Stamps.com (STMP) 10-K 29 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Jan. 29, 2016	Jun. 30, 2015
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	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,091,895,850
Entity Common Stock, Shares Outstanding		16,712,407
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 65,126	$ 40,933
Short-term investments	8,553	6,482
Accounts receivable, net	55,052	12,325
Other current assets	8,345	6,071
Total current assets	137,076	65,811
Property and equipment, net	31,707	30,427
Goodwill	197,807	66,893
Intangible assets, net	95,950	19,570
Long-term investments	1,529	10,215
Deferred income taxes, net	57,224	53,816
Other assets	7,321	7,999
Total assets	528,614	254,731
Current liabilities:
Accounts payable and accrued expenses	60,816	22,521
Deferred revenue	4,000	2,164
Current portion of debt, net of debt issuance costs	4,267	0
Contingent consideration, current	63,209	9,225
Total current liabilities	132,292	33,910
Long-term debt, net of debt issuance costs	157,353	0
Contingent consideration, long-term	0	15,790
Total liabilities	$ 289,645	$ 49,700
Commitments and contingencies
Stockholders' equity:
Common stock, $.001 par value Authorized shares: 47,500 in 2015 and 2014 Issued shares: 29,463 in 2015 and 28,763 in 2014 Outstanding shares: 16,697 in 2015 and 15,997 in 2014	$ 52	$ 51
Additional paid-in capital	716,253	678,075
Treasury stock, at cost, 12,766 shares in 2015 and 2014	(172,410)	(172,410)
Accumulated deficit	(304,944)	(300,746)
Accumulated other comprehensive income	18	61
Total stockholders' equity	238,969	205,031
Total liabilities and stockholders' equity	$ 528,614	$ 254,731

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2015	Dec. 31, 2014
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)	29,463	28,763
Common stock shares outstanding (in shares)	16,697	15,997
Treasury stock, shares (in shares)	12,766	12,766

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015		Dec. 31, 2014	Dec. 31, 2013
Revenues:
Service	$ 176,672		$ 115,696	$ 99,013
Product	18,283		16,883	16,580
Insurance	11,732		9,217	7,515
Customized postage	7,229		5,450	4,710
Other	41		23	1
Total revenues	213,957		147,269	127,819
Cost of revenues (exclusive of amortization of intangible assets, which is included in general and administrative expense):
Service	27,967		19,687	15,422
Product	5,971		5,516	5,694
Insurance	3,984		3,210	2,685
Customized postage	6,013		4,493	3,699
Total cost of revenues	43,935		32,906	27,500
Gross profit	170,022		114,363	100,319
Operating expenses:
Sales and marketing	56,144		43,659	39,449
Research and development	20,711		13,309	10,958
General and administrative	42,399		25,147	15,794
Contingent consideration charges	46,088		8,438	0
Litigation settlement	10,000		0	0
Total operating expenses	175,342		90,553	66,201
(Loss) income from operations	(5,320)		23,810	34,118
Interest expense	(397)		0	0
Interest income and other income, net	146		375	480
(Loss) income before taxes	(5,571)		24,185	34,598
Income tax benefit	(1,373)		(12,697)	(9,555)
Net (loss) income	$ (4,198)		$ 36,882	$ 44,153
Net (loss) income per share:
Basic (in dollars per share)	$ (0.26)		$ 2.30	$ 2.81
Diluted (in dollars per share)	$ (0.26)		$ 2.25	$ 2.71
Weighted average shares outstanding :
Basic (in shares)	16,436		16,011	15,691
Diluted (in shares)	16,436	[1]	16,417	16,298
[1]	Common equivalent shares are excluded from the diluted (loss) income per share as their effect is anti-dilutive.

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME [Abstract]
Net (loss) income	$ (4,198)	$ 36,882	$ 44,153
Other comprehensive (loss) income, net of tax:
Unrealized loss on investments	(43)	(79)	(111)
Comprehensive (loss) income	$ (4,241)	$ 36,803	$ 44,042

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock at Cost [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Total
Balance at Dec. 31, 2012	$ 50	$ 649,694	$ (155,260)	$ (381,781)	$ 251	$ 112,954
Balance (in shares) at Dec. 31, 2012	15,319
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	$ 0	0	0	44,153	0	44,153
Unrealized loss on investments	0	0	0	0	(111)	(111)
Stock-based compensation expense	0	4,492	0	0	0	4,492
Exercise of stock options	$ 1	13,424	0	0	0	$ 13,425
Exercise of stock options (in shares)	991					991
Shares issued under the ESPP	$ 0	1,114	0	0	0	$ 1,114
Shares issued under the ESPP (in shares)	56
Stock repurchase	$ 0	0	(4,262)	0	0	(4,262)
Stock repurchase (in shares)	(179)
Balance at Dec. 31, 2013	$ 51	668,724	(159,522)	(337,628)	140	171,765
Balance (in shares) at Dec. 31, 2013	16,187
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	$ 0	0	0	36,882	0	36,882
Unrealized loss on investments	0	0	0	0	(79)	(79)
Stock-based compensation expense	0	4,799	0	0	0	4,799
Exercise of stock options	$ 0	3,314	0	0	0	$ 3,314
Exercise of stock options (in shares)	203					203
Shares issued under the ESPP	$ 0	1,238	0	0	0	$ 1,238
Shares issued under the ESPP (in shares)	42
Stock repurchase	$ 0	0	(12,888)	0	0	(12,888)
Stock repurchase (in shares)	(435)
Balance at Dec. 31, 2014	$ 51	678,075	(172,410)	(300,746)	61	$ 205,031
Balance (in shares) at Dec. 31, 2014	15,997					15,997
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	$ 0	0	0	(4,198)	0	$ (4,198)
Unrealized loss on investments	0	0	0	0	(43)	(43)
Stock option windfall tax benefit	0	618	0	0	0	618
Issuance of shares for contingent consideration	$ 0	9,225	0	0	0	9,225
Issuance of shares for contingent consideration (in shares)	192
Stock-based compensation expense	$ 0	15,895	0	0	0	15,895
Exercise of stock options	$ 1	10,886	0	0	0	$ 10,887
Exercise of stock options (in shares)	459					459
Shares issued under the ESPP	$ 0	1,554	0	0	0	$ 1,554
Shares issued under the ESPP (in shares)	49
Balance at Dec. 31, 2015	$ 52	$ 716,253	$ (172,410)	$ (304,944)	$ 18	$ 238,969
Balance (in shares) at Dec. 31, 2015	16,697					16,697

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating activities:
Net (loss) income	$ (4,198)	$ 36,882	$ 44,153
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	7,702	4,833	2,538
Stock-based compensation expense	15,895	4,799	4,492
Deferred income taxes	(3,408)	(13,554)	(9,713)
Stock option windfall tax benefit	(618)	0	0
Accretion of debt issuance costs	31	0	0
Contingent consideration, including related compensation expense	47,419	8,773	0
Changes in operating assets and liabilities, net of assets and liabilities acquired:
Accounts receivable, net	(32,480)	5,787	(3,072)
Other current assets	(1,737)	557	(834)
Other assets	678	(3,208)	(1,034)
Deferred revenue	779	210	(107)
Accounts payable and accrued expenses	16,053	6,646	(667)
Net cash provided by operating activities	46,116	51,725	35,756
Investing activities:
Sale of short-term investments	6,424	6,556	6,159
Purchase of short-term investments	(2,438)	(6,536)	(6,454)
Sale of long-term investments	2,586	6,627	6,949
Purchase of long-term investments	0	(2,887)	(10,258)
Acquisition of ShipStation (net of cash acquired)	0	(48,883)	0
Acquisition of ShipWorks (net of cash acquired)	0	(21,149)	0
Acquisition of Endicia	(214,165)	0	0
Acquisition of property, equipment and intangibles	(2,291)	(2,858)	(5,282)
Net cash used in investing activities	(209,884)	(69,130)	(8,886)
Financing activities:
Proceeds from short term financing obligation, net of repayments	13,313	0	0
Proceeds from debt, net of debt issuance cost	162,620	0	0
Principal payment on term loan	(1,031)	0	0
Proceeds from exercise of stock options	10,887	3,314	13,425
Issuance of common stock under ESPP	1,554	1,238	1,114
Stock option windfall tax benefit	618	0	0
Repurchase of common stock	0	(12,888)	(4,311)
Net cash provided by (used in) financing activities	187,961	(8,336)	10,228
Net increase (decrease) in cash and cash equivalents	24,193	(25,741)	37,098
Cash and cash equivalents at beginning of period	40,933	66,674	29,576
Cash and cash equivalents at end of period	65,126	40,933	66,674
Supplemental cash flow information:
Income taxes paid during the period	956	856	362
Capital expenditures accrued but not paid at period end	78	6	572
Issuance of 2014 earn-out shares (see Note - 3 "Acquisitions")	$ 9,225	$ 0	$ 0

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2015
Description of Business [Abstract]
Description of Business	1. Description of Business Stamps.com Inc. and Subsidiaries (“the Company” or “we”) are the leading provider of Internet-based postage solutions. Our customers use our services to mail and ship a variety of mail pieces, including postcards, envelopes, flats and packages, using a wide range of United States Postal Service (the “USPS”) mail classes, including First Class Mail®, Priority Mail®, Priority Mail Express®, Media Mail®, Parcel Select®, and others. Customers using our service receive discounted postage rates compared to USPS retail rates on certain mail pieces such as First Class letters and domestic and international Priority Mail and Priority Mail Express packages. Our customers include individuals, small businesses, home offices, medium-size businesses and large enterprises, and within these segments we target both mailers and shippers. We were the first ever USPS-licensed vendor to offer mailing and shipping in a software-only business model in 1999. We also offer multi-carrier shipping solutions under the brand names ShipStation® and ShipWorks®.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Stamps.com Inc., Auctane LLC, Interapptive, Inc., PSI Systems Inc. and PhotoStamps Inc. In June 2014, we completed our acquisition of 100% of the outstanding equity of Auctane LLC, the Texas limited liability company that operates ShipStation (“Auctane LLC” or “ShipStation”) in a cash and contingent stock transaction. ShipStation, based in Austin, Texas, offers monthly subscription based e-commerce shipping software primarily under the brands ShipStation and Auctane. In August 2014, we completed our acquisition of 100% of the outstanding equity of Interapptive, Inc., a Missouri corporation, that operates ShipWorks (“Interapptive, Inc.” or “ShipWorks”) in a cash transaction. ShipWorks, based in St. Louis, Missouri, offers monthly subscription based e-commerce shipping software. In November 2015, we closed our transaction to acquire PSI Systems, Inc. (“Endicia”), which we entered into an agreement to purchase them in March 2015. See Note 3 – “Acquisitions” Because 100% of the voting control of Auctane LLC, Interapptive, Inc. and PSI Systems, Inc. is held by us, we have consolidated ShipStation, ShipWorks and Endicia from the date we obtained control in the accompanying consolidated financial statements. Similarly, due to our 100% control, PhotoStamps Inc. is also consolidated in the accompanying consolidated financial statements from the date of its inception. All significant intercompany accounts and transactions have been eliminated. Use of Estimates and Risk Management 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 financial statements and the accompanying notes. Actual results could differ from those estimates, and such differences may be material to the financial statements. Examples include estimates of loss contingencies, promotional coupon redemptions, the number of PhotoStamps retail boxes that will not be redeemed, realizability of deferred income taxes, the estimates and assumptions used to calculate the allocation of the purchase price related to our acquisitions, including related contingent consideration, and estimates regarding the useful lives of our building, patents and other amortizable intangible assets, and goodwill. Contingencies and Litigation 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. Cash Equivalents and Investments 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. Our cash equivalents and investments consisted of money market funds, U.S. government obligations, asset-backed securities and public corporate debt securities at December 31, 2015 and 2014. All investments are classified as available for sale and are recorded at market value using the specific identification method. Realized gains and losses are reflected in interest and other income, net while unrealized gains and losses are included as a separate component of stockholders' equity. Accounts Receivable Our accounts receivable relate to mailing and shipping services, postage invoicing, PhotoStamps sales, and branded insurance provided to customers prior to billing and other receivables. Accounts receivable are recorded at the invoiced amount, net of allowances for uncollectible accounts of approximately $831,000, $414,000 and $283,000 as of December 31, 2015, 2014 and 2013. We evaluate the collectability of our accounts receivable based on a combination of factors. If we become aware of a customer’s inability to meet its financial obligations, an allowance is recorded to reduce the net receivable to the amount reasonably believed to be collectible from the customer. For all other customers, we recognize allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment and our historical experience. If the financial condition of our customers deteriorates, resulting in their inability to make payments, additional provisions are recorded in that period. Accounts receivable are written off against the allowance for uncollectible accounts when we determine amounts are no longer collectible. Increases in allowance for doubtful accounts totaled approximately $417,000 and $131,000 for 2015 and 2014, respectively. There were no material write offs against the allowance for doubtful accounts during 2015, 2014 or 2013. Fair Value of Financial Instruments Carrying amounts of certain of our financial instruments, including cash, 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 fair value of our debt approximates book value. In 2014 the fair value of the contingent consideration was determined based on a probability weighted method, which incorporates management’s forecasts of financial measures and the likelihood of the financial measure targets being achieved using a series of options that replicate the pay-off structure of the earn-out, and the value of each of these options was determined using the Black-Scholes-Merton option pricing framework. Increases or decreases in the fair value of the contingent consideration obligations can result from changes in the assumed timing and amount of revenue and expense estimates, changes in the probability of payment scenarios, changes in stock values, as well as changes in capital market conditions, which impact the discount rate used in the fair valuation. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent reporting period during 2015. At 2015 the fair value of the contingent consideration was calculated by multiplying the expected earn-out shares by our stock price. During 2015 we incurred approximately $47.4 million of charges relating to our contingent consideration liability of which $46.1 million was recorded in contingent consideration charges and $1.3 million was recorded in marketing and research and development in operating expenses. Contingent consideration liability was approximately $63.2 million as of December 31, 2015. See Note 3 – “Acquisition” further description of the contingent consideration relating to ShipStation. Concentration of Risk Our cash, cash equivalents and investments are subject to market risk, primarily interest rate and credit risk. Our investments are managed by a limited number of outside professional managers within investment guidelines set by us. Such guidelines include security type, credit quality and maturity and are intended to limit market risk by restricting our investments. From time to time, our investments held with financial institutions may exceed Federal Deposit Insurance Corporation insurance limits. Interest rate fluctuations and changes in credit ratings impact the carrying value of our portfolio. During 2015, 2014 and 2013, we did not recognize revenue from any one customer that represented 10% or more of revenues. We do not have any customers representing 10% or more of total accounts receivable as of December 31, 2015 and 2014, respectively. We have accounts receivable from one partner that represented approximately 17% of the total accounts receivable balance as of December 31, 2014. Inventories Inventories consist of finished products sold through our supplies store and are accounted for using the lower of cost (first-in, first-out method) or market. Inventories reported as a component of other current assets in 2015 and 2014 were $3.5 million and $2.4 million, respectively. 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. 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. 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, liabilities assumed and non-controlling interests in the acquired entity 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, liabilities assumed and non-controlling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include 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. 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. There was no impairment to our goodwill related to the ShipStation and ShipWorks acquisitions. Goodwill related to the Endicia acquisition will be tested beginning on October 1, 2016. We do not believe there is any impairment to our Endicia goodwill as of December 31, 2015. 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 over the estimated useful lives of the assets, ranging from approximately 4 to 17 years. 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, tested at least annually for impairment while intangible assets that have finite useful lives continue to be amortized over their respective useful lives. Deferred Revenue Our deferred revenue relates mainly to service revenue and PhotoStamps retail boxes. Deferred revenue related to our service revenue generally arises due to the timing of payment versus the provision of services for certain customers billed in advance. We sell our PhotoStamps retail boxes to our customers through our website and selected third parties. Proceeds from the sale of our PhotoStamps retail boxes are initially recorded as a liability when received. We record the liability for outstanding PhotoStamps retail boxes in deferred revenue. 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. Service revenue is primarily derived from monthly service fees and transaction related revenues from our USPS mailing and shipping services, our multi-carrier shipping services and our mailing and shipping integrations, and is recognized in the period that services are provided. Product sales, net of return allowances, are recorded when the products are shipped and title passes to customers. Sales of items, including customized postage, sold to customers are made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier. Return allowances for expected product returns, which reduce product revenue, are estimated using historical experience. Commissions from the advertising or sale of products by a third party vendor to our customer base are recognized when the revenue is earned and collection is deemed probable. Customers purchase postage through our mailing and shipping solutions. If the postage purchase funds are transferred directly from the customers to the USPS, we do not recognize 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. Sale of PhotoStamps retail boxes are initially recorded as deferred revenue. PhotoStamps revenue related to the sale of these PhotoStamps retail boxes is subsequently recognized when either: 1) the PhotoStamps retail box is redeemed, or 2) the likelihood of the PhotoStamps retail box being redeemed is deemed remote (“breakage”) and there is no legal obligation to remit the value of the unredeemed PhotoStamps retail boxes. 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 2015, 2014 and 2013. 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 brokers. We recognize revenue on insurance purchases upon the ship date of the insured package. PhotoStamps Retail Boxes We sell PhotoStamps retail boxes that are redeemable for PhotoStamps on our website. The PhotoStamps retail boxes are sold through various third party retail partners. Our PhotoStamps retail boxes are not subject to administrative fees on unredeemed boxes and have no expiration date. PhotoStamps retail box sales are recorded as deferred revenue. We concluded that sufficient company-specific historical evidence existed to determine the period of time after which the likelihood of the PhotoStamps retail boxes being redeemed was remote. Based on our analysis of the redemption data, we estimate that period of time to be 60 months after the sale of our PhotoStamps retail boxes. We recognize breakage revenue related to our PhotoStamps retail boxes utilizing the redemption recognition method. Under the redemption recognition method, we recognize breakage revenue from unredeemed retail boxes in proportion to the revenue recognized from the retail boxes that have been redeemed. Revenue from our PhotoStamps retail boxes is included in PhotoStamps revenue. PhotoStamps retail box breakage revenue was not significant during 2015, 2014 and 2013. Cost of Revenue Cost of service revenue principally consists of the cost of customer service, certain promotional expenses, system operating costs, credit card processing fees and customer misprints that do not qualify for reimbursement from the USPS. Cost of product revenue principally consists of the cost of products sold through our Supplies Stores and the related costs of shipping and handling. The cost of insurance revenue principally consists of parcel insurance offering costs through our third party insurance partners. Cost of customized postage revenue principally consists of the face value of postage, image review costs and printing and fulfillment costs. Promotional Expense New PC Postage customers are typically offered promotional items that are redeemed using coupons that are qualified for redemption after a customer is successfully billed beyond an initial trial period. We account for our promotional expense in accordance with Accounting Standard Codification (“ASC”) 605-50-25, “Recognition – Vendor’s Accounting for Consideration Given to a Customer”, by recognizing a liability for promotional expense based on estimated amounts that will be claimed by customers unless the liability for promotional expense cannot be reasonably and reliably estimated. This includes free postage and a free digital scale and is expensed in the period in which a customer qualifies using estimated redemption rates based on historical data. We periodically review our historical redemption rates and adjust, if necessary, our estimated redemption rates for future periods. Promotional expense, which is included in cost of service, is incurred as customers qualify and thereby may not correlate directly with changes in revenue, as the revenue associated with the acquired customer is earned over the customer’s lifetime. During 2015, 2014 and 2013 promotional expense was $3.4 million, $3.1 million and $2.4 million, respectively. Research and Development Costs Research and development expense principally consist of compensation for personnel involved in the development of our services, depreciation of equipment and software and expenditures for consulting services and third party software. Sales and Marketing Sales and marketing expense principally consists of spending to acquire new customers and compensation and related expenses for personnel engaged in sales, marketing, and business development activities. Ongoing marketing programs include the following: traditional advertising, partnerships, customer referral programs, customer re-marketing efforts, telemarketing, direct sales, direct mail, and online advertising. Advertising Costs We expense the costs of producing advertisements as incurred, and expense the costs of communicating and placing the advertising in the period in which the advertising space or airtime is used. For the years ended December 31, 2015, 2014 and 2013, advertising and tradeshow costs were $10.8 million, $9.7 million and $10.3 million, respectively. Internet Advertising We recognize Internet advertising expense based on the specifics of the individual agreements. Under partner and affiliate agreements, third parties refer prospects to our web site, and we pay the third parties when the customer completes the customer registration process, or in some cases, upon the first successful billing of a customer. We record these expenses on a monthly basis as prospects are successfully converted to customers. Under Internet search advertising, we record expenses based on actual “click activity” on our displayed advertisements following targeted key word searches. General and Administrative General and administrative expense principally consists of compensation and related costs for executive and administrative personnel, fees for legal and other professional services, depreciation of equipment and software used for general corporate purposes and amortization of intangible assets. Income Taxes We account for income taxes in accordance with Financial Accounting Standards Board (“FASB”) ASC Topic No. 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the net deferred tax assets will not be realized. We record a valuation allowance to reduce our gross deferred tax assets, which are primarily comprised of U.S. Federal and State tax loss carry-forwards, to the amount that is more likely than not (a likelihood of more than 50 percent) to be realized. In order for us to realize our deferred tax assets, we must be able to generate sufficient taxable income. We evaluate the appropriateness of our deferred tax assets and related valuation allowance in accordance with ASC 740 based on all available positive and negative evidence. As of December 31, 2015 and 2014 we do not have any valuation allowance recorded to reduce our gross deferred tax assets as we believe we have met the more likely than not threshold we will realize our tax loss carry-forwards in the foreseeable future. Net (loss) Income per Share Net (loss) income per share represents net income attributable to common stockholders divided by the weighted average number of common shares outstanding during a reported period. The diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, including stock options (commonly and hereafter referred to as “common stock equivalents”), were exercised or converted into common stock. Diluted net income per share is calculated by dividing net (loss) income during a reported period by the sum of the weighted average number of common shares outstanding plus common stock equivalents for the period. The following table reconciles share amounts utilized to calculate basic and diluted net (loss) income per share (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Net (loss) income $ (4,198 ) $ 36,882 $ 44,153 Basic - weighted average common shares 16,436 16,011 15,691 Dilutive effect of common stock equivalents — (1) 406 607 Diluted - weighted average common shares 16,436 16,417 16,298 Net (loss) income per share: Basic $ (0.26 ) $ 2.30 $ 2.81 Diluted $ (0.26 ) $ 2.25 $ 2.71 (1) Common equivalent shares are excluded from the diluted (loss) earnings per share calculation as their effect is anti-dilutive. The shares related to the 2015 contingent consideration are not included because they are anti-dilutive. The calculation of dilutive shares excludes the effect of the following options that are considered anti-dilutive (in thousands): Year ended December 31, 2015 2014 2013 Anti-dilutive shares 3,596 134 65 Stock-Based Compensation We estimate the fair value of share-based payment awards on the date of grant using an option-pricing model and recognize stock-based compensation expense during each period based on the value of that portion of share-based payment awards that is ultimately expected to vest during the period, reduced for estimated forfeitures. We estimate forfeitures at the time of grant based on historical data and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Compensation expense recognized for all employee stock options granted is recognized using the straight-line method over their respective vesting periods of three to five years. The following table sets forth the stock-based compensation expense that we recognized for the periods indicated (in thousands): 2015 2014 2013 Stock-based compensation expense relating to: Employee and director stock options $ 16,644 $ 4,473 $ 3,751 Employee stock purchases 582 326 741 Total stock-based compensation expense $ 17,226 (1) $ 4,799 $ 4,492 Stock-based compensation expense relating to: Cost of revenues $ 995 $ 402 $ 406 Sales and marketing 4,549 955 864 Research and development 3,149 998 990 General and administrative 8,533 2,444 2,232 Total stock-based compensation expense $ 17,226 (1) $ 4,799 $ 4,492 (1) Included in this amount is $1.3 million of stock-based compensation expense relating to change in the fair value of our contingent consideration liability in connection with our acquisition of ShipStation. See Note - 3 “Acquisition” in the notes to our consolidated financial statements for further description. We use the Black-Scholes option valuation model to estimate the fair value of share-based payment awards on the date of grant, which requires us to make a number of highly complex 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. The following are the weighted average assumptions used in the Black-Scholes valuation model for the periods indicated: 2015 2014 2013 Risk-free interest rate 1.00 % 0.87 % 0.53 % Expected volatility 46 % 50 % 48 % Expected life (in years) 3.4 3.5 3.6 Expected forfeiture rate 6 % 6 % 7 % We elected to utilize the alternative transition method for calculating the tax effects of stock-based compensation. The alternative transition method includes computational guidance to establish the beginning balance of the additional paid-in capital pool (“APIC Pool”) related to the tax effects of employee stock-based compensation, and a simplified method to determine the subsequent impact on the APIC Pool for employee stock-based compensation awards that are vested and outstanding upon adoption of FASB ASC Topic No. 718 Compensation – Stock Compensation (“ASC 718”). A tax benefit will be recorded in additional paid-in capital when these deductions reduce our future income taxes payable. Treasury Stock We did not repurchase shares in 2015. During 2014 and 2013, we repurchased approximately 435,000 shares for $12.9 million and 179,000 shares for $4.3 million, respectively. Segment Information Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company's CODM reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company's Chief Executive Officer has been identified as the CODM as defined by guidance regarding segment disclosures. In 2015, the Company completed the reassessment of its segment reporting in light of its Endicia acquisition in late 2015. Based on this reassessment, the Company has identified two operating segments. Both operating segments aggregate into one reportable segment as the operating segments are similar as it relates to services offered, processes to provide the services, and types of customers, and have similar economic characteristics. The Company offers similar services consisting primarily of Internet-based mailing and shipping solutions to substantially all of its customers, which primarily consist of individuals, small businesses, home offices, medium-size businesses and large enterprises in the United States. In 2013 and 2014, all of our operations, revenue and assets were within the United States. In 2015, as a result of our Endicia acquisition, we had international revenue and assets that were less than 1% of total revenue and assets with the remainder in the United States. During 2015, 2014 and 2013, we did not recognize revenue from any one customer that represented 10% or more of revenues. Website Development Costs We develop and maintain our website. Costs associated with the operation of our website consist primarily of software and hardware purchased from third parties and administrative costs relating to the maintenance and development of the website. Costs related to the purchase of software and hardware are capitalized based on our capitalization policy. These capitalized costs are amortized based on their estimated useful life. Administrative costs related to the maintenance and development of our website are expensed as incurred. Short-Term Financing Obligation We utilize short-term financing, which is separate from our debt as described in Note – 7 “Debt,” to fund certain company operations. As of December 31, 2015 we had $13.3 million in short-term financing obligations, which was included in accounts payable and accrued expenses and $34.2 million of unused credit. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“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 Company 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 2017 and may be applied on a full retrospective or modified retrospective approach. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. In April 2015, the FASB issued a new standard simplifying the presentation of debt issuance costs. The new standard aligns the treatment of debt issuance costs with debt discounts and premiums and requires debt issuance costs be presented as a direct deduction from the carrying amount of the related debt. The standard is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted, and requires a retrospective method of adoption. We adopted the provisions of the new standard for the balance sheet disclosures of debt issuance costs as of December 31, 2015. In November 2015, the FASB issued guidance that requires deferred tax assets and liabilities to be presented as noncurrent in a classified statement of financial position. The guidance is effective beginning Janu

Acquisitions

Acquisitions	12 Months Ended
	Dec. 31, 2015
Acquisitions [Abstract]
Acquisitions	3. 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 (“ASC 805”). ShipStation Acquisition and Contingent Consideration On June 10, 2014, we acquired 100% of the outstanding equity of Auctane LLC, which operates ShipStation, in a cash and contingent stock transaction. ShipStation, based in Austin, Texas, offers monthly subscription based e-commerce shipping software primarily under the brands ShipStation and Auctane. ShipStation is a leading web-based shipping software solution that allows online retailers and e-commerce merchants to organize, process, fulfill and ship their orders quickly and easily. ShipStation supports automatic order importing from over 50 shopping carts and marketplaces, including eBay, Amazon, Shopify, Bigcommerce, Volusion, Squarespace and others. ShipStation offers multi-carrier shipping options, and automation features like custom hierarchical rules and product profiles that allow customers to easily and automatically optimize their shipping. Using ShipStation, an online retailer or e-commerce merchant can ship their orders from wherever they sell and however they ship. The total purchase price for ShipStation was approximately $66.2 million and was comprised of the following (in thousands, except shares): Fair Value Cash consideration $ 50,000 Fair value of performance linked earn-out of up to 768,900 shares of Stamps.com common stock (contingent consideration) 16,242 Total purchase price $ 66,242 The performance linked earn-out payment of Stamps.com shares (or contingent consideration) to former equity members of Auctane LLC is based on the achievement of certain financial measures within a future time period. There are two periods in which the earn-out payment will be calculated. The first earn-out period was based on the achievement of certain financial measures during the six months ended December 31, 2014. The second earn-out period is based on the achievement of certain financial measures during the twelve months ended December 31, 2015. The range of Stamps.com shares available for the performance linked earn-out for both periods is between 576,675 to 768,900 shares provided a minimum threshold for the financial measures is achieved. The current portion of the contingent consideration in 2014 represented the estimated fair value of the first earn-out. The first earn-out payment totaled 192,225 shares and was made in the first quarter of 2015. We expect the second earn-out payment to be distributed in the first quarter of 2016 for a total of 576,675 shares. The fair value of the contingent consideration was determined at the acquisition date based on a probability weighted method, which incorporated management’s forecasts of financial measures and the likelihood of the financial measure targets being achieved using a series of options that replicate the pay-off structure of the earn-out, and the value of each of these options was determined using the Black-Scholes-Merton option pricing framework. The total purchase price of the acquired company was allocated to the assets acquired and the liabilities assumed based on their fair values. We have made significant estimates and assumptions in determining the allocation of the purchase price. The following table is the allocation of the purchase price (in thousands, except years): Fair Value Fair Value Useful Life Weighted Average Estimated Useful Life (In Years) Cash and cash equivalents $ 1,117 Trade accounts receivable 254 Other assets 39 Property and equipment 187 Goodwill 50,544 Identifiable intangible assets: Trademark $ 500 4 Developed technology 5,300 8 Non-compete agreement 400 4 Customer relationship 9,000 8 Total identifiable intangible assets 15,200 8 Accrued expenses and other liabilities (835 ) Deferred revenue (264 ) Total purchase price $ 66,242 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 and the potential synergy of combining the operations of Stamps.com and ShipStation. We expect the entire amount of goodwill recorded in this acquisition will be deducted for tax purposes ratably over a 15 year period. The identified intangible assets consist of trademarks, 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 was determined using the “with and without” method. The estimated fair value of customer relationship was determined using the “excess earnings” method. The rate utilized to discount net cash flows to their present values was approximately 15% 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 relationship is amortized on a straight-line basis over their estimated useful lives. We expect the amortization of acquired intangibles will be approximately $500,000 per quarter for the remaining estimated useful lives. Under ASC 805, we are required to re-measure the fair value of the contingent consideration at each reporting period. The fair value of the contingent consideration for the ShipStation acquisition was $25.0 million and $63.2 million as of December 31, 2014 and 2015, respectively. In 2014, the fair value of the contingent consideration was determined based on a probability weighted method, which incorporated management’s forecasts of financial measures and the likelihood of the financial measure targets being achieved using a series of options that replicate the pay-off structure of the earn-out, and the value of each of these options was determined using the Black-Scholes-Merton option pricing framework. Increases or decreases in the fair value of the contingent consideration can result from changes in the assumed timing and amount of revenue and expense estimates, changes in the probability of payment scenarios, changes in stock values, as well as changes in capital market conditions, which impact the discount rate used in the fair valuation. Significant judgment was employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent reporting period. As of December 31, 2015, the fair value of the contingent consideration was calculated by multiplying the expected earn-out shares to be distributed by our stock price at December 31, 2015. ShipWorks Acquisition On August 29, 2014, we acquired 100% of the outstanding equity of Interapptive Inc., which operates ShipWorks, in a cash transaction. ShipWorks, based in St. Louis, Missouri, offers monthly subscription based e-commerce shipping software that provides simple, powerful and easy to use solutions for online sellers. ShipWorks solutions integrate with over 50 popular online sales and marketplaces systems including eBay, PayPal, Amazon, Yahoo! and others. ShipWorks offers multi-carrier shipping options and features including sending email notifications to buyers, updating online order status, generating reports and many more. During the fourth quarter of 2014, we adjusted the purchase price of ShipWorks by approximately $69,000. The total purchase price for ShipWorks was approximately $22.1 million and was comprised of the following (in thousands, except shares): Fair Value Cash consideration $ 21,952 Deferred consideration 181 Total purchase price $ 22,133 The total purchase price of the acquired company was allocated to the assets acquired and the liabilities assumed based on their fair values. We have made significant estimates and assumptions in determining the allocation of the purchase price. The following table is the allocation of the purchase price (in thousands, except years): Fair Value Fair Value Useful Life Weighted Average Estimated Useful Life (In Years) Cash and cash equivalents $ 803 Trade accounts receivable 353 Other assets 21 Property and equipment 1,091 Goodwill 16,349 Identifiable intangible assets: Trademark $ 200 6 Developed technology 1,700 7 Non-compete agreement 700 4 Customer relationship 2,300 6 Total identifiable intangible assets 4,900 6 Accrued expenses and other liabilities (1,119 ) Deferred revenue (265 ) Total purchase price $ 22,133 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 and the potential synergy of combining the operations of Stamps.com and ShipWorks. We expect the entire amount of goodwill recorded in this acquisition will be deducted for tax purposes ratably over a 15 year period. The identified intangible assets consist of trademarks, 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 was determined using the “with and without” method. The estimated fair value of customer relationship was determined using the “excess earnings” method. The rate utilized to discount net cash flows to their present values was approximately 13% 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 relationship is amortized on a straight-line basis over their estimated useful lives. We expect the amortization of acquired intangibles will be approximately $200,000 per quarter for the remaining estimated useful lives. Endicia Acquisition On March 22, 2015 we entered into a Stock Purchase Agreement (“Stock Purchase Agreement”) with PSI Systems, Inc., a California corporation d/b/a Endicia (“Endicia”), and Newell Rubbermaid Inc., a Delaware corporation (“Newell”). Endicia, based in Palo Alto, California, is a leading provider of high volume shipping technologies and solutions for shipping with the USPS. The Stock Purchase Agreement provides for our purchase of all of the issued and outstanding shares of common stock of Endicia from a wholly-owned indirect subsidiary of Newell (“Transaction”) for an aggregate purchase price of $215 million in cash. The purchase price was subject to adjustment for changes in Endicia’s net working capital as of the date of the closing of the Transaction and certain transaction expenses and closing cash adjustments. After receiving regulatory clearance, the Transaction was closed on November 18, 2015. As part of the funding of our acquisition of Endicia, we entered into a credit agreement with a group of banks on November 18, 2015, which provides for a term loan of $82.5 million and a revolving credit facility with a maximum borrowing of $82.5 million (collectively, the “Credit Agreement”) to fund our acquisition of Endicia. The Credit Agreement is secured by substantially all of our assets. We funded our acquisition with cash of $56.5 million and debt from our Credit Agreement of $164.5 million, totaling $221.0 million. The $221.0 million consists of the following: 1) purchase price of $214.2 million, 2) $1.5 million of debt issuance costs and 3) the transfer of Endicia’s ending cash balance on November 17, 2015 of $5.3 million. Total debt issuance costs of $1.8 million, which includes $300 thousand of costs incurred prior to closing, were recorded as debt discount and are being accreted as interest expense over the life of the Credit Agreement. Our Credit Agreement matures on November 18, 2020. As of December 31, 2015 our outstanding debt under the revolving credit facility was approximately $82.0 million. As of December 31, 2015 our outstanding debt under the Credit Agreement, gross of debt issuance costs, was approximately $81.5 million under the term loan and approximately $82.0 million under the revolving credit facility. Because we have a letter of credit of approximately $500,000 relating to a facility lease, we do not have any available or unused borrowings under the revolving credit facility. See Note 7 – “Debt” The total purchase price for the Endicia acquisition was approximately $214 million, net of a $835,000 net working capital adjustment. The total estimated purchase price of the acquired company is allocated to the assets acquired and the liabilities assumed based on their fair values. We have made significant estimates and assumptions in determining the allocation of the purchase price. The preliminary allocation of purchase consideration is subject to change based on finalizing the net working capital as of the date of acquisition. The following table is the allocation of the purchase price (in thousands, except years): Fair Value Fair Value Useful Life Weighted Average Estimated Useful Life (In Years) Trade accounts receivable $ 10,247 Other assets 771 Property and equipment 2,798 Goodwill 130,914 Identifiable intangible assets: Trade name $ 10,900 Indefinite Developed technology 26,100 9 Customer relationship 43,200 6 Total identifiable intangible assets 80,200 7 Accrued expenses and other liabilities (9,709 ) Deferred revenue (1,056 ) Total purchase price $ 214,165 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 and the potential synergy of combining the operations of Stamps.com and Endicia. Such synergies include estimated cost reductions and enhanced sales and customer support which is expected to drive increased volume. We expect the entire amount of goodwill recorded in this acquisition will be deducted for tax purposes ratably over a 15 year period. The identified intangible assets consist of trade name, developed technology and customer relationships. The estimated fair values of the trade name and developed technology were determined using the “relief from royalty” method. The estimated fair value of customer relationship was determined using the “excess earnings” method. The rate utilized to discount net cash flows to their present values was approximately 20% 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. Developed technology and customer relationship will be amortized on a straight-line basis over their estimated useful lives. We expect the amortization of acquired intangibles will be approximately $2.3 million per quarter for the remaining estimated useful lives. We incurred approximately $4.4 million and $1.1 million in acquisition and integration related corporate development expenses during the years ended December 31, 2015 and 2014, respectively. These costs are included in general and administrative expense in our Consolidated Statements of Operations. Pro-Forma Financial Information (unaudited) The pro-forma information presented is for illustrative purposes only and is not necessarily indicative of the results of operations that would have been realized if the acquisition had been completed on the date indicated, nor is it indicative of future operating results. The pro-forma financial information does not include any adjustments for anticipated operating efficiencies or cost savings. The following table presents the pro-forma financial information (in thousands, except per share amounts) and assumes the acquisition of Endicia occurred on January 1, 2014: Year Ended December 31, 2015 2014 Revenue $ 273,055 $ 204,628 (Loss) income from operations (7,657 ) 20,820 Net (loss) income (9,273 ) 32,536 (1) Basic (loss) earnings per share $ (0.58 ) $ 2.03 Diluted (loss) earnings per share $ (0.58 ) $ 1.98 (1) Pro-forma net income of $32.5 million in 2014 includes valuation allowance releases of $13.6 million. The following table presents the pro-forma financial information (in thousands, except per share amounts) and assumes the acquisition of ShipStation and ShipWorks occurred on January 1, 2013. Contingent consideration charge of approximately $8.8 million recognized in 2014 is excluded from the pro-forma information below: Year Ended December 31, 2014 2013 Revenue $ 154,459 $ 137,626 Income from operations 32,873 33,208 Net income 32,342 56,691 (1) Basic earnings per share $ 2.02 $ 3.61 Diluted earnings per share $ 1.97 $ 3.48 (1) Pro-forma net income of $56.7 million in 2013 includes valuation allowance releases of $13.6 million and $9.7 million recognized in 2014 and 2013, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets [Abstract]
Goodwill and Intangible Assets	4. Goodwill and Intangible Assets 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 business combinations. The following table summarizes goodwill as of December 31, 2014 and 2015 (in thousands): 2014 Goodwill balance at December 31, 2013 $ — Acquisitions (see Note 3 – “Acquisitions”) 66,893 Goodwill balance at December 31, 2014 $ 66,893 2015 Goodwill balance at December 31, 2014 $ 66,893 Acquisitions (see Note 3 – “Acquisitions”) 130,914 Goodwill balance at December 31, 2015 $ 197,807 Goodwill is reviewed for impairment annually on October 1 st We have amortizable and non-amortizable intangible assets consisting of patents, trademarks, trade names, lease-in-place intangible assets, developed technology, non-compete agreements and customer relationships totaling approximately $109.7 million and $29.5 million in gross carrying amount as of December 31, 2015 and 2014, respectively. Our indefinite-lived intangible assets consist of trade and domain name totaling approximately $11.4 million and $490,000 as of December 31, 2015 and 2014, respectively. The following table summarizes our amortizable intangible assets as of December 31, 2015 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and others $ 8,889 $ 8,729 $ 160 Customer Relationship 54,500 2,773 51,727 Technology 33,100 1,598 31,502 Non-Compete 1,100 389 711 Trademark 700 239 461 Total Intangible assets at December 31, 2015 $ 98,289 $ 13,728 $ 84,561 The following table summarizes our amortizable intangible assets as of December 31, 2014 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and others $ 9,378 $ 8,514 $ 864 Customer Relationship 11,300 751 10,549 Technology 7,000 449 6,551 Non-Compete 1,100 114 986 Trademark 700 80 620 Total Intangible assets at December 31, 2014 $ 29,478 $ 9,908 $ 19,570 We recorded amortization of intangible assets totaling approximately $3.8 million, $1.6 million and $215,000 for the years ended December 31, 2015, 2014 and 2013, respectively, which is included in general and administrative expense in our accompanying consolidated statements of operations. As of December 31, 2015, the remaining weighted average amortization period for our amortizable intangible assets is approximately 7 years. Our estimated amortization expense for the next five years and thereafter is as follows (in thousands): Twelve Month Period Ending December 31, Estimated Amortization Expense 2016 $ 13,080 2017 12,995 2018 12,881 2019 12,572 2020 12,410 Thereafter $ 20,693

Cash, Cash Equivalents and Inve

Cash, Cash Equivalents and Investments	12 Months Ended
	Dec. 31, 2015
Cash, Cash Equivalents and Investments [Abstract]
Cash, Cash Equivalents and Investments	5. Cash, Cash Equivalents and Investments Our cash equivalents and investments consist of money market, U.S. government obligations, asset-backed securities and public corporate debt securities at December 31, 2015 and 2014. 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 investments are classified as available for sale and are recorded at market 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 realized gain or loss with respect to our investments during 2015, 2014 and 2013. 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. We have six securities with a total fair value of $2.9 million that have unrealized losses of approximately $6,000 as of December 31, 2015. 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 2015, 2014 and 2013 after evaluating a number of factors including, but not limited to: • How much fair value has declined below amortized cost • The financial condition of the issuers • Significant rating agency changes on the issuers • 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 table summarizes our cash, cash equivalents, and investments as of December 31, 2015 and 2014 (in thousands): December 31, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash $ 63,593 — — $ 63,593 Money market 1,533 — — 1,533 Cash and cash equivalents 65,126 — — 65,126 Short-term investments: Corporate bonds and asset backed securities 8,549 7 (3 ) 8,553 Short-term investments 8,549 7 (3 ) 8,553 Long-term investments: Corporate bonds and asset backed securities 1,515 17 (3 ) 1,529 Long-term investments 1,515 17 (3 ) 1,529 Cash and cash equivalents and investments $ 75,190 24 (6 ) $ 75,208 December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash $ 37,870 — — $ 37,870 Money market 3,063 — — 3,063 Cash and cash equivalents 40,933 — — 40,933 Short-term investments: Corporate bonds and asset backed securities 4,960 23 (1 ) 4,982 U.S. government and agency securities 1,498 2 — 1,500 Short-term investments 6,458 25 (1 ) 6,482 Long-term investments: Corporate bonds and asset backed securities 10,178 46 (9 ) 10,215 Long-term investments 10,178 46 (9 ) 10,215 Cash and cash equivalents and investments $ 57,569 71 (10 ) $ 57,630 The following table summarizes contractual maturities of our marketable fixed-income securities as of December 31, 2015 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 8,549 $ 8,553 Due after one year through five years 1,515 1,529 Total $ 10,064 $ 10,082

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements [Abstract]
Fair Value Measurements	6. 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 table summarizes our financial assets measured at fair value on a recurring basis as of December 31, 2015 and 2014 (in thousands): Fair Value Measurement at Reporting Date Using Description December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 65,126 $ 65,126 $ — $ — Available-for-sale debt securities 10,082 — 10,082 — Total $ 75,208 $ 65,126 $ 10,082 $ — Fair Value Measurement at Reporting Date Using Description December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 40,933 $ 40,933 $ — $ — Available-for-sale debt securities 16,697 — 16,697 — Total $ 57,630 $ 40,933 $ 16,697 $ — 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. As of December 31, 2015 and 2014 we had $63.2 million and $25.0 million, respectively, of contingent consideration relating to our acquisition of ShipStation (see Note 3 – “Acquisitions”) that was required to be measured at fair value. The following table summarizes our contingent consideration measured at fair value on a recurring basis (in thousands): Fair Value Measurement at Reporting Date Using Description December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Contingent consideration – current $ 63,209 $ 63,209 $ — $ — Fair Value Measurement at Reporting Date Using Description December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Contingent consideration – current $ 9,225 $ — $ — $ 9,225 Contingent consideration – long-term 15,790 — — 15,790 Total $ 25,015 $ — $ — $ 25,015 The following table represents a reconciliation of contingent consideration obligation measured on a recurring basis using significant unobservable inputs (level 3) as of December 31 , 2014 and then transferred to quoted prices in active markets (level 1) as of December 31, 2015 (in thousands): 2015 Beginning of year balance $ 25,015 Contingent consideration distribution (9,225 ) Contingent consideration charges (1) 46,088 Contingent consideration compensation expense (1) 1,331 End of year balance $ 63,209 (1) This amount represents fair value adjustment during the year to contingent consideration recorded associated with the acquisition of ShipStation. The $46.1 million contingent consideration charge is recorded as a separate line item in our consolidated statement of income. The $1.3 million contingent consideration charge relating to certain employees is recorded in general and administrative expense in operating expense. See Note 3 – “Acquisitions” for further description. At December 31, 2015, the contingent consideration obligation was transferred from level 3 to level 1.

Debt

Debt	12 Months Ended
	Dec. 31, 2015
Debt [Abstract]
Debt	7. Debt On November 18, 2015, we entered into a credit agreement with a group of banks, which provides for a term loan of $82.5 million and a revolving credit facility with a maximum borrowing of $82.5 million (collectively, the “Credit Agreement). The Credit Agreement is secured by substantially all of our assets. Our Credit Agreement matures on November 18, 2020. In connection with entering into the Credit Agreement, we incurred approximately $1.8 million in debt issuance costs which were recorded as debt discount and are being accreted as interest expense over the life of the Credit Agreement. Interest expense associated with the debit issuance costs for the year ended December 31, 2015 was approximately $31,000. As of December 31, 2015 our outstanding debt under the Credit Agreement, gross of debt issuance costs, was approximately $81.5 million under our term loan and approximately $82.0 million under our revolving credit facility. Because we have a letter of credit of approximately $500,000 relating to a facility lease, we do not have any available or unused borrowings under the revolving credit facility. Borrowings under the term loan are payable in quarterly installments which began on December 31, 2015. We pay interest on our Credit Agreement equal to the London Interbank Offered Rate plus an applicable margin, between 1.25% to 2.00%, based upon certain financial measures. As of December 31, 2015, our applicable margin was 1.5% and the interest rate on our outstanding loan was approximately 1.86%. We are subject to certain customary quarterly financial covenants under our Credit Agreement such as a maximum total leverage ratio and a minimum fixed charge coverage ratio. Further, the Credit Agreement includes negative covenants, subject to exceptions, restricting or limiting our ability and the ability of our subsidiaries to, among other things, incur additional indebtedness, grant liens, repurchase stock, pay dividends and engage in certain investment, acquisition and disposition transactions. As of December 31, 2015, we were in compliance with the covenants of the Credit Agreement. The contractual maturities of our debt obligations due subsequent to December 31, 2015 are as follows (in thousands): Amount 2016 $ 4,641 2017 6,703 2018 8,766 2019 10,828 2020 132,521 Total debt 163,459 Less debt issuance costs 1,839 Total debt, net of debt issuance costs $ 161,620

Accounts Payable and Accrued Ex

Accounts Payable and Accrued Expenses	12 Months Ended
	Dec. 31, 2015
Accounts Payable and Accrued Expenses [Abstract]
Accounts Payable and Accrued Expenses	8. Accounts Payable and Accrued Expenses The following table summarizes our accounts payable and accrued expenses as of December 31, 2015 and 2014 (in thousands): 2015 2014 Payroll and related accrual $ 12,863 $ 6,225 Cost of revenue, inventory and materials accrual 539 2,187 Construction and facility expense accrual 649 439 Professional fees accrual 1,973 1,402 Sales and marketing related accrual 5,145 3,252 Operating expenses related accrual 28,926 4,920 Other accruals 10,721 4,096 Accounts payable and accrued expenses $ 60,816 $ 22,521

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2015
Property and Equipment [Abstract]
Property and Equipment	9. Property and Equipment Property and equipment is summarized as follows (in thousands): 2015 2014 Land $ 7,156 $ 7,156 Building 4,886 4,886 Building improvements 14,048 13,942 Leasehold improvements 1,055 747 Furniture and equipment 2,016 1,709 Computers and software 18,920 14,479 48,081 42,919 Less accumulated depreciation and amortization (16,374 ) (12,492 ) Property and equipment, net $ 31,707 $ 30,427 During 2015, 2014 and 2013, depreciation expense was approximately $3.9 million, $3.2 million and $2.4 million, respectively.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Taxes [Abstract]
Income Taxes	10. Income Taxes In 2015, our net income tax benefit of $1.4 million consisted of current income tax expense consisting of federal alternative minimum tax and various state taxes and deferred income tax benefit consisting of temporary tax items including contingent consideration, stock compensation and differences in the book and tax lives of amortizable intangibles. In addition, the deferred income tax benefit consisted of a change in the federal statutory rate from 34% to 35%. Our effective income tax rate differs from the statutory income tax rate primarily as a result of permanent tax adjustments for nondeductible items and changes of federal and state tax rates. We evaluated the appropriateness of our deferred tax assets and related valuation allowance in accordance with ASC 740 based on all available positive and negative evidence. During 2015, we recorded current income tax expense for alternative minimum federal taxes and state taxes of $1.4 million and deferred income tax benefit resulting from pre-tax book losses which included temporary tax adjustments for contingent consideration obligation, stock-based compensation and amortization of definite-lived intangible assets as well as various federal and state rate changes totaling approximately $2.8 million, totaling to a net income tax benefit of $1.4 million. During 2014 we recorded current income tax expense for alternative minimum federal taxes and state taxes of $856,000 and deferred income tax benefit for the release of our valuation allowance totaling approximately $13.6 million, totaling to a net income tax benefit of $12.7 million. During 2013 we recorded current income tax expense for alternative minimum federal and state taxes of $158,000 and deferred income tax benefit for the release of our valuation allowance totaling approximately $9.7 million, totaling to a net income tax benefit of $9.6 million. As of December 31, 2015, we have approximately $57 million of net deferred tax assets and we do not have any valuation allowance. In determining that a valuation allowance was not necessary, we considered the available positive and negative evidence, including our recent earnings trend, expected future income and the federal and state effective tax rates related to the future income. Under the guidance related to uncertain tax positions, we are required to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. A tax position that meets the more likely than not recognition threshold is measured to determine the amount of liability or benefit to recognize in the financial statements. In accordance with the guidance we have evaluated our research and development tax credits for uncertain tax positions. As of December 31, 2015 we have research and development tax credits totaling $3.5 million, net of unrecognized tax benefit for Federal and California purposes. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013 (in thousands): Unrecognized Tax Benefits Balance at December 31, 2012 $ (1,905 ) Reduction for tax positions of prior years — Addition for tax position of the current year (409 ) Settlement — Balance at December 31, 2013 $ (2,314 ) Addition for tax positions of prior years (2,349 ) Addition for tax position of the current year (560 ) Settlement — Balance at December 31, 2014 $ (5,223 ) Additions for tax positions of prior years (251 ) Additions for tax position of the current year (560 ) Settlement — Balance at December 31, 2015 $ (6,034 ) Our policy is to recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. There was no material interest or penalty expense during the years ended December 31, 2015, 2014 and 2013. We are subject to taxation in the U.S. and various state jurisdictions. We are subject to income tax examination by U.S. and state tax authorities for the calendar year ended December 31, 2012 and forward. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where NOLs and credits were generated and carried forward, and make adjustments up to the amount of the NOLs and credits utilized in open tax years. Our effective income tax rate differs from the statutory income tax rate primarily as a result of permanent tax adjustments for nondeductible items and changes of federal and state tax rates. The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at December 31, 2015 and 2014 are presented below (in thousands): 2015 2014 Deferred tax assets (liabilities): Net operating loss carryforward $ 22,024 $ 41,827 Tax credits 6,872 5,992 Depreciation (464 ) (571 ) Definite lived intangibles 2,946 768 Indefinite lived intangibles (1,922 ) (557 ) Contingent consideration 20,742 3,133 Stock Compensation 4,800 1,412 Accruals 2,226 1,812 Total net deferred tax assets 57,224 53,816 Valuation allowance — — Net deferred tax assets $ 57,224 $ 53,816 We have NOL carry-forwards of approximately $123 million and $1.5 million for federal and state income tax purposes, respectively, at December 31, 2015 which can be carried forward to offset future taxable income. We have available tax credit carry-forwards of approximately $4.9 million and $1.9 million, net of unrecognized tax benefit for federal and state income tax purposes, respectively at December 31, 2015, which can be carried forward to offset future taxable liabilities. Our federal NOLs will begin to expire in 2020. The federal tax credits begin to expire in 2018. Under California law, California tax credits do not have an expiration date. We recognize excess tax benefits associated with the exercise of stock options directly to stockholders’ equity only when realized. We have made an accounting policy election to exclude from the measurement of the excess tax deduction any indirect effects of the tax deduction. Accordingly, deferred tax assets are not recognized for NOL carry-forwards resulting from excess tax benefits. As of December 31, 2015, deferred tax assets do not include approximately $21.2 million of these tax-effected excess tax benefits from employee stock option exercises that are a component of our NOL carry-forwards. Accordingly, additional paid-in capital will increase up to an additional $21.2 million if and when such excess tax benefits are realized. Based on our election under ASC 718 to use the “with-and-without” approach when utilizing net operating losses consisting of other operating losses and excess tax benefits, the excess tax benefit will be deemed to be the last benefit utilized, and in accordance with ASC 718, benefits for share based payments are not recorded to APIC until such payments result in a reduction to income taxes payable. Our 2015 income tax provision utilized state APIC tainted net operating loss in the current year resulting in a reduction to income taxes payable and a benefit to APIC in the amount of $618,000. The Federal Tax Reform Act of 1986 and similar state tax laws contain provisions that may limit the NOL carryforwards to be used in any given year upon the occurrence of certain events, including a significant change in ownership interests. We maintain a study to understand the status of net operating losses. Based on that study, we believe that we have not undergone an Internal Revenue Code (IRC) Section 382 change of ownership that would trigger an impairment of the use of our NOLs since our secondary offering in December 1999. Under IRC Section 382 rules, a change in ownership can occur whenever there is a shift in ownership by more than 50 percentage points by one or more “5% shareholders” within a three-year period. When a change of ownership is triggered, the NOLs may be impaired. We estimate that, as of December 31, 2015 we were at approximately 10% level compared with the 50% level that would trigger impairment of our NOLs. The income tax expense (benefit) consists of (in thousands): 2015 2014 2013 Current: Federal $ 806 $ 730 $ 226 State 611 127 (68 ) 1,417 857 158 Deferred: Federal (596 ) (14,286 ) (7,842 ) State (1,341 ) 652 (1,082 ) Adjustment for change in tax rate (1,471 ) 80 (789 ) APIC charge on excess tax benefits 618 — — (2,790 ) (13,554 ) (9,713 ) Benefit for income taxes $ (1,373 ) $ (12,697 ) $ (9,555 ) Differences between the benefit for income taxes and income taxes at the statutory federal income tax rate are as follows (in thousands): 2015 2014 2013 Income tax at statutory federal rate $ (1,950 ) $ 8,223 $ 11,764 Stock-based compensation 851 497 184 Nondeductible items 875 15 15 Research and development (560 ) (560 ) (701 ) ASC 740-10 732 560 205 Change in tax rate (1,471 ) 80 (789 ) Change in valuation allowance — (13,554 ) (9,713 ) Other changes in valuation allowance, net — (11,480 ) (10,364 ) Other, net 150 3,522 (156 ) $ (1,373 ) $ (12,697 ) $ (9,555 ) In the fourth quarter of 2015, we revised our estimated annual effective tax rate to reflect a change in the federal and state statutory rates effective January 1, 2015. As a result, we recorded a $1.5 million deferred tax benefit from the application of the change in tax rate to the net deferred tax assets. In addition, there is no current tax expense impact as a result of these statutory rate changes due to alternative minimum tax.

Employee Stock Plans

Employee Stock Plans	12 Months Ended
	Dec. 31, 2015
Employee Stock Plans [Abstract]
Employee Stock Plans	11. Employee Stock Plans Stock Incentive Plans Our 1999 Stock Incentive Plan (the “1999 Plan”), which became effective in June 1999, was the successor to the 1998 Stock Plan (the “1998 Plan”). Upon approval of the 1999 Plan, all outstanding options under the 1998 Plan were transferred to the 1999 Plan, and no further option grants were made under the 1998 Plan. All outstanding options under the 1998 Plan continue to be governed by the terms and conditions of the existing option agreements for those grants, unless our compensation committee decides to extend one or more features of the 1999 Plan to those options. In June 2009, our 1999 Plan expired and no further options grants were made under the 1999 Plan. Our 2010 Equity Incentive Plan (the “2010 Plan”) was approved by our stockholders in June 2010. Under the 2010 Plan, we are authorized to issue 3,500,000 shares of common stock and stock units, although “full value” awards (such as restricted stock and restricted stock units) will be counted against the 2010 Plan’s overall limits as two shares (rather than one), while options and stock appreciation rights will be counted as one share. On September 9, 2014, our Board of Directors approved an amendment (the “Amendment”) to our 2010 Plan, which was approved by our shareholders on June 17, 2015. Pursuant to the Amendment, the maximum aggregate number of shares of common stock and stock equivalents available for the grant of awards under the 2010 Plan was increased by an additional 2,100,000 shares. Except for the Amendment to the Plan to increase the number of awards, the Plan otherwise remains unchanged. On April 9, 2015, pursuant to the Amendment, our compensation committee approved additional performance-based stock option grants for certain of our employees. These additional option awards granted under the Amendment vest monthly in equal parts over a 36-month period commencing upon the closing of our acquisition of Endicia. The number of options issued was approximately 175,000. For these awards subject to performance conditions, the fair value per award is fixed at the grant date on June 17, 2015, the date the Amendment was approved by the shareholders. The total stock-based compensation expense for these performance-based awards was approximately $646,000 for the year ended December 31, 2015. A summary of stock option activity is as follows (in thousands, except per share amounts): Options Outstanding Weighted Average Exercise Price Number of Options Balance at December 31, 2012 1,861 $ 14.33 Granted 164 34.29 Forfeited (38 ) 21.57 Exercised (991 ) 13.55 Balance at December 31, 2013 996 $ 18.12 Granted 2,251 32.55 Forfeited (75 ) 35.96 Exercised (203 ) 16.34 Balance at December 31, 2014 2,969 $ 28.91 Granted 694 65.96 Forfeited (98 ) 37.43 Exercised (459 ) 23.73 Balance at December 31, 2015 3,106 $ 37.75 The weighted-average fair value of stock options granted for 2015, 2014 and 2013 using the Black-Scholes valuation method are as follows: 2015 2014 2013 Weighted-average fair value of stock options with an exercise price equal to the market price on the grant date $ 23.19 $ 11.87 $ 13.48 Weighted-average fair value of stock options with an exercise price greater than the market price on the grant date — — — Total $ 23.19 $ 11.87 $ 13.48 Weighted average exercise prices for stock options exercised in 2015 are as follows: 2015 Weighted-average exercise price of stock options with an exercise price equal to the market price on the grant date $ 23.73 Weighted-average exercise price of stock options with an exercise price greater than the market price on the grant date — Total weighted-average exercise price $ 23.73 The following tables summarize information concerning outstanding and exercisable options at December 31, 2015 (in thousands, except number of years and per share amounts): Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (in Years) Weighted Average Exercise Price per Share Number Exercisable Weighted Average Exercise Price per Share $0.00 - $9.99 21 3.3 $ 9.17 21 $ 9.17 $10.00 - $19.99 298 4.8 12.57 298 12.57 $20.00 - $29.99 123 6.6 26.07 87 25.51 $30.00 - $39.99 1,944 8.7 32.57 720 32.65 $40.00 - $49.99 100 8.6 45.28 26 44.80 $50.00 - $59.99 127 9.2 58.25 30 58.25 $60.00 - $69.99 230 9.3 65.92 8 66.30 $70.00 - $70.99 249 9.6 73.29 16 71.10 $100.00 - $109.99 14 9.9 101.32 — — $0.00 - $100.99 3,106 8.3 $ 37.75 1,206 $ 28.40 The following table summarizes stock option activity for 2015: Number of Stock Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2014 2,969 $ 28.91 Granted 694 65.96 Exercised (459 ) 23.73 Forfeited or expired (98 ) 37.43 Balance at December 31, 2015 3,106 $ 37.75 8.3 $ 223,214 Exercisable at December 31, 2015 1,206 $ 28.40 7.5 $ 97,944 The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing stock price of $109.61 at December 31, 2015, the last trading day of 2015, which would have been received by award holders had all award holders exercised their awards that were in-the-money as of that date. The weighted average grant date fair value of options granted during 2015, 2014 and 2013 was $23.19, $11.87 and $13.48, respectively. The weighted average grant date fair value of options vested during 2015, 2014 and 2013 was $12.46, $8.44 and $5.47, respectively. The total intrinsic value of options exercised during 2015, 2014 and 2013 was approximately $39.4 million, $6.4 million and $24.0 million, respectively. The following table summarizes the status of our non-vested stock options as of December 31, 2015: Non-vested Number of Stock Options (in thousands) Weighted Average Grant Date Fair Value Non-vested at December 31, 2014 2,163 $ 11.84 Granted 694 23.19 Vested (858 ) 12.46 Forfeited / Cancelled (99 ) 13.37 Non-vested at December 31, 2015 1,900 $ 29.62 As of December 31, 2015, there was $55.1 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of approximately 2 years. Employee Stock Purchase Plan In June 1999, our Board of Directors adopted an Employee Stock Purchase Plan (ESPP), which allows our eligible employees to purchase shares of common stock, at semi-annual intervals, with their accumulated payroll deductions. Eligible participants may contribute up to 15% of cash earnings through payroll deductions, and the accumulated deductions will be applied to the purchase of shares on each semi-annual purchase date. The purchase price per share is equal to 85% of the fair market value per share on the participant’s entry date into the offering period or, if lower, 85% of the fair market value per share on the semi-annual purchase date. Upon adoption of the plan, 150,000 shares of common stock were reserved for issuance. This reserve automatically increases on the first trading day in January each year, by an amount equal to 1% of the total number of outstanding shares of our common stock on the last trading day in December in the prior year. In no event will any annual increase exceed 260,786 shares. In July 2009, our Board of Directors amended our ESPP to extend it for a period of ten years beyond its original expiration date of July 31, 2009. Under this amendment, the total shares available for issuance may not increase. As of December 31, 2015 and 2014, we had approximately 1.7 million shares available for issuance under our ESPP. Total shares of common stock issued pursuant to the ESPP during 2015, 2014 and 2013 were approximately 49,000, 42,000, and 56,000, respectively. Savings Plan During 1999, we implemented a savings plan for all eligible employees, which qualify under Section 401(k) of the Internal Revenue Code. Participating employees may contribute any percentage of their pretax salary, but not more than statutory dollar limits. We match 50% of the first 4% a participant contributes. We expensed approximately $650,000, $402,000 and $326,000 in 2015, 2014 and 2013, respectively, related to this plan.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies Legal Proceedings On August 14, 2014, Rapid Enterprises, LLC, D/B/A Express One, filed suit against ShipStation and some of its executives in the Third Judicial District Court for Salt Lake County, Utah, alleging, among other claims, that ShipStation breached its contract with Express One by violating an exclusivity provision. Express One sought an injunction, damages, attorneys’ fees and court costs. On December 12, 2014, Express One added additional claims and Stamps.com and our Chief Executive Officer as named defendants. On August 6, 2015, Stamps.com and Express One entered into a settlement agreement that resolved all disputes between the parties. Stamps.com agreed to pay Express One $10.0 million in exchange for Express One’s dismissal and permanent withdrawal of Express One’s tort claims. In addition, the parties agreed to continue and expand their business relationship going forward. The amount was expensed and paid in 2015. Express One is a sales and support business partner for the United States Postal Service that provides discounted shipping rates and technology solutions to lower volume USPS shippers. Through our partnership with Express One, Stamps.com and our subsidiaries are able to provide Express One’s shipping discounts to our lower volume customers, and Express One is able to utilize our systems and software to better serve its customers. We are a party to various legal proceedings, including those noted in this section. We have established loss provisions only for matters in which losses are 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. Although management at present believes that the ultimate outcome of these 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 beliefs 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 2020. 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 was approximately 874,000, $215,000, and $36,000 for the years ended December 31, 2015, 2014 and 2013, respectively. The following table is a schedule of our significant contractual obligations and commercial commitments (other than debt commitments, which are summarized in Note 7- “Debt”), which consist of future minimum lease payment under operating leases as of December 31, 2015 (in thousands): Twelve Month Period Ending December 31, Operating Lease Obligations 2016 $ 2,879 2017 3,126 2018 2,811 2019 619 Thereafter $ 260

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	13. 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.

Quarterly Information (Unaudite

Quarterly Information (Unaudited)	12 Months Ended
	Dec. 31, 2015
Quarterly Information (Unaudited) [Abstract]
Quarterly Information (Unaudited)	14. Quarterly Information (Unaudited) Quarter Ended March June September December (2) (in thousands except per share data) Fiscal Year 2015: Revenues $ 44,052 $ 48,360 $ 51,669 $ 69,876 Gross profit 34,427 38,422 40,480 56,693 Income (loss) from operations (2,159 ) (15,152 ) 12,991 (1,000 ) Net (loss) income (970 ) (10,431 ) 7,274 (71 ) Net income per share: Basic $ (0.06 ) $ (0.64 ) $ 0.44 $ (0.00 ) Diluted $ (0.06 ) $ (0.64 ) $ 0.42 $ (0.00 ) Weighted average shares outstanding: Basic 16,156 16,402 16,538 16,642 Diluted 16,156 (1) 16,402 (1) 17,517 16,642 (1) Quarter Ended March June September December (2) (in thousands except per share data) Fiscal Year 2014: Revenues $ 33,298 $ 34,284 $ 37,834 $ 41,853 Gross profit 25,853 26,668 29,290 32,552 Income from operations 7,370 7,619 9,316 (495 ) Net income 7,334 11,174 9,472 8,902 Net income per share: Basic $ 0.45 $ 0.70 $ 0.60 $ 0.56 Diluted $ 0.44 $ 0.68 $ 0.58 $ 0.54 Weighted average shares outstanding: Basic 16,222 15,993 15,881 15,952 Diluted 16,664 16,378 16,258 16,372 Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with per share amounts for the year shown elsewhere in our Annual Report on Form 10-K. (1) Common equivalent shares are excluded from the diluted earnings per share calculation as their effect is anti-dilutive. (2) The fourth quarter results of 2015 include the impact of the Company’s acquisition of Endicia.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Stamps.com Inc., Auctane LLC, Interapptive, Inc., PSI Systems Inc. and PhotoStamps Inc. In June 2014, we completed our acquisition of 100% of the outstanding equity of Auctane LLC, the Texas limited liability company that operates ShipStation (“Auctane LLC” or “ShipStation”) in a cash and contingent stock transaction. ShipStation, based in Austin, Texas, offers monthly subscription based e-commerce shipping software primarily under the brands ShipStation and Auctane. In August 2014, we completed our acquisition of 100% of the outstanding equity of Interapptive, Inc., a Missouri corporation, that operates ShipWorks (“Interapptive, Inc.” or “ShipWorks”) in a cash transaction. ShipWorks, based in St. Louis, Missouri, offers monthly subscription based e-commerce shipping software. In November 2015, we closed our transaction to acquire PSI Systems, Inc. (“Endicia”), which we entered into an agreement to purchase them in March 2015. See Note 3 – “Acquisitions” Because 100% of the voting control of Auctane LLC, Interapptive, Inc. and PSI Systems, Inc. is held by us, we have consolidated ShipStation, ShipWorks and Endicia from the date we obtained control in the accompanying consolidated financial statements. Similarly, due to our 100% control, PhotoStamps Inc. is also consolidated in the accompanying consolidated financial statements from the date of its inception. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates and Risk Management	Use of Estimates and Risk Management 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 financial statements and the accompanying notes. Actual results could differ from those estimates, and such differences may be material to the financial statements. Examples include estimates of loss contingencies, promotional coupon redemptions, the number of PhotoStamps retail boxes that will not be redeemed, realizability of deferred income taxes, the estimates and assumptions used to calculate the allocation of the purchase price related to our acquisitions, including related contingent consideration, and estimates regarding the useful lives of our building, patents and other amortizable intangible assets, and goodwill.
Contingencies and Litigation	Contingencies and Litigation 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.
Cash Equivalents and Investments	Cash Equivalents and Investments 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. Our cash equivalents and investments consisted of money market funds, U.S. government obligations, asset-backed securities and public corporate debt securities at December 31, 2015 and 2014. All investments are classified as available for sale and are recorded at market value using the specific identification method. Realized gains and losses are reflected in interest and other income, net while unrealized gains and losses are included as a separate component of stockholders' equity.
Accounts Receivable	Accounts Receivable Our accounts receivable relate to mailing and shipping services, postage invoicing, PhotoStamps sales, and branded insurance provided to customers prior to billing and other receivables. Accounts receivable are recorded at the invoiced amount, net of allowances for uncollectible accounts of approximately $831,000, $414,000 and $283,000 as of December 31, 2015, 2014 and 2013. We evaluate the collectability of our accounts receivable based on a combination of factors. If we become aware of a customer’s inability to meet its financial obligations, an allowance is recorded to reduce the net receivable to the amount reasonably believed to be collectible from the customer. For all other customers, we recognize allowances for doubtful accounts based on the length of time the receivables are past due, the current business environment and our historical experience. If the financial condition of our customers deteriorates, resulting in their inability to make payments, additional provisions are recorded in that period. Accounts receivable are written off against the allowance for uncollectible accounts when we determine amounts are no longer collectible. Increases in allowance for doubtful accounts totaled approximately $417,000 and $131,000 for 2015 and 2014, respectively. There were no material write offs against the allowance for doubtful accounts during 2015, 2014 or 2013.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Carrying amounts of certain of our financial instruments, including cash, 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 fair value of our debt approximates book value. In 2014 the fair value of the contingent consideration was determined based on a probability weighted method, which incorporates management’s forecasts of financial measures and the likelihood of the financial measure targets being achieved using a series of options that replicate the pay-off structure of the earn-out, and the value of each of these options was determined using the Black-Scholes-Merton option pricing framework. Increases or decreases in the fair value of the contingent consideration obligations can result from changes in the assumed timing and amount of revenue and expense estimates, changes in the probability of payment scenarios, changes in stock values, as well as changes in capital market conditions, which impact the discount rate used in the fair valuation. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent reporting period during 2015. At 2015 the fair value of the contingent consideration was calculated by multiplying the expected earn-out shares by our stock price. During 2015 we incurred approximately $47.4 million of charges relating to our contingent consideration liability of which $46.1 million was recorded in contingent consideration charges and $1.3 million was recorded in marketing and research and development in operating expenses. Contingent consideration liability was approximately $63.2 million as of December 31, 2015. See Note 3 – “Acquisition” further description of the contingent consideration relating to ShipStation.
Concentration of Risk	Concentration of Risk Our cash, cash equivalents and investments are subject to market risk, primarily interest rate and credit risk. Our investments are managed by a limited number of outside professional managers within investment guidelines set by us. Such guidelines include security type, credit quality and maturity and are intended to limit market risk by restricting our investments. From time to time, our investments held with financial institutions may exceed Federal Deposit Insurance Corporation insurance limits. Interest rate fluctuations and changes in credit ratings impact the carrying value of our portfolio. During 2015, 2014 and 2013, we did not recognize revenue from any one customer that represented 10% or more of revenues. We do not have any customers representing 10% or more of total accounts receivable as of December 31, 2015 and 2014, respectively. We have accounts receivable from one partner that represented approximately 17% of the total accounts receivable balance as of December 31, 2014.
Inventories	Inventories Inventories consist of finished products sold through our supplies store and are accounted for using the lower of cost (first-in, first-out method) or market. Inventories reported as a component of other current assets in 2015 and 2014 were $3.5 million and $2.4 million, respectively.
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. 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.
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, liabilities assumed and non-controlling interests in the acquired entity 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, liabilities assumed and non-controlling interests in the acquired entity is recorded as goodwill. The primary items that generate goodwill include 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.
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. There was no impairment to our goodwill related to the ShipStation and ShipWorks acquisitions. Goodwill related to the Endicia acquisition will be tested beginning on October 1, 2016. We do not believe there is any impairment to our Endicia goodwill as of December 31, 2015.
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 over the estimated useful lives of the assets, ranging from approximately 4 to 17 years.
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, tested at least annually for impairment while intangible assets that have finite useful lives continue to be amortized over their respective useful lives.
Deferred Revenue	Deferred Revenue Our deferred revenue relates mainly to service revenue and PhotoStamps retail boxes. Deferred revenue related to our service revenue generally arises due to the timing of payment versus the provision of services for certain customers billed in advance. We sell our PhotoStamps retail boxes to our customers through our website and selected third parties. Proceeds from the sale of our PhotoStamps retail boxes are initially recorded as a liability when received. We record the liability for outstanding PhotoStamps retail boxes in deferred revenue.
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. Service revenue is primarily derived from monthly service fees and transaction related revenues from our USPS mailing and shipping services, our multi-carrier shipping services and our mailing and shipping integrations, and is recognized in the period that services are provided. Product sales, net of return allowances, are recorded when the products are shipped and title passes to customers. Sales of items, including customized postage, sold to customers are made pursuant to a sales contract that provides for transfer of both title and risk of loss upon our delivery to the carrier. Return allowances for expected product returns, which reduce product revenue, are estimated using historical experience. Commissions from the advertising or sale of products by a third party vendor to our customer base are recognized when the revenue is earned and collection is deemed probable. Customers purchase postage through our mailing and shipping solutions. If the postage purchase funds are transferred directly from the customers to the USPS, we do not recognize 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. Sale of PhotoStamps retail boxes are initially recorded as deferred revenue. PhotoStamps revenue related to the sale of these PhotoStamps retail boxes is subsequently recognized when either: 1) the PhotoStamps retail box is redeemed, or 2) the likelihood of the PhotoStamps retail box being redeemed is deemed remote (“breakage”) and there is no legal obligation to remit the value of the unredeemed PhotoStamps retail boxes. 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 2015, 2014 and 2013. 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 brokers. We recognize revenue on insurance purchases upon the ship date of the insured package.
PhotoStamps Retail Boxes	PhotoStamps Retail Boxes We sell PhotoStamps retail boxes that are redeemable for PhotoStamps on our website. The PhotoStamps retail boxes are sold through various third party retail partners. Our PhotoStamps retail boxes are not subject to administrative fees on unredeemed boxes and have no expiration date. PhotoStamps retail box sales are recorded as deferred revenue. We concluded that sufficient company-specific historical evidence existed to determine the period of time after which the likelihood of the PhotoStamps retail boxes being redeemed was remote. Based on our analysis of the redemption data, we estimate that period of time to be 60 months after the sale of our PhotoStamps retail boxes. We recognize breakage revenue related to our PhotoStamps retail boxes utilizing the redemption recognition method. Under the redemption recognition method, we recognize breakage revenue from unredeemed retail boxes in proportion to the revenue recognized from the retail boxes that have been redeemed. Revenue from our PhotoStamps retail boxes is included in PhotoStamps revenue. PhotoStamps retail box breakage revenue was not significant during 2015, 2014 and 2013.
Cost of Revenue	Cost of Revenue Cost of service revenue principally consists of the cost of customer service, certain promotional expenses, system operating costs, credit card processing fees and customer misprints that do not qualify for reimbursement from the USPS. Cost of product revenue principally consists of the cost of products sold through our Supplies Stores and the related costs of shipping and handling. The cost of insurance revenue principally consists of parcel insurance offering costs through our third party insurance partners. Cost of customized postage revenue principally consists of the face value of postage, image review costs and printing and fulfillment costs.
Promotional Expense	Promotional Expense New PC Postage customers are typically offered promotional items that are redeemed using coupons that are qualified for redemption after a customer is successfully billed beyond an initial trial period. We account for our promotional expense in accordance with Accounting Standard Codification (“ASC”) 605-50-25, “Recognition – Vendor’s Accounting for Consideration Given to a Customer”, by recognizing a liability for promotional expense based on estimated amounts that will be claimed by customers unless the liability for promotional expense cannot be reasonably and reliably estimated. This includes free postage and a free digital scale and is expensed in the period in which a customer qualifies using estimated redemption rates based on historical data. We periodically review our historical redemption rates and adjust, if necessary, our estimated redemption rates for future periods. Promotional expense, which is included in cost of service, is incurred as customers qualify and thereby may not correlate directly with changes in revenue, as the revenue associated with the acquired customer is earned over the customer’s lifetime. During 2015, 2014 and 2013 promotional expense was $3.4 million, $3.1 million and $2.4 million, respectively.
Research and Development Costs	Research and Development Costs Research and development expense principally consist of compensation for personnel involved in the development of our services, depreciation of equipment and software and expenditures for consulting services and third party software.
Sales and Marketing	Sales and Marketing Sales and marketing expense principally consists of spending to acquire new customers and compensation and related expenses for personnel engaged in sales, marketing, and business development activities. Ongoing marketing programs include the following: traditional advertising, partnerships, customer referral programs, customer re-marketing efforts, telemarketing, direct sales, direct mail, and online advertising.
Advertising Costs	Advertising Costs We expense the costs of producing advertisements as incurred, and expense the costs of communicating and placing the advertising in the period in which the advertising space or airtime is used. For the years ended December 31, 2015, 2014 and 2013, advertising and tradeshow costs were $10.8 million, $9.7 million and $10.3 million, respectively.
Internet Advertising	Internet Advertising We recognize Internet advertising expense based on the specifics of the individual agreements. Under partner and affiliate agreements, third parties refer prospects to our web site, and we pay the third parties when the customer completes the customer registration process, or in some cases, upon the first successful billing of a customer. We record these expenses on a monthly basis as prospects are successfully converted to customers. Under Internet search advertising, we record expenses based on actual “click activity” on our displayed advertisements following targeted key word searches.
General and Administrative	General and Administrative General and administrative expense principally consists of compensation and related costs for executive and administrative personnel, fees for legal and other professional services, depreciation of equipment and software used for general corporate purposes and amortization of intangible assets.
Income Taxes	Income Taxes We account for income taxes in accordance with Financial Accounting Standards Board (“FASB”) ASC Topic No. 740, Income Taxes (“ASC 740”), which requires that deferred tax assets and liabilities be recognized using enacted tax rates for the effect of temporary differences between the book and tax basis of recorded assets and liabilities. ASC 740 also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the net deferred tax assets will not be realized. We record a valuation allowance to reduce our gross deferred tax assets, which are primarily comprised of U.S. Federal and State tax loss carry-forwards, to the amount that is more likely than not (a likelihood of more than 50 percent) to be realized. In order for us to realize our deferred tax assets, we must be able to generate sufficient taxable income. We evaluate the appropriateness of our deferred tax assets and related valuation allowance in accordance with ASC 740 based on all available positive and negative evidence. As of December 31, 2015 and 2014 we do not have any valuation allowance recorded to reduce our gross deferred tax assets as we believe we have met the more likely than not threshold we will realize our tax loss carry-forwards in the foreseeable future.
Net (loss) Income per Share	Net (loss) Income per Share Net (loss) income per share represents net income attributable to common stockholders divided by the weighted average number of common shares outstanding during a reported period. The diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, including stock options (commonly and hereafter referred to as “common stock equivalents”), were exercised or converted into common stock. Diluted net income per share is calculated by dividing net (loss) income during a reported period by the sum of the weighted average number of common shares outstanding plus common stock equivalents for the period. The following table reconciles share amounts utilized to calculate basic and diluted net (loss) income per share (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Net (loss) income $ (4,198 ) $ 36,882 $ 44,153 Basic - weighted average common shares 16,436 16,011 15,691 Dilutive effect of common stock equivalents — (1) 406 607 Diluted - weighted average common shares 16,436 16,417 16,298 Net (loss) income per share: Basic $ (0.26 ) $ 2.30 $ 2.81 Diluted $ (0.26 ) $ 2.25 $ 2.71 (1) Common equivalent shares are excluded from the diluted (loss) earnings per share calculation as their effect is anti-dilutive. The shares related to the 2015 contingent consideration are not included because they are anti-dilutive. The calculation of dilutive shares excludes the effect of the following options that are considered anti-dilutive (in thousands): Year ended December 31, 2015 2014 2013 Anti-dilutive shares 3,596 134 65
Stock-Based Compensation	We estimate the fair value of share-based payment awards on the date of grant using an option-pricing model and recognize stock-based compensation expense during each period based on the value of that portion of share-based payment awards that is ultimately expected to vest during the period, reduced for estimated forfeitures. We estimate forfeitures at the time of grant based on historical data and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Compensation expense recognized for all employee stock options granted is recognized using the straight-line method over their respective vesting periods of three to five years. The following table sets forth the stock-based compensation expense that we recognized for the periods indicated (in thousands): 2015 2014 2013 Stock-based compensation expense relating to: Employee and director stock options $ 16,644 $ 4,473 $ 3,751 Employee stock purchases 582 326 741 Total stock-based compensation expense $ 17,226 (1) $ 4,799 $ 4,492 Stock-based compensation expense relating to: Cost of revenues $ 995 $ 402 $ 406 Sales and marketing 4,549 955 864 Research and development 3,149 998 990 General and administrative 8,533 2,444 2,232 Total stock-based compensation expense $ 17,226 (1) $ 4,799 $ 4,492 (1) Included in this amount is $1.3 million of stock-based compensation expense relating to change in the fair value of our contingent consideration liability in connection with our acquisition of ShipStation. See Note - 3 “Acquisition” in the notes to our consolidated financial statements for further description. We use the Black-Scholes option valuation model to estimate the fair value of share-based payment awards on the date of grant, which requires us to make a number of highly complex 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. The following are the weighted average assumptions used in the Black-Scholes valuation model for the periods indicated: 2015 2014 2013 Risk-free interest rate 1.00 % 0.87 % 0.53 % Expected volatility 46 % 50 % 48 % Expected life (in years) 3.4 3.5 3.6 Expected forfeiture rate 6 % 6 % 7 % We elected to utilize the alternative transition method for calculating the tax effects of stock-based compensation. The alternative transition method includes computational guidance to establish the beginning balance of the additional paid-in capital pool (“APIC Pool”) related to the tax effects of employee stock-based compensation, and a simplified method to determine the subsequent impact on the APIC Pool for employee stock-based compensation awards that are vested and outstanding upon adoption of FASB ASC Topic No. 718 Compensation – Stock Compensation (“ASC 718”). A tax benefit will be recorded in additional paid-in capital when these deductions reduce our future income taxes payable.
Treasury Stock	Treasury Stock We did not repurchase shares in 2015. During 2014 and 2013, we repurchased approximately 435,000 shares for $12.9 million and 179,000 shares for $4.3 million, respectively.
Segment Information	Segment Information Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company's CODM reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company's Chief Executive Officer has been identified as the CODM as defined by guidance regarding segment disclosures. In 2015, the Company completed the reassessment of its segment reporting in light of its Endicia acquisition in late 2015. Based on this reassessment, the Company has identified two operating segments. Both operating segments aggregate into one reportable segment as the operating segments are similar as it relates to services offered, processes to provide the services, and types of customers, and have similar economic characteristics. The Company offers similar services consisting primarily of Internet-based mailing and shipping solutions to substantially all of its customers, which primarily consist of individuals, small businesses, home offices, medium-size businesses and large enterprises in the United States. In 2013 and 2014, all of our operations, revenue and assets were within the United States. In 2015, as a result of our Endicia acquisition, we had international revenue and assets that were less than 1% of total revenue and assets with the remainder in the United States. During 2015, 2014 and 2013, we did not recognize revenue from any one customer that represented 10% or more of revenues.
Website Development Costs	Website Development Costs We develop and maintain our website. Costs associated with the operation of our website consist primarily of software and hardware purchased from third parties and administrative costs relating to the maintenance and development of the website. Costs related to the purchase of software and hardware are capitalized based on our capitalization policy. These capitalized costs are amortized based on their estimated useful life. Administrative costs related to the maintenance and development of our website are expensed as incurred.
Short- Term Financing Obligation	Short-Term Financing Obligation We utilize short-term financing, which is separate from our debt as described in Note – 7 “Debt,” to fund certain company operations. As of December 31, 2015 we had $13.3 million in short-term financing obligations, which was included in accounts payable and accrued expenses and $34.2 million of unused credit.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“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 Company 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 2017 and may be applied on a full retrospective or modified retrospective approach. The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements. In April 2015, the FASB issued a new standard simplifying the presentation of debt issuance costs. The new standard aligns the treatment of debt issuance costs with debt discounts and premiums and requires debt issuance costs be presented as a direct deduction from the carrying amount of the related debt. The standard is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted, and requires a retrospective method of adoption. We adopted the provisions of the new standard for the balance sheet disclosures of debt issuance costs as of December 31, 2015. In November 2015, the FASB issued guidance that requires deferred tax assets and liabilities to be presented as noncurrent in a classified statement of financial position. The guidance is effective beginning January 1, 2017, with early adoption permitted. The guidance can be applied prospectively or retrospectively. The Company elected to early adopt the requirements and apply them retrospectively as of December 31, 2015. The adoption resulted in the reclassification of $2.1 million of current deferred tax assets, net to noncurrent deferred tax assets, net in the Consolidated Balance Sheets as of December 31, 2014.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Calculation of Basic and Diluted Net Income Per Share	The following table reconciles share amounts utilized to calculate basic and diluted net (loss) income per share (in thousands, except per share data): Year Ended December 31, 2015 2014 2013 Net (loss) income $ (4,198 ) $ 36,882 $ 44,153 Basic - weighted average common shares 16,436 16,011 15,691 Dilutive effect of common stock equivalents — (1) 406 607 Diluted - weighted average common shares 16,436 16,417 16,298 Net (loss) income per share: Basic $ (0.26 ) $ 2.30 $ 2.81 Diluted $ (0.26 ) $ 2.25 $ 2.71 (1) Common equivalent shares are excluded from the diluted (loss) earnings per share calculation as their effect is anti-dilutive. The shares related to the 2015 contingent consideration are not included because they are anti-dilutive.
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): Year ended December 31, 2015 2014 2013 Anti-dilutive shares 3,596 134 65
Stock-Based Compensation Expense	The following table sets forth the stock-based compensation expense that we recognized for the periods indicated (in thousands): 2015 2014 2013 Stock-based compensation expense relating to: Employee and director stock options $ 16,644 $ 4,473 $ 3,751 Employee stock purchases 582 326 741 Total stock-based compensation expense $ 17,226 (1) $ 4,799 $ 4,492 Stock-based compensation expense relating to: Cost of revenues $ 995 $ 402 $ 406 Sales and marketing 4,549 955 864 Research and development 3,149 998 990 General and administrative 8,533 2,444 2,232 Total stock-based compensation expense $ 17,226 (1) $ 4,799 $ 4,492 (1) Included in this amount is $1.3 million of stock-based compensation expense relating to change in the fair value of our contingent consideration liability in connection with our acquisition of ShipStation. See Note - 3 “Acquisition” in the notes to our consolidated financial statements for further description.
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: 2015 2014 2013 Risk-free interest rate 1.00 % 0.87 % 0.53 % Expected volatility 46 % 50 % 48 % Expected life (in years) 3.4 3.5 3.6 Expected forfeiture rate 6 % 6 % 7 %

Acquisitions (Tables)

Acquisitions (Tables)	12 Months Ended
	Dec. 31, 2015
ShipStation [Member]
Business Acquisition [Line Items]
Schedule of Purchase Price	The total purchase price for ShipStation was approximately $66.2 million and was comprised of the following (in thousands, except shares): Fair Value Cash consideration $ 50,000 Fair value of performance linked earn-out of up to 768,900 shares of Stamps.com common stock (contingent consideration) 16,242 Total purchase price $ 66,242
Allocation of the Purchase Price	The following table is the allocation of the purchase price (in thousands, except years): Fair Value Fair Value Useful Life Weighted Average Estimated Useful Life (In Years) Cash and cash equivalents $ 1,117 Trade accounts receivable 254 Other assets 39 Property and equipment 187 Goodwill 50,544 Identifiable intangible assets: Trademark $ 500 4 Developed technology 5,300 8 Non-compete agreement 400 4 Customer relationship 9,000 8 Total identifiable intangible assets 15,200 8 Accrued expenses and other liabilities (835 ) Deferred revenue (264 ) Total purchase price $ 66,242
ShipWorks [Member]
Business Acquisition [Line Items]
Schedule of Purchase Price	The total purchase price for ShipWorks was approximately $22.1 million and was comprised of the following (in thousands, except shares): Fair Value Cash consideration $ 21,952 Deferred consideration 181 Total purchase price $ 22,133
Allocation of the Purchase Price	The following table is the allocation of the purchase price (in thousands, except years): Fair Value Fair Value Useful Life Weighted Average Estimated Useful Life (In Years) Cash and cash equivalents $ 803 Trade accounts receivable 353 Other assets 21 Property and equipment 1,091 Goodwill 16,349 Identifiable intangible assets: Trademark $ 200 6 Developed technology 1,700 7 Non-compete agreement 700 4 Customer relationship 2,300 6 Total identifiable intangible assets 4,900 6 Accrued expenses and other liabilities (1,119 ) Deferred revenue (265 ) Total purchase price $ 22,133
ShipStation and ShipWorks [Member]
Business Acquisition [Line Items]
Pro Forma Financial Information	The following table presents the pro-forma financial information (in thousands, except per share amounts) and assumes the acquisition of ShipStation and ShipWorks occurred on January 1, 2013. Contingent consideration charge of approximately $8.8 million recognized in 2014 is excluded from the pro-forma information below: Year Ended December 31, 2014 2013 Revenue $ 154,459 $ 137,626 Income from operations 32,873 33,208 Net income 32,342 56,691 (1) Basic earnings per share $ 2.02 $ 3.61 Diluted earnings per share $ 1.97 $ 3.48 (1) Pro-forma net income of $56.7 million in 2013 includes valuation allowance releases of $13.6 million and $9.7 million recognized in 2014 and 2013, respectively.
Endicia [Member]
Business Acquisition [Line Items]
Allocation of the Purchase Price	The following table is the allocation of the purchase price (in thousands, except years): Fair Value Fair Value Useful Life Weighted Average Estimated Useful Life (In Years) Trade accounts receivable $ 10,247 Other assets 771 Property and equipment 2,798 Goodwill 130,914 Identifiable intangible assets: Trade name $ 10,900 Indefinite Developed technology 26,100 9 Customer relationship 43,200 6 Total identifiable intangible assets 80,200 7 Accrued expenses and other liabilities (9,709 ) Deferred revenue (1,056 ) Total purchase price $ 214,165
Pro Forma Financial Information	The following table presents the pro-forma financial information (in thousands, except per share amounts) and assumes the acquisition of Endicia occurred on January 1, 2014: Year Ended December 31, 2015 2014 Revenue $ 273,055 $ 204,628 (Loss) income from operations (7,657 ) 20,820 Net (loss) income (9,273 ) 32,536 (1) Basic (loss) earnings per share $ (0.58 ) $ 2.03 Diluted (loss) earnings per share $ (0.58 ) $ 1.98 (1) Pro-forma net income of $32.5 million in 2014 includes valuation allowance releases of $13.6 million.

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets [Abstract]
Schedule of Goodwill	The following table summarizes goodwill as of December 31, 2014 and 2015 (in thousands): 2014 Goodwill balance at December 31, 2013 $ — Acquisitions (see Note 3 – “Acquisitions”) 66,893 Goodwill balance at December 31, 2014 $ 66,893 2015 Goodwill balance at December 31, 2014 $ 66,893 Acquisitions (see Note 3 – “Acquisitions”) 130,914 Goodwill balance at December 31, 2015 $ 197,807
Schedule of Acquired Intangible Assets	The following table summarizes our amortizable intangible assets as of December 31, 2015 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and others $ 8,889 $ 8,729 $ 160 Customer Relationship 54,500 2,773 51,727 Technology 33,100 1,598 31,502 Non-Compete 1,100 389 711 Trademark 700 239 461 Total Intangible assets at December 31, 2015 $ 98,289 $ 13,728 $ 84,561 The following table summarizes our amortizable intangible assets as of December 31, 2014 (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and others $ 9,378 $ 8,514 $ 864 Customer Relationship 11,300 751 10,549 Technology 7,000 449 6,551 Non-Compete 1,100 114 986 Trademark 700 80 620 Total Intangible assets at December 31, 2014 $ 29,478 $ 9,908 $ 19,570
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 December 31, Estimated Amortization Expense 2016 $ 13,080 2017 12,995 2018 12,881 2019 12,572 2020 12,410 Thereafter $ 20,693

Cash, Cash Equivalents and In26

Cash, Cash Equivalents and Investments (Tables)	12 Months Ended
	Dec. 31, 2015
Cash, Cash Equivalents and Investments [Abstract]
Cash, Cash Equivalents, Restricted Cash and Investments	The following table summarizes our cash, cash equivalents, and investments as of December 31, 2015 and 2014 (in thousands): December 31, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash $ 63,593 — — $ 63,593 Money market 1,533 — — 1,533 Cash and cash equivalents 65,126 — — 65,126 Short-term investments: Corporate bonds and asset backed securities 8,549 7 (3 ) 8,553 Short-term investments 8,549 7 (3 ) 8,553 Long-term investments: Corporate bonds and asset backed securities 1,515 17 (3 ) 1,529 Long-term investments 1,515 17 (3 ) 1,529 Cash and cash equivalents and investments $ 75,190 24 (6 ) $ 75,208 December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents: Cash $ 37,870 — — $ 37,870 Money market 3,063 — — 3,063 Cash and cash equivalents 40,933 — — 40,933 Short-term investments: Corporate bonds and asset backed securities 4,960 23 (1 ) 4,982 U.S. government and agency securities 1,498 2 — 1,500 Short-term investments 6,458 25 (1 ) 6,482 Long-term investments: Corporate bonds and asset backed securities 10,178 46 (9 ) 10,215 Long-term investments 10,178 46 (9 ) 10,215 Cash and cash equivalents and investments $ 57,569 71 (10 ) $ 57,630
Contractual Maturities of Marketable Fixed-Income Securities	The following table summarizes contractual maturities of our marketable fixed-income securities as of December 31, 2015 (in thousands): Amortized Cost Estimated Fair Value Due within one year $ 8,549 $ 8,553 Due after one year through five years 1,515 1,529 Total $ 10,064 $ 10,082

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements [Abstract]
Financial Assets Measured at Fair Value on a Recurring Basis	The following table summarizes our financial assets measured at fair value on a recurring basis as of December 31, 2015 and 2014 (in thousands): Fair Value Measurement at Reporting Date Using Description December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 65,126 $ 65,126 $ — $ — Available-for-sale debt securities 10,082 — 10,082 — Total $ 75,208 $ 65,126 $ 10,082 $ — Fair Value Measurement at Reporting Date Using Description December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 40,933 $ 40,933 $ — $ — Available-for-sale debt securities 16,697 — 16,697 — Total $ 57,630 $ 40,933 $ 16,697 $ —
Contingent Consideration Measured at Fair Value on a Recurring Basis	The following table summarizes our contingent consideration measured at fair value on a recurring basis (in thousands): Fair Value Measurement at Reporting Date Using Description December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Contingent consideration – current $ 63,209 $ 63,209 $ — $ — Fair Value Measurement at Reporting Date Using Description December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Contingent consideration – current $ 9,225 $ — $ — $ 9,225 Contingent consideration – long-term 15,790 — — 15,790 Total $ 25,015 $ — $ — $ 25,015
Reconciliation of Contingent Consideration Obligation	The following table represents a reconciliation of contingent consideration obligation measured on a recurring basis using significant unobservable inputs (level 3) as of December 31 , 2014 and then transferred to quoted prices in active markets (level 1) as of December 31, 2015 (in thousands): 2015 Beginning of year balance $ 25,015 Contingent consideration distribution (9,225 ) Contingent consideration charges (1) 46,088 Contingent consideration compensation expense (1) 1,331 End of year balance $ 63,209 (1) This amount represents fair value adjustment during the year to contingent consideration recorded associated with the acquisition of ShipStation. The $46.1 million contingent consideration charge is recorded as a separate line item in our consolidated statement of income. The $1.3 million contingent consideration charge relating to certain employees is recorded in general and administrative expense in operating expense. See Note 3 – “Acquisitions” for further description. At December 31, 2015, the contingent consideration obligation was transferred from level 3 to level 1.

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2015
Debt [Abstract]
Schedule of Maturities of our Debt Obligations	The contractual maturities of our debt obligations due subsequent to December 31, 2015 are as follows (in thousands): Amount 2016 $ 4,641 2017 6,703 2018 8,766 2019 10,828 2020 132,521 Total debt 163,459 Less debt issuance costs 1,839 Total debt, net of debt issuance costs $ 161,620

Accounts Payable and Accrued 29

Accounts Payable and Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2015
Accounts Payable and Accrued Expenses [Abstract]
Accounts Payable and Accrued Expenses	The following table summarizes our accounts payable and accrued expenses as of December 31, 2015 and 2014 (in thousands): 2015 2014 Payroll and related accrual $ 12,863 $ 6,225 Cost of revenue, inventory and materials accrual 539 2,187 Construction and facility expense accrual 649 439 Professional fees accrual 1,973 1,402 Sales and marketing related accrual 5,145 3,252 Operating expenses related accrual 28,926 4,920 Other accruals 10,721 4,096 Accounts payable and accrued expenses $ 60,816 $ 22,521

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property and Equipment [Abstract]
Property and Equipment	Property and equipment is summarized as follows (in thousands): 2015 2014 Land $ 7,156 $ 7,156 Building 4,886 4,886 Building improvements 14,048 13,942 Leasehold improvements 1,055 747 Furniture and equipment 2,016 1,709 Computers and software 18,920 14,479 48,081 42,919 Less accumulated depreciation and amortization (16,374 ) (12,492 ) Property and equipment, net $ 31,707 $ 30,427

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes [Abstract]
Reconciliation of Total Amounts of Unrecognized Tax Benefits	The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013 (in thousands): Unrecognized Tax Benefits Balance at December 31, 2012 $ (1,905 ) Reduction for tax positions of prior years — Addition for tax position of the current year (409 ) Settlement — Balance at December 31, 2013 $ (2,314 ) Addition for tax positions of prior years (2,349 ) Addition for tax position of the current year (560 ) Settlement — Balance at December 31, 2014 $ (5,223 ) Additions for tax positions of prior years (251 ) Additions for tax position of the current year (560 ) Settlement — Balance at December 31, 2015 $ (6,034 )
Deferred Tax Assets and Liabilities	The tax effect of temporary differences that give rise to a significant portion of the deferred tax assets and liabilities at December 31, 2015 and 2014 are presented below (in thousands): 2015 2014 Deferred tax assets (liabilities): Net operating loss carryforward $ 22,024 $ 41,827 Tax credits 6,872 5,992 Depreciation (464 ) (571 ) Definite lived intangibles 2,946 768 Indefinite lived intangibles (1,922 ) (557 ) Contingent consideration 20,742 3,133 Stock Compensation 4,800 1,412 Accruals 2,226 1,812 Total net deferred tax assets 57,224 53,816 Valuation allowance — — Net deferred tax assets $ 57,224 $ 53,816
Provision for Income Taxes	The income tax expense (benefit) consists of (in thousands): 2015 2014 2013 Current: Federal $ 806 $ 730 $ 226 State 611 127 (68 ) 1,417 857 158 Deferred: Federal (596 ) (14,286 ) (7,842 ) State (1,341 ) 652 (1,082 ) Adjustment for change in tax rate (1,471 ) 80 (789 ) APIC charge on excess tax benefits 618 — — (2,790 ) (13,554 ) (9,713 ) Benefit for income taxes $ (1,373 ) $ (12,697 ) $ (9,555 )
Differences Between Provision for Income Taxes and Income Taxes at Statutory Federal Income Tax Rate	Differences between the benefit for income taxes and income taxes at the statutory federal income tax rate are as follows (in thousands): 2015 2014 2013 Income tax at statutory federal rate $ (1,950 ) $ 8,223 $ 11,764 Stock-based compensation 851 497 184 Nondeductible items 875 15 15 Research and development (560 ) (560 ) (701 ) ASC 740-10 732 560 205 Change in tax rate (1,471 ) 80 (789 ) Change in valuation allowance — (13,554 ) (9,713 ) Other changes in valuation allowance, net — (11,480 ) (10,364 ) Other, net 150 3,522 (156 ) $ (1,373 ) $ (12,697 ) $ (9,555 )

Employee Stock Plans (Tables)

Employee Stock Plans (Tables)	12 Months Ended
	Dec. 31, 2015
Employee Stock Plans [Abstract]
Stock Option Activity	A summary of stock option activity is as follows (in thousands, except per share amounts): Options Outstanding Weighted Average Exercise Price Number of Options Balance at December 31, 2012 1,861 $ 14.33 Granted 164 34.29 Forfeited (38 ) 21.57 Exercised (991 ) 13.55 Balance at December 31, 2013 996 $ 18.12 Granted 2,251 32.55 Forfeited (75 ) 35.96 Exercised (203 ) 16.34 Balance at December 31, 2014 2,969 $ 28.91 Granted 694 65.96 Forfeited (98 ) 37.43 Exercised (459 ) 23.73 Balance at December 31, 2015 3,106 $ 37.75 The following table summarizes stock option activity for 2015: Number of Stock Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2014 2,969 $ 28.91 Granted 694 65.96 Exercised (459 ) 23.73 Forfeited or expired (98 ) 37.43 Balance at December 31, 2015 3,106 $ 37.75 8.3 $ 223,214 Exercisable at December 31, 2015 1,206 $ 28.40 7.5 $ 97,944
Weighted-Average Fair Value of Stock Grants	The weighted-average fair value of stock options granted for 2015, 2014 and 2013 using the Black-Scholes valuation method are as follows: 2015 2014 2013 Weighted-average fair value of stock options with an exercise price equal to the market price on the grant date $ 23.19 $ 11.87 $ 13.48 Weighted-average fair value of stock options with an exercise price greater than the market price on the grant date — — — Total $ 23.19 $ 11.87 $ 13.48
Weighted Average Exercise Prices for Stock Options Exercised	Weighted average exercise prices for stock options exercised in 2015 are as follows: 2015 Weighted-average exercise price of stock options with an exercise price equal to the market price on the grant date $ 23.73 Weighted-average exercise price of stock options with an exercise price greater than the market price on the grant date — Total weighted-average exercise price $ 23.73
Outstanding and Exercisable Options	The following tables summarize information concerning outstanding and exercisable options at December 31, 2015 (in thousands, except number of years and per share amounts): Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (in Years) Weighted Average Exercise Price per Share Number Exercisable Weighted Average Exercise Price per Share $0.00 - $9.99 21 3.3 $ 9.17 21 $ 9.17 $10.00 - $19.99 298 4.8 12.57 298 12.57 $20.00 - $29.99 123 6.6 26.07 87 25.51 $30.00 - $39.99 1,944 8.7 32.57 720 32.65 $40.00 - $49.99 100 8.6 45.28 26 44.80 $50.00 - $59.99 127 9.2 58.25 30 58.25 $60.00 - $69.99 230 9.3 65.92 8 66.30 $70.00 - $70.99 249 9.6 73.29 16 71.10 $100.00 - $109.99 14 9.9 101.32 — — $0.00 - $100.99 3,106 8.3 $ 37.75 1,206 $ 28.40
Non-Vested Stock Options	The following table summarizes the status of our non-vested stock options as of December 31, 2015: Non-vested Number of Stock Options (in thousands) Weighted Average Grant Date Fair Value Non-vested at December 31, 2014 2,163 $ 11.84 Granted 694 23.19 Vested (858 ) 12.46 Forfeited / Cancelled (99 ) 13.37 Non-vested at December 31, 2015 1,900 $ 29.62

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies [Abstract]
Future Minimum Lease Payment Under Operating Leases	The following table is a schedule of our significant contractual obligations and commercial commitments (other than debt commitments, which are summarized in Note 7- “Debt”), which consist of future minimum lease payment under operating leases as of December 31, 2015 (in thousands): Twelve Month Period Ending December 31, Operating Lease Obligations 2016 $ 2,879 2017 3,126 2018 2,811 2019 619 Thereafter $ 260

Quarterly Information (Unaudi34

Quarterly Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Information (Unaudited) [Abstract]
Quarterly Information	Quarter Ended March June September December (2) (in thousands except per share data) Fiscal Year 2015: Revenues $ 44,052 $ 48,360 $ 51,669 $ 69,876 Gross profit 34,427 38,422 40,480 56,693 Income (loss) from operations (2,159 ) (15,152 ) 12,991 (1,000 ) Net (loss) income (970 ) (10,431 ) 7,274 (71 ) Net income per share: Basic $ (0.06 ) $ (0.64 ) $ 0.44 $ (0.00 ) Diluted $ (0.06 ) $ (0.64 ) $ 0.42 $ (0.00 ) Weighted average shares outstanding: Basic 16,156 16,402 16,538 16,642 Diluted 16,156 (1) 16,402 (1) 17,517 16,642 (1) Quarter Ended March June September December (2) (in thousands except per share data) Fiscal Year 2014: Revenues $ 33,298 $ 34,284 $ 37,834 $ 41,853 Gross profit 25,853 26,668 29,290 32,552 Income from operations 7,370 7,619 9,316 (495 ) Net income 7,334 11,174 9,472 8,902 Net income per share: Basic $ 0.45 $ 0.70 $ 0.60 $ 0.56 Diluted $ 0.44 $ 0.68 $ 0.58 $ 0.54 Weighted average shares outstanding: Basic 16,222 15,993 15,881 15,952 Diluted 16,664 16,378 16,258 16,372 Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with per share amounts for the year shown elsewhere in our Annual Report on Form 10-K. (1) Common equivalent shares are excluded from the diluted earnings per share calculation as their effect is anti-dilutive. (2) The fourth quarter results of 2015 include the impact of the Company’s acquisition of Endicia.

Summary of Significant Accoun35

Summary of Significant Accounting Policies, Principles of Consolidation through Property and Equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Aug. 29, 2014	Jun. 10, 2014
Accounts Receivable [Abstract]
Allowances for uncollectible accounts	$ 831,000	$ 414,000	$ 283,000
Increase in allowance for doubtful accounts	417,000	131,000
Fair Value of Financial Instruments [Abstract]
Charges relating to contingent consideration liability	47,400,000
Contingent consideration charges	46,088,000	8,438,000	$ 0
Marketing, research and development in operating expenses	1,300,000
Contingent consideration liability	63,200,000
Inventories [Abstract]
Inventories	$ 3,500,000	$ 2,400,000
Minimum [Member] | Furniture, Fixtures and Equipment [Member]
Property and Equipment [Abstract]
Estimated useful life	3 years
Minimum [Member] | Building and Building Improvements [Member]
Property and Equipment [Abstract]
Estimated useful life	10 years
Maximum [Member] | Furniture, Fixtures and Equipment [Member]
Property and Equipment [Abstract]
Estimated useful life	5 years
Maximum [Member] | Building and Building Improvements [Member]
Property and Equipment [Abstract]
Estimated useful life	40 years
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk, percentage		17.00%
ShipStation [Member]
Principles of Consolidation [Abstract]
Percentage of outstanding equity purchased					100.00%
Percentage of voting control in Auctane LLC	100.00%
Fair Value of Financial Instruments [Abstract]
Contingent consideration charges	$ 1,300,000
ShipWorks [Member]
Principles of Consolidation [Abstract]
Percentage of outstanding equity purchased				100.00%
PhotoStamps Inc [Member]
Principles of Consolidation [Abstract]
Percentage of voting control in Auctane LLC	100.00%

Summary of Significant Accoun36

Summary of Significant Accounting Policies, Goodwill and Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2015USD ($)
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	4 years
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	17 years
ShipStation [Member]
Goodwill [Abstract]
Goodwill impairment	$ 0
ShipWorks [Member]
Goodwill [Abstract]
Goodwill impairment	$ 0

Summary of Significant Accoun37

Summary of Significant Accounting Policies, Revenue Recognition through Segments (Details) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2015USD ($)Criteria$ / sharesshares		Sep. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2015USD ($)$ / sharesshares		Mar. 31, 2015USD ($)$ / sharesshares		Dec. 31, 2014USD ($)$ / sharesshares	[1]	Sep. 30, 2014USD ($)$ / sharesshares	Jun. 30, 2014USD ($)$ / sharesshares	Mar. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2015USD ($)CriteriaSegment$ / sharesshares		Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)$ / sharesshares
Revenue Recognition [Abstract]
Number of criteria to be met for recognition of revenue | Criteria	4												4
PhotoStamps Retail Boxes [Abstract]
Period of redemption of PhotoStamps retail boxes													60 months
Promotional and Advertising Costs [Abstract]
Promotional expense													$ 3,400		$ 3,100	$ 2,400
Advertising and tradeshow costs													10,800		9,700	10,300
Net Income per Share [Abstract]
Net (loss) income	$ (71)	[1]	$ 7,274	$ (10,431)		$ (970)		$ 8,902		$ 9,472	$ 11,174	$ 7,334	$ (4,198)		$ 36,882	$ 44,153
Basic - weighted average common shares (in shares) | shares	16,642,000	[1]	16,538,000	16,402,000		16,156,000		15,952,000		15,881,000	15,993,000	16,222,000	16,436,000		16,011,000	15,691,000
Dilutive effect of common stock equivalents (in shares) | shares													0	[2]	406,000	607,000
Diluted - weighted average common shares (in shares) | shares	16,642,000	[1],[3]	17,517,000	16,402,000	[3]	16,156,000	[3]	16,372,000		16,258,000	16,378,000	16,664,000	16,436,000	[4]	16,417,000	16,298,000
Net (loss) income per share [Abstract]
Basic (in dollars per share) | $ / shares	$ 0	[1]	$ 0.44	$ (0.64)		$ (0.06)		$ 0.56		$ 0.60	$ 0.70	$ 0.45	$ (0.26)		$ 2.30	$ 2.81
Diluted (in dollars per share) | $ / shares	$ 0	[1]	$ 0.42	$ (0.64)		$ (0.06)		$ 0.54		$ 0.58	$ 0.68	$ 0.44	$ (0.26)		$ 2.25	$ 2.71
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense													$ 17,226	[5]	$ 4,799	$ 4,492
Net Income per Share [Abstract]
Change in the fair value of our contingent consideration liability													$ 46,088		$ 8,438	$ 0
Weighted Average Assumptions Used in Black-Scholes Valuation Model [Abstract]
Risk-free interest rate													1.00%		0.87%	0.53%
Expected volatility													46.00%		50.00%	48.00%
Expected life													3 years 4 months 24 days		3 years 6 months	3 years 7 months 6 days
Expected forfeiture rate													6.00%		6.00%	7.00%
Treasury Stock [Abstract]
Stock repurchased during period, shares (in shares) | shares													0		435,000	179,000
Stock repurchased during period, amount															$ 12,888	$ 4,262
Segment Information [Abstract]
Number of operating segments | Segment													2
Number of reporting segments | Segment													1
Short- Term Financing Obligation [Abstract]
Short-term financing obligations	$ 13,300												$ 13,300
Unused credits	$ 34,200												34,200
Ship Station [Member]
Net Income per Share [Abstract]
Change in the fair value of our contingent consideration liability													1,300
Employee and Director Stock Options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense													16,644		4,473	3,751
Employee Stock Purchases [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense													582		326	741
Cost of Revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense													995		402	406
Sales and Marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense													4,549		955	864
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense													3,149		998	990
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense													$ 8,533		$ 2,444	$ 2,232
Minimum [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Vesting period													3 years
Maximum [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Vesting period													5 years
Maximum [Member] | Endicia [Member]
Net Income per Share [Abstract]
Concentration risk, percentage													1.00%
Employee and Director Stock Options [Member]
Anti-dilutive Shares Excluded from Computation of Diluted Shares [Abstract]
Anti-dilutive shares (in shares) | shares													3,596,000		134,000	65,000
[1]	The fourth quarter results of 2015 include the impact of the Company's acquisition of Endicia.
[2]	Common equivalent shares are excluded from the diluted (loss) earnings per share calculation as their effect is anti-dilutive. The shares related to the 2015 contingent consideration are not included because they are anti-dilutive.
[3]	Common equivalent shares are excluded from the diluted earnings per share calculation as their effect is anti-dilutive
[4]	Common equivalent shares are excluded from the diluted (loss) income per share as their effect is anti-dilutive.
[5]	Included in this amount is $1.3 million of stock-based compensation expense relating to change in the fair value of our contingent consideration liability in connection with our acquisition of ShipStation. See Note - 3 "Acquisition" in the notes to our consolidated financial statements for further description.

Acquisition (Details)

Acquisition (Details)	Nov. 18, 2015USD ($)	Mar. 22, 2015USD ($)	Aug. 29, 2014USD ($)ShoppingCarts	Jun. 10, 2014USD ($)ShoppingCarts	Mar. 31, 2015shares	Dec. 31, 2014USD ($)shares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / shares		Dec. 31, 2013USD ($)$ / shares
Purchased Price [Abstract]
Cash consideration							$ 214,165,000	$ 0		$ 0
Outstanding debt							163,459,000
Allocation of Purchase Price [Abstract]
Goodwill						$ 66,893,000	197,807,000	66,893,000		0
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Amortization of acquired intangible assets per quarter							3,800,000	1,600,000		215,000
Pro-Forma Financial Information [Abstract]
Valuation allowance recognized							0	13,554,000		9,713,000
Term Loan Facility [Member]
Purchased Price [Abstract]
Maximum borrowing capacity	$ 82,500,000
Outstanding debt							81,500,000
Revolving Credit Facility [Member]
Purchased Price [Abstract]
Maximum borrowing capacity	82,500,000
Outstanding debt							82,000,000
Letter of Credit [Member]
Purchased Price [Abstract]
Outstanding debt							$ 500,000
ShipStation [Member]
Business Acquisition [Line Items]
Percentage of voting interests acquired				100.00%
Number of automatic order importing carts and marketplaces | ShoppingCarts				50
Purchased Price [Abstract]
Cash consideration				$ 50,000,000
Contingent consideration or deferred consideration				16,242,000
Total purchase price				66,242,000
Shares available for the earn-out payment period (in shares) | shares					192,225
Shares available during second earn out period (in shares) | shares							576,675
Allocation of Purchase Price [Abstract]
Cash and cash equivalents				1,117,000
Trade accounts receivable				254,000
Other assets				39,000
Property and equipment				187,000
Goodwill				50,544,000
Identifiable intangible assets				15,200,000
Accrued expenses and other liabilities				(835,000)
Deferred revenue				(264,000)
Total purchase price				$ 66,242,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life				8 years
Business acquisition purchase price allocation goodwill tax deductible period							15 years
Discount rate of net cash flows to their present values							15.00%
Amortization of acquired intangible assets per quarter							$ 500,000
Fair value of the contingent consideration							$ 63,200,000	25,000,000
ShipStation [Member] | Minimum [Member]
Purchased Price [Abstract]
Range of acquiree shares available for the performance linked earn-out (in shares) | shares						576,675	576,675
ShipStation [Member] | Maximum [Member]
Purchased Price [Abstract]
Range of acquiree shares available for the performance linked earn-out (in shares) | shares						768,900	768,900
ShipStation [Member] | Trademark [Member]
Allocation of Purchase Price [Abstract]
Identifiable intangible assets				$ 500,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life				4 years
ShipStation [Member] | Developed Technology [Member]
Allocation of Purchase Price [Abstract]
Identifiable intangible assets				$ 5,300,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life				8 years
ShipStation [Member] | Non-Compete Agreement [Member]
Allocation of Purchase Price [Abstract]
Identifiable intangible assets				$ 400,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life				4 years
ShipStation [Member] | Customer Relationship [Member]
Allocation of Purchase Price [Abstract]
Identifiable intangible assets				$ 9,000,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life				8 years
ShipWorks [Member]
Business Acquisition [Line Items]
Percentage of voting interests acquired			100.00%
Number of automatic order importing carts and marketplaces | ShoppingCarts			50
Purchased Price [Abstract]
Cash consideration			$ 21,952,000
Contingent consideration or deferred consideration			181,000
Total purchase price			22,133,000
Allocation of Purchase Price [Abstract]
Cash and cash equivalents			803,000
Trade accounts receivable			353,000
Other assets			21,000
Property and equipment			1,091,000
Goodwill			16,349,000
Identifiable intangible assets			4,900,000
Accrued expenses and other liabilities			(1,119,000)
Deferred revenue			(265,000)
Total purchase price			$ 22,133,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life			6 years
Business acquisition purchase price allocation goodwill tax deductible period							15 years
Discount rate of net cash flows to their present values							13.00%
Amortization of acquired intangible assets per quarter							$ 200,000
Adjusted purchase price							$ 69,000
ShipWorks [Member] | Trademark [Member]
Allocation of Purchase Price [Abstract]
Identifiable intangible assets			$ 200,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life			6 years
ShipWorks [Member] | Developed Technology [Member]
Allocation of Purchase Price [Abstract]
Identifiable intangible assets			$ 1,700,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life			7 years
ShipWorks [Member] | Non-Compete Agreement [Member]
Allocation of Purchase Price [Abstract]
Identifiable intangible assets			$ 700,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life			4 years
ShipWorks [Member] | Customer Relationship [Member]
Allocation of Purchase Price [Abstract]
Identifiable intangible assets			$ 2,300,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life			6 years
Endicia [Member]
Purchased Price [Abstract]
Cash consideration	215,000,000
Net working capital adjustment		$ 835,000
Debt issuance costs	1,500,000
Debt issuance costs including costs incurred prior to closing	1,800,000
Costs incurred prior to closing	300,000
Maturity date							Nov. 18, 2020
Allocation of Purchase Price [Abstract]
Cash and cash equivalents	5,300,000
Trade accounts receivable		10,247,000
Other assets		771,000
Property and equipment		2,798,000
Goodwill		130,914,000
Identifiable intangible assets		80,200,000
Accrued expenses and other liabilities		(9,709,000)
Deferred revenue		(1,056,000)
Total purchase price		$ 214,165,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life		7 years
Business acquisition purchase price allocation goodwill tax deductible period							15 years
Discount rate of net cash flows to their present values							20.00%
Amortization of acquired intangible assets per quarter							$ 2,300,000
Acquisition and integration related corporate development expenses							4,400,000	1,100,000
Fair value of the contingent consideration	221,000,000
Pro-Forma Financial Information [Abstract]
Revenue							273,055,000	204,628,000
(Loss) income from operations							(7,657,000)	20,820,000
Net (loss) income							$ (9,273,000)	$ 32,536,000	[1]
Basic (loss) earnings per share (in dollars per share) | $ / shares							$ (0.58)	$ 2.03
Diluted (loss) earnings per share (in dollars per share) | $ / shares							$ (0.58)	$ 1.98
Endicia [Member] | Developed Technology [Member]
Allocation of Purchase Price [Abstract]
Identifiable intangible assets		$ 26,100,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life		9 years
Endicia [Member] | Customer Relationship [Member]
Allocation of Purchase Price [Abstract]
Identifiable intangible assets		$ 43,200,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Identifiable intangible assets, weighted average estimated useful life		6 years
Endicia [Member] | Trade Name [Member]
Allocation of Purchase Price [Abstract]
Identifiable intangible assets		$ 10,900,000
Endicia [Member] | Term Loan Facility [Member]
Purchased Price [Abstract]
Maximum borrowing capacity	82,500,000
Outstanding debt							$ 81,500,000
Endicia [Member] | Revolving Credit Facility [Member]
Purchased Price [Abstract]
Maximum borrowing capacity	82,500,000
Outstanding debt							82,000,000
Endicia [Member] | Letter of Credit [Member]
Purchased Price [Abstract]
Outstanding debt							$ 500,000
Endicia [Member] | Credit Agreement [Member]
Purchased Price [Abstract]
Cash consideration	56,500,000
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Fair value of the contingent consideration	$ 164,500,000
ShipStation and ShipWorks [Member]
Identifiable Intangible Assets, Weighted Average Estimated Useful Life [Abstract]
Contingent consideration charge								$ 8,800,000
Pro-Forma Financial Information [Abstract]
Revenue								154,459,000		137,626,000
(Loss) income from operations								32,873,000		33,208,000
Net (loss) income								$ 32,342,000		$ 56,691,000	[2]
Basic (loss) earnings per share (in dollars per share) | $ / shares								$ 2.02		$ 3.61
Diluted (loss) earnings per share (in dollars per share) | $ / shares								$ 1.97		$ 3.48
Valuation allowance recognized								$ 13,600,000		$ 9,700,000
[1]	Pro-forma net income of $32.5 million in 2014 includes valuation allowance releases of $13.6 million.
[2]	Pro-forma net income of $56.7 million in 2013 includes valuation allowance release of $13.6 million and $9.7 million recognized in 2014 and 2013, respectively.

Goodwill and Intangible Asset39

Goodwill and Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 66,893,000	$ 0
Acquisitions (see Note 3 - "Acquisitions")	130,914,000	66,893,000
Goodwill, ending balance	197,807,000	66,893,000	$ 0
Intangible Assets [Abstract]
Gross Carrying Amount	98,289,000	29,478,000
Accumulated Amortization	13,728,000	9,908,000
Net Carrying Amount	84,561,000	19,570,000
Amortization of intangible assets	3,800,000	1,600,000	$ 215,000
Amortizable and non-amortizable intangible assets gross carrying amount	$ 109,700,000	29,500,000
Identifiable intangible assets, weighted average remaining useful life	7 years
Amortization Expense, Fiscal Year Maturity [Abstract]
2,016	$ 13,080,000
2,017	12,995,000
2,018	12,881,000
2,019	12,572,000
2,020	12,410,000
Thereafter	20,693,000
Patents and Others [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	8,889,000	9,378,000
Accumulated Amortization	8,729,000	8,514,000
Net Carrying Amount	160,000	864,000
Customer Relationship [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	54,500,000	11,300,000
Accumulated Amortization	2,773,000	751,000
Net Carrying Amount	51,727,000	10,549,000
Technology [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	33,100,000	7,000,000
Accumulated Amortization	1,598,000	449,000
Net Carrying Amount	31,502,000	6,551,000
Non-Compete [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	1,100,000	1,100,000
Accumulated Amortization	389,000	114,000
Net Carrying Amount	711,000	986,000
Trademark [Member]
Intangible Assets [Abstract]
Gross Carrying Amount	700,000	700,000
Accumulated Amortization	239,000	80,000
Net Carrying Amount	461,000	620,000
Trade and Domain Name [Member]
Intangible Assets [Abstract]
Indefinite-lived intangible assets	$ 11,400,000	$ 490,000

Cash, Cash Equivalents and In40

Cash, Cash Equivalents and Investments (Details)	12 Months Ended
	Dec. 31, 2015USD ($)Security	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2012USD ($)
Cash, Cash Equivalents and Investments [Abstract]
Number of securities held | Security	6
Fair value of securities	$ 2,900,000
Unrealized losses on security held	6,000
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	65,126,000	$ 40,933,000	$ 66,674,000	$ 29,576,000
Contractual maturities of marketable fixed-income securities [Abstract]
Due within one year, Amortized Cost	8,549,000
Due after one year through five years, Amortized Cost	1,515,000
Total, Amortized Cost	10,064,000
Due within one year, Estimated Fair Value	8,553,000
Due after one year through five years, Estimated Fair Value	1,529,000
Total, Estimated Fair Value	10,082,000
Cash and Cash Equivalents [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	65,126,000	40,933,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	65,126,000	40,933,000
Short-Term Investments [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	8,549,000	6,458,000
Gross Unrealized Gains	7,000	25,000
Gross Unrealized Losses	(3,000)	(1,000)
Estimated Fair Value	8,553,000	6,482,000
Long-Term Investments [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	1,515,000	10,178,000
Gross Unrealized Gains	17,000	46,000
Gross Unrealized Losses	(3,000)	(9,000)
Estimated Fair Value	1,529,000	10,215,000
Cash, Cash Equivalents and Investments [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	75,190,000	57,569,000
Gross Unrealized Gains	24,000	71,000
Gross Unrealized Losses	(6,000)	(10,000)
Estimated Fair Value	75,208,000	57,630,000
Cash [Member] | Cash and Cash Equivalents [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	63,593,000	37,870,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	63,593,000	37,870,000
Money Market [Member] | Cash and Cash Equivalents [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	1,533,000	3,063,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	1,533,000	3,063,000
Corporate Bonds and Asset Backed Securities [Member] | Short-Term Investments [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	8,549,000	4,960,000
Gross Unrealized Gains	7,000	23,000
Gross Unrealized Losses	(3,000)	(1,000)
Estimated Fair Value	8,553,000	4,982,000
U.S. Government and Agency Securities [Member] | Short-Term Investments [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost		1,498,000
Gross Unrealized Gains		2,000
Gross Unrealized Losses		0
Estimated Fair Value		1,500,000
Corporate Bonds and Asset Backed Securities [Member] | Long-Term Investments [Member]
Cash and cash equivalents [Abstract]
Cost or Amortized Cost	1,515,000	10,178,000
Gross Unrealized Gains	17,000	46,000
Gross Unrealized Losses	(3,000)	(9,000)
Estimated Fair Value	$ 1,529,000	$ 10,215,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financial assets measured at fair value on a recurring basis [Abstract]
Available-for-sale debt securities		$ 10,082
Contingent consideration measured at fair value on a recurring basis [Abstract]
Contingent consideration - current		63,209	$ 9,225
Contingent consideration - long-term		0	15,790
Total		63,200
Summary of reconciliation of contingent consideration obligation [Roll Forward]
Contingent consideration charges		46,088	8,438	$ 0
Recurring [Member]
Financial assets measured at fair value on a recurring basis [Abstract]
Cash and cash equivalents		65,126	40,933
Available-for-sale debt securities		10,082	16,697
Total		75,208	57,630
Contingent consideration measured at fair value on a recurring basis [Abstract]
Contingent consideration - current		63,209	9,225
Contingent consideration - long-term			15,790
Total			25,015
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 and cash equivalents		65,126	40,933
Available-for-sale debt securities		0	0
Total		65,126	40,933
Contingent consideration measured at fair value on a recurring basis [Abstract]
Contingent consideration - current		63,209	0
Contingent consideration - long-term			0
Total			0
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial assets measured at fair value on a recurring basis [Abstract]
Cash and cash equivalents		0	0
Available-for-sale debt securities		10,082	16,697
Total		10,082	16,697
Contingent consideration measured at fair value on a recurring basis [Abstract]
Contingent consideration - current		0	0
Contingent consideration - long-term			0
Total			0
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial assets measured at fair value on a recurring basis [Abstract]
Cash and cash equivalents		0	0
Available-for-sale debt securities		0	0
Total		0	0
Contingent consideration measured at fair value on a recurring basis [Abstract]
Contingent consideration - current		0	9,225
Contingent consideration - long-term			15,790
Total			25,015
Summary of reconciliation of contingent consideration obligation [Roll Forward]
Contingent consideration, beginning of year balance		25,015
Contingent consideration distribution		(9,225)
Contingent consideration charges	[1]	46,088
Contingent consideration compensation expense	[1]	1,331
Contingent consideration, end of year balance		$ 63,209	$ 25,015
[1]	This amount represents fair value adjustment during the year to contingent consideration recorded associated with the acquisition of ShipStation. The $46.1 million contingent consideration charge is recorded as a separate line item in our consolidated statement of income. The $1.3 million contingent consideration charge relating to certain employees is recorded in general and administrative expense in operating expense. See Note 3 - "Acquisitions" for further description.

Debt (Details)

Debt (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Nov. 18, 2015
Line of Credit Facility [Line Items]
Interest expense of debt issuance costs	$ 31,000
Outstanding debt	$ 163,459,000
Interest rate on outstanding loan	1.86%
Maturities of Long-term Debt [Abstract]
2,016	$ 4,641,000
2,017	6,703,000
2,018	8,766,000
2,019	10,828,000
2,020	132,521,000
Total debt	163,459,000
Less: debt issuance costs	1,839,000
Total debt net of issuance costs	$ 161,620,000
London Interbank Offered Rate [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
London Interbank Offered Rate [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
London Interbank Offered Rate [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Term Loan [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing		$ 82,500,000
Outstanding debt	$ 81,500,000
Maturities of Long-term Debt [Abstract]
Total debt	81,500,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing		$ 82,500,000
Outstanding debt	82,000,000
Maturities of Long-term Debt [Abstract]
Total debt	82,000,000
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Outstanding debt	500,000
Maturities of Long-term Debt [Abstract]
Total debt	$ 500,000

Accounts Payable and Accrued 43

Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accounts Payable and Accrued Expenses [Abstract]
Payroll and related accrual	$ 12,863	$ 6,225
Cost of revenue, inventory and materials accrual	539	2,187
Construction and facility expense accrual	649	439
Professional fees accrual	1,973	1,402
Sales and marketing related accrual	5,145	3,252
Operating expenses related accrual	28,926	4,920
Other accruals	10,721	4,096
Accounts payable and accrued expenses	$ 60,816	$ 22,521

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 48,081	$ 42,919
Less accumulated depreciation and amortization	(16,374)	(12,492)
Property and equipment, net	31,707	30,427
Depreciation expense	3,900	3,200	$ 2,400
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,156	7,156
Building [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,886	4,886
Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	14,048	13,942
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,055	747
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,016	1,709
Computers and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 18,920	$ 14,479

Income Taxes (Details)

Income Taxes (Details)	12 Months Ended
	Dec. 31, 2015USD ($)Shareholder	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Income Taxes [Abstract]
Income tax benefit consisting of federal and state alternative minimum taxes	$ 1,400,000
Research and development tax credits	3,500,000
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Balance	(5,223,000)	$ (2,314,000)	$ (1,905,000)
Reduction for tax positions of prior years		(2,349,000)	0
Additions for tax positions of prior years	(251,000)
Addition for tax position of the current year	(560,000)	(560,000)	(409,000)
Settlement	0	0	0
Balance	(6,034,000)	(5,223,000)	(2,314,000)
Interest and penalty expense	0
Deferred tax assets (liabilities) [Abstract]
Net operating loss carryforward	22,024,000	41,827,000
Tax credits	6,872,000	5,992,000
Depreciation	(464,000)	(571,000)
Definite lived intangibles	2,946,000	768,000
Indefinite lived intangibles	(1,922,000)	(557,000)
Contingent consideration	20,742,000	3,133,000
Stock Compensation	4,800,000	1,412,000
Accruals	2,226,000	1,812,000
Total net deferred tax assets	57,224,000	53,816,000
Valuation allowance	0	0
Net deferred tax assets	57,224,000	53,816,000
NOL carryforward for federal income tax purpose	123,000,000
NOL carryforward for state income tax purpose	1,500,000
Tax Credit Carryforward [Line Items]
NOL carryforwards attributable to employee stock option exercises	21,200,000
Increase in additional paid in capital due to excess tax benefits realized	$ 21,200,000
Percentage ownership required to trigger impairment of NOLs	50.00%
Number of five percent shareholders to trigger change in ownership, minimum | Shareholder	1
Percentage of shares held by single shareholder to trigger change in ownership	5.00%
Period to trigger change in ownership, maximum	3 years
Percentage achieved compared with percentage set to trigger change in ownership	6.00%
Current [Abstract]
Federal	$ 806,000	730,000	226,000
State	611,000	127,000	(68,000)
Total	1,417,000	857,000	158,000
Deferred [Abstract]
Federal	(596,000)	(14,286,000)	(7,842,000)
State	(1,341,000)	652,000	(1,082,000)
Adjustment for change in tax rate	(1,471,000)	80,000	(789,000)
APIC charge on excess tax benefits	618,000	0	0
Total	(2,790,000)	(13,554,000)	(9,713,000)
Benefit for income taxes	(1,373,000)	(12,697,000)	(9,555,000)
Differences Between Provision for Income Taxes and Income Taxes at Statutory Federal Income Tax Rate [Abstract]
Income tax at statutory federal rate	(1,950,000)	8,223,000	11,764,000
Stock-based compensation	851,000	497,000	184,000
Nondeductible items	875,000	15,000	15,000
Research and development	(560,000)	(560,000)	(701,000)
ASC 740-10	732,000	560,000	205,000
Change in tax rate	(1,471,000)	80,000	(789,000)
Change in valuation allowance	0	(13,554,000)	(9,713,000)
Other changes in valuation allowance, net	0	(11,480,000)	(10,364,000)
Other, net	150,000	3,522,000	(156,000)
Benefit for income taxes	$ (1,373,000)	$ (12,697,000)	$ (9,555,000)
Maximum [Member]
Tax Credit Carryforward [Line Items]
Federal statutory rate	35.00%
Minimum [Member]
Tax Credit Carryforward [Line Items]
Federal statutory rate	34.00%
Federal [Member]
Tax Credit Carryforward [Line Items]
Tax credit carryforward	$ 4,900,000
State [Member]
Tax Credit Carryforward [Line Items]
Tax credit carryforward	$ 1,900,000

Employee Stock Plans (Details)

Employee Stock Plans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Options Outstanding, Number of Options [Roll Forward]
Balance (in shares)	2,969,000	996,000	1,861,000
Granted (in shares)	694,000	2,251,000	164,000
Forfeited (in shares)	(98,000)	(75,000)	(38,000)
Exercised (in shares)	(459,000)	(203,000)	(991,000)
Forfeited or expired (in shares)	(98,000)
Balance (in shares)	3,106,000	2,969,000	996,000
Exercisable (in shares)	1,206,000
Weighted Average Exercise Price [Roll Forward]
Balance (in dollars per share)	$ 28.91	$ 18.12	$ 14.33
Granted (in dollars per share)	65.96	32.55	34.29
Exercised (in dollars per share)	23.73	16.34	13.55
Forfeited (in dollars per share)	37.43	35.96	21.57
Forfeited or expired (in dollars per share)	37.43
Balance (in dollars per share)	37.75	28.91	18.12
Exercisable (in dollars per share)	$ 28.40
Weighted Average Remaining Contractual Life [Abstract]
Balance at December 31, 2014	8 years 3 months 18 days
Exercisable at December 31, 2014	7 years 6 months
Aggregate Intrinsic Value [Abstract]
Balance at December, 31, 2014	$ 223,214,000
Exercisable at December, 31, 2014	$ 97,944,000
Weighted-Average Fair Value of Stock Grants Using Black-Scholes Valuation Model [Abstract]
Weighted-average fair value of stock options with an exercise price equal to the market price on the grant date (in dollars per share)	$ 23.19	11.87	13.48
Weighted-average fair value of stock options with an exercise price greater than the market price on the grant date (in dollars per share)	0	0	0
Total (in dollars per share)	23.19	11.87	13.48
Weighted Average Exercise Prices for Stock Options Exercised [Abstract]
Weighted-average exercise price of stock options with an exercise price equal to the market price on the grant date (in dollars per share)	23.73
Weighted-average exercise price of stock options with an exercise price greater than the market price on the grant date (in dollars per share)	0
Total weighted-average exercise price (in dollars per share)	23.73	16.34	13.55
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Closing stock price (in dollars per share)	109.61
Weighted average grant date fair value of options vested (in dollars per share)	$ 12.46	$ 8.44	$ 5.47
Total intrinsic value of options exercised	$ 39,400,000	$ 6,400,000	$ 24,000,000
Non-vested Number of Stock Options [Roll Forward]
Nonvested, Beginning Balance (in shares)	2,163,000
Granted (in shares)	694,000
Vested (in shares)	(858,000)
Forfeited / Cancelled (in shares)	(99,000)
Nonvested, Ending Balance (in shares)	1,900,000	2,163,000
Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested, Beginning Balance (in dollars per share)	$ 11.84
Granted (in dollars per share)	23.19	$ 11.87	$ 13.48
Vested (in dollars per share)	12.46
Forfeited / Cancelled (in dollars per share)	13.37
Nonvested, Ending Balance (in dollars per share)	$ 29.62	$ 11.84
Total unrecognized compensation cost related to non-vested share-based compensation arrangements	$ 55,100,000
Weighted-average period for recognition of unrecognized non-vested share-based compensation	2 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance-based awards vesting period	5 years
Stock Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of common shares reserved for future issuance upon adoption (in shares)	3,500,000
Maximum aggregate number of shares of common stock and stock equivalents (in shares)	2,100,000
Stock Incentive Plans [Member] | Restricted Stock and Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Full value awards counted against Plan's overall limits (in shares)	2
Earlier Full value awards counted against Plan's overall limits (in shares)	1
Stock Incentive Plans [Member] | Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Full value awards counted against Plan's overall limits (in shares)	1
Stock Incentive Plans [Member] | Performance-based Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock issued (in shares)	175,000
Performance-based awards vesting period	36 months
Compensation expense	$ 646,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contribution by participants of cash earnings through payroll deductions, maximum	15.00%
Purchase price per share of fair market value on participant's entry date into offering period	85.00%
Aggregate number of common shares reserved for future issuance upon adoption (in shares)	150,000
Increase in percentage of total number of outstanding shares of our common stock	1.00%
Extension of period beyond expiration date	10 years
Shares held in ESPP (in shares)	1,700,000	1,700,000
Total shares of common stock issued (in shares)	49,000	42,000	56,000
Employee Stock Purchase Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock were reserved for annual issuance, maximum (in shares)	260,786
Savings Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent matched of first 4% a participant contributes	50.00%
Percentage of participant contribution that is matched	4.00%
Compensation expense	$ 650,000	$ 402,000	$ 326,000
$0.00 - $9.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower (in dollars per share)	$ 0
Range of Exercise Prices, upper (in dollars per share)	$ 9.99
Options Outstanding, Number Outstanding (in shares)	21,000
Options Outstanding, Weighted Average Remaining Contractual Life	3 years 3 months 18 days
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share)	$ 9.17
Options Exercisable, Number Exercisable (in shares)	21,000
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share)	$ 9.17
$10.00 - $19.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower (in dollars per share)	10
Range of Exercise Prices, upper (in dollars per share)	$ 19.99
Options Outstanding, Number Outstanding (in shares)	298,000
Options Outstanding, Weighted Average Remaining Contractual Life	4 years 9 months 18 days
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share)	$ 12.57
Options Exercisable, Number Exercisable (in shares)	298,000
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share)	$ 12.57
$20.00 - $29.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower (in dollars per share)	20
Range of Exercise Prices, upper (in dollars per share)	$ 29.99
Options Outstanding, Number Outstanding (in shares)	123,000
Options Outstanding, Weighted Average Remaining Contractual Life	6 years 7 months 6 days
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share)	$ 26.07
Options Exercisable, Number Exercisable (in shares)	87,000
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share)	$ 25.51
$30.00 - $39.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower (in dollars per share)	30
Range of Exercise Prices, upper (in dollars per share)	$ 39.99
Options Outstanding, Number Outstanding (in shares)	1,944,000
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 8 months 12 days
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share)	$ 32.57
Options Exercisable, Number Exercisable (in shares)	720,000
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share)	$ 32.65
$40.00 - $49.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower (in dollars per share)	40
Range of Exercise Prices, upper (in dollars per share)	$ 49.99
Options Outstanding, Number Outstanding (in shares)	100,000
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 7 months 6 days
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share)	$ 45.28
Options Exercisable, Number Exercisable (in shares)	26,000
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share)	$ 44.80
$50.00 - $59.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower (in dollars per share)	50
Range of Exercise Prices, upper (in dollars per share)	$ 59.99
Options Outstanding, Number Outstanding (in shares)	127,000
Options Outstanding, Weighted Average Remaining Contractual Life	9 years 2 months 12 days
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share)	$ 58.25
Options Exercisable, Number Exercisable (in shares)	30,000
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share)	$ 58.25
$60.00 - $69.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower (in dollars per share)	60
Range of Exercise Prices, upper (in dollars per share)	$ 69.99
Options Outstanding, Number Outstanding (in shares)	230,000
Options Outstanding, Weighted Average Remaining Contractual Life	9 years 3 months 18 days
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share)	$ 65.92
Options Exercisable, Number Exercisable (in shares)	8,000
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share)	$ 66.30
$70.00 - $70.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower (in dollars per share)	70
Range of Exercise Prices, upper (in dollars per share)	$ 70.99
Options Outstanding, Number Outstanding (in shares)	249,000
Options Outstanding, Weighted Average Remaining Contractual Life	9 years 7 months 6 days
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share)	$ 73.29
Options Exercisable, Number Exercisable (in shares)	16,000
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share)	$ 71.10
$100.00 - $109.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower (in dollars per share)	100
Range of Exercise Prices, upper (in dollars per share)	$ 109.99
Options Outstanding, Number Outstanding (in shares)	14,000
Options Outstanding, Weighted Average Remaining Contractual Life	9 years 10 months 24 days
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share)	$ 101.32
Options Exercisable, Number Exercisable (in shares)	0
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share)	$ 0
$0.00 - $100.99 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, lower (in dollars per share)	0
Range of Exercise Prices, upper (in dollars per share)	$ 100.99
Options Outstanding, Number Outstanding (in shares)	3,106,000
Options Outstanding, Weighted Average Remaining Contractual Life	8 years 3 months 18 days
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share)	$ 37.75
Options Exercisable, Number Exercisable (in shares)	1,206,000
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share)	$ 28.40

Commitments and Contingencies47

Commitments and Contingencies (Details) - USD ($)	Aug. 06, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies [Abstract]
Payments to express one for settlement	$ 10,000,000
Rent expense		$ 874,000	$ 215,000	$ 36,000
Future Minimum Lease Payment Under Operating Leases [Abstract]
2,016		2,879,000
2,017		3,126,000
2,018		2,811,000
2,019		619,000
Thereafter		$ 260,000

Quarterly Information (Unaudi48

Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2015	[1]	Sep. 30, 2015	Jun. 30, 2015		Mar. 31, 2015		Dec. 31, 2014	[1]	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015		Dec. 31, 2014	Dec. 31, 2013
Quarterly Information (Unaudited) [Abstract]
Revenues	$ 69,876		$ 51,669	$ 48,360		$ 44,052		$ 41,853		$ 37,834	$ 34,284	$ 33,298	$ 213,957		$ 147,269	$ 127,819
Gross profit	56,693		40,480	38,422		34,427		32,552		29,290	26,668	25,853	170,022		114,363	100,319
Income (loss) from operations	(1,000)		12,991	(15,152)		(2,159)		(495)		9,316	7,619	7,370	(5,320)		23,810	34,118
Net (loss) income	$ (71)		$ 7,274	$ (10,431)		$ (970)		$ 8,902		$ 9,472	$ 11,174	$ 7,334	$ (4,198)		$ 36,882	$ 44,153
Net income per share [Abstract]
Basic (in dollars per share)	$ 0		$ 0.44	$ (0.64)		$ (0.06)		$ 0.56		$ 0.60	$ 0.70	$ 0.45	$ (0.26)		$ 2.30	$ 2.81
Diluted (in dollars per share)	$ 0		$ 0.42	$ (0.64)		$ (0.06)		$ 0.54		$ 0.58	$ 0.68	$ 0.44	$ (0.26)		$ 2.25	$ 2.71
Weighted average shares outstanding [Abstract]
Basic (in shares)	16,642		16,538	16,402		16,156		15,952		15,881	15,993	16,222	16,436		16,011	15,691
Diluted (in shares)	16,642	[2]	17,517	16,402	[2]	16,156	[2]	16,372		16,258	16,378	16,664	16,436	[3]	16,417	16,298
[1]	The fourth quarter results of 2015 include the impact of the Company's acquisition of Endicia.
[2]	Common equivalent shares are excluded from the diluted earnings per share calculation as their effect is anti-dilutive
[3]	Common equivalent shares are excluded from the diluted (loss) income per share as their effect is anti-dilutive.