2,637
Other	24	28
Total revenues	105,040	81,837
Cost of revenues (exclusive of amortization of intangible assets, which is included in general and administrative expense):
Service	12,676	9,294
Product	1,802	1,798
Insurance	1,368	1,363
Customized postage	1,892	2,167
Total cost of revenues	17,738	14,622
Gross profit	87,302	67,215
Operating expenses:
Sales and marketing	23,150	21,397
Research and development	10,522	8,337
General and administrative	18,982	15,262
Total operating expenses	52,654	44,996
Income from operations	34,648	22,219
Interest expense	(880)	(915)
Interest income and other income	30	43
Income before income taxes	33,798	21,347
Income tax expense	660	8,109
Net income	$ 33,138	$ 13,238
Net income per share
Basic (in dollars per share)	$ 1.96	$ 0.76
Diluted (in dollars per share)	$ 1.82	$ 0.71
Weighted average shares outstanding
Basic (in shares)	16,902	17,357
Diluted (in shares)	18,170	18,664

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income	$ 33,138	$ 13,238
Other comprehensive income, net of tax:
Unrealized (loss) gain on investments	(2)	12
Comprehensive income	$ 33,136	$ 13,250

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net income	$ 33,138	$ 13,238
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,227	4,458
Stock-based compensation expense	11,367	7,516
Deferred income tax expense	2,817	7,309
Stock option windfall tax expense (benefit)	0	(106)
Accretion of debt issuance costs	93	93
Changes in operating assets and liabilities, net of assets and liabilities acquired:
Accounts receivable	790	12,736
Other current assets	(1,682)	(2,410)
Other assets	(523)	(643)
Deferred revenue	(34)	(307)
Accounts payable and accrued expenses, net of excess tax benefit from stock-based award activity	(2,399)	4,883
Net cash provided by operating activities	48,794	46,767
Investing activities:
Sale of short-term investments	0	1,004
Sale of long-term investments	0	38
Purchase of long-term investments	(4)	(15)
Acquisition of Endicia	0	(573)
Acquisition of property and equipment	(3,065)	(284)
Net cash (used in) provided by investing activities	(3,069)	170
Financing activities:
Proceeds from short term financing obligation, net of repayments	(545)	(1,787)
Principal payments on term loan	(1,547)	(1,031)
Payment on revolving credit facility	(10,000)	0
Proceeds from exercise of stock options	18,797	5,233
Issuance of common stock under Employee Stock Purchase Plan	1,469	1,108
Repurchase of common stock	(43,896)	(3,428)
Stock option windfall tax benefit	0	106
Net cash (used in) provided by financing activities	(35,722)	201
Net increase in cash and cash equivalents	10,003	47,138
Cash and cash equivalents at beginning of period	106,932	65,126
Cash and cash equivalents at end of period	116,935	112,264
Supplemental information:
Accrual for payment of employee income taxes	799	0
Capital expenditures accrued but not paid at period end	641	0
Issuance of 2015 and 2014 earn-out shares	0	63,209
Noncash adjustment of purchase price for Endicia acquisition	0	372
Tenant improvement allowance	$ 355	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation We prepared the consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. We believe that the disclosures are adequate to make the information presented not misleading. We recommend that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in our latest annual report on Form 10-K for the fiscal year ended December 31, 2016, filed with the SEC on March 1, 2017. In our opinion, these unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly our financial position as of March 31, 2017, our results of operations for the three months ended March 31, 2017, and our cash flows for the three months ended March 31, 2017. The results of operations for the interim period are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017. Principles of Consolidation The consolidated financial statements include the accounts of Stamps.com Inc., Auctane LLC (ShipStation), Interapptive, Inc. (ShipWorks), PSI Systems Inc. (Endicia), ShippingEasy Group, Inc. (ShippingEasy), and PhotoStamps Inc. In July 2016, we completed our acquisition of 100% of the outstanding shares of ShippingEasy. ShippingEasy, based in Austin, Texas, offers web-based multi-carrier shipping solutions. See Note 2 – “Acquisitions” Because 100% of the voting control of ShipStation, ShipWorks, Endicia, and ShippingEasy is held by us, we have consolidated the results of operations of ShipStation, ShipWorks, Endicia and ShippingEasy from the date we obtained control in the accompanying consolidated financial statements. Similarly, due to our 100% control of PhotoStamps, Inc., PhotoStamps Inc. is also consolidated in the accompanying consolidated financial statements from the date of its inception. Intercompany accounts and transactions between consolidated entities have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Examples include estimates of loss contingencies, realizability of deferred income taxes, the estimates and assumptions used to calculate stock-based compensation, the estimates and assumptions used to calculate the allocation of the purchase price related to our acquisitions, and estimates regarding the useful lives of our building, patents and other amortizable intangible assets, and goodwill. Business Combinations The acquisition method of accounting is used for business combinations. The results of operations of acquired businesses are included in our consolidated financial statements prospectively from the date of acquisition. The fair value of purchase consideration is allocated to the assets acquired and liabilities assumed from the acquired entity and is generally based on their fair value at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. Historically the primary items that have generated goodwill include anticipated synergies between the acquired business and the Company and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. Acquisition-related expenses are recognized in our consolidated financial statements as incurred. Contingencies and Litigation In the ordinary course of business, we are subject to various routine litigation matters as a claimant and a defendant. We record any amounts recovered in these matters when received. We establish loss provisions for claims against us when the loss is both probable and can be reasonably estimated. If either or both of the criteria are not met, we assess whether there is at least a reasonable possibility that a loss, or additional losses, may have been incurred. If there is a reasonable possibility that a loss or additional loss may have been incurred for such proceedings, we disclose the estimate of the amount of loss or possible range of loss, or disclose that an estimate of loss cannot be made, as applicable. Deferred Revenue Our deferred revenue relates mainly to service revenue, which generally arises due to the timing of payment versus the provision of services for certain customers billed in advance. Fair Value of Financial Instruments Carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate fair value due to their short maturities. The fair values of investments are determined using quoted market prices for those securities or similar financial instruments. The Company’s outstanding debt held by third-party financial institutions is carried at cost, adjusted for debt issuance costs. The Company’s debt is not publicly traded and the carrying amount typically approximates fair value for debt that accrues interest at a variable rate for companies with similar financial characteristics as the Company, which are considered Level 2 inputs. Goodwill Goodwill represents the excess of the fair value of consideration given over the fair value of the tangible assets, identifiable intangible assets and liabilities assumed in a business combination. We are required to test goodwill for impairment annually and whenever events or circumstances indicate the fair value of a reporting unit may be below its carrying value. Goodwill is reviewed for impairment annually on October 1. A reporting unit is the operating segment or a business that is one level below that operating segment. Reporting units are aggregated as a single reporting unit if they have similar economic characteristics. We aggregated our reporting units into a single reporting unit because we determined they have similar economic characteristics. There was no impairment to our goodwill related to our acquisitions. Goodwill is reviewed for impairment annually on October 1 utilizing either a qualitative assessment or a two-step process. We have an option to make a qualitative assessment of a reporting unit’s goodwill for impairment. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the two-step process, the first step requires us to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, there is an indication that impairment may exist and the second step is required. In step two, the implied fair value of goodwill is calculated as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit’s goodwill, the difference is recognized as an impairment loss. As of March 31, 2017, we are not aware of any indicators of impairment that would require an impairment analysis other than our annual impairment analysis. Impairment of Long-Lived Assets and Intangible Assets Long-lived assets including intangible assets with finite useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Intangible assets that have indefinite useful lives are not amortized but, instead, are tested at least annually for impairment while intangible assets that have finite useful lives are amortized over their respective useful lives. Income Taxes We account for income taxes in accordance with Financial Accounting Standards Board (FASB) ASC Topic No. 740, Income Taxes Income Taxes Income Taxes Income Taxes Property and Equipment We account for property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful life of the asset, generally three to five years for furniture, fixtures and equipment and ten to forty years for building and building improvements. Leasehold improvements are capitalized and amortized over the shorter of the useful life of the asset or the remaining term of the lease. We have a policy of capitalizing expenditures that materially increase assets’ useful lives and charging ordinary maintenance and repairs to operations as incurred. When property or equipment is disposed of, the cost and related accumulated depreciation and amortization are removed, and any gain or loss is included in operations. Revenue Recognition We recognize revenue from product sales or services rendered, as well as commissions from advertising or sale of products by third party vendors to our customer base when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the selling price is fixed or determinable; and collectability is reasonably assured. We earn service revenue in several different ways: (1) customers may pay us a monthly fee based on a subscription plan; (2) customers may qualify under our USPS partnership to have their service fees waived or refunded and then we are compensated directly by the USPS; (3) we may earn transaction related revenue based on customers purchasing postage or printing shipping labels; (4) we may earn compensation by offering customers a discounted postage rate that is provided to the customers by our integration partners; and (5) we may earn other types of revenue shares or other compensation from specific customers or integration partners. Revenue is recognized in the period that services are provided. Customers purchase postage from the USPS through our mailing and shipping solutions. Postage purchase funds that are transferred directly from the customers to the USPS are not recognized as revenue for this postage, as it is purchased by our customers directly from the USPS. Customized postage revenue, which includes the face value of postage, from the sale of PhotoStamps and PictureItPostage sheets and rolls is made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier and revenue is recognized at that time. On a limited basis, we allow third parties to offer products and promotions to our customer base. These arrangements generally provide payment in the form of a flat fee or revenue sharing arrangements where we receive payment upon customers accessing third party products and services. Total revenue from such advertising arrangements was not significant during the three months ended March 31, 2017 and 2016, respectively. We provide our customers with the opportunity to purchase parcel insurance directly through our solutions. Insurance revenue represents the gross amount charged to the customer for purchasing insurance and the related cost represents the amount paid to our insurance providers. We recognize revenue on insurance purchases upon the ship date of the insured package. Short-Term Financing Obligations We utilize short-term financing, which is separate from our debt, to fund certain Company operations. Short-term financing obligations are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. As of March 31, 2017, we had $15.0 million in short-term financing obligations and $90.5 million of unused short-term financing obligations credit. As of December 31, 2016, we had $15.6 million in short-term financing obligations and $90.0 million of unused credit. Trademarks, Patents and Intangible Assets Acquired trademarks, patents and other intangibles include both amortizable and non-amortizable assets and are included in intangible assets, net in the accompanying consolidated balance sheets. Intangible assets are carried at cost less accumulated amortization. Cost associated with internally developed intangible assets is typically expensed as incurred as research and development costs. Amortization of amortizable intangible assets is calculated on a straight-line basis, which is consistent with the expected future cash flows. Treasury During the three-months ended March 31, 2017 and March 31, 2016, we repurchased approximately 356,000 shares and 30,000 shares for $43.9 million and $3.4 million, respectively. Also, 6,670 shares were withheld to satisfy income tax obligations related to performance based inducement equity awards issued to the General Manager and Chief Technology Officer of ShippingEasy on March 31, 2017. Accounting Guidance Adopted in 2017 Share-based Payment Transactions to Employees On January 1, 2017, the Company adopted, on a prospective basis, new accounting guidance that changes the reporting for certain aspects of share-based payments. One aspect of the guidance requires that the income tax effects of share-based awards be recognized in the income tax provision in the consolidated statement of operations when the awards vest or are settled. Under the previous guidance, excess tax benefits and deficiencies were recognized in additional paid-in capital in the consolidated balance sheets. For the three months ended March 31, 2017, the amount of excess tax benefits recognized in the income tax provision was approximately $12.6 million. For the three months ended March 31, 2016, the amount of excess tax benefits recognized in additional paid-in capital was not material. In addition, because excess tax benefits are no longer recognized in additional paid-in capital under the new guidance, such amounts are no longer included in the determination of assumed proceeds in applying the treasury stock method when computing earnings per share. A net cumulative-effect adjustment of $2.1 million, which was an increase to retained earnings and the deferred tax asset balance as of January 1, 2017, was recorded to reflect the recognition of the previously unrecognized excess tax benefits using the modified retrospective method. Another aspect of the new guidance requires that excess tax benefits be classified as a cash flow from operating activities, rather than a cash flow from financing activities, in the consolidated statement of cash flows. For the three months ended March 31, 2017, the amount of excess tax benefits presented as a cash flow from operating activities was $12.6 million; this amount is included within the change of a ccounts payable and accrued expenses, net of excess tax benefit from stock-based award activity line item the consolidated statement of cash flows . For the three months ended March 31, 2016, the amount of excess tax benefits presented as a cash flow from financing was not material. The presentation requirements for cash flows related to excess tax benefits were adopted prospectively. Accordingly, the operating activity cash flows were not adjusted for the 2016 period. The new standard also provides an accounting policy election to account for forfeitures as they occur. We elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The impact of this was not material. Another aspect of the new guidance clarifies that all cash payments made to tax authorities on an employee’s behalf for withheld shares should be presented as a financing activity on our consolidated statements of cash flows. The presentation requirements for cash flows related to employee taxes paid for withheld shares were adopted retrospectively. The Company did not withhold shares for employee taxes in fiscal 2016; as such, there was no change to the December 31, 2016 consolidated statement of cash flows related to employee taxes. The Company accrued $0.8 million of employee taxes in the first quarter of 2017, which will be classified as a financing activity on our consolidated statements of cash flows when paid in the second quarter of 2017. The other aspects of the new guidance did not have a material effect on the Company’s consolidated financial statements. Inventory Measurement Principle In July 2015, the FASB changed the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value for entities that do not use the last-in, first-out (LIFO) or retail inventory method. The changes also eliminate the requirement to consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory for entities that do not use the LIFO or retail inventory method. The changes were effective for the Company in the first quarter of 2017 using a prospective transition approach. The adoption of the new guidance did not have a material effect on the Company’s consolidated financial statements. Accounting Guidance Not Yet Adopted Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) an updated standard on revenue recognition. This ASU will supersede the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition, and most industry-specific guidance. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using US GAAP and International Financial Reporting Standards. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so the companies may be required to use more judgment and make more estimates than under current authoritative guidance. ASU 2014-09 will be effective for the Company in the first quarter of fiscal 2018 and may be applied on a full retrospective or modified retrospective approach. The Company is currently in the process of reviewing its material contracts to assess the impact of the new standard. While the Company has performed a review of the impact on certain contracts, it has not completed a review of all material contracts. As a result, the Company is currently still in the process of evaluating the adoption method and the impact the adoption of this standard will have on its consolidated financial statements. Leases In February 2016, the FASB issued a new accounting standard for leases. The new standard generally requires the recognition of financing and operating lease liabilities and corresponding right-of-use assets on the balance sheet. For financing leases, a lessee recognizes amortization of the right-of-use asset as an operating expense over the lease term separately from interest on the lease liability. For operating leases, a lessee recognizes its total lease expense as an operating expense over the lease term. The amendments are effective for the Company in the first quarter of 2019 using a modified retrospective approach with early adoption permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, a standard which simplifies the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance will become effective on a prospective basis for the Company on January 1, 2020 and is not expected to have a material impact on the Company’s consolidated financial statements. Definition of a Business In January 2017, guidance was issued that changes the definition of a business for accounting purposes. Under the new guidance, an entity first determines whether substantially all of the fair value of a set of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set of assets is not deemed to be a business. If this threshold is not met, the entity then evaluates whether the set of assets meets the requirement to be deemed a business, which at minimum, requires there to be an input and a substantive process that together significantly contribute to the ability to create outputs. The guidance will become effective on a prospective basis for the Company on January 1, 2020 and is not expected to have a material impact on the Company’s consolidated financial statements. Subsequent Events We are not aware of any material subsequent events or transactions that have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2017
Acquisitions [Abstract]
Acquisitions	2. Acquisitions We have accounted for all of our acquisitions under the acquisition method of accounting in accordance with the provisions of FASB ASC Topic No. 805 Business Combinations ShippingEasy Acquisition On July 1, 2016, we completed our acquisition of ShippingEasy Group, Inc. (ShippingEasy) when our wholly owned subsidiary was merged with and into ShippingEasy, resulting in our 100% ownership of ShippingEasy. The merger agreement provided for us to pay $55.0 million in aggregate merger consideration to the former owners of ShippingEasy, payable in cash. The purchase price was subject to adjustments for changes in ShippingEasy’s net working capital. The net purchase price including adjustments for net working capital totaled approximately $55.4 million and was funded from current cash and investment balances. In connection with the acquisition, we issued performance based inducement equity awards to each of the General Manager and Chief Technology Officer of ShippingEasy. These inducement awards cover an aggregate of up to 43,567 common shares each if earnings targets for ShippingEasy are achieved over a two and one-half year period beginning July 1, 2016. The two and one-half year period is divided into three phases consisting of the six months ended December 31, 2016 and each of the twelve months ending December 31, 2017 and 2018. The awards are subject to proration if at least 75% of the applicable target is achieved and are subject to forfeiture or acceleration based on changes in employment circumstances over the performance period. The stock-based compensation expense associated with the performance based inducement equity award will be recognized ratably over each phase based on the estimated probable achievement of each financial target. The awards were a material inducement to the General Manager and Chief Technology Officer entering into employment agreements with Stamps.com in connection with the acquisition of ShippingEasy. In fiscal 2016, we determined the achievement of 100% of the earnings target for the six months ended December 31, 2016 was probable, therefore, we recognized approximately $1.9 million of stock-based compensation expense, representing 21,783 shares, for these inducement equity awards during the six months ended December 31, 2016. The $1.9 million of stock-based compensation expense recognized represents 100% of the total performance based inducement equity award for the first phase. The equity award for the first phase was issued in the first quarter of 2017 with 15,113 shares distributed and 6,670 shares withheld to satisfy income tax obligations. In the first quarter of 2017, we determined the achievement of 100% of the earnings target for the twelve months ended December 31, 2017 is probable, therefore, we recognized approximately $1.2 million of stock-based compensation expense for these inducement equity awards during the three months ended March 31, 2017. The $1.2 million of stock-based compensation expense recognized represents 25% of the total performance based inducement equity award for the second phase. We also issued inducement stock option grants for an aggregate of approximately 62,000 shares of Stamps.com common stock to 48 new employees in connection with our acquisition of ShippingEasy. Each option vests 25% on the one year anniversary of the July 1, 2016 grant date with the remaining 75% vesting in approximately equal monthly increments over the immediately succeeding thirty-six months provided that the option holder is still employed by the Company on the vesting dates. The stock options have a ten year term and an exercise price equal to the closing price of Stamps.com common stock on the grant date of July 1, 2016. The stock options were granted as inducements material to the new employees entering into employment with Stamps.com in connection with the acquisition of ShippingEasy. The related stock-based compensation expense we recognized in fiscal 2016 and for the three months ended March 31, 2017 was not material. The total net purchase price for the ShippingEasy acquisition was allocated to the assets acquired and the liabilities assumed based on their fair values. The following table is the final allocation of the purchase price (in thousands, except years): Fair Value Fair Value Useful Life (In Years) Weighted Average Estimated Useful Life (In Years) Trade accounts receivable $ 1,194 Other assets 76 Property and equipment 40 Goodwill 40,953 Identifiable intangible assets: Trade name $ 1,304 8 Developed technology 6,948 5 Customer relationships 6,316 5 Non-compete agreements 1,111 3 to 5 Total identifiable intangible assets 15,679 5 Accrued expenses and other liabilities (707 ) Deferred revenue (185 ) Deferred tax liability (1,603 ) Total purchase price 55,447 Less: settlement of preexisting relationship (accounts receivable) 1,194 Purchase price, net of settlement $ 54, 253 Goodwill represented the excess of the fair value of consideration given over the fair value of the tangible assets, identifiable intangible assets and liabilities assumed in the business combination and the potential acquisition related synergies. Such synergies include leveraging Stamps.com’s resources, personnel, expertise and capital to grow ShippingEasy’s revenue faster than it otherwise would have as a standalone Company. The identified intangible assets consisted of trade names, developed technology, non-compete agreements and customer relationships. The estimated fair values of the trademark and developed technology were determined using the “relief from royalty” method. The estimated fair value of the non-compete agreements was determined using the “with and without” method. The estimated fair value of customer relationships was determined using the “excess earnings” method. The rate utilized to discount net cash flows to their present values was approximately 23% and was determined after consideration of the overall enterprise rate of return and the relative risk and importance of the assets to the generation of future cash flows. Trademark, developed technology, non-compete and customer relationships are each amortized on a straight-line basis over their estimated useful lives. The amortization of acquired intangibles is approximately $761,000 per quarter for the remaining estimated useful lives. The intangible assets and goodwill recorded in this acquisition are not deductible for tax purposes.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	3. Commitments and Contingencies Legal Proceedings In the ordinary course of business, we are subject to various routine legal proceedings and claims incidental to our business, and we do not believe that these proceedings and claims would reasonably be expected to have a material adverse effect on our financial position, results of operations or cash flows. Although management at present believes that the ultimate outcome of the various routine proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends, legal proceedings are subject to inherent uncertainties, and unfavorable rulings or other events could occur. An unfavorable outcome for an amount in excess of management’s present expectations may result in a material adverse impact on our business, results of operations, financial position, and overall trends. Commitments The Company leases facilities pursuant to noncancelable operating lease agreements expiring through fiscal 2021. Rent expense is recognized on a straight-line basis over the lease term. Lease incentives are amortized over the lease term on a straight-line basis. Leasehold improvements are capitalized and amortized over the shorter of the useful life of the asset or the remaining term of the lease. Rent expense for the quarters ended March 31, 2017 and March 31, 2016 was approximately $1.0 million and $0.6 million, respectively. The following table is a schedule of our significant future contractual obligations and commercial commitments (other than debt commitments), which consist of future minimum lease payment under operating leases as of March 31, 2017 (in thousands): Twelve Month Period Ending March 31, Operating Lease Obligations 2018 $ 4,035 2019 2,919 2020 1,379 2021 1,407 2022 507 Total $ 10,247

Net Income per Share

Net Income per Share	3 Months Ended
	Mar. 31, 2017
Net Income per Share [Abstract]
Net Income per Share	4. Net Income per Share The following table reconciles share amounts utilized to calculate basic and diluted net income per share (in thousands, except per share data): Three Months Ended March 31, 2017 2016 Net income $ 33,138 $ 13,238 Basic - weighted average common shares 16,902 17,357 Diluted effect of common stock equivalents 1,268 1,307 Diluted - weighted average common shares 18,170 18,664 Earnings per share: Basic $ 1.96 $ 0.76 Diluted $ 1.82 $ 0.71 The calculation of dilutive shares excludes the effect of the following options that are considered anti-dilutive (in thousands): Three Months Ended March 31, 2017 2016 Anti-dilutive stock option shares — 7

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Stock-Based Compensation [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation We account for share-based employee compensation plans under the fair value recognition and measurement provisions in accordance with applicable accounting standards, which require all share-based payments to employees, including grants of stock options and restricted stock units (RSUs), to be measured based on the grant date fair value of the awards, with the resulting expense generally recognized on a straight-line basis over the period during which the employee is required to perform service in exchange for the award. As described in Note 1 – “Summary of Significant Accounting Policies,” Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting We use the Black-Scholes-Merton option valuation model to estimate the fair value of share-based payment awards on the date of grant, which requires us to use a number of complex estimates and subjective assumptions, including stock price volatility, expected term, risk-free interest rates and projected employee stock option exercise behaviors. In the case of options we grant, our assumption of expected volatility is based on the historical volatility of our stock price over the term equal to the expected life of the options. We base the risk-free interest rate on U.S. Treasury zero-coupon issues with a remaining term equal to the expected life of the options assumed at the date of grant. The estimated expected life represents the weighted-average period the stock options are expected to remain outstanding, determined based on an analysis of historical exercise behavior. Compensation expense for employee stock options granted is generally recognized using the straight-line method over their respective vesting periods of up to five years. Starting in the third quarter of fiscal 2016, our stock-based compensation expense included performance based inducement equity awards relating to the ShippingEasy acquisition as described in Note 2 - “Acquisitions.” The following table sets forth the stock-based compensation expense that we recognized for the periods indicated (in thousands): Three Months Ended March 31, 2017 2016 Stock-based compensation expense relating to: Employee and director stock options $ 11,135 $ 7,281 Employee stock purchases 232 235 Total stock-based compensation expense $ 11,367 $ 7,516 Stock-based compensation expense relating to: Cost of revenues $ 548 $ 425 Sales and marketing 2,307 1,731 Research and development 2,496 1,355 General and administrative 6,016 4,005 Total stock-based compensation expense $ 11,367 $ 7,516 The following are the weighted average assumptions used in the Black-Scholes valuation model for the periods indicated: Three Months Ended March 31, 2017 2016 Expected dividend yield — — Risk-free interest rate 1.5 % 1.1 % Expected volatility 46.6 % 48.1 % Expected life (in years) 3.4 3.4 Forfeiture rate — 6.0 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets [Abstract]
Goodwill and Intangible Assets	6. Goodwill and Intangible Assets Goodwill was approximately $239.7 million as of March 31, 2017 and December 31, 2016, respectively. We have amortizable and non-amortizable intangible assets consisting of patents, trademarks, trade names, developed technology, non-compete agreements, customer relationships and other totaling approximately $125.4 million in gross carrying amount as of both March 31, 2017 and December 31, 2016. Non-amortizable assets of $11.4 million as of both March 31, 2017 and December 31, 2016 consist primarily of trade name relating to the Endicia acquisition. The following table summarizes our amortizable intangible assets as of March 31, 2017 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and Others $ 8,889 $ 8,786 $ 103 Customer Relationships 60,816 14,692 46,124 Technology 40,048 7,399 32,649 Non-Compete 2,211 903 1,308 Trademark 2,004 559 1,445 Total amortizable intangible assets at March 31, 2017 $ 113,968 $ 32,339 $ 81,629 The following table summarizes our amortizable intangible assets as of December 31, 2016 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and Others $ 8,889 $ 8,774 $ 115 Customer Relationships 60,816 12,199 48,617 Technology 40,048 6,100 33,948 Non-Compete 2,211 777 1,434 Trademark 2,004 479 1,525 Total amortizable intangible assets at December 31, 2016 $ 113,968 $ 28,329 $ 85,639 We recorded amortization of intangible assets totaling approximately $4.0 million and $3.3 million for the three months ended March 31, 2017 and 2016, respectively, which is included in general and administrative expense in the accompanying consolidated statements of operations. As of March 31, 2017, the remaining weighted average amortization period for our amortizable intangible assets is approximately 5.4 years. Our estimated amortization expense for the next five years and thereafter is as follows (in thousands): Twelve Month Period Ending March 31, Estimated Amortization Expense 2018 $ 16,038 2019 15,754 2020 15,594 2021 15,336 2022 10,459 Thereafter 8,448 Total $ 81,629

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Taxes [Abstract]
Income Taxes	7. Income Taxes Our income tax expense was $660,000 for the three months ended March 31, 2017, which is primarily attributable to our pre-tax book income multiplied by an estimated annual effective tax rate and discrete tax benefits relating to exercises of options. Our income tax expense of $8.1 million for the three months ended March 31, 2016 consisted of current tax expense for federal alternative minimum tax and various state taxes, and deferred income tax expense for temporary tax items including stock compensation and differences in the book and tax lives of amortizable intangibles. As described in Note 1- “Summary of Significant Accounting Policies” Our effective income tax rate differs from the statutory income tax rate primarily as a result of permanent tax adjustments for tax benefits from stock options exercised and research and development tax credits, as well as permanent tax adjustments for nondeductible items, such as stock-based compensation and state taxes. We evaluated the appropriateness of our deferred tax assets and related valuation allowance in accordance with Income Taxes

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Measurements [Abstract]
Fair Value Measurements	8. Fair Value Measurements Financial assets measured at fair value on a recurring basis are classified in one of the three following categories, which are described below: Level 1 - Valuations based on unadjusted quoted prices for identical assets in an active market Level 2 - Valuations based on quoted prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets Level 3 - Valuations based on inputs that are unobservable and involve management judgment and our own assumptions about market participants and pricing The following tables summarize our financial assets measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, respectively (in thousands): Fair Value Measurement at Reporting Date Using Description March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 116,935 $ 116,935 $ — $ — Available-for-sale debt securities 1,514 — 1,514 — Total $ 118,449 $ 116,935 $ 1,514 $ — Fair Value Measurement at Reporting Date Using Description December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 106,932 $ 106,932 $ — $ — Available-for-sale debt securities 1,511 — 1,511 — Total $ 108,443 $ 106,932 $ 1,511 $ — The fair value of our available-for-sale debt securities included in the Level 2 category is based on the market values obtained from an independent pricing service that were evaluated using pricing models that vary by asset class and may incorporate available trade, bid and other market information and price quotes from well-established independent pricing vendors and broker-dealers.

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	3 Months Ended
	Mar. 31, 2017
Cash, Cash Equivalents and Investments [Abstract]
Cash, Cash Equivalents and Investments	9. Cash, Cash Equivalents and Investments Our cash equivalents and investments consist of money market, asset-backed securities and public corporate debt securities at March 31, 2017 and December 31, 2016, respectively. We consider all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. All of our short-term investments are classified as available for sale and are recorded at fair value using the specific identification method. Realized gains and losses are reflected in other income, net using the specific identification method. There was no material unrealized or realized gain or loss with respect to our short-term investments during the three months ended March 31, 2017. Unrealized gains and losses are included as a separate component of stockholders’ equity. We do not intend to sell investments with an amortized cost basis exceeding fair value and it is not likely that we will be required to sell the investments before recovery of their amortized cost bases. On at least a quarterly basis, we evaluate our available for sale securities and record an “other-than-temporary impairment” (OTTI) if we believe their fair value is less than historical cost and it is probable that we will not collect all contractual cash flows. We did not record any OTTI during the three months ended March 31, 2017, after evaluating a number of factors including, but not limited to: (1) how much fair value has declined below amortized cost; (2) the financial condition of the issuers; (3) significant rating agency changes on the issuers; and (4) our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The following tables summarize our cash and cash equivalents and investments as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash $ 111,978 — — $ 111,978 Money market 4,957 — — 4,957 Total cash and cash equivalents 116,935 — — 116,935 Short-term investments: Corporate bonds and asset backed securities 1,504 12 (2 ) 1,514 Total short-term investments 1,504 12 (2 ) 1,514 Cash and cash equivalents and short-term investments $ 118,439 12 (2 ) $ 118,449 December 31, 2016 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash $ 101,987 — — $ 101,987 Money market 4,945 — — 4,945 Total cash and cash equivalents 106,932 — — 106,932 Short-term investments: Corporate bonds and asset backed securities 1,500 13 (2 ) 1,511 Total short-term investments 1,500 13 (2 ) 1,511 Cash and cash equivalents and short-term investments $ 108,432 13 (2 ) $ 108,443 The following table summarizes contractual maturities of our marketable fixed-income securities as of March 31, 2017 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 1,504 $ 1,514 Due after one year — — Total $ 1,504 $ 1,514

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We prepared the consolidated financial statements included herein pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. We believe that the disclosures are adequate to make the information presented not misleading. We recommend that these consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in our latest annual report on Form 10-K for the fiscal year ended December 31, 2016, filed with the SEC on March 1, 2017. In our opinion, these unaudited consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly our financial position as of March 31, 2017, our results of operations for the three months ended March 31, 2017, and our cash flows for the three months ended March 31, 2017. The results of operations for the interim period are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Stamps.com Inc., Auctane LLC (ShipStation), Interapptive, Inc. (ShipWorks), PSI Systems Inc. (Endicia), ShippingEasy Group, Inc. (ShippingEasy), and PhotoStamps Inc. In July 2016, we completed our acquisition of 100% of the outstanding shares of ShippingEasy. ShippingEasy, based in Austin, Texas, offers web-based multi-carrier shipping solutions. See Note 2 – “Acquisitions” Because 100% of the voting control of ShipStation, ShipWorks, Endicia, and ShippingEasy is held by us, we have consolidated the results of operations of ShipStation, ShipWorks, Endicia and ShippingEasy from the date we obtained control in the accompanying consolidated financial statements. Similarly, due to our 100% control of PhotoStamps, Inc., PhotoStamps Inc. is also consolidated in the accompanying consolidated financial statements from the date of its inception. Intercompany accounts and transactions between consolidated entities have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. Actual results could differ from those estimates, and such differences may be material to the consolidated financial statements. Examples include estimates of loss contingencies, realizability of deferred income taxes, the estimates and assumptions used to calculate stock-based compensation, the estimates and assumptions used to calculate the allocation of the purchase price related to our acquisitions, and estimates regarding the useful lives of our building, patents and other amortizable intangible assets, and goodwill.
Business Combinations	Business Combinations The acquisition method of accounting is used for business combinations. The results of operations of acquired businesses are included in our consolidated financial statements prospectively from the date of acquisition. The fair value of purchase consideration is allocated to the assets acquired and liabilities assumed from the acquired entity and is generally based on their fair value at the acquisition date. The excess of the fair value of purchase consideration over the fair value of the assets acquired and liabilities assumed is recorded as goodwill. Historically the primary items that have generated goodwill include anticipated synergies between the acquired business and the Company and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. Acquisition-related expenses are recognized in our consolidated financial statements as incurred.
Contingencies and Litigation	Contingencies and Litigation In the ordinary course of business, we are subject to various routine litigation matters as a claimant and a defendant. We record any amounts recovered in these matters when received. We establish loss provisions for claims against us when the loss is both probable and can be reasonably estimated. If either or both of the criteria are not met, we assess whether there is at least a reasonable possibility that a loss, or additional losses, may have been incurred. If there is a reasonable possibility that a loss or additional loss may have been incurred for such proceedings, we disclose the estimate of the amount of loss or possible range of loss, or disclose that an estimate of loss cannot be made, as applicable.
Deferred Revenue	Deferred Revenue Our deferred revenue relates mainly to service revenue, which generally arises due to the timing of payment versus the provision of services for certain customers billed in advance.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable and accounts payable, approximate fair value due to their short maturities. The fair values of investments are determined using quoted market prices for those securities or similar financial instruments. The Company’s outstanding debt held by third-party financial institutions is carried at cost, adjusted for debt issuance costs. The Company’s debt is not publicly traded and the carrying amount typically approximates fair value for debt that accrues interest at a variable rate for companies with similar financial characteristics as the Company, which are considered Level 2 inputs.
Goodwill	Goodwill Goodwill represents the excess of the fair value of consideration given over the fair value of the tangible assets, identifiable intangible assets and liabilities assumed in a business combination. We are required to test goodwill for impairment annually and whenever events or circumstances indicate the fair value of a reporting unit may be below its carrying value. Goodwill is reviewed for impairment annually on October 1. A reporting unit is the operating segment or a business that is one level below that operating segment. Reporting units are aggregated as a single reporting unit if they have similar economic characteristics. We aggregated our reporting units into a single reporting unit because we determined they have similar economic characteristics. There was no impairment to our goodwill related to our acquisitions. Goodwill is reviewed for impairment annually on October 1 utilizing either a qualitative assessment or a two-step process. We have an option to make a qualitative assessment of a reporting unit’s goodwill for impairment. If we choose to perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where we perform the two-step process, the first step requires us to compare the fair value of each reporting unit, which we primarily determine using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, there is an indication that impairment may exist and the second step is required. In step two, the implied fair value of goodwill is calculated as the excess of the fair value of a reporting unit over the fair values assigned to its assets and liabilities. If the implied fair value of goodwill is less than the carrying value of the reporting unit’s goodwill, the difference is recognized as an impairment loss. As of March 31, 2017, we are not aware of any indicators of impairment that would require an impairment analysis other than our annual impairment analysis.
Impairment of Long-Lived Assets and Intangible Assets	Impairment of Long-Lived Assets and Intangible Assets Long-lived assets including intangible assets with finite useful lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Intangible assets that have indefinite useful lives are not amortized but, instead, are tested at least annually for impairment while intangible assets that have finite useful lives are amortized over their respective useful lives.
Income Taxes	Income Taxes We account for income taxes in accordance with Financial Accounting Standards Board (FASB) ASC Topic No. 740, Income Taxes Income Taxes Income Taxes Income Taxes
Property and Equipment	Property and Equipment We account for property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful life of the asset, generally three to five years for furniture, fixtures and equipment and ten to forty years for building and building improvements. Leasehold improvements are capitalized and amortized over the shorter of the useful life of the asset or the remaining term of the lease. We have a policy of capitalizing expenditures that materially increase assets’ useful lives and charging ordinary maintenance and repairs to operations as incurred. When property or equipment is disposed of, the cost and related accumulated depreciation and amortization are removed, and any gain or loss is included in operations.
Revenue Recognition	Revenue Recognition We recognize revenue from product sales or services rendered, as well as commissions from advertising or sale of products by third party vendors to our customer base when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the selling price is fixed or determinable; and collectability is reasonably assured. We earn service revenue in several different ways: (1) customers may pay us a monthly fee based on a subscription plan; (2) customers may qualify under our USPS partnership to have their service fees waived or refunded and then we are compensated directly by the USPS; (3) we may earn transaction related revenue based on customers purchasing postage or printing shipping labels; (4) we may earn compensation by offering customers a discounted postage rate that is provided to the customers by our integration partners; and (5) we may earn other types of revenue shares or other compensation from specific customers or integration partners. Revenue is recognized in the period that services are provided. Customers purchase postage from the USPS through our mailing and shipping solutions. Postage purchase funds that are transferred directly from the customers to the USPS are not recognized as revenue for this postage, as it is purchased by our customers directly from the USPS. Customized postage revenue, which includes the face value of postage, from the sale of PhotoStamps and PictureItPostage sheets and rolls is made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier and revenue is recognized at that time. On a limited basis, we allow third parties to offer products and promotions to our customer base. These arrangements generally provide payment in the form of a flat fee or revenue sharing arrangements where we receive payment upon customers accessing third party products and services. Total revenue from such advertising arrangements was not significant during the three months ended March 31, 2017 and 2016, respectively. We provide our customers with the opportunity to purchase parcel insurance directly through our solutions. Insurance revenue represents the gross amount charged to the customer for purchasing insurance and the related cost represents the amount paid to our insurance providers. We recognize revenue on insurance purchases upon the ship date of the insured package.
Short-Term Financing Obligations	Short-Term Financing Obligations We utilize short-term financing, which is separate from our debt, to fund certain Company operations. Short-term financing obligations are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. As of March 31, 2017, we had $15.0 million in short-term financing obligations and $90.5 million of unused short-term financing obligations credit. As of December 31, 2016, we had $15.6 million in short-term financing obligations and $90.0 million of unused credit.
Trademarks, Patents and Intangible Assets	Trademarks, Patents and Intangible Assets Acquired trademarks, patents and other intangibles include both amortizable and non-amortizable assets and are included in intangible assets, net in the accompanying consolidated balance sheets. Intangible assets are carried at cost less accumulated amortization. Cost associated with internally developed intangible assets is typically expensed as incurred as research and development costs. Amortization of amortizable intangible assets is calculated on a straight-line basis, which is consistent with the expected future cash flows.
Treasury Stock	Treasury During the three-months ended March 31, 2017 and March 31, 2016, we repurchased approximately 356,000 shares and 30,000 shares for $43.9 million and $3.4 million, respectively. Also, 6,670 shares were withheld to satisfy income tax obligations related to performance based inducement equity awards issued to the General Manager and Chief Technology Officer of ShippingEasy on March 31, 2017.
Accounting Guidance Adopted in 2017	Accounting Guidance Adopted in 2017 Share-based Payment Transactions to Employees On January 1, 2017, the Company adopted, on a prospective basis, new accounting guidance that changes the reporting for certain aspects of share-based payments. One aspect of the guidance requires that the income tax effects of share-based awards be recognized in the income tax provision in the consolidated statement of operations when the awards vest or are settled. Under the previous guidance, excess tax benefits and deficiencies were recognized in additional paid-in capital in the consolidated balance sheets. For the three months ended March 31, 2017, the amount of excess tax benefits recognized in the income tax provision was approximately $12.6 million. For the three months ended March 31, 2016, the amount of excess tax benefits recognized in additional paid-in capital was not material. In addition, because excess tax benefits are no longer recognized in additional paid-in capital under the new guidance, such amounts are no longer included in the determination of assumed proceeds in applying the treasury stock method when computing earnings per share. A net cumulative-effect adjustment of $2.1 million, which was an increase to retained earnings and the deferred tax asset balance as of January 1, 2017, was recorded to reflect the recognition of the previously unrecognized excess tax benefits using the modified retrospective method. Another aspect of the new guidance requires that excess tax benefits be classified as a cash flow from operating activities, rather than a cash flow from financing activities, in the consolidated statement of cash flows. For the three months ended March 31, 2017, the amount of excess tax benefits presented as a cash flow from operating activities was $12.6 million; this amount is included within the change of a ccounts payable and accrued expenses, net of excess tax benefit from stock-based award activity line item the consolidated statement of cash flows . For the three months ended March 31, 2016, the amount of excess tax benefits presented as a cash flow from financing was not material. The presentation requirements for cash flows related to excess tax benefits were adopted prospectively. Accordingly, the operating activity cash flows were not adjusted for the 2016 period. The new standard also provides an accounting policy election to account for forfeitures as they occur. We elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The impact of this was not material. Another aspect of the new guidance clarifies that all cash payments made to tax authorities on an employee’s behalf for withheld shares should be presented as a financing activity on our consolidated statements of cash flows. The presentation requirements for cash flows related to employee taxes paid for withheld shares were adopted retrospectively. The Company did not withhold shares for employee taxes in fiscal 2016; as such, there was no change to the December 31, 2016 consolidated statement of cash flows related to employee taxes. The Company accrued $0.8 million of employee taxes in the first quarter of 2017, which will be classified as a financing activity on our consolidated statements of cash flows when paid in the second quarter of 2017. The other aspects of the new guidance did not have a material effect on the Company’s consolidated financial statements. Inventory Measurement Principle In July 2015, the FASB changed the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value for entities that do not use the last-in, first-out (LIFO) or retail inventory method. The changes also eliminate the requirement to consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory for entities that do not use the LIFO or retail inventory method. The changes were effective for the Company in the first quarter of 2017 using a prospective transition approach. The adoption of the new guidance did not have a material effect on the Company’s consolidated financial statements.
Accounting Guidance Not Yet Adopted	Accounting Guidance Not Yet Adopted Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09) an updated standard on revenue recognition. This ASU will supersede the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition, and most industry-specific guidance. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using US GAAP and International Financial Reporting Standards. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so the companies may be required to use more judgment and make more estimates than under current authoritative guidance. ASU 2014-09 will be effective for the Company in the first quarter of fiscal 2018 and may be applied on a full retrospective or modified retrospective approach. The Company is currently in the process of reviewing its material contracts to assess the impact of the new standard. While the Company has performed a review of the impact on certain contracts, it has not completed a review of all material contracts. As a result, the Company is currently still in the process of evaluating the adoption method and the impact the adoption of this standard will have on its consolidated financial statements. Leases In February 2016, the FASB issued a new accounting standard for leases. The new standard generally requires the recognition of financing and operating lease liabilities and corresponding right-of-use assets on the balance sheet. For financing leases, a lessee recognizes amortization of the right-of-use asset as an operating expense over the lease term separately from interest on the lease liability. For operating leases, a lessee recognizes its total lease expense as an operating expense over the lease term. The amendments are effective for the Company in the first quarter of 2019 using a modified retrospective approach with early adoption permitted. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, a standard which simplifies the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance will become effective on a prospective basis for the Company on January 1, 2020 and is not expected to have a material impact on the Company’s consolidated financial statements. Definition of a Business In January 2017, guidance was issued that changes the definition of a business for accounting purposes. Under the new guidance, an entity first determines whether substantially all of the fair value of a set of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this threshold is met, the set of assets is not deemed to be a business. If this threshold is not met, the entity then evaluates whether the set of assets meets the requirement to be deemed a business, which at minimum, requires there to be an input and a substantive process that together significantly contribute to the ability to create outputs. The guidance will become effective on a prospective basis for the Company on January 1, 2020 and is not expected to have a material impact on the Company’s consolidated financial statements.
Subsequent Events	Subsequent Events We are not aware of any material subsequent events or transactions that have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2017
ShippingEasy [Member]
Business Acquisition [Line Items]
Allocation of the Purchase Price	The total net purchase price for the ShippingEasy acquisition was allocated to the assets acquired and the liabilities assumed based on their fair values. The following table is the final allocation of the purchase price (in thousands, except years): Fair Value Fair Value Useful Life (In Years) Weighted Average Estimated Useful Life (In Years) Trade accounts receivable $ 1,194 Other assets 76 Property and equipment 40 Goodwill 40,953 Identifiable intangible assets: Trade name $ 1,304 8 Developed technology 6,948 5 Customer relationships 6,316 5 Non-compete agreements 1,111 3 to 5 Total identifiable intangible assets 15,679 5 Accrued expenses and other liabilities (707 ) Deferred revenue (185 ) Deferred tax liability (1,603 ) Total purchase price 55,447 Less: settlement of preexisting relationship (accounts receivable) 1,194 Purchase price, net of settlement $ 54, 253

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies [Abstract]
Future Minimum Lease Payment under Operating Leases	The following table is a schedule of our significant future contractual obligations and commercial commitments (other than debt commitments), which consist of future minimum lease payment under operating leases as of March 31, 2017 (in thousands): Twelve Month Period Ending March 31, Operating Lease Obligations 2018 $ 4,035 2019 2,919 2020 1,379 2021 1,407 2022 507 Total $ 10,247

Net Income per Share (Tables)

Net Income per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Net Income per Share [Abstract]
Calculation of Basic and Diluted Net Income Per Share	The following table reconciles share amounts utilized to calculate basic and diluted net income per share (in thousands, except per share data): Three Months Ended March 31, 2017 2016 Net income $ 33,138 $ 13,238 Basic - weighted average common shares 16,902 17,357 Diluted effect of common stock equivalents 1,268 1,307 Diluted - weighted average common shares 18,170 18,664 Earnings per share: Basic $ 1.96 $ 0.76 Diluted $ 1.82 $ 0.71
Anti-dilutive Securities Excluded from Computation of Earnings Per Share	The calculation of dilutive shares excludes the effect of the following options that are considered anti-dilutive (in thousands): Three Months Ended March 31, 2017 2016 Anti-dilutive stock option shares — 7

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Stock-Based Compensation [Abstract]
Stock-Based Compensation Expense	The following table sets forth the stock-based compensation expense that we recognized for the periods indicated (in thousands): Three Months Ended March 31, 2017 2016 Stock-based compensation expense relating to: Employee and director stock options $ 11,135 $ 7,281 Employee stock purchases 232 235 Total stock-based compensation expense $ 11,367 $ 7,516 Stock-based compensation expense relating to: Cost of revenues $ 548 $ 425 Sales and marketing 2,307 1,731 Research and development 2,496 1,355 General and administrative 6,016 4,005 Total stock-based compensation expense $ 11,367 $ 7,516
Weighted Average Assumptions Used in Black-Scholes Valuation Model	The following are the weighted average assumptions used in the Black-Scholes valuation model for the periods indicated: Three Months Ended March 31, 2017 2016 Expected dividend yield — — Risk-free interest rate 1.5 % 1.1 % Expected volatility 46.6 % 48.1 % Expected life (in years) 3.4 3.4 Forfeiture rate — 6.0 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets [Abstract]
Schedule of Acquired Intangible Assets	The following table summarizes our amortizable intangible assets as of March 31, 2017 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and Others $ 8,889 $ 8,786 $ 103 Customer Relationships 60,816 14,692 46,124 Technology 40,048 7,399 32,649 Non-Compete 2,211 903 1,308 Trademark 2,004 559 1,445 Total amortizable intangible assets at March 31, 2017 $ 113,968 $ 32,339 $ 81,629 The following table summarizes our amortizable intangible assets as of December 31, 2016 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and Others $ 8,889 $ 8,774 $ 115 Customer Relationships 60,816 12,199 48,617 Technology 40,048 6,100 33,948 Non-Compete 2,211 777 1,434 Trademark 2,004 479 1,525 Total amortizable intangible assets at December 31, 2016 $ 113,968 $ 28,329 $ 85,639
Schedule of Future Amortization Expense	Our estimated amortization expense for the next five years and thereafter is as follows (in thousands): Twelve Month Period Ending March 31, Estimated Amortization Expense 2018 $ 16,038 2019 15,754 2020 15,594 2021 15,336 2022 10,459 Thereafter 8,448 Total $ 81,629

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Measurements [Abstract]
Financial Assets Measured at Fair Value on a Recurring Basis	The following tables summarize our financial assets measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, respectively (in thousands): Fair Value Measurement at Reporting Date Using Description March 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 116,935 $ 116,935 $ — $ — Available-for-sale debt securities 1,514 — 1,514 — Total $ 118,449 $ 116,935 $ 1,514 $ — Fair Value Measurement at Reporting Date Using Description December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 106,932 $ 106,932 $ — $ — Available-for-sale debt securities 1,511 — 1,511 — Total $ 108,443 $ 106,932 $ 1,511 $ —

Cash, Cash Equivalents and In23

Cash, Cash Equivalents and Investments (Tables)	3 Months Ended
	Mar. 31, 2017
Cash, Cash Equivalents and Investments [Abstract]
Summary of Cash and Cash Equivalents and Investments	The following tables summarize our cash and cash equivalents and investments as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash $ 111,978 — — $ 111,978 Money market 4,957 — — 4,957 Total cash and cash equivalents 116,935 — — 116,935 Short-term investments: Corporate bonds and asset backed securities 1,504 12 (2 ) 1,514 Total short-term investments 1,504 12 (2 ) 1,514 Cash and cash equivalents and short-term investments $ 118,439 12 (2 ) $ 118,449 December 31, 2016 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash $ 101,987 — — $ 101,987 Money market 4,945 — — 4,945 Total cash and cash equivalents 106,932 — — 106,932 Short-term investments: Corporate bonds and asset backed securities 1,500 13 (2 ) 1,511 Total short-term investments 1,500 13 (2 ) 1,511 Cash and cash equivalents and short-term investments $ 108,432 13 (2 ) $ 108,443
Contractual Maturities of Marketable Fixed-Income Securities	The following table summarizes contractual maturities of our marketable fixed-income securities as of March 31, 2017 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 1,504 $ 1,514 Due after one year — — Total $ 1,504 $ 1,514

Summary of Significant Accoun24

Summary of Significant Accounting Policies, Principles of Consolidation (Details)	Mar. 31, 2017	Jul. 02, 2016
ShippingEasy [Member]
Principles of Consolidation [Abstract]
Percentage of outstanding equity purchased		100.00%
ShipStation [Member]
Principles of Consolidation [Abstract]
Percentage of voting control	100.00%
PhotoStamps Inc [Member]
Principles of Consolidation [Abstract]
Percentage of voting control	100.00%

Summary of Significant Accoun25

Summary of Significant Accounting Policies, Property, Plant and Equipment (Details)	3 Months Ended
	Mar. 31, 2017
Furniture, Fixtures and Equipment [Member] | Minimum [Member]
Property and Equipment [Abstract]
Estimated useful life	3 years
Furniture, Fixtures and Equipment [Member] | Maximum [Member]
Property and Equipment [Abstract]
Estimated useful life	5 years
Building and Building Improvements [Member] | Minimum [Member]
Property and Equipment [Abstract]
Estimated useful life	10 years
Building and Building Improvements [Member] | Maximum [Member]
Property and Equipment [Abstract]
Estimated useful life	40 years

Summary of Significant Accoun26

Summary of Significant Accounting Policies, Revenue Recognition through Recent Accounting Pronouncements (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)Criteriashares	Mar. 31, 2016USD ($)shares	Dec. 31, 2016USD ($)
Revenue Recognition [Abstract]
Number of criteria to be met for recognition of revenue | Criteria	4
Short- Term Financing Obligation [Abstract]
Short-term financing obligation	$ 15		$ 15.6
Unused credits	$ 90.5		$ 90
Treasury Stock [Abstract]
Stock repurchased during period, shares (in shares) | shares	356,000	30,000
Stock repurchased during period, amount	$ 43.9	$ 3.4
Recent Accounting Pronouncements [Abstract]
Provision for income taxes	12.6
Net cumulative-effect adjustment	2.1
Accrued employee taxes	$ 0.8
ShippingEasy [Member]
Equity, Class of Treasury Stock [Line Items]
Shares withheld to satisfy income tax obligations (in shares) | shares	6,670

Acquisitions (Details)

Acquisitions (Details)	Jul. 02, 2016USD ($)Employeesshares	Mar. 31, 2017USD ($)shares	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)shares
Business Acquisition [Line Items]
Stock-based compensation expense		$ 11,367,000	$ 7,516,000
Purchase price [Abstract]
Cash consideration		0	573,000
Allocation of purchase price [Abstract]
Goodwill		239,705,000		$ 239,705,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Amortization of acquired intangible assets per quarter		$ 4,000,000	3,300,000
Maximum [Member]
Business Acquisition [Line Items]
Option vesting period		5 years
ShippingEasy [Member]
Business Acquisition [Line Items]
Percentage of voting interests acquired	100.00%
Earnings target percentage		100.00%		100.00%
Stock-based compensation expense		$ 1,200,000	$ 1,200,000	$ 1,900,000
Stock-based compensation expense (in shares) | shares				21,783
Stock-based compensation expense, percentage		25.00%		100.00%
Shares issued and distributed (in shares) | shares		15,113
Shares withheld to satisfy income tax obligations (in shares) | shares		6,670
Purchase price [Abstract]
Cash consideration	$ 55,000,000
Allocation of purchase price [Abstract]
Trade accounts receivable	1,194,000
Other assets	76,000
Property and equipment	40,000
Goodwill	40,953,000
Identifiable intangible assets	15,679,000
Accrued expenses and other liabilities	(707,000)
Deferred revenue	(185,000)
Deferred tax liability	(1,603,000)
Total purchase price	55,447,000
Less: settlement of preexisting relationship (accounts receivable)	1,194,000
Purchase price, net of settlement	$ 54,253,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life		5 years
Discount rate of net cash flows to their present values	23.00%
Amortization of acquired intangible assets per quarter	$ 761,000
ShippingEasy [Member] | Minimum [Member]
Business Acquisition [Line Items]
Percentage of awards subject to proration	75.00%
ShippingEasy [Member] | Trademark [Member]
Allocation of purchase price [Abstract]
Identifiable intangible assets	$ 1,304,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life		8 years
ShippingEasy [Member] | Developed Technology [Member]
Allocation of purchase price [Abstract]
Identifiable intangible assets	6,948,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life		5 years
ShippingEasy [Member] | Non-Compete Agreement [Member]
Allocation of purchase price [Abstract]
Identifiable intangible assets	1,111,000
ShippingEasy [Member] | Non-Compete Agreement [Member] | Minimum [Member]
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life		3 years
ShippingEasy [Member] | Non-Compete Agreement [Member] | Maximum [Member]
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life		5 years
ShippingEasy [Member] | Customer Relationships [Member]
Allocation of purchase price [Abstract]
Identifiable intangible assets	$ 6,316,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life		5 years
ShippingEasy [Member] | General Manager and Chief Technology Officer [Member]
Business Acquisition [Line Items]
Period of performance based inducement equity awards		2 years 6 months
ShippingEasy [Member] | General Manager and Chief Technology Officer [Member] | Maximum [Member]
Business Acquisition [Line Items]
Aggregate shares issued (in shares) | shares	43,567
ShippingEasy [Member] | New Employee [Member]
Business Acquisition [Line Items]
Aggregate shares issued (in shares) | shares	62,000
Shares granted for number of new employees | Employees	48
Vesting term		10 years
ShippingEasy [Member] | Vesting Option One [Member] | New Employee [Member]
Business Acquisition [Line Items]
Percentage of options vesting	25.00%
Option vesting period		1 year
ShippingEasy [Member] | Vesting Option Two [Member]
Business Acquisition [Line Items]
Percentage of options vesting	75.00%
Option vesting period		36 months

Commitments and Contingencies28

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Commitments and Contingencies [Abstract]
Rent expense	$ 1,000	$ 600
Future Minimum Lease Payment Under Operating Leases [Abstract]
2,018	4,035
2,019	2,919
2,020	1,379
2,021	1,407
2,022	507
Total	$ 10,247

Net Income per Share (Details)

Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Computation of Basic and Diluted Net Income per Share [Abstract]
Net income	$ 33,138	$ 13,238
Basic - weighted average common shares (in shares)	16,902	17,357
Diluted effect of common stock equivalents (in shares)	1,268	1,307
Diluted - weighted average common shares (in shares)	18,170	18,664
Earnings per share [Abstract]
Basic (in dollars per share)	$ 1.96	$ 0.76
Diluted (in dollars per share)	$ 1.82	$ 0.71
Stock Options [Member]
Anti-dilutive Shares Excluded from Computation of Diluted Shares [Abstract]
Anti-dilutive stock option shares (in shares)	0	7

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 11,367	$ 7,516
Weighted Average Assumptions used in Black-Scholes Valuation Model [Abstract]
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	1.50%	1.10%
Expected volatility	46.60%	48.10%
Expected life	3 years 4 months 24 days	3 years 4 months 24 days
Forfeiture rate	0.00%	6.00%
ShippingEasy [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,200	$ 1,200	$ 1,900
Employee and Director Stock Options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	11,135	7,281
Employee Stock Purchases [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	232	235
Cost of Revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	548	425
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	2,307	1,731
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	2,496	1,355
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 6,016	$ 4,005
Maximum [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Vesting period	5 years

Goodwill and Intangible Asset31

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Intangible Assets [Abstract]
Amortizable and non-amortizable intangible assets gross carrying amount	$ 125,400		$ 125,400
Non-amortizable assets	11,400		11,400
Gross Carrying Amount	113,968		113,968
Accumulated Amortization	32,339		28,329
Total	81,629		85,639
Goodwill	239,705		239,705
Amortization of intangible assets	$ 4,000	$ 3,300
Identifiable intangible assets, weighted average remaining useful life	5 years 4 months 24 days
Amortization Expense, Fiscal Year Maturity [Abstract]
2,018	$ 16,038
2,019	15,754
2,020	15,594
2,021	15,336
2,022	10,459
Thereafter	8,448
Total	81,629		85,639
Patents and Others [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	8,889		8,889
Accumulated Amortization	8,786		8,774
Total	103		115
Amortization Expense, Fiscal Year Maturity [Abstract]
Total	103		115
Customer Relationships [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	60,816		60,816
Accumulated Amortization	14,692		12,199
Total	46,124		48,617
Amortization Expense, Fiscal Year Maturity [Abstract]
Total	46,124		48,617
Technology [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	40,048		40,048
Accumulated Amortization	7,399		6,100
Total	32,649		33,948
Amortization Expense, Fiscal Year Maturity [Abstract]
Total	32,649		33,948
Non-Compete [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	2,211		2,211
Accumulated Amortization	903		777
Total	1,308		1,434
Amortization Expense, Fiscal Year Maturity [Abstract]
Total	1,308		1,434
Trademark [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	2,004		2,004
Accumulated Amortization	559		479
Total	1,445		1,525
Amortization Expense, Fiscal Year Maturity [Abstract]
Total	$ 1,445		$ 1,525

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Income Taxes [Abstract]
Income tax expense	$ 660	$ 8,109
Excess tax benefits recognized in income tax provision	12,600
Valuation allowance	$ 0		$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financial assets measured at fair value on a recurring basis [Abstract]
Available-for-sale debt securities	$ 1,514
Contingent consideration measured at fair value on a recurring basis [Abstract]
Contingent consideration - current	0
Recurring [Member]
Financial assets measured at fair value on a recurring basis [Abstract]
Cash equivalents	116,935	$ 106,932
Available-for-sale debt securities	1,514	1,511
Total	118,449	108,443
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets measured at fair value on a recurring basis [Abstract]
Cash equivalents	116,935	106,932
Available-for-sale debt securities	0	0
Total	116,935	106,932
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial assets measured at fair value on a recurring basis [Abstract]
Cash equivalents	0	0
Available-for-sale debt securities	1,514	1,511
Total	1,514	1,511
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial assets measured at fair value on a recurring basis [Abstract]
Cash equivalents	0	0
Available-for-sale debt securities	0	0
Total	$ 0	$ 0

Cash, Cash Equivalents and In34

Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	$ 116,935	$ 106,932	$ 112,264	$ 65,126
Contractual maturities of marketable fixed-income securities [Abstract]
Due within one year, Amortized Cost	1,504
Due after one year, Amortized Cost	0
Total, Amortized Cost	1,504
Due within one year, Estimated Fair Value	1,514
Due after one year, Estimated Fair Value	0
Total, Estimated Fair Value	1,514
Total Cash and Cash Equivalents [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	116,935	106,932
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	116,935	106,932
Total Short-Term Investments [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	1,504	1,500
Gross Unrealized Gains	12	13
Gross Unrealized Losses	(2)	(2)
Estimated Fair Value	1,514	1,511
Cash and Cash Equivalents and Short-term Investments [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	118,439	108,432
Gross Unrealized Gains	12	13
Gross Unrealized Losses	(2)	(2)
Estimated Fair Value	118,449	108,443
Cash [Member] | Total Cash and Cash Equivalents [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	111,978	101,987
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	111,978	101,987
Money Market [Member] | Total Cash and Cash Equivalents [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	4,957	4,945
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	4,957	4,945
Corporate Bonds and Asset Backed Securities [Member] | Total Short-Term Investments [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	1,504	1,500
Gross Unrealized Gains	12	13
Gross Unrealized Losses	(2)	(2)
Estimated Fair Value	$ 1,514	$ 1,511