STMP - Earnings call transcript Q4 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Stamps.com Inc. Fourth Quarter 2018 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] As a reminder, this conference call is being recorded. to host like Ms. today's now would introduce for your conference, I Park, Finance. Director Suzanne of Senior may you Ma’am, begin.

Suzanne Park

you. Thank

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

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

of measures acquisition in of million and the XXXX non-GAAP fourth financial quarter exclude amortization in following $X.X items, non-cash $XX.X of fiscal expenses $X.X $XX compensation million million expense debt and $XX.X costs acquired year in and settlement XXXX. million and the XXXX. in fourth and intangibles the quarter of quarter litigation fourth million Our XXXX expense and issuance stock-based non-cash in

million $X.X $XX.X measures the and expense XXXX. include income in million an benefit non-GAAP tax fourth additional of Our in non-GAAP income quarter non-GAAP financial tax

include postage. mailing and do revenue revenue service Our shipping numbers not from include and revenue revenue, any customized insurance and product

reconciliations posted XX on earnings release XXXX for noted, MetaPack XXXX financial XXXX quarter unless investor non-GAAP financial see our year include results XX. corresponding the measures. of website August fiscal our results Please measures Additionally, fourth to our otherwise from December our and GAAP through metrics

Now, hand Ken. me the to call let over

Ken McBride

afternoon. good Hi,

my during every management the his has like retirement more to announce partner I’d President, whole really we, he that XX way Huebner. has in So the begin of before Kyle been our than Kyle for been and team at today, we Stamps years world and period Chief the company contributions leader .com President, in team rebuilt a Financial and leader as key a invaluable. software member have Officer, into a been management our and as of and failure global senior our shipping really it took in our e-commerce

So, to our agreed time more we’re knowledge we’re his and because to great and happy so consulting his Kyle family role, benefit serve can has continue as company his strategic wishing we spend a really retirement with he continue a the industry. transitions from Kyle to part-time to expertise deep in extraordinary of

Fourth XXXX results. Kyle. you, quarter revenue included fourth our me non-GAAP year-over-year. million we is financial million XXXX million, of quarter XX% $XX.X that which and fiscal adjusted thank was XX% was of EBITDA non-GAAP So year-over-year XXXX our was up up which which Today to XX% XX% fiscal $XXX.X GAAP let EBITDA of quarter fiscal turn $XXX fourth GAAP results, $XXX.X adjusted announced up of million, up year-over-year. year-over-year, revenue and With which

fewer quarters fourth strategic and metric on from contributions recent of flat the paid shipping that that growth from been shift has which average strong revenue paid by focus, in let’s XXX,XXX numerically our are has driven mailing revenue shippers, with focusing turn driven our of very ARPU We with much customer driven our by growth was business. $XXX.X to of continued Mailing discussion in in The with and the throughout detailed acquisition in customers. paid revenue was each shipping and where multi-carrier which acquisition more performance and our was customers been versus the quarter are our growth in that including With the than our paid And of with up growth by Total more and it growth unit in year-over-year. business per of we XXXX. in customer have driven XX% fourth pleased financial XXXX. were businesses was is performance value. by modest our our quarter consistent MetaPack investments earlier in customers successful shipping to paid customer but made ARPU, numbers, MetaPack. shipping higher more Revenue strong shift the million lifetime per organic was or

printed or fourth churn rate rate churn in X% quarter Our business customers the pay was mailers compared in Shipping fourth past packages revenue average subscription quarter tied monthly And our X.X% shippers. The MetaPack. revenue in fourth the of generally several inclusion process that and of organic we see the slightly ARPU with postage we the behalf metric quarter. line also down monthly of we've of continued quarter total the The in higher versus fees the and versus fourth both volume, growth and the non-package X.X%. was shipping was decline. volume focused collect USPS printed Growth XXXX. Total fourth the the traditional steady postage was the fourth which benefited quarters on X.X up typically the $XX.XX a to quarter than to quarter XX% of from the the up small rates XXXX. billion average of that business continues to growth in additional prepaid the was over mail includes seen higher was XXXX. churn that during USPS customer ARPU the areas shipping That

X billion our XXXX, packages. postage number printed that USPS For mail represented X collectively shipping customers packages Of X.X total total packages. billion over in and in pieces billion over

post including and and all our very to continue including the are Management business success in the post, our post French with UPS, consolidated our team strides including Australia and proud international financial our we We own services. Royal and relationships with Amazon generate of make FedEx carrier mail, of non-traditional and and employees DHL of also diversification carriers for continued shareholders.

So an on let update the in focusing XXXX. initiatives with me we're turn that to of on some

portfolio the mailing to of to leverage plan First, growth. we shipping and drive the solutions

that ShipStation and customers Stamps.com meet ShippingEasy, current needs the With through of solution our we our and brands have in offerings multi-carrier complete and the our and a and shipping offerings shipping believe product mailing abroad. USPS States ShipWorks the and MetaPack, we United target both Endicia, will through

as be can customer that Our the rates average to our maximize acquisition, goal annual monthly churn customer, our to our prepaid of overall is customers ARPU, possible or many and usage. meet reduce so our cancellation able increase we maximize as customer customer revenue needs

the the invest shipping our part growth of plan, Second to we in plan in business. for

large customers include and target e-commerce e-commerce types to merchants, shipping We shippers. investments houses, warehouses, of company’s large devote retailers shippers. percentage Our other a fulfillment of our

we customers beyond to to of in large shippers solutions. investments attract types business order expect are making continue more Shipping expensive and customers. XXXX small For these to our these to than acquire

and we Based marketing term from on value plan with compared on total get they to in to services send long and relative shipping returns versus expected cost investment XXXX of our our characteristics sales to increase ARPU, strong their lower mailers mailing investment to a to acquisition. higher use yield the expected to higher return usage mail. they higher analysis continue our we expect our our typical that our customers Accordingly, lifetime high business predominantly because a have and including XXXX. expense in other However, when churn, trends, small

We continue and television, continually to refining areas. media, optimization mail, customer our acquisition we sales, search traditional search investments, radio, engine well through other plan direct process increase partners, the marketing, as investments our as in increase to engine affiliates, telemarketing direct

that new Third, types solutions. plan add plan to improve to of the We our export shipping solutions to customer e-commerce in integrations the features integrations. proposition And our inventory And fulfillment for enhance the mobile our used features plan to will solutions other for and data part as management, new our new business. to and customers the support retailers from carrier particularly continue warehouses, solutions build houses, such our functionality new expand target add we and shippers. our continue for XXXX to include add to and technology tools the product enhance management of for plan plan and plan, shippers. and our large import and value for we and easier merchants, to we that features of functionality continue We partner of and customers

free integration strong bundles and and base launched Shopware, In services to advantage Amazon the business MetaPack we ParcelForce, e-commerce benefits. to growth deepened international Press in is begun programs XXX offering our we international global partnerships [WEX]. benefit in including in continue connect in program provider market ShipStation as Magento, our package, order the also the international UK customer This Move XX% shipments customer XX delivery technical the integrations speeds, support to with growth our We Shop Post, our and with FedEx program and services plan Square the Commerce, turn to New We’ve we was the program. international develop tracking, advantage in Australia other solutions done discussion. program partner customs platform. internationally and Amazon partnerships UK continue logistics otherwise internationally. high relationship also plan a the to XXXX, working XXXX Zealand shipping in customers for Wal-Mart Hermes, upgraded to expanded We with the things in sellers. carrier DPD, of Fourth valuable shipping the our We’ve free Amazon Cart in and plan, Commerce, and design procedures ShipStation’s XX%. by the new area, such Amazon launching GAP grew enhanced including With and launching on We’ve our Canada Space, also services which and markets. shipping let level such insurance, there. that new international to me as like simpler pickup, known international and as Big solutions Open prime

thought the and step as next at that strategic of over XXXX and into look a would we the shipping be are it at So, industry look helpful we to take back company affecting broad some the move trend worldwide. for the plan five years, we our

following to I’d cover the like today topics order. in So this

shipping years. out state current discuss the to see next First, we playing like I the the the five industry would trends of and over

we’d discuss our position discuss I’d and our like partnership in to finally, discuss international expansion for we’ve Then, the shipping in we’d company. like Next, efforts. market. like significant USPS direction to And to developed assets a new changes the the to our strategic

me shipping industry. start with So our the of first view let

we out, So small the some in been of e-commerce the XX% next growth is In with packages that its controlled we package and e-commerce logistics business. really and we One, priority shipping focus carrier initiatives. years. the the enhanced note being expansion grew the Today Department, and company market. United partnered as for late have four, UPS their and UPS Two, and and shipping volume We markets. will cross-border sized companies; The aggressive BXC UPS growth the move repositions strategic out trends UPS's shipping very industry shipping the by part from suited of rapidly an to its in profitable segment in by and September further economic growing into industry a portion cited the look the still significant that BXB customers. services is approach XXXX data programs over growing larger year-over-year to in the medium the to by changing and to the and the the worldwide in services our Shopify medium are that business implementing fastest continued the it service as five publicly today. industry e-commerce dramatically is the e-commerce. enterprise-wide which and they e-commerce. shipping to things industry. the according and value industry, strategies to expansion stated program and USPS. the more efforts States the XXXX different healthcare of have penetration on big the Shopify, that cited to commercial incumbents by package of driving medium traditional U.S. e-commerce XXXX, the sciences than see strategy focus factor enable U.S. high-growth of accelerate is the and XXXX XX% UPS, of mailing FedEx expected it's the years penetrate businesses and with by are business well Shopify, driven life most e-commerce three U.S. growth UPS very industry small E-commerce XX% larger is a According integrate E-commerce in FedEx, help become and U.S. and some And total approximately and semi-market. sales UPS revenue come for in enhanced expected UPS, and their e-commerce grow would also in markets. four the aggressive shipping has supports transformation getting grow is to to are and to three international business more areas. small Commerce business on right Clearly, to that directly Three, largely agree

have volumes. offered is Rate, to a mail a program by of aggressively new aggressive acquisition very offers delivery logistics. Those country special the FedEx Some FedEx that logistics their pricing. to called which is FedEx in and aggressive with aggressively One discounted FedEx pricing They're their so guaranteed not offer at is e-commerce rate of our also anywhere also global solutions shipping investing this and Bongo. service originated move customers Priority solutions. USPS two from invested new capture been the flat heavily working day significant fulfillment a in does in initiatives. from We've on backbone cross-border guaranteed

also adding delivery than form FedEx with FedEx up Wal-Mart packages XXX stores of working own now at trying Freight May very of which The locations mile items. consumers into is e-commerce a undercut prices that's the service. a alliance states. to and times. example, delivery cost-effective another USPS. country. on It's on by within the anticipates an strong For to into their Thus definite to X,XXX retail for doing FedEx DHL network which carriers include faster expedite same-day, fulfillment Metro U.S. And cost DHL services They're moves packages of in overall DHL as network carriers have which on regional their Max their they're an been able and at possible next service can offer, focus utilizes packages pickup smaller they In packages things as focus they're XX much Walgreens providing and they're service They carriers. product day, national number Other and by really more offering DHL optimize hour logistics. times. often of local solution operations lower last they're across overlying Metro only delivery time that or We've delivery be a that for call delivery them to larger regions in in pick carriers up two growth alliance the providing delivery cost-effective their geographic that product window transparent. the parcel called day similar at select on-site, XXXX. those Wal-Mart is the USPS which the states. with done has injecting deeply These more faster per delivery FedEx FedEx we they seen also Walgreens locations small pounds.

Other Overnight, packages Mexico. companies Laser For were Track include State by Pitt and like in Delivery carriers California, New California and Star, Ship, to On example, here regional U.S. that DICOM, Arizona, United Nevada, Ohio, delivers served Lone cargo. Golden

some very becoming at significant and most business. of the all key business. states the carriers prices the offer regional and in larger package in their of factor that delivery entire populous All an one are carrier shipping new number serve There's regional their larger competitive cost-effective take and business also thus of carriers a kind day same-day a next of at particularly have that overall advantages. that been is their business regions the shipping entrants Regional aim

a the VC companies the represents Starting course, are by XXXX, that air business. on flown a business. they and shipping e-commerce nearly contracts that of There has air, XXXX. currently Amazon August package on and is recently order aircraft up that captive are its planes could advertising internal significant last volumes the hour. manufacturer of brokerage their already And estimated also market strategic that of most with XX new January significantly their business are their initiatives its Currently Amazon of Air. of global top that in with over to already planes house driver on forwarding U.S. out healthcare, in XXX they're now customer. national of online and included in the own XX% its already be packages them given of taking only it's end-to-end XXX trunks taken June and in planes. and Amazon in service and that report logistics. XX% drivers American -- and currently in an support routes become four flies expect making that doing top an planes It they XX% can areas truck, with prime call most success packages Amazon Uber to deliveries network They estimated this XXXX, flying at packages they by in rail, With some have hub truck planes. now grocery, announced own operation focus has analyst hub shipped ocean business receiving significantly potentially in freight direct the on X,XXX XX aim air package mile of XX amongst XX% and than of operating million represent share. e-commerce expansion announced all several by those the FedEx One XXX There in that per they're built flying same-day Kentucky e-commerce Uber a Amazon has this powerful to live to be planes that for focus We combined. Amazon funding delivery year. other North US. the focused a are building could less And routes that of delivering of compete flights their and X.X Amazon. position – customer billion UPS from and global could are it XXXX post to a -- new has is package to that network also mate also air and the Amazon delivery began investing of in with quarter base and most their the

and we their package high carrying running able already their price efforts own services additional to systems offer and marginal begun at will able this and of their costs to fixed call they their good expect costs the captive be With with or Amazon own be be Shipping SWA. packages their low of covering make packages they third low that parties process in margins. They've a will still With shipping to what logistics

the analyst in the and So to that to with media reports, XX% is in pricing a and launched has in additional They've FedEx SWA also to carriers XXXX. pilot fees Los customers. to media that according Angeles the London UPS Amazon below charge traditional promised SWA test reports Also on their launched surcharges out and November average. and according cut

Amazon that Amazon For under residential may offered to similar with record been areas. their There's were very said their did as in some able by infrastructure reliable systems expecting follow surcharge. Services XX% shipping offer that was much excess Amazon because Web in UPS they own reports is the an the have Amazon's of they that and pricing established. disrupting up at We're analyst also delivery and some FedEx highly a capacity strategy example, attractive with as already business as Amazon rates. industry where built, is well track this solution

So player seriously should by the in taken very their industry. be threat shipping every

big strategy We a our are in be will setting global player assuming Amazon shipping. corporate

U.S., retailers. of in tracking, key on order better options, be A called a software traditional provide at other e-commerce like is been which at can note USPS solution real-time in and to Amazon will becoming turnkey customer big MetaPack's delivery FedEx, impact experience it's their to Amazon, reliable and providing aspects in with Amazon's to to their returns, forced assets compete and get customer retailers just showing a at effect In experience. the cross-border approaching to providing Amazon compete a as delivery how and of here that best at order the direct offering having and in with cost-effective traditional good competitor businesses. retailers in one cart intelligence amazing shipping have Beyond UPS better the own traditional possible

fulfillment but to utilize help so of uses will by not has does will their and the location effect Wal-Mart own that utilizing serve ubiquitous we're We sending Note already last-mile with neutralize Amazon ship ship their a our like expect network U.S. Amazon change typically distributed strategy will geographic big retailers increasingly carriers local store also these advantage retail the from assuming USPS, from drivers. that store traditional Target the continue ship stores. drive types also it which the store also that others of in to on and and by rather from seen rapid its commerce. We've push in and corporate utilize trends

So as we and look they in may that at really how fault the and USPS less will their over changes through have fare dynamic concerns become we own. competitive as it's these happen rapid shipping, time on no

most oversight retirees a of on mail Commission, USPS report by e-commerce. these organization receive order continues that quarter. Regulatory is do does. losses by aspects reported own X.X its of of to Act on is USPS Congress, supported the support health regulations and USPS business its independent and and The The rapid them very pension to postal as packages, own is flexibility the benefits. organizations placed of from by all implemented requirement with react requirement they not than needs Accountability significant health and in benefits in Postal the do X.X to in rapidly year. The including has oversight XXX,XXX requirements hamstrung trends approval has to their more of and as to it billion Enhancement has XXXX each pace burden many-many allow significant large the Board financial governmental everything by burden financial a also its of keep rules change USPS to by the that the unreasonable retiree and that The in While from USPS an the it Governors the requirements loss various recently billion up tune USPS revenue officially financial that and rights Postal pre-fund have in over its to

quickly market critical organization the is can come quickly in of adjustments. e-commerce how can and dynamic new an to today's make very how products One industry aspects

of process that All USPS for these bodies slow dramatically. down the oversight

that Trump study interest fix in postal force of Additionally, in to the were that at President and the report. that report made to one the XXXX taken was only include served community, the private served the at by USPS of but in keen strong direction community. is that essential its business business future executive key has the the provide the will service not recommendations services should of with branch unclear its private postal some a public the The by issues all. in April are it out to narrow growing the its already XXXX and the USPS had recommendations task business business if us packaged December came service trying is recommendations page Since packages the on already strategic a many majority XX formed focus

would them consider. are Congress other that to branch to report of one not of are USPS USPS and and the organizations act the the many do Congress implement, in likely on require and executive the represent an recommendations they While viewpoint binding like the

USPS industry needs in have two-day the the one by not delivery. guaranteed all to does the been at Prime USPS, Finally, the e-commerce bar e-commerce more Amazon compete service everyone to the have solutions. in really UPS, and The delivery e-commerce the day by two-day comment match set was carriers two times to And solutions. in guaranteed its all have regard standard now delivery two regional set guaranteed day order and the delivery in FedEx, market. Amazon with delivery DHL;

to be two thus in other they demanding guaranteed e-commerce are and in day need general, that carriers in than have to Our order the in delivery need and USPS. customers meet competitive need order to

In is fragmented very and different. worldwide but business businesses very supports provide XXX shipping three preferences very-very why is markets the in needed service As you those order in still This the footprint the by is shipping a USPS, international what expectations the the and business markets carrier business big carriers. competitive customer require to U.S., look different. outside and FedEx Like is offering. and the broader UPS, over U.S., the in U.S. the U.S., much That's international the outside the carriers; markets. are dominated is especially MetaPack the European a

For UK a solution in MetaPack example, solution, carriers to complete support XX just order provide in in in our business, we in the that market. that

in consumers have much preferences. different Additionally, Europe

For and pick packages Also locations. or to Europe. up retailers for are example, factor local PUDO known critical is their pickup ship in locations. These off as store from a they ship PUDOs prefer drop drop-off to success and at

shipping past acquired rapidly That of significant tends So our us e-commerce the by enormous. software total customers customers full. of exceeded we've dollar in is great as the shipping shipping in XX to a changing of the worldwide done billion shipping on products volume assets various when the global sent over we've our The business a take through all assets value X.X and our put world number XXXX, built XX of over you look Worldwide, done all succeed a packages. at years, these In position amassed billion. software.

We have the international from and over U.S. to including Postal packages X.X U.S., billion to shipping Service going the both destinations domestic in in U.S.

have in outside in more shipping We the our we the we support in business an also all X billion of additional X U.S. group. shipping volume that than have of in the from MetaPack U.S. U.S. billion And other carriers

to of We that the all going priority packages all their are Those their of of the of first-class all destinations. packages shipping packages; represent over X.X in XX% generate also of from and U.S. international domestic approximately U.S. the represent domestic partner far XX% we USPS. XX% by the with largest of mail approximately U.S. the currently international packages. USPS packages of for billion process They the we

our embedded partnership into software where have solutions are with a over with integrated XXX also We network our strengths partnerships significant partner solution. worldwide or in

eBay, selling For with all example, the major Etsy we Amazon, such as others. channels integrate and

integrate with tools, and solutions, also solutions, We business network and strength very and management with management the and transportation and unmatched. our partnership is small management our e-commerce warehouse software to solutions, they solutions, all order work partners we of fulfillment, sure succeed make CRM of ERP closely

integrations total with carriers XXX more a and the XX carriers have over We of U.S. worldwide. in than

where over license broad and are shipping, software carrier customer that U.S. us to goal technology. expertise development strong. technology in we internal we servers that built to having support. bring customer have have sales to and on a allows significant We’ve a and significant is than force and Our a million year knowledgeable all year spend meet best is highly expertise goal. we in XXX million more the more They and than logistics, We software $XX marketing such the customer spend $XX significant and in internal on-boarding where per expertise in internal we

the today. partnership contrast ago approximately X.X in years Our billion grown have shipping total past channels for in grown that, their rate to a from compounded rate shipping is track USPS undeniable. all we volume. XX USPS growth X% partners by the million our driven our a over only have shipping growth decade. Under combined record years over XX% driving shipping compounded solutions at XXX In the to our the ten of other with past through We've for growth

started worldwide. the to U.S. far solution MetaPack we've well MetaPack, outside With by multi-carrier the as the build solution is the multi of leading position a and carrier very leading acquisition strong

large parcel software of with really negotiate complete that supports world. MetaPack than and why completed than more Interface Programming and And is MetaPack's steps, carriers each part it's million MetaPack. to all they XXX huge operated XXX reliable Application It's packages market. we last carriers of be these around number necessary solution to or considered over secure, in available, bought with XXX year. integrate MetaPack highly the the API process a has more Our countries a challenging

core the analytics software the capabilities Across parcel standardized tracking point-of-purchase and factors the payments track journey. delivery size; customer of shopping A which and a also In in provides analysis sophisticated unified which border and that engine card. on reporting international such package package and addition to carrier's delivery solution to as at package shipping significant options they duty system as trade number location; shipping, preference of weight; solution a to customs dynamic delivery API, offer availability; based multi-carrier which right decoration and individual provides their offers manages and performance. such stock track

MetaPack given carrier expect in expertise. and market our a library ecommerce time their to We provide MetaPack's solutions current international will acceleration significant large for

trying compete software Amazon all to MetaPack and features and they're previously, demand offered experience. are by they're capabilities with mentioned of retailers As by the because traditional replicate customer in the to Amazon trying

multi-carrier very to also positioned us to our worldwide. begin well has asset MetaPack Our strategy take

back We solutions MetaPack to to bring aggressively. also U.S. expect the

MetaPack turnkey the the expertise the in in business in will team sales significant a us pursue the provide U.S. help which MetaPack XXX% U.S. with build U.S. Our will to sales solution with market. marketing our business Also

business direction. the focus, PUDO ship Drop-Offs begins go also of and store expertise XXX,XXX or solution asset because points that be in European Pickup PUDO market in that Additionally, note than MetaPack U.S. supports significant more the as worldwide. currently from U.S. to huge a will MetaPack its

we USPS to background as transient next shipping. shipping, our the with Stamps.com. see is of in partnership position to in of as future look strategy for these trends we the relevant of this the goal some longer no as the all at company play out as most outcome for we years, long-term an five the shipping, And With look exclusive the the right best

to our changes be years. organization in positioned significant next have five at well shipping We core business the as to over the the align

bring shipping to effective, from we best we Uber that focus core up be in UPS's will held on because with succeed them don’t When Amazon, for Store, the doesn't Carriers, One services then need Shipping likely We won't the products Shipping, won't of such principles customers. lose the business Because what way, one to always succeed, not offered best today the customers and their Ship always is their best to cost package the as has customers are everything succeed their most their for reliable best new our What customer. products, if then team our if now. from is else. services years FedEx they Regional is customers, what's the succeed business and for customer. most five to our our

many to product best the always have ecommerce carriers do is as have choose many can hard USPS that they the customers nimble so bring not. and solutions industry constituents our have with to to issues more compete in they to just the We working that but deal those we The they mentioned alternative for shipping business. their

long-standing discussions utilized revenue As share their about everyone drive agreement USPS shipping in renewal to our knows, the business. that with we've we been the of

of have renewal We our the proposed to USPS. terms

One of our nonnegotiable items Stamps.com sale national brand is Endicia large team. name that within our by significant under single carrier efforts offered offered our the

We exclusive other partnership any to agreed nonnegotiable. our terms will or and no of has proposal. be USPS terms not accept to the that's USPS these longer

and the this the plan carriers positioned that other And our product win with our salesforce, to assets to turn customers and towards in technology our with development, so business. the a shipping point we years. shipping years. next think in five such that as carriers significant the marketing organization to our shipping So, we be our the with decided our marketing partnership We're be embrace we winners focus fully discontinue are at the now the on we we can over budget carriers to help with will align five succeed that our partnerships USPS to business going the in ourselves going next who partnerships significant think will well

to segments our but from competitive bring We we to will start products it other bringing will customers business more makes where the many sense in carriers. products of in continue the USPS

with impact part regulatory customers. not way organization. able the regulatory group in is incumbent relationship our decision of in the we into we’re discussion products and business. the also with the many does services our shipping We in USPS to Note The carriers governed have that or discontinue are partnerships them a discussions with the exclusive all are already in partnership our and our to offer any or USPS private currently of major new U.S. of entrants separate the with

to But financial immediate our the as we years the continue few us continue stock who years. changing always budget take marketing direction. model. begun already will said, we multi-carrier ease with their agree change the and our USPS over support constructively some will redirecting redirecting XXXX new and in other some as change. think run for will and our with the steps the our all forego for we in strategy our of revenue short-term of impact share with requirements times We've development to of this as we That our comply short-term to the approach beyond, salesforce will burden with being next work of next hold in the national you will teams, help five long to activities those we partnership them We out have. focused represent plays pay and activities financial our over The shipping experience to our we

as customer of customers will higher our volume-based surcharge volume customers. are new negotiated implement in First, immediately as on a we refer agreements that service which a some for we to

rates. software developing carriers you supporting and including As offer set shipping that into their software the all cost shipping may know, cost to they their they their and bundling pay they private by of free that of offer the when UPS and the FedEx for customers

Our customer low-cost to allowed revenue from businesses share NSA or we the which on USPS that for Since to be the on able revenue for fray the free customers. typically now our of spend as helped USPS customer share it has share in us our software technology, customers significant The the partnership to NSA cost also longer onboarding. solution is primary make we on USPS free revenue the ended, will offer software software for has these all we to the and been the has received support free. no

us shipping order software cost to a surcharge So, in customers the volumes need begin their to some we us no will customers informing forced they that we of be software. is begin of some pay since will paying surcharge. the charging the to for of to X% fray help longer Today, to shipping their a USPS

we level driving of very discussions carriers both to integrations more will our regarding our are have strength proposition favorable has also and and value salesforce domestically our the offerings ability ShipWorks opened relationship ShippingEasy, into The nontraditional partner solutions of sales leading and by marketing USPS, internationally. bring size agreements share aggressively number of begin multi-carrier the discussion strength and the some to exclusive and our of in carriers the various our MetaPack other in our Three, more strategic partnerships This up driven scale going We're we national we're generally broad those the carriers. properties, and strong already our of where is multi-carrier the place. stages Second, our with in revenue of ShipStation, make. advanced will revenue Settling with sales of success are the with both which and in be of and the with traditional our to other we process. deeply we programs. calls forefront also our

with program. business the partnership continue to short-term with is USPS us have in continue built the and package. we will sum in a in our the as sell for have our And advantage exceptionally that to an succeed results to global revenue decision discount participate To positioned market Finally, ecommerce international our to multi-carrier a the impact. offered by continue financial we it USPS workshare And company that in extraordinary worldwide. well to shipping exclusive up, discontinue industry negative will we

call over benefit model to With our always more the detailed to always hand in of multi-carrier of We absolutely the our financial that partnership evolving that, strategy continue discussion results in best have the a of and our our more long-term the shareholders. long-term run Jeff embrace is me interest this for company. and customers fully guidance. let to our company will believe we However, firmly for

Jeff Carberry

of Thanks, non-GAAP Ken. We'll fiscal now financial review measures. our results The XXXX fourth includes today and discussion results. quarter our financial financial

MetaPack. excluding year-over-year versus in a to and As reconciliation XXXX. was our year-over-year XXXX and measures up percentage up 'XX shipping $XXX.X estimate $XXX.X million QX; million of business $XXX.X our up versus in that in XX% revenue was fourth growth in XX% and versus QX be versus XX% for contributions MetaPack shipping was million into to XX% customers XXX for and excluding And 'XX. up and in the million in growth $XXX.X combined was or up and and and total QX was shipping was that Mailing in strong a MetaPack was million in and was above website. from XX% QX was XXXX. versus We QX shipping Ken And of and range. $XXX.X that was versus XX% matrix our strong year-over-year XXXX 'XX. mailing revenue shipping XX% versus that primarily in up below XXXX year-over-year that MetaPack. and Mailing grow with revenue $XXX.X the revenue MetaPack which revenue 'XX fifth X current that's range was in was ARPU in as versus a a Total that was that from We our in The driven was an is up a business was in year shipping million estimate that rise QX; growth in was driven in quarter XXXX. that XXXX combined the revenue and mailing of The and mid-XX% QX QX and on increase XX% in XX% year-over-year financial by total revenue the was primarily revenue non-GAAP core XX% percentage was low-XX% measures to QX spending revenue our Investor revenue the range. described, GAAP and to Total up found a growth release our million QX million in excluding by 'XX. by and range, driven advantage the contributions $XXX.X strong year-over-year shipping

gross to couple flat XX% and estimated was expenses XXth experienced following. XX.X% strong do versus offerings, $XXX.X the would our primarily inclusion lower income August 'XX. our mailers accrual MetaPack. EBITDA was associated year-over-year in of QX for growth our and margin operating calculation at lower for greater catch in we Lower another We versus used and adjusted diluted XX.X% ended with catch our shipping was December was of and in quarter to in the income million XXXX in 'XX option of lower cost adjusted MetaPack EBITDA gross and in and growth margin margins rates of million Mailing $XX and in by our on year-over-year which the our following: while was in in impacted decrease QX a in than $XX.X from XX% of a from approximately as year-over-year could was inclusion versus offerings the find per benefit in non-GAAP XX.X% fourth since XX% attributable rating reduction have and increase operating $XX That from sort investment rating. to increased in the in up was networking up greater which million diluted of tax XX% and in strategic on The XX.X% with partially investments versus up on fully it QX XXXX weight XXXX The operating in of XX% XX.X% was in G&A rate that rate associated previously increased exercises. cash of down in rate a the the cash in R&D was XXXX in decrease 'XX. was in of MetaPack to the port $X.XX scaling mailing fourth QX which versus QX 'XX. by of rate capital; the G&A QX of than margins. mailing $X.XX versus than cash --. was mid-teens debt the was from strategic revenue. year XXXX. of sale revenue has And approximately marketing, period share changes and primarily increased total which based for margin USPS XXXX the investments shipping the SOHO 'XX, a related the QX shipping million finally was also X.X%. QX at and rate QX 'XX million $XXX was 'XX. higher XX.X based Non-GAAP XX.X% strong Adjusted in was QX G&A Fully from of the our innovation of and And tax tax a international was gross a a which primarily centered driven versus cash through We of and repurchases manage to based of rate QX Non-GAAP a for XXXX. X% Without 'XX. revenue for rate, XX.X% EBITDA Sales tax business rate scaling The another QX the in XX% versus based global $XX.XX floor tax our were and of related million in X%. non-GAAP for end share sense an in investment attributable margin growth of including rational was in and actual growth was to of lower XX% tax an margins negatively shipping in that XX% $XX.X tax auction 'XX on 'XX of in year-over-year $XXX income non-GAAP XX% Gross Adjusted an primarily versus up or share derive shares adjusted quarter. also an QX our our year-over-year. investments Non-GAAP percent up the million QX reflecting in diluted for million 'XX at of QX have margins XXXX, marketing QX was increases estimate in at XX.X was for and the flow million a at R&D an expense XXXX. APS an have XXXX for that the exercises a XX.X%. our fourth and and revenue XXst was and of under of scheduled We $XX.XX XX.X% that share of non-GAAP generate by was primarily approximately in also offset driven other inclusion was benefited gross repayments. by margins sales with and fully rate XX.X%

total repayment our principle the excluding resulting cost agreement $XX.X of in addition million. of debt credit under made with During the $X.X prior million QX, we

approximately During January company XXXX, total with approved XXXX, reverse first additional expired plan approximately of approximately million. of company had a successor After on at plan of expired XXth shares On of company upon completed XXX,XXX That has million. of the cost plan from plan shares guidance. repurchased The plan. shares at was our current approximately approximately of the $XX cost a $XXX XXX,XXX not the QX, the the million. to total XXX,XXX purchased total a it's the of and authorized $XX a approximately stock a of purchase currently and $XX the cost it completion to current authorized purchase board board

We expect commission a $XXX XXXX for million the to of of the range in $XXX elimination be reflects XXXX. revenue the USPS which to million of the entirety revenue

XXXX driven business. on focus our continued revenue to by expect We driven ecommerce shipping continue be our

revenue flat the year-over-year. derive to our revenue We range However, USPS from elimination the in is expect and to of SOHO digit with decline would to to grow revenue, mailers mailing also expected year-over-year. shipping shipping low-single commission continue

as impact XX% product. meaningfully expect customized expect for customer discretionary year-over-year rate we be postage would a to orders to have we to revenue the our on this down XX% XXXX negative Finally, postage increase

to We expect additional the expenses percent XXXX, as see expenses as strategic On occur made investments make from operating effect total well intent XXXX the in approximately of making see XXXX investments we while to year. as of the of and effect to would and MetaPack impact the reflecting inclusion and additional MetaPack as investments to impacting to we anticipate We course. the we the side the XX% a in common of well increase XXXX investments will operating XXXX. be operating we'd expenses revenue in in basis, XX% frontloaded as a expect also in expect in XXXX of headcount investments XXXX increase XXXX XX% deeply given throughout of

R&D investments, to adjusted the EBITDA lower And adjusted inclusion elimination and margin XXXX. to range. $XXX in the be in expect implies the XX% a range fiscal XXXX of frontloaded EBITDA half headcount our the full-year as a our we a mid that expect the USPS to associated we $XXX reason EBITDA million, discussed half the be same in to in revenue expectations adjusted expenses, margins impact EBITDA be of we and our back We the lower first to than commission which million margin of quarter would the just reflects MetaPack revenue. expect XXXX for the with a of of Similar of

non-GAAP be expense tax income XX% non-GAAP XXXX. of approximately expect pretax We will for

could tax XXXX a option current differ estimates based our of factors rate effective exercises. Our from full-year on including number

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

We shipping, expect of expenses. and period fully the adjusted year. particular, shipping our our to the diluted the would our our be customers reflective due With three we In for during EBITDA fourth meaningfully usage a scaling and the non-GAAP operating in revenues fiscal higher revenue other the expect QX than quarter focus expect be of to other $X.XX quarters income holiday seasonally strong to adjusted seasonality of we EBITDA $X.XX. XXXX to to shipping range increased of exit adjusted and share

million expenditures capital expect $X million of XXXX. we range Finally, to the in be $X to in

let that, Kyle to comments. the hand call with So additional over for me some

Kyle Huebner

anniversary drive Having and and Thank XX XX that, reached company, honor It's work wanted open stay with as questions. period worldwide decision for the XXth Senior working Directors, people the and the group of and to I'm the also past thank and President. who for an involved company that I my to amazing with a to with future thank my with the employees; as Management want for bright shipping. Ken people Team; privilege worked with years. made Board you, I retire been investment and recently we'll with the Jeff. the years. to investors. was all of excited the CFO Ken; in analysts to help serving for multi-carrier our company an group community up while overall. its I And towards the It to

Operator

Thank from you. Our from [Operator question Instructions] first Craig-Hallum. Sutton comes George

now is open. line Your

George Sutton

you. Thank

good and luck. First, working Kyle you, with enjoyed congratulations

Kyle Huebner

Thank you well. you, George, as

George Sutton

negotiation. new the two see may I what or their from assume move time reached in side by met push a perform did sort negotiations you of with pay partnership inability a Can you the you assume postal And benefits analysis. to And lack the I performance. So, future did you points I'm for point those was kind the an their of can on of from and your to on the in of U.S. an line analysis of you that this versus the pull any capacity service, concerns your willingness sort impact of opportunities that? analysis your if of breakeven of and curious discuss

Ken McBride

the George. is speaking see it way years. in for really a Sure, landscape things as direction generally we we market going five mean different the I and we I see so rapidly, think, dramatically really see us changing

overall and in was to success company so, next up goal And and our negotiation for set five years. the this this first in foremost

And so, with for tradeoff share course included revenue we between long-term asking view. in compensation supported were in for discussion that And the every our which USPS, financial we did a different we strategic of tradeoff we're that things of a some terms the and asking with in relationship relationships that which have other that without various if the the with the a table. potential happen. USPS have financial killer deal that was with the with revenue we That USPS exclusivity carriers did and we already place understanding share the our

that just viable see in on don’t offer five because we our a Right no we So, USPS that next sales exclusive we in and the Endicia our know sales and walk alone solution can longer for USPS years. process. based on stamps when to now are option we would the you efforts as customers our survive as the

exclusive market matter their the we accepted remain had, to Obviously one. certain working not given certain that the our our offer it's the segments there. we that this in trend and were with all like longer with go so was of no products remain own in best basically can we're makes our it's But So, the customers. the friends that the no decided market we so with separate and USPS, still end is ways, everything else shipping financial was company still various what, number be tradeoffs sense the premise, we in was and and and partners, paths the

or solution of is to essentially So, where where best better, may customer. go them other their push partnership se on the into be they focusing of in them we're interest the we the in the of are not we good on we're not offer in interest or USPS, longer the in based as working of But in our customers customer the perhaps solution how the overall haven’t severed put where best the segments exclusively solution other going customer. the per with that's another to goal market to carriers segments no

Kyle Huebner

add thing I this I was The we in relevant than the that's from new I now. of George is in off years breakeven, know better where other five would we're terms really are strategic think direction.

going in focus off So, better where really years always are was going the I think better now. five our that and be years years of and we five the the to from five out we strategy look be segments and so to positioned company at and

George Sutton

that would You mentioned of carriers. assume you I'm if frenzy of of of dollars there a assuming I'm feeding strength I Can were your these wanting given give shipped, billions partners relative variety with sense weakness volume. volume. you I'm with in strength position again in a postage a curious after of late partner go potential or to the somewhat of a sales your of is negotiations, negotiations different and us kind

Ken McBride

Yes, I billion that volume. significant than and that pretty no. carrier in covet $XX type think mean asset would of that's any a accept to more volume I happy be anywhere worldwide,

enormous the the over interested the last business in other and volume. very we day, that So, carriers position built where have customer and And the the acquisitions that XX the that we've volume certainly been development doing have acquisition to that's now the by volume. we're And really years. in

incentives best the will focused the by for up customer customer? win the the our But we for never company. aligned end right well so solution as volume right the provides customer as business than incentives incentive financial for the what's the doing have be in anything move the or what you financial whatever financial aligns other to our customer model, So, if with that company that the to certainly in with what's end right

George Sutton

I if question Last could?

Jeff Carberry

Sorry. that's The within have ecommerce integrations, the the only attractive, get to acquisitions underlying the that our our level the that attractive the marketing through networks, technology, It's fundamental also it's quite and obviously is ecosystem, obviously facilitates that aspect also fundamentally also our customers the quite and through the other that was and addition technology out through important involved for of businesses, critically attractive. fact our partnerships, development carriers. the that that's in volume

Kyle Huebner

which And one what to just add team. our is our of thing sales more said one to assets Jeff key is

sales focus a team of XXX and experts people in and that and on capability national carrier. software and turn are shipping and Our can logistics technology people over any and these we

other we in people extent their tomorrow. beneficial products. solutions commission to carrier's can it's drive to or drive a another and in us We to the So, segment that them financially for change carrier that better has a drive decide solution XXX that take a carrier certain plan a and can and certain we

that they're asset. to very team took long key team strengths; good that our it asset the a of one and and is very and big it's and capability strong time a develop that So,

George Sutton

Amazon. to relative question Last

well You spent a fair which obviously in amount shipping opportunities of documented. time discussing space their the are

a You your Where current have been you've or them potential partner relationship competitor theirs, times. previously vendor, of a and with served been relationship Amazon? a they've is as at

Ken McBride

us I you gorilla like I mean say powerhouse, Amazon in think Yes. the the heard is ecommerce.

they've Amazon work country their lot Amazon. the carriers with going has the the an built they're work they that only way are, and planes, last in need across packages needs done their And so, built amazing above terms at the punching of you other e-commerce scratch. as are from when their is to it they've because to they've older. networks look and impact they having weight built and analyst years worldwide and what have despite of mind a we XX with report XX in they it it put everybody the being And much across in really few world built carry able network one with to Amazon quote of network to really

network Amazon to with capacity they're the going focused when powerful their exactly network they to and they own on built excess above and and to network their the And a very so going it's offer they just e-commerce capacity, AWS. It's that up did so, were packages like customers. take

is Amazon solutions. are our with we XXX in to so else have years to like worldwide portfolio the and five we next going it. U.S. our we force work to the XX customers one lowest shipping to our going They're If very significant aggressive customers And that of them one the in in portfolio to want They solution do we want said, with go our them Amazon, so, our that expect become of will that we be want and cost to get solution would our pricing work to solution. coming over need bring be to We carriers multi-carrier with going we bring in a by of leave to We of carriers business. somewhere so the and don't Amazon to customers.

court in to key solutions. So Amazon strategic partnership have for us a multi-carrier to is and our

George Sutton

Thanks guys.

Operator

Thank you.

from Riley Our next question comes FBR. B. Zach Cummins with

now is line Your open.

Zach Cummins

vendors agreements fees of that some little you a charge to have color these surcharges at have point? this provide more around of or you place Could NSA that the afternoon. good Hi may potential some in

Ken McBride

the in shipping market, do They say, USPS here install we well they solution. and Sure, USPS terms of the free because as bring they free go X times, the what the running. yes. customer has on the versus say, rev-share the up all to guaranteed and and because from shipping their the I carriers the delivery you cost offer their agrees free and our to oh, paid on paying for we has It's then, your can logistics capabilities. value us computer these way mean, up it larger in have their the of in made come been comes And free their particular offer capabilities, they stop a cost They shipping by software. times, to it longer solution software the now free capabilities, use into customer this all of that when that They customers the they down going and software. delivery. delivery the pitch the of not no until carriers pitch you're in for when course and the it's they for rev-share a

was pay to go other paid what pay customers for tell to They into that subsidizing technology, at basically like technology. and were into they have and and USPS since kind effectively and we and organizations and just it their you UPS for in bundle their So price look is shipping. USPS and how price get need back of your their the were these that's bundling as taking us it doing now turnaround you of stopped end the a well they percentage FedEx

shipping could cost bit so higher pay they little a was their us. So

done not to us they've is fee. pay And so, what basically decided that

customers’ the year cost is effectively, by this than additional increase more rate X%. their up So an by going

spend have our sales, away be give if on-boarding afford can't and technology with going to So significant the we that free, to that's paid. on being and not we it technology because charge fee to for in we're development just

Zach Cummins

provided? carrier guidance from your Understood anything upside year, or and baked in you the partnerships could upcoming guidance that terms of that materialize is relationships that's other guidance there the could some the potential to in for present potential

Jeff Carberry

to that of have that still remunerations we course baked has any currently obviously in mentioned, carriers some baked on weighted Ken basis. not are already are some Things negotiation probability in as Well in.

So budget kind to I represents upside for execute revenue not we strategies certainly But obviously business think and for we the of that as through on can agreements what and but that what of went the that what table beyond. really have XXXX and today the incorporates don't the have expect we terms have. arrangements we currently on in currently

Zach Cummins

just Understood. clarify in you to finally had the And point. is at transaction place, that that then USPS all gone revenue for this is me, all

consider almost business? fair a peer you is as to So it subscription

Jeff Carberry

No.

regard volume. talked we've to the are past in the revenue with as USPS two So there components to

our about from the that The away first we've agreement that and walked arrangement is is USPS, talked which the we is commission director with terminated.

parties are support in others with resellers. USPS the the ecosystem the The commercial arrangements principally various that

those So sharing arrangements exist. still revenue

the that that's to our revenue component our and commission is direct to is our be term numbers, a on now post that with still relationship So in the but revenue which office transactional used still has clear gone. basis guidance use there

Zach Cummins

questions. Understood, again for that's helpful. my thanks taking Well

Operator

you. Thank

question next Our Tim with comes Klasell Northland from Securities.

is line now Your open.

Tim Klasell

while. you’ll be Hi good for guys hear still to and around my little congratulations a Kyle, well

from terminated way the contracts had with or different question, all direct all at you. gradual came the Thank you a understand time First the fees the that at same USPS up been various times. they thing? is, those all sort or USPS of for Have be multiple those being sort of or it I negotiation bundled the phased will

Ken McBride

agreement revenue course as are The separate. posters PC other That's operating commission engagement would a well variety the license is agreements and USPS. agreements to Now of call be are more clear that I completely that continues. agreement gone. what more and the is There there with of our principal

to is revenue So That would have this the issue at sharing just issue USPS. is other with the any the with. I direct today, agreements expect arrangement really not

Tim Klasell

to that this it's done a possible some of at you USPS it agreement in the and do or you is back form the And point? think forth with comes issue

Ken McBride

solution, the not what. USPS. end because us if interest to for to mean, and afford the like I market it's the can't then best the continue a receive be in end will best leave have embrace customers I our Well carriers unless off customers offer in issue is we get the and said best no us now. they the table the just just can't in our of the other will in don't lose done matter It's We we taken to to exclusive exclusivity

is but expectations point sticking the and we that off have table. table, somebody at forward. point you no we can always, walked to exclusivity always come been can an agreement back So That's and have a will going the real this we've

Tim Klasell

the this the Fair I Do to think them that fee some correct. mentioned believe you to going larger neutral get charge if think shippers the for will USPS shippers enough. basically fee, those X% or the Then you're down an was wrote with do large of you relatively it I those will volume large X% hit that extra Thanks. it's volumes, you they so fee? for compensate

Ken McBride

up the those kind I they certainly an and they to seems could mean, thing to in think could that paying it all that say they go and direct could to around go turn top are odd mean, that the But over sign against start have our of when need customers I to here's and because it that. technology isn't to have confuse other really it and have order end, than sales to fee UPS these the more they you once but and check way. to and solution in cycle you another you don't carriers. do, say, free. so Certainly them us. cause In for FedEx we're the compete issues a the use in more will the to that use will to better on to of free the market, it agree confusing software I why pay approach accounts hey have process that USPS you'll reasons sales

that's decided FedEx the what UPS did no a walk market decided will bit into that until really sense do. of little be USPS but now rates. the an well, what the more certainly that's So away as And solutions will of solution encumbrance from pay to the they've money their up there to they've be process. and confusing in on to by message but cost and end but then their so a makes shipping they development their sales in It that bundle and for spending

Tim Klasell

And there developing that jump sort then software solution, other over will then or ultimately been guys understand UPS, the the you carriers we is use sort sort how to the you've and of will. they And others to it could free? you will well, agreement what Are for essence the they believe negotiating as sort similar what as do to in FedEx of of with their could be sort of your out be, of commercial it develop? had the a you follow-on those us that them, rev-share with if help are maybe you – you you there relationships Thanks. proposing, would USPS similar,

Ken McBride

think who that be mean, the market e-commerce I could most ShipWorks ShippingEasy, in for look I be of the multi-carrier what on MetaPack could and depending solutions sense at a be it's offering Yes. retailer type could segment. it our makes it could be as you for you ShipStation, really if you're large are, it

the to solution think solution the ShipWorks e-commerce I ShipStation, offer customer the and to want MetaPack. So, and carriers for the is best best ShippingEasy, will

for And UPS all if customer sense any that so, accounts Amazon customer what into or shipping with we as carriers carriers the we utilizing volume will that offer accounts on when of regional we in that ShipStation is. depending go moving couple operations and or makes to with FedEx sell their for that approach we ShippingEasy that these other on carriers these an solution them or carrier, their the or need or ShipWorks

offer our solutions. expect ultimately the that we be of for one So, technology will multi-carrier

Tim Klasell

now event specific help then a caused question, us And while. make there now this Thank understand that maybe or one percolating final you obviously you. a been out move why been to that's Was can something this has there that? for

Ken McBride

four the of that but Journal something first out and and last one got included in compete I came is as shipping this then hinted articles yes, after and were some significant said of kind it the of shipping acknowledged that may was shipping areas last their fact they which time in that pretty There statements point hey focus we're questions that. time mean in and rumors they Amazon This blank. happen Well they and our markets first month they in it for publicly Wall said, going the we're one competing out logistics Amazon in Street now in and is week. and the XX-K market filed the they and came happened

to the be their they've record list to after to, drive be the down in long Amazon zero disrupt now and some air and and companies expect that So shipping on announced them track mile that the in expect has managed cases industries we they've very and them gone based market. we and in successful of they're to revenue

So that we our for remove demanding from that catalyst is exclusivity where down. us the talks that's a and the agreement broke big

Tim Klasell

Thank you. helpful. very That's

Operator

Thank you.

with Allen question Our next comes Klee Group. from Maxim

line now Your open. is

Allen Klee

Yes hello.

out at and you we how new rate, be, you your margins you look do years of If that? could if this a were shot a five to goals base how kind revenue could to were run think you what view growth margins, and would able take revenue meet rate

Jeff Carberry

it's very question. – that's Yes good a

business, the e-commerce day of what with. end the fundamentally at trends underpins you at think I when our that's look correlated our what we're

Ultimately, the strong. to e-commerce that's revenue So we Union those what additional in the the economics last if and revenue in year place European several have seeing be and to or those mid-teens in well is be for you're once sales and growing whatever that U.S. trends trends last predicated deals the growing mid-teens Eurostats, e-commerce is and in to we're in be I looking on systemically quite been may about with is mean, going is going correlated be. longer-term look as at growth XX% years. the

at that fundamentals strong consumption. looking business being So underpin that you're our e-commerce

purely our margins a XX% you growing quite to XX% when at business we EBITDA history look of were around and So subscription-based also but of were a in XX%. was had we that time bit now,

of and focus on laser shipping, look of business drives you business business what at is future our if underpinnings So ultimately our bright. think I our the fundamentals with extraordinarily the that the

of and size window from think As obviously time. terms effectuate our will going of are five-year and things I to to where some going few to the time be profile historical obviously revenue given and realignment years the and extraordinarily that in be a growth a given window margin commission of rates relative our challenged looks bright. which here it'll take take strategies But Ken financial it's performance to standpoint a mentioned the

Ken McBride

the do just Amazon that uprising would I solution in U.S. regional greenfield ShipStation exist. happening much in have like getting terms the And that of carriers all as in multi-carrier from And preferences also size of UK market just think nothing all and store sheer any which lot that and market portfolio market, a we a or like just consumer market of capabilities five Well, or carriers very an go is there's U.S. carrier aside instance market more our frontend no mover as drop-off library the I that we aggressive. works order all to us. look have in the that other and the of we support and add backend, trends it's market over think the years about new, its When next two The every it I carrier mentioned, have we that more the in the we support we new really to carriers a the UI and to we we ship and specific product acquisition market, the we after entrants a the the market in complicated you to those lot ShipStation, international dynamics and market. and at and U.S. talked in worldwide, the have out we the the for doesn't like example where solution the in can't solution pickup, is because that broad as solution There world an look for in that want for to preferences, you to kind where ShippingEasy and its makes you worldwide UK and that There is our from incredible a of MetaPack network a very order demands customer like European unless way is there countries solution carriers have the properties. we the really the the ShipStation of on the have different. with advantage of together and XX market in And sense. very broad first market. those have pair put market incredible MetaPack on for

in years that the brand a is so And opportunity. next five new

shipping USPS where billion for look you as like at look XX worldwide in billion. US today a the are really USPS year market is If you XXX the we worldwide, focused, the shipping and

up we you see market dramatically the So for this addressable can shipping. as total worldwide focus company going on multi-carrier

Allen Klee

then not but for I'm you imply sure then gross does what margins? and if guidance mentioned operating your you margins this, and Thank

Jeff Carberry

file So the upper and range for EBITDA lower gross of revenue compression margin given of as as for the XX% well margins on side it margin implies gross well, MetaPack. then elimination the a obviously mid the commission as

congressionable. So,

Allen Klee

again? and you behind used consideration buyback didn't rationale that? then, be may what's there the your up Is a it, reauthorize you it to And up

Ken McBride

know, is opting urgency -- of the no board again. of Yes terms was I sense there in it I think

feel I discussed of of implement explain are some think changes out those to plan we the some given repurchase model get publicly. the could business the dramatic really just until didn't we a of new think in wanted kind those changes I changes there like we them and

board. go So back now that the repurchase with they our and are, plan we'll revisit

Allen Klee

Thank you so much.

Operator

comes Liu Thank from K Company. our next with you. question Kevin Liu And &

is Your line now open.

Kevin Liu

you that because with reaching of always have terminated I are or you're something Hi, only a in the good been talking When agreements with the that that's point USPS, contract? the present afternoon. now clarification. other about carriers place was was exclusivity you

Ken McBride

brand, well we so have I there, five six guess. always That's

ShipWork, Stamps.com Stamps.com, ShippingEasy, and have have we USPS the we only ShipStation, exclusivity and solutions under MetaPack and We our of Endicia. for the now Endicia, was brands offered the offering so are which had

led here's we XXX customer process those so free these the use solutions the for and accounts the the with solutions order within once sales into are Endicia course. implement were them convinced the offer to to that of the software we USPS would we in your we And and Stamps.com to offer go salespeople, would our be those or

ShipStation different has capability. as the with products we we go of with a each to we like under mentioned set But those other different or And leading forward and feature exclusivity. will able carriers ShippingEasy or that weren't a ShipWorks I be so, do and

Endicia can in is any and suits with customer be able lead products also that really both the and Endicia sales and can of package and our products offer to We had we what products, Stamps.com we really within our other the best. include as hands only customer from whatever Stamps a accounts, carriers, that products now it so best technology into USPS from customer really perspective. on of to our it's to as we the perspective brands and go be Our carriers focus interest now best support other process carriers these in the and our we push suits untied a whatever so any

Kevin Liu

[indiscernible] kind Understood of carrier those the do do and the that carrier NSA solutions guys have you multi multi for in USPS a for of the USPS of put your or current solutions, your with remainder the able one that would status of relationship will doubt?

Ken McBride

In and with share ShippingEasy transparent properties USPS do, USPS. agreement agreement with a our get reseller resellers of our between properties. has working with the of align Yes, and receive and we've In with ShippingEasy we one them our about other work now third-party we we really the partnerships in a the in been share their we other to NSA the is market, interests revenue revenue. partner. any like order our that

So by the is only the way the And is agreement primarily, it's a volume solution almost really negotiated we that in the USPS. product have ShippingEasy exclusively where with product that USPS. direct service

So that organization really even focuses though volume. it's on driving USPS multi-carrier

Kevin Liu

postage is this that Understood printed have with the larger surcharge? this. you service to provide what give don't and negotiated But terms of can you in probably any percentage number of us won't folks sense the tied around I'm your agreements pay to specific customer sure you

Ken McBride

really we Kevin, that afraid Yes, detail break I'm can't out.

Kevin Liu

me kind MetaPack XXXX just And what's assumed of guidance? to then, fiscal revenue your for for contribution lastly

Ken McBride

be results don't K. if public in will you obviously separately guidance. you the and But results Yes, as which filings segment our in so of we kind break at the is the a about look upcoming annualize and

revenue rates. You're million looking a million basis U.S. between $XX $XX FX assuming static on at dollar and

it break don't extrapolate at year-to-date looking could we So but million out million one separately $XX $XX to results, at business.

Kevin Liu

with questions years. you over Kyle for great those Thanks Understood. taking working the and

Kyle Huebner

great working you Kevin you with and too. Thank

Ken McBride

Kevin. Thanks

Operator

any remarks. further CEO you turn McBride, closing questions like at and this no over I'd the call Ken back Thank showing for to to time. I am

Ken McBride

hour thanks XX sticking and with everyone for us and for an Thanks minutes.

our And Kyle. so, or can always contact if through questions our XXX-XXX-XXXX. call and can number you us as you have any congratulations you website, Thank at follow-up Relations you Relations Investor investor.stamps.com Investor

Kyle Huebner

Ken. you, Thank

Operator

your you you and may conference. in participation day. today's for program have thank Everyone This all does disconnect. great gentlemen, and Ladies a conclude your

Stamps.com (STMP) 21 Feb 192018 Q4 Earnings call transcript