STMP - Earnings call transcript Q3 2017

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Operator

Good day, ladies and gentlemen, and welcome to the Third Quarter 2017 Financial Results Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] I would now like to introduce your host for today’s conference, Suzanne Park. Please go ahead.

Suzanne Park

you. Thank

today CFO. CEO; call The follows. call and Huebner, is Ken Carberry, Jeff agenda is the Kyle McBride, President; as On for today’s

after will and about financial about model ship and quarter We’ll discuss our Company’s timing all update anticipated We results elements fully maintain the discuss reflect results outlook. or partnerships. financial third Stamps.com approval products, results and was regulatory share and financial XXXX, materially measures. any those diluted tax forward-looking provide events. non-GAAP we talk acquisitions net on for detailed risks for cause time was the the business its GAAP We’ll statements actual our its will business XX, which release an when economics reflect the results from X-K. of and third quarter invoke successfully Exchange our assets The including publicly of are future our the or its review the to our products, unanticipated its utilize to in XXXX. the and of from or include Litigation to Form forward-looking XXXX. to Important Harbor metrics and income our of the realize to the hereof Safe differ any complete net statements, first, investments, $X.XX. results, Securities including with Reports to Quarterly release time XXXX, its the could including or on finally, And December the circumstances statement of no in the the for statements of filings outlook; under long-term we’ll financial income events benefits past Reports and of today maintain desirable provide factors, date made Form some or Commission ended but on call XX.X Stamps.com, Reform which the by Private forward-looking and Company includes Company’s year on Annual occurrence Report million Securities statement. the XX-K This GAAP comments obligation Safe on of Act will fiscal revisions on XX-Q Current ability integrate uncertainties. deferred to In obtain strategic Form undertakes and ability to Harbor

third to issuance non-GAAP X following debt quarter prior Please non-GAAP release quarter XX legal and and of earnings one-time reconciliations for financial million the third of acquired proceeds GAAP of million to X.X measures posted gain our measures. items: of X.X expense; non-GAAP settlement; insurance million and stock-based relating of website corresponding our Our our million compensation non-cash income see on expense. metrics measures exclude non-cash costs; amortization of Investors compensation financial XX.X million expense; XXXX tax expense the intangibles executive our

me over call let to Ken. the hand Now,

Ken McBride

Thanks, non-GAAP and quarter. earnings share am was our XX% performance XX% included thanks that strong adjusted today. I million up per Suzanne, year-over-year, Today year-over-year. financial revenue which was year-over-year, million, third financial non-GAAP EBITDA with the that $X.XX total quarter XX.X we overall XX% which was during XXX.X and for third of us was up results was which joining up which pleased announced

offer in driven and per average and both ARPU. or revenue shipping and revenue the Let by shipping fees, $XXX.X to the include million shipping in mailing growth and more store, customers. our paid that quarter third rev turn discuss shares, the and as we sales in service shipping the bit business, me insurance a in mailing Mailing year-over-year. we to online revenue The growth was of the was growth XX% unit is customers our package discussion partner numbers detailed little product and reminder up a in mailing

continues Our so solid our our our as the collect printed revenue of downturn includes we've of pay shipping business third see additional growth continued the higher average to X% those ago focus X.X seasonally and our was Note postage. The from growth quarter quarter the share quarter third second pleased shipping churn XX%, in We note who that for quarter postage would third we XXXX. solutions total that $XX.XX customers. was tend shipping compared as X.X% see that each up area. the three quarter XXXX. was weakest XXXX. monthly XX%. from growth subscription benefitted to our churn of monthly X%, flat the metric. quarter growth paid quarter billion paid customer was partnership or that was third that metric higher XX%, the customers in quarter XXXX; nice the that The slower postage We're Growth our all ARPU customers have third quarter churn versus in the rate because of rates paid total up year-over-year versus XXXX. long-term third seeing revenue and up on and traditional the during that growth just in third in in quarter versus third double-digit our mail was small customers XX% well first continued the of to and XXX,XXX growth fees business up quarter Total quarter. average up benefit in years a The was quarter metric to and third churn lower customer to the up in We're now traditional through now was X% the postage, ARPU versus

and an generated all continued subset XXXX success the for let the and on. are we're of shareholders. working some employees me in to proud of financial work we're team business our on that, we’ve update management a very on Our With our based initiatives continuing of provide

we full drive suite coupled continued solutions growth. now acquisitions strong Stamps.com. and First, we’re shipping solutions made we’ve across to solutions, product a continuing diverse ShipStation, ShipWorks, brands, our portfolio to and of have traditional of Endicia our leverage five the The ShippingEasy, mailing with

include broad houses, types a larger shippers. meet of ecommerce Our the of other that fulfillment customers array target of and retailers warehouse product need merchants, solutions

While more we more our the adding successfully believe and to those of capabilities to services plan features of and majority of continue differentiate needs products innovating, customers, target meeting from our already we're competitors. and we further our

those to management, for shipping continue also inventory out related plan many the management other process customers. complement areas as We to customer support for build and as relationship such

to the shipping e-commerce acquiring focus for plan The marketing second with continue sales customers, initiative and to heavily on in XXXX, particular shippers. the we in invest and

be and we to direct marketing from We're traditional search to continue to radio, in XXXX. continues television, in investment our total sales, mail, to plan planning expense increase increasing on direct strong return and investment engine Our versus sales media, marketing. XXXX continue

acquisition We our e-commerce also intend to into segment. amount increasing to customer budget continue the of direct an

expertise of our past in on of operations, to Finally, area, the sales plan the continue synergy historically in We our going acquired Stamps.com companies. and service, customer product same we’re products capitalizing continue in the brands. synergies our we're development the and targeted acquired the three growth have our with over all companies in all to we've to acquisitions years. customers. Across marketing the utilizing from services, of and many In marketing, marketing opportunities the realizing and accelerate done all

expertise expertise, and across operating for things. technology development the have also methodologies expertise, in and web-based system able companies. various and We're areas across product eliminate various duplicate various acquired leveraged companies our other operations also client-based We paradigms including to several

several areas streamline to able been have of we example, For backend datacenter. our

our unified have we We able support been several areas combine to have customer operations of operations. and

point Legal product we're resources have those the development acquired marketing activities. Today one synergy, next that announcing contributions to retirement than Seth years As resources Stamps.com Seth on planning of been their brought has significant expand Officer, the used Chief is significant we Seth to for at to last and period our their transition company. financial brands, over Legal has our and XX company and the to of to Weisberg. title and more legal made Seth continue with be Seth's of the continue able continue part-time Officer. be will we knowledge order that from Chief to our to his We're an will serve industry. year ongoing and role extraordinary time benefit to we able January more won't to in expertise of deep in benefit pleased the to hold on spend family. will to retirement

has and we Seth, for of an served integral Deputy company XXXX transition Chief the the Legal Senior Counsel Associate following as the wish years. Matt and has valuable as results. Seth Seth's with for legal industry and Counsel has over [Matt General in thank the Lipstein] to that, joining call effective General Officer deep for years Council, to his and has Jeff Matt him promoted me discussion Stamps.com team long knowledge our since attorney. With hand and our company. very XX past an the of to over best member of let been retirement. of the We And a of service experience a detailed financial XX

Jeff Carberry

The review results. measures. Thanks, our today Ken. financial financial financial We’ll non-GAAP quarter discussion of third XXXX results now our includes

shipping earlier. both measures headwind revenue a and strong was growth ShippingEasy the release metrics As of was was mailing businesses. our The described, non-GAAP measures million paid and revenue would by QX was XX% QX year-over-year was customize by Ken million financial The customers in that our XXXX. Suzanne $XXX.X up acquisition and driven We of of mailing QX and can also postal QX. and a the versus revenue was reconciliation to in described driven in of note XX% found on revenue in year-over-year $XXX.X growth shipping and that strong Investors in increases XXXX meaningful earnings our XXXX. in QX in Mailing anniversary in be as Total website. corresponding versus our and GAAP ARPU, up growth shipping

was year-over-year XXXX. all share was was and are in has fully costs was XX% the investments QX growth revenue a strong $X.XX versus versus higher the We of 'XX. marketing, that our million was tax for marketing adjusted shipping Non-GAAP that continue to accounted G&A, rate million excluding XX% in that was to XXXX note we've strong XX.X% XX.X primarily EPS of with QX of in as capital also XXXX. fiscal per up to for service of at our by R&D while XXXX innovations. percentage from of current driven conform recently exercise our QX, QX being and per XX% XXXX growth diluted the QX revenue higher flows, was repurchases. created to cash mailing XXXX for QX related income R&D calculation investments net margin the increase percent $XX.X of was up working to in year-over-year With our year-over-year approximately comparability and QX methodology attributable and was Mailing $X.XX. for partially in a ShippingEasy business. XX% of in income from sales which XXXX. a using our operating of XXXX. year-over-year XX.X% margin of offset QX costs full-year to $XX non-GAAP is growth a quarter. cash XXXX QX and in is QX which support of a primarily share continued in of The and XX.X XX% 'XX benefit and shares and for gross year-over-year in of higher gross margins which tax and the rate Fully $XX.X material benefitted option share would quarter by was flat million We QX and driving our this and and XX.X% diluted was experienced for in option year year-over-year investments cash was million in operating income rate QX end and increase expected exercises Sales The of XXXX and of $XXX versus up diluted QX and our reduction of year-over-year We XX.X% ended third which increases revenue. hiring driven QX gross million purposes. to QX somewhat recast and adjusted year-over-year, of shipping increased GAAP Non-GAAP in that versus XXXX million down up was million $XXX in Adjusted the fully effective income EBITDA which primarily to as tax to G&A our free in by changes

During principle the million a repayment $XXX X.X excluding of QX issuance required debt costs we in credit resulting made million. under of agreement approximately debt total

of million XX,XXX repurchase On plan and Directors Company cost a shares of approved Board following upon the XXXX at shares million approximately XXth total plan approximately of $XXX And of share 'XX. of will the new on offers over million. $XX dates. first the repurchased October XX of approximately the quarters back for that that total stock at months repurchases XXth 'XX a the Company company November take cost us expiration During QX, us program respective approximately a repurchased of of up XXX,XXX its the current the six to three

Now, turning to guidance.

expect XXXX continue in fiscal to between million. We to to XXX a revenue be million range XXX

growing be revenue expect our We XXXX driven on e-commerce-driven to shipping to continued business. continue by focus

as business. and We increase to sales revenue marketing, R&D in invest with G&A continue in in expect generally line the growth and XXXX, we to

could than increases we in importance of higher sales and revenue investing given business, the growth and Given to the any in quarter marketing rates. R&D, see grow

adjusted expect in continue fiscal XXXX to to between the XXX We million. range be million EBITDA to XXX

tax XXXX, estimate expense approximately XX.X% XXXX. of XX% for to compares and to income non-GAAP for non-GAAP expect of our that be pre-tax We previous

earlier As expected reduction this discussed XXXX year. driven was exercises quarter we level the of option third by our of the of rate in the for our

XXXX effective tax of number from exercises. the differ estimates our current Our full level of including factors continued on based the year rate option

be to and shares diluted XX fully in expect million XX We between million XXXX.

non-GAAP We revised guidance $XX the income of to by rates. non-GAAP share be our primarily diluted increase diluted non-GAAP range driven adjusted to XXXX in The tax fully to between guidance our $X.XX. in and adjusted $X fiscal for which was $X.XX expect income share compares previous per

shipping Our adjusted results to tax seasonality current which per we to increased recast financial focus higher per adjusted the the diluted exhibit XXXX our to expect And expenditures our share a year. talked fourth non-GAAP With on three usage income and range to of shares million particular, our conform earlier]. other was non-GAAP in diluted be million of than revenue due compares items in shipping, strong XXXX holiday XXXX. customers $X.XX income reflective period. to expect and during be to expect finally, we seasonally we quarter quarters the [method the shipping In to QX X between capital X

Kyle outlook. call to for with long-term hand that, me let comments the Now back some on our

Kyle Huebner

years. significant in rates well we business; on been Thanks, transformation which focus the naturally XXXX. the our expect of Jeff. and in over our significant to at business to and positioned on our We're majority and year-over-year few the ecommerce XXXX opportunities growing acquisition past in over shipping growth have that shipping. years the We've five achieved investment with next of to from capitalize business in we our the on sales been the The growth and expect has the focus long-term continue XX% benefit shipping

anniversary QX technology through ShippingEasy excess the In of in approximately grew our addition, we growth opportunities grow was revenue we year-over-year. there're in as all rates of believe growth and XX% ecommerce increased multicarrier other to organic Shipping adoption This related solutions. acquisition.

growing than ecommerce faster the are still market. So, overall we much

marketing shipping ShippingEasy automated to on are and management including UK sales as invest ShipStation solutions of ecommerce international merchants help and part for that their shipping existing module the countries of today. customer outside In expand our grow email management make launched believe existing continues to and from their recently continues ShippingEasy progress increased businesses Australia. to addition, there customer Canada, management in inventory we solutions. opportunities customers.

to on business. that revenue target growth five-year execute we more the revenue rate going forward businesses is driven we by be while XX%, continue non-shipping our expect will Our our shipping

approximate in growth five their we range. growth part growth revenue low as revenue percent expect of would grow the next the it a the businesses, total becomes long-term business Thus, and to expect the revenue non-shipping our reflects we rate larger in shipping mid-single our to over growth Our years. which current to digit in of slower larger the

We adjusted expect up will compared range year margins. similar five EBITDA in a our to current be to our modestly margins

overtime summary, we performance expanding and strong look for opposed to potential up revenue continued In expense our expand to our by will delivering in questions. with investing excited more be we And it the that the we on may future. are of margins great as at forward focused and growth the results there merchants While for are to open growth.

Operator

[Operator Craig-Hallum. question from Sutton our Instructions] George And from first comes

now Your open. is line

George Sutton

I because fair There to relative amount the that we're on about and is factors that going just better are of the sense into. of confusion seasonal go to QX shipping seasons

Can So, was that rate is that when in slower players lot you a growth we postage but that that example. driven what first terms the shippers billion might the not quarter clarify look in growth the that other we postage the see sort in fourth of growth also the that -- to a holiday of season the and for quarters. by quarter smaller with has quarter larger of just of X.X go at that showing things you see that kind relative in in

Jeff Carberry

bear one includes total a mind number well Yes, in metric that metric as is the postage so provide that George we mailers with shippers. as postage thing is the to

absolutely So, see shippers thing with trends the right to is to you the the you we that other secular point are our are they seeing and seasonality USPS. mailers to then with the fact I point that

our you increases declines you volumes related assume broader us with in non-shipping shipping. diversity rates. reflecting of are do postage give volumes combined because artifact great both of that reflection have secular maybe with be they you in that mailing what our to metric they still broader the decline could don’t metric postage and a that postage potentially of we But customers churn see this but print mailing total in in so that secular So

Ken McBride

in going you to testing and are large customers and we're the in going based with show dramatically holiday that QX as the with of in shippers think so season shipping shipping than the that the it's has we adopt holidays then is George volume weekends and holidays implementing and QX. in those business possible have kind shipping mention of would aren't year-over-year a anything going of them holiday numbers and I days, growth I fundamentally and and you're mix none solution are solutions QX quarterly the that benefit to don't with and so see weekends excited or up to thing get new other to The think of days but in the on are higher period, also the changed business fluctuations the are so business for rates,

George Sutton

Now in the more prepared aggressively marketing you or and are can clarity? a in sales shippers, you little on comments investing your you talked in talk force, sales marketing and ecommerce want talking a I little more mean about investing just by bit we acquiring sales about bit what more a focusing direct

Ken McBride

and our sales mix just I focus of that focused which then into specific of marketing of the the specific and past sales we ecommerce we so our buying when marketing more ecommerce including heavy and we've amount as about targeting over kind radio, ramping ecommerce -- of programs. areas television, we've look more, mail about of time budget up targeting talked shifted effort are our into overall talking we direct increasing so I more areas of as that in marketing Endicia, an years users, think really direct over acquired it's mail direct it's ecommerce think and I of it's SEM just our in just like there's of so internet, going channels couple last the traditional the selling expanded and everything think we're it and into

George Sutton

your your and terms some postal in curious in FedEx relative have if for could, Lastly service have the season both of holiday on raised EPS focus with potential? surcharges thoughts that volume the to prices I'm place. I

Ken McBride

continue with about X.X% plans X.X%, are increase of so the and of we the which strong, is is FedEx particularly out generally packages, that the the competitive USPS from a ecommerce, I so where increases and versus about then for they’ve in very shipping know delivery as to strong pleased USPS on that then the increase track and we to other succeed. think services very think a in you for residential recent see also competitive the they strong good X.X% we're in they're an think very they're announcement segments products their increase USPS perspective, and as to so, the we very most succeed average I strong announced I UPS smaller and percentage speaking trend you're come carriers continued when USPS in the lower USPS seeing see were average

peak price with increased also QX to from that were their I more that rate the rates saw in the increase that particular some periods. some so in peak think the we extent So, that's competitive effectively USPS changes around periods, they're UPS so high implementing, we you've they're happy that percentages in seen played and in out another also case even those and

Operator

our from Thank comes you. And Kevin Liu from next question Riley. B.

open. now is line Your

Kevin Liu

curious in seen of a about to Just And would types is you competition APIs direction? have existing not of looking an fulfillment with and the terms or more and [indiscernible] couple operation think you Flex guys have sort go acquire with moving from whether out of some in broadly off you like just and guys attraction questions any of then seeing your have to whether program Amazon customers. just or and news first more as curious in their gain of of start these are you you services the that kind to expand an how interest which asset competitive heavy then landscape Seller and shipping of

Ken McBride

Sure.

five different try down to it through like So, me them. let questions, go so

in from marketplace. in we that Bowes as I haven't major think the take API we really, say I seriously seen obviously So, Pitney the would impact competitor a but terms of

seen issues. complaining performance about of back partners and In over fact, came then actually the us switched some and and bugs business slower who've some we've to

long build API I we've think very, very complicated that's is a pretty the in to time. general been doing something for So, it

API speed, of I a ability and breadth are we API else an seeing really look for offer out and big we support really where does of years a more Bowes likes really and features competing We dozen sophisticated we that that. set the like reliability, that a is classes have think to and you as things and not so invested from than customization do there against mail nobody are your is in not impact we of market a solution Pitney are important and so

with focus margin a really I something [Indiscernible] primarily, in. warehouse think have that have really packages but margin was I Pitney trucks really some as Smart really picks and lot acquisition and work logistics really that's on competing the specific a historically They million a to and interested logistics in historically that's space it's do we degree around first -- the very and ever high logical so been the kind already Bowes consistent They on space sharing are USPS acquisition saw likes some Bowes [presold] of it acquirer last a and they logistics. work we we we high do DHL primarily it's we of logistics and Pitney the the they not on their they acquisition they think Post and -- and square made I are the focused with we think a company been of for of some feet up sense partner, really USPS utilizes warehouse as to of we we businesses FedEx, not X.X really that Pitney and business so are and it's company Sure software eCommerce, and the that and with drops their with off interested USPS focus mile Post not and and of business. see for business

they merchandize of used by up they carriers them and Fulfillment the Amazon for the a just and business part one they call looking optimizing in warehouse forward, inventory When be which mentioned one really view fulfillment would something we of Amazon as Fulfillment the as of you inventory support we is, for came customers only at FBA to and will across long our enhancement of one we operations really an we to shipped difference facility by an boil and The XX fulfilling the Amazon and carriers picks it. something in options give view Flex of of mix that where Seller merchandise their something as Amazon doing been over very what really often are that continue of we carriers, the is you they've the held solutions, by new and the the to is their down Flex and the extension of is it them for we is Amazon actually held with. terms that is it's delivers when time the Seller are be more In or we is Amazon go FDA out Seller support the that to Flex are small and would an and something case the carrier at has still products. then would case support, sellers another as they

Kyle Huebner

Ken to confidence low look core and if say so or said on in with into getting be to would creates we core it not more tends our the think that is partner I just business their to where customers terms intensive, so. I value assets companies low really acquiring as for confidence the though broadly more would fulfillment very opposed or operationally as return margin, of that's is

Kevin Liu

see, things adjacent to yet? like can then CRM to the you of curious talk shipping contributed you for results kind that's just you so and from one traction quick just have started about if seen some like much what And email, of offerings of sort one, feel you

Ken McBride

lot results made solutions to free but in free at overall customers trial, really of move adoption of say I are building to I we we more to we with results picture point offer I as opposed areas we of value it year easy three more within think and of the significant to kind could customers for charging that have a hasn't terms it's from shipping this something and and progress five functionality in and to it, think we lot a and customer relevant become think would a can contributed of where some to for it -- base, we've I our that think service the create terms seen but today.

Operator

our Allen from comes Klee you. question Thank next And Sidoti. from

open. now is line Your

Allen Klee

Can you can the assumption we a past in change 'XX? maybe rate a tax rate and be more explain going that think has tax the changed just something lower it'll little

Jeff Carberry

and of through tax adopted terms year the first you well would to you as our and the this in of quarter in what exercises third saw we tax-deductible P&L rate; attributes recall, XX] P&L the a tax exercises. lesser it's tax option really creating saw that XXXX you So, our QX degree requires the what as result and of reduces is actually option to a for that saw in us flow you exercises so, item rates, [indiscernible] benefitted [ASU the in option effective

what that of this be revised estimate effective do estimate what year, got as so, saw in QX year for if new you assumptions forces at be with saw pending to for I expectation variables rate exercise why are would likely us lot tax revise [XX.X%] legislations, for an But rate obviously look we obviously marginal rate. could So, -- current they a given could and look and the was safe in of is variables XXXX lot booked earlier historically equal tax of you rates of to what all things year the behavior, there as differences, differences, at option we to forecast to so, expect XXXX. that that rate effective tax you full full the but the is of tax us assume timing terms that XX% XX%, there're tax look but benefit primary a and there're driver we that of that in XXXX revise exercises very option change cause that's knowledge difficult our

Jeff Carberry

to I exercise forward adjusted of going going NOL less add, is and a what would have some the driven you so assets so are going really relevant to we've fluctuate almost the used all where volatile option income. the going to fluctuate extent just is tax and I to this and rate just rate makes EBITDA to at be tax pretax quarter-to-quarter, relative or which reductions numbers situation think and more the EPS very point majority our are a lot by tax

Allen Klee

of business some give the you of in in-house? taking impact Amazon their some in Can quarter us

Jeff Carberry

quantify headwinds don’t business given impacts partner, but generally Amazon. quarter headwind quarter with be to was it sizing Amazon don’t really fair the but certainly to any to of the speaking We it provide for an balance of the the certainly for relative us a in-house was the going in we

Operator

question comes from Securities. next Klasell Thank you. Tim Northland from our And

Your line now open. is

Tyler Wood

services are this nations and Yes, globalization selling for then how U.S. shipping volumes ecommerce, those Tyler one, opportunities ecommerce from the into Wood some filling like on are market? you Quick Tim. are given approaching for Stamps with seeing we is coming with seeing you that into

Ken McBride

we to as years ecommerce across so past not the so if we can the more complexity Yes, a carriers we value is look shipping been of model and model what particular the carrier, the think model. we an to traditional has for full label PC the entity XX are didn’t internationally more business you where traditional so the business postage happen actually because ecommerce country carriers of opposed as multi solution and producing individual of a at the regulated the of that now for that's I ShipStation we kind be shipping were see look but is look to I PCs in of approved of optimize a overseas that our pursued the postage markets different where merchants merchant whatever there as service you see really by being we the international vendor so the model regulated Stamps at it think market

Tyler Wood

And then are you one in with more and the datacenters? those those terms seeing kind of progressing that all acquisitions on particularly how backend, a single integrating getting

Ken McBride

teams with far operations I to realizing there. the now the march really areas we're the pretty Yes, not on acquisition not of primarily the the customer of terms I but and think the but cost forward we're in we've putting the effort, in together savings seeing down the and resulting combining terms benefit development support [Indiscernible] I organizations R&D path think of it's results of really that just positive in datacenters the a continuing also think simple lot seen

Operator

from you. Thank And question Capital Roth next our comes Darren Partners. from Aftahi

now is open. line Your

Darren Aftahi

the end do if not kept seasonality why revenue little and or curious noise competitively it the a that any of and can this Just your unchanged, see a XQ I'm then there's where guidance, implied what kind is? bit keeping it is low if rate, about uptick in kind you talk negative we [indiscernible] here, EBITDA [indiscernible] of on assumed just

Jeff Carberry

of as expect downside, and upside move guidance provides range our methodology kind [indiscernible] our the precision. we year decrease range, of in range greater and see to don't kind So, the conceptual both generally frameworks we certainly through although that really we

scenarios a So downside which be that not or of very may to happen. may likely downside assumes, the number

QX there our quite have key see think that we customized the there're business terms the predict. you when of that a on to I past look understand becomes bit obviously highly is orders volatility business to talk so postage, in you about at results of can very the difficult you volatile, in

I So, the to you volatility. for of something control that's terms in need think

year-over-year, The to we on clean side and saw other really business mentioned XX% as is the a growth of anniversaryed really thing number think number Kyle of key business, the [indiscernible] that where the acquisitions. that's shipping I the all understanding a reflects the core

of XX% So, customized certain see that -shipping, can with the the shipping non I in so numbers business the the in fundamentals numbers postage, really of see some which that the with is with non-customized shipping, think business for when growth, of imply context you growth you of look implied. how I postage helps guidance single-digit XX% at low but terms around of would QX you what business on and the add aspects think to core volatility the the the drag

Darren Aftahi

Just but specifically anything the a jump mean moves a XQ? in of that of get with you and driving in kind the quarter, follow-up had I was there I kind as around substantial that postage customized

Jeff Carberry

quite have individual terms terms any it could to, in driver want bit simply we ramp point you business the individual kind with [indiscernible] really any of highly to unpredictable really isn’t I of are at they a run time campaign heavily very and forecast at orders, to to a to where and the function in in our at terms volatility postage, the that's and in customized of that of that's primary point and marketing of day it point there, companies in a function natural decide those of number of business that's part a in they that business predictability expectations guidance. end they postage, of hard especially any of brand this is why seasonality it's and of time are to so the there's a why discount no for that, decision the

Operator

Thank further Ken you call back to now remarks. like would the I for turn and to McBride any

Ken McBride

if you always investors.stamps.com line you as have and Thank contact or can at Thank through any us you. our questions XXX-XXX-XXXX. everyone website, you on investor follow-up

Operator

Ladies today's and disconnect. gentlemen may thank and Everyone wonderful all you program day. conclude you conference. for participating a does in This the have

Stamps.com (STMP) 2 Nov 172017 Q3 Earnings call transcript