STMP - Earnings call transcript Q3 2020

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Operator

Greetings and welcome to the Stamps.com Third Quarter 2020 Financial Results Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator instructions] As a reminder this conference is being recorded. It is now my pleasure to introduce your host, Suzanne Park, Vice President of Finance. Ms. you Thank begin. may Park, you

Suzanne Park

Thank you, Victor.

time this include of today risks On reports And differ company's as unprecedented its and for important XX, forward-looking uncertainties with on the CFO, actual uncertainties. and and on carriers time economic follows; elements Ken strategic XXXX. undertakes finally, XXXX, which are impact results and acquisitions to reflect events statements of our reports individuals factors, successfully the financial XX-K and CEO, call Carberry. risks, the unanticipated we'll provide The pandemics partnerships. update regarding results the partners as include its the the Report on Form The governments, call quarterly Jeff products to is past involve hereof, any Form business materially of mitigate to can date to agenda demand non-GAAP on geopolitical McBride; we'll effects call in But will of under quarter Harbor from pandemic by the Stamps.com particularly XXXX, model Exchange and factors Safe and harbor statement are future diluted includes discuss first the fluctuation third Act to release December of for financial the on an and third net year occurrence in investments; Securities predict of our benefits to $XX business and those XX-Q the global reports uncertainty; the the obligation release revisions statement. the filing the and that the results review and and million Commission of its COVID-XX current and sections the fully of including measures. and realize ongoing after such Stamps.com, of it its cause customers, publicly Annual impact Reform to statements We'll In today's impacts income of of significant about or any to reflect Form other to made considerable talk exchange about those net circumstances which or the X-K. which financial its we nature Risk results company's services from foreign XXXX, impact our well economy, Factor the statements the businesses discuss events. our Securities today GAAP outlook. our integrate particularly efforts income and the detailed and for on and Important forward-looking Litigation ability Private of makes our business ended ability forward-looking the as difficult share company, relationship financial the metrics carrier, to quarter all was subject Safe making of anticipated per and $X.XX. of business extent diversify results, on was GAAP outlook integration or with to the or the no

intangibles Our $X.X non-GAAP and amortization million compensation of following third exclude $XX.X costs. million of non-cash expense of quarter financial measures items: the acquired non-cash debt stock-based and issuance

income measures of the tax financial expense non-GAAP additional quarter. $X.X million non-GAAP Our in include third

measures. and investor on for include, from quarter and and our XXXX revenue include corresponding insurance service revenue not of to our customized numbers our product posted shipping do and revenue, metrics earnings non-GAAP website postage. third see Please any mailing the reconciliations release financial Our revenue measures GAAP

Ken. the hand to me let Now, call over

Ken McBride

On cover having on continuing COVID-XX impact us. topics. you discuss and today's several thank our the for Suzanne, business. call, we'll Thanks, is We'll joining

the U.S. in and progress the business plans our discuss will We in initiatives various

the and We initiatives our our XXXX. and our guidance plans Jeff results discuss then for various our and of will QX updated our financial discuss progress metrics remainder internationally will on

So business. impact let customers the our growth discussing that continues me begin significant shipping significantly by our clearly COVID-XX activity we elevated and having the significant positive to US net have business to with is continuing and in remained e-commerce COVID-XX impact pandemic both quarter volume. throughout on benefited.

XX% year-over-year. quarter strength saw from up with the cost acquisition customer acquisition extraordinary our up whole, by total year-over-year, channels second to third strong in our the remained XX% exceptionally the was For understandably third a quarter while October continuing our in and dropping We acquisition as acquisition more than in approximately approximately per moderate levels the while year-over-year. XX%

driven has of the history to increased highest quarter, By XX,XXX third sequentially reach of acquisition to end high the of the customers in strength the company. all-time of customers the an paid number Continued XXX,XXX. paid us in by

awareness order an We for looking of continue big we large Incredible financial that to their behavior. all our packages. mail to we also their additional a savings retail see viewed to meant a benefit. or is shift beneficiary built were carry big have customers of in that a brand properties, alternative we in the across people offer post number Significant do of location into as and office go a

able of off our every and For first-class saved were Service to UPS to example, packages with partnership, for and offer Postal UPS's XX% also retail we prices daily up XX% customer up USPS letter off standard $X.XX to rates.

the underlying nine during first and months, churn that magnitude quarter. the quarter of now churn in pattern in acquired in we continued the to customers as we're those COVID. with expect our continued and using did the mailing types charter before is customers from acquired seeing customers that conversion of the the stamps.com these driven nothing churn equal third expect large X.X% a questions of XXXX. rates in higher acquired new by The anything The acquired that shipping, or we primarily our there highlights did to pre-COVID customers. shipping encouraging. see date six strength of note of status the third are appeared to believe customer by and the primary asked base. quality quarter, acquiring to mix customer the that to the longer the remain paid we're unusual customers these during circumstances versus the to of will stick in a favorable and than are mailing analysis consistent is the were focus solutions X.X% would customers they approximately uptick with whether now. XXX very our term? churn types acquiring behavior which basis monitor we for from a points resulted to ordinary analyze One that normal the We pandemic COVID-XX be rates. is increase is solution that trends mix within certainly third our just other a be to customers of of was decrease we especially of given measure both on a quarter customer While of customers increase continue the short-term The shippers uptick business mix customers. is meaningfully conversion the of also We given was high-quality We'll The second in year-over-year right a the We during segment of customer coming customer new higher churn during churn by entirely expected to it in continue behavior, driven

whole in quarter a the strong US value new saw our In continued of dollar addition of in acquisition, of second of we we than in to shipping and the printed strength We customer then as carriers value total growth quarter again saw growth more quarter, of labels XX%. third also XX% more saw than labels. dollar year-over-year third shipping the

shipping we growth and addition quarter Postal the in of approximately dollar third of XX%. In the U.S. in second for Service saw year-over-year the quarter of value approximately labels XX%

pandemic. we'll dollar We shipping exceptional e-commerce end of strong shortly. customers working saw need that value that been seen increased online address purchasing customers. of during have volume we the that the well beneficiaries solutions to package to the performance of retail as in strong discuss versus The customers performance The our very are also have have consumption at indicates UPS our shifted locations in labels

our throughout quick all to partnership fourth customer very The we're about charging rates. labels in discounts package XXX% started that to we company us make a products and are we third growth shipping quarter. rates sequentially for UPS live begin give quarter of see discounts as UPS. The quarter, customers new update with in solution the last the the very through our daily UPS The cost-effective After on for and positive you strong the by We're value year we partnership. went customer of quarter. during discounted continuing UPS over that long-term solution attractive subset last surcharges labels of across automatic UPS ShipStation now much during for when in we've partner use the dollar great UPS, sequentially and our UPS are growth UPS very to relationship. the UPS in frequently offer quarter QX of fourth second out UPS Discounts to become is first work more see brands. and immediately our and customers. of to stamps.com of to UPS allows dollar Late the the expecting They've during process. of our the of customers qualify the adoption with standard the Accessing me our that a it which is fourth to a expect strong existing an than in the with UPS's required We're Let necessary the solutions now majority value rapid product. adoption customer as rolled in increased year a quarter. is again of more available will account directly USPS simple and continuing the increased when excited UPS our any we XX% products solutions. shipping by off all with available XX% discounts volume without customers

some the US market. on in everybody me about remind Let XXXX now we're focused of initiatives the in

part to go-to-market US the growth AliBaba.com. the resource launched B-X-B first sellers from orders more plan with support in the collaboration which shipping AliBaba.com. shipping in heavily integrate will efficiently In with ShipStation e-commerce with August, planning enterprise development who of from ShipStation to our enabling process, via of its and ShipStation sell US business. Ali integration officially we by also SAP Baba ship SAP. make it's fulfill ShipStation software October, First, to invest In on partnership This solution AliBaba.com on in merchants the deepened

the beyond, and to we XXXX. XXXX named has expect Partner The of shippers ShipStation In continue to our In attract with launched. solutions. large for partnership NetSuite recently Google to was investments Oracle's also shopping addition, making Year

particularly solutions, industry in part our the of functionality and the business. multicarrier development the amount significant innovate features the e-commerce shipping dynamic in is shipping in a to expand the and to market. plan very of we resources Second, of invest we continuing our

delivering on provided focused apps. off drop we're branded logistics new capabilities capabilities and tracking XXXX, in drop mobile to our more such options pickup, For cart, the in shopping continuing delivery enhance our sophisticated as returns, shipping, support, third-party

over plan countries. taxes to tracking other countries. US shipping Canada we international service we to to X.X from increased we delivered the to to announced upgrades discounted package. pounds which store GlobalPost our Third, to partnerships. innovative door-to-door to private be delivered travel cost in the are August, growth solutions XX our paid customers label the from their In shipping to packages September, up office standard and to effective allows package upon access limit packages weight we to pick GlobalPost we without offer to USPS see having to and to bringing XX We've customers, delivery customs customers launched for to XXX solution directly required In service that the prepay rates customers and carrier through that duties countries expanded where continued our capabilities pay an so continue and can pounds including significant sending without having customer's up fees buyer duties

and these at drive customers international We our solutions expect targeted during XXXX. to to package other continue domestic

discuss for the plans me the let of outside some Now US. expansion

business During XXXX up development we're product ways. development ramping our efforts and in marketing significant

carrier First, our relationships, marketing for solutions our countries. we're in ShipStation partnerships, developing and enhancements and product target ShipEngine,

over continue particular, increased versus Australia. adoption of XXXX. in of international UK quarter We quarter ShipStation's ShipStation and shipments the the see to Canada, third year-over-year third In XXX% strong

improve our further For the remainder of to XXXX, expect support we international to capabilities expansion.

ShipStation partnership new enhances is American of and a during have live Our also further ShipStation the MercadoLibre that French Spanish we quarter. the recently ShipStation version to sellers in also ShipStation. currently is expect in advantages version working beta. Canada of in Latin to up with sizable the and ShipStation which language launched France on fourth our working We're with will sellers open launch market

business progress strong MetaPack make German new technology including QX and including continue technology had a acquisition the to driving Second, chains. customer additions platform In in the one innovations. re-architecting new of with we supermarket customer our we in significant five both MetaPack largest and Europe,

also to quarter, pipeline that footwear household continued very of we potential deal with notable new the prominent deals a a U.S. signed During strong are names. large develop We a with company. companies

company extremely our excited for new returns the and our will future such of channel portal offerings. enhance e-commerce delivery Omni products and e-commerce We proposition summary, experience significantly and the consumer's our also service our saw tracker. operations large and encouraging Both technology value In of as adoption about rates customers. shopping remain the for enormous our we features

to this the for play integrations, the currently. and $XXX and long-term The is level with our trends marketing we Our very and as aggressively properties, very strong result, cash forces and of company our our sales our cost strong very multicarrier sheet and and approximately debt managed healthy programs. number structure strength our investments a no and balance a a size cash always the of in have partnerships international myriad we and best strength success the very scale by of and and US position million the flow is as We've the company of value of goal provide worldwide proposition out. outcome driven

the and continue Jeff. now business, As our shipping that, we're created reinforces execute our business have the leader to this experiencing With e-commerce to solutions. awareness we our to market-leading and a acceleration significant in We're XXXX in over large great I'll in be call multicarrier brand plans the for in a turn to global beyond. position

Jeff Carberry

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

million up estimate and and both by As levels year-over-year which albeit a ongoing we QX found continue up Suzanne in measures growth to growth that that website. release range. a was revenue total customers excess total corresponding quarter measures business, States $XXX.X our of from percentage our attributable versus excluding of on the was the and was benefit our in versus offset in reconciliation revenue MetaPack estimate strong up QX. XX% up in Total in revenue revenue XX% was as domestic by in and the and zero mailing QX was year-over-year international revenue the well was QX a shipping was which XX% in MetaPack million was million QX in in in million in revenue XX% ‘XX. and year-over-year in approximately metrics Mailing as was shipping the revenue in shipping negatively that approximately in of and growth We $XXX.X shipping The non-GAAP and $XXX.X third of GAAP and pandemic. We financial XX% shipping mailing QX total excluding was year-over-year in shipping revenue ‘XX. ARPU. strong was was primarily shipping The of year-over-year to year-over-year postage resulting QX of The that XX% revenue ‘XX. QX customers MetaPack XX% growth described earnings revenue grew of was QX from Investor the revenue was and in $XXX.X percentage QX range. driven The versus increases paid performance our versus that XX% United of at Total of by believe as excluding customers driven by that and low was customer's as COVID-XX mailing from derived in in our shipping year-over-year to in growth derived growth are impacted revenue and moderate QX our increases ‘XX.

business was related has in including long-term our marketing which in carrier Mailing costs, our sales teens by business, gross gross MetaPack our in and margin shipping our with as UPS, by of R&D XX.X% SOHO offset growth revenue and a strong in and growth QX and and revenue positively USPS year-over-year year-over-year margin acquisition traditional by mid innovation of in which also was impacted Mailing QX versus primarily was and our XX% mailers of growth. ‘XX. to and and the from in had associated We a XX.X% We in driven total support customer and percentage estimate shipping operating growth gross that strategic investments grew QX. increases the XX%. was derived QX in revenue margin

scale versus of was ‘XX last Fully year-over-year the in diluted was and As growth and a service QX of $X.XX of $X.XX to fully international $XX.X that year. million operational increase up in year. Non-GAAP Adjusted adjusted on year-over-year margin XXX% Ken mix shares of in The million that was in Non-GAAP X% based a share of and up million margin and more tax tax expense income in of benefit $XX.X rate per per versus non-GAAP aggressively higher XX.X% mentioned, in and QX QX was versus $XX.X calculation versus income a QX share in of last was used driven in QX EPS rate QX business versus was revenue based $XX.X diluted drive favorable QX on XXX% adjusted revenue. non-GAAP our our QX XX%. year-over-year we in was EBITDA in ‘XX. of strategy. million continue investments operating EBITDA margin to XXX% ‘XX. XX.X% up QX was strong Adjusted QX by was EBITDA

XX% number highest was our of company's ‘XX our paid offset our Total customer strong history. metrics. was churn. partially was versus driven in discuss metric an by in increase Let's of XXX,XXX, by QX was customer acquisition new and customer paid customer and This up customers now which

quarter XXX% third was basis Our X.X%. churn Churn up rate points year-over-year. was

As Mailing normal expected in given the nine is Ken increase higher Stamps.com segment churn discussed large especially meaningfully months. of was by the in driven Mailing primarily segment the churn customers earlier, of in surveys and versus which churn was the magnitude the and

metric at trend million was end of was changes million quarter with and XX% growth segments Our in shipping 'XX. note in shipping The third this the both cash. operating cash a up QX strong of Total our and capital traditional and was steady the versus repurchases. of in of driven was This net in up and of quarter by record up quarter primarily that and cash the to volume, We ended volume a by QX ARPU US higher cash US. ‘XX. third in $X.X in growth base working and Of by driven up which was primarily business. quarter XX% cash partially EPS $XX.XX. million investments $XXX $XXX is mail year-over-year declining included which focused million of also the as non-GAAP uses area usage from client ARPU by mail $XXX of cash, was our debt investments, and flow lot driven the offset increase third was and share from opposed was

During the of of approximately million. the $XX.X cost company third XX,XXX quarter, total approximately repurchased shares

the Directors Board remains for effect plan XXXX repurchase of million. approximately XXXX of in million our remaining $XX approved February current of in optimization with $XX by Our as August to

effective in throughout year the the partnership, Now increases guidance termination our expected ruled turning as reflects USPS out USPS program investments our in multi-year our this mid-June our June to last discussed quarter year across customer of reseller related we agreements, properties, this quarter, customized the postage to of guidance; which first we mid base our of US aboard. all the the and cost operating and to of effective continued new

shipping impacts second the third the on the potentially third to growth COVID-XX discretionary in following; acquisition, volume Our reflecting growth. customer reflects COVID-XX purchases our moderation churn and quarter, which a and in to generally strength also into extraordinary and the updated reflects brought guidance outlook quarter relative holiday the the by first,

trends expect the specific we're Ken quarters to guidance. now the been although strong, [indiscernible]. As that won't And have and discussed, on the in recent strength our of relapse given and seeing modest quantitative

$XXX $XXX revenue to expect to million. guidance million million We the in $XXX of $XX to compares be XXXX fiscal to our which million, range previous of

will We in range revenue XX% our in approximately range shipping a expect growth range to year-over-year. of high low be XX%

mailers teens program expect in a shipping was of mid postage We the eliminated termination in will this revenue previously by result effective customized discussed, June XX as our and growth low mailing revenue year And SOHO our the as USPS. of year-over-year. to our of the of be

strategic we expenses operating XXXX of the throughout U.S. to investments and investments expect effects for both in making increase reflecting annual our and efforts. we We strategic XXXX in international anticipate made the XXXX additional

million XXXX $XXX be million, We of guidance to expect which $XXX compares to fiscal in million million. the range adjusted $XXX EBITDA $XXX previous our of to to

year range. a low Our adjusted mid guidance EBITDA in to implies full margin the XX%

approximately XX% tax XXXX, for XX%. compares previous which income estimates expect be to of will We expense of non-GAAP our non-GAAP pre-tax

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

be million. million XX.X our expect million to XX.X of to between diluted to We shares which XX.X previous in XXXX, million estimate and fully XX.X compares

XXXX. be XXXX with approximately we'll our estimate fiscal which $XX.XX, to $X.XX we share per And previous the $X.XX. expect income diluted to that, for to to capital non-GAAP $X questions. We of expect up in of open million continue compares And adjusted in to finally $XX.XX to be range expenditures

Operator

Craig-Hallum. from with instructions] with question comes proceed [Operator your first question. Please Our George Sutton

George Sutton

I think there there was one things believe you retail to the as may purchases upcoming growth. Amazon to assuming retail you holidays. this Prime significant saw start significant relative that a forward a Thank you're amount think very relative from mentioned have I some universe, season e-commerce been enthusiasm you. Jeff, obviously Day into of Generically, pull QX season. of is relatively QX the that around to

the generic tracking that impacts are world during different volume everything any the are relative benefits surcharges do curious, and just you doing I'm limit and that the you than are seeing try or periods. to to carriers anything see to we So specific

Jeff Carberry

let's good not experiencing. we're say it's seeing of our broader the broader we're trends I economy terms guess Sure different generally anything in a e-commerce in question.

in seeing are QX and QX. from moderation We extraordinary levels

economy So we from opens wide growth, the open expect and would up as have generally as a that we recession to moderate things up.

expect we continued rates. see So to growth moderation in

So we would We seasonal equal. moderation all that are seeing expect continue. bump a else

question However, is what the becomes really effects. the

going The pulled effect the that. QX and QX be into be to moderation is going first or is settle the to the going first to effect order bump seasonal

both think are I happening. factors

However, be like We that are being as perspective, things like of we estimate the don’t from things and our to impact conservative. overestimate our to beyond COVID. that

seeing big QX a of So marketplace, certainly seasonality seeing moderation of the board we're relative to QX enormous QX but what the becomes guess given you QX. do level and I question and the in difference experience we're in strength

could our guidance. things kind looking keys at So in not to to qualitative are the are the on our better, COVID. but There factors that certainly given estimate volatility difficult are consider those post in be necessarily things very of we're

Ken McBride

quickly. comment George, customers. surcharges, surcharges you UPS I not just wanted to being our that applied are mentioned the on to really The

come So not are through. those we seeing

the all course board customers. across the their USPS Of are surcharges to

we're bit expecting I coming So surcharges there there, generally see is don't speaking, big the impact but a of from think to QX. a little increase

George Sutton

QX. aggressive for an to up extremely QX no and plans and absolutely let was I but don’t know is wife buyer know in e-commerce if has my this QX helpful, I

plan traditional one you significant and sounds that, like did work an to players. in was know interesting been it's of just brought things couple Baba up doing I that's a think helpful. to countries with just BXB on BXC if they don’t ShipStation was brought you're Baba that don't Ali very five so there I to it Relative help, with that was Ali here webinar and internationally expand a I the that a was you want up there XXXX pretty some and confirm that -- to So additional and also functionality

curious So give your perspective I am there. if can you

Ken McBride

Yeah I in those statements. accurate think both you're of

talked goes in an July in was I and time going gotten October, on, about so broadening we partnership announced at with better integration and partnership an better recently as most our Ali we've Baba it what think we back our that we Baba integration Ali Ali and initial initial done relationship Baba. that and we're deepening and a

US, to Ali one able for that the So their to orders so in and you on Baba. offer merchants we're they're solutions ShipStation directly ship selling the Ali the BXB process Baba.com now more able to fulfill from

the excited about So Obama.com every with very extreme to the we're in the one US we are and integrate relationship. first

George Sutton

option ask us operating cash could could obviously I curious am Jeff, if the how a the exercise? million. Lastly, is came about which I operating bit number? level, cash you significant give versus and $XXX to quite up much just flow an from cash flow

Jeff Carberry

significant was tax rate. the for -- the in driver terms Yeah of interest option was primary it that the drivers, so decrease the in

option pull amounts, So me from that let exercise an you. for

Ken McBride

we're So pulling have any that, you more do while questions?

George Sutton

it. that's you. Thank No,

Ken McBride

end. that circle by the We'll

Operator

Please comes from Allen next question your Securities. Our proceed National Klee question. with with

Allen Klee

how think you terms what the on to rate there the think key -- the why the you any in hi, US? your could a the in view growth and Yes how of were that on little that's your that how of compared international US you different in from outlook, about drivers and kick in is

Jeff Carberry

date we've seen, areas market to I beginning solution just the to UK -- and world; we've and our in the doing relationships it's so think that year-over-year saw been growth Australia I you on really of those going those and markets think XXX% more the that focused in English-speaking I I we Canada, we've and and in think partnerships markets. in know, and carry shipments as Sure, mentioned

it market great So or and learning to those takes in very seen the the we've -- countries albeit in lot a where solution. early about process success early

new to about excited solution It's and with non-English as to of our And version some out the just expect French-speaking starting launched. then first now portions we're version get we particularly that first Canada so French we the with experience ShipStation. that We're during of in some perspective some that ShipStation. might that up start version the on that we encounter expect Spanish-language beta gain final the and we to we wrapping any launch to of on fourth quarter France with issues testing language, we're then

So to that's allows market. MercadoLibre the as mentioned with Latin that after particularly exciting American like go of partnerships we us some well

in it's to to partnerships to countries just the then in we carriers we continuing our do do add add marketing. I starting those capabilities So countries, need and the do need the just build wise, development think to those

Allen Klee

how And to think gross my running you. your going now? forward be it's margin is going Thank is mix other to impacting question about do how your compared you where

Jeff Carberry

I sure as relates So moving see we're more continue business to still see non-shipping in margin, revenue revenue, you're obviously we up that it opposed shipping ultimately to as margin. to and forecast, the to going expect not the in not from to we the some partners. in out ship it natural to certainly of gross shipping We're going as gross where to I'd certainly out our directly actually move see come relative gross as shipping shipping, lift growth mailing ultimately think but towards comes as margins

Allen Klee

on job Good so quarter. you Thank the much.

Jeff Carberry

want then to numbers. previous And I answer question got precise we the make an to and sure

quarter in of option $XX.X the interest in pro forma for was flow for $XX.X million free So cash million of from the operating that terms expenses, terms ex levels quarter. generated

Operator

you. Thank

with with Please question. Company. from comes your Liu & Liu K. Kevin question next Our proceed

Kevin Liu

lower the congrats to year, now COVID, that back your on bump, the results seasonal you contact, than for conservative in guidance QX you're see quarters. actually in guidance and right is wanted normal of obviously from well. to Hi. strong revenue suggest in Good you being expect current did a perspective mention I on the you light as afternoon but circle

wanted just carrier clarify sort is that or of there being usual? your within no this was other I relationships guys conservative So integration with just as you and to change partners that purely partner

Ken McBride

a it's Yeah good question.

QX there there QX, to On relative QX, year-over-year obviously look you differs does obviously. if relative it sequentially imply basis, from So to down relative a patterns. circle is which obviously growth a

which there is the amounting levels. what There a function really it's moderation we extremely factor see bump is again, high around expect a So to QX and of seasonal QX holidays. to potentially a

half guidance, year based you the expect Again you a decline than have back artifact we happy see half that wrong, front this given year of higher do QX the that the to of be the QX the the be in So certainly but could we of I'd in on relative to happen QX. very very moderation certainly to sequential level well do. but

brought see is have QX Do we so you how be? fact into and becomes to possibly levels, been forward same question level consumption from moderation given QX much still In seasonality high how of in QX. QX that going the is shipping

a So certainly least. entirely potential guidance conservative, at it but that's high anticipated as range that's outcome realistic, is in potentially very end well of terms US

Jeff Carberry

give no. there driving you about specific is comment or The internally? partnership seeing Everything additional continuing is guidance. We're to answer our to whether asked business the move changes an in add relationships carrier us To like that's positively. is not anything that to or any forward anything internal

macro QX. the company predicting at and into conservative point any be to this as move make we're and challenging wanting conservative want just for more just factors is it's sure to we we think I

Kevin Liu

that color. appreciate Certainly

in had then on Maybe The just platform to your I there got formally of can? focus what think actually beyond on relationship. know multicarrier account perspective just from growth with is a you that week that, I I you EPS penetration And saw ago. just terms was contributing that that announce early about Stamps.com who talk if EPS the ramp other platforms. up an question was this the on I of

you given how accounts be has be in some kind like expect wondering looks So program there of customer's coming that your on the to part? to those pacing the it of

Ken McBride

in just partnership, we're seen think starting we've very of a and Well partnership a us. small build question, as about on UPS to it reviewing far long-term, We're terms in I that adoption albeit excited first partnership so of your the strategic terms very base. for

nearly have where rolled we first for surcharges USPS at money so we'll the save be labels, a USPS adoption doubled during we at environment can XX% certainly that point, they pop-ups it seeing and if think volumes going the that highlight looking UPS things. longer print. the fourth best priority And up our really the into we've in to think XX% an making by Initially, additional do from third across and something customers the solution the for ShipStation. We're that'll sure USPS UPS pushing very the to our but packages, so products even not adoption almost mail down think term. expensive the for grown quarter continue We we and pushing just emails quarter. sure class we're smaller and rapidly. it there switching webinars this second always not to quarter increase saw I in in in situation out really interesting because other I The packages I all point and deliver less it's I as we're our customers. quarter again, fourth and USPS am XX that's solution marketing it is marketing, than with go sorry out then now of but additional out and as continuing. the that

getting So we thought at reviewing point. real Go UPS very long-term we're great just it partnership with multiyear we're a relationship as and this ahead. started

Kevin Liu

I spin kind gradually. things build as it might that turned looks you the it guys you expect whereas question they turn how it other of like around of answered much out, of Sorry, you in to and you early customers, terms on up part think pretty have stamps.com to on

the UPS rate just adoption holiday affects curious how during that period? So

Ken McBride

differences We sign initially we're in, slight up, they all Yeah, with point. comes as we the when same rolled no, customer now everybody it the when at have out, they maybe approach this is single being did some is the but The we our do balance. wallet, there. which It's in click of the kind their, in the agree taking run solution basically. to there, rates call is to capabilities same what have the are

card a funds, her able those to and for when you're either UPS. So use USPS in buys customer funds puts or credit

other with guess, come some simple customers, adoption centers, a in as front it in see rates attractive that's good more to as up expect and we I anything we're for it. providing a It's and It's terms about is than so to excited the UPS doesn't quarter this that conditions like click and customers and ongoing. accept the mentioned, So it. take which is -- we're why

Kevin Liu

item, just seem And on me, to was a attributed QX quite sheet, what balance to? other bit lastly housekeeping for jump more from to assets the up a that the of QX, wondering just

Jeff Carberry

It's capitalize that really be to new we going and we'll for weeks. signed lease a quite

cash increase liabilities we and assets weeks. flow impact see for no in So

primary driver. So the that's

Operator

comes with Securities. next Klee Allen your Our question National question. instructions] proceed [Operator Please with from

Allen Klee

had like Yeah your costs quarter that. said advantage of this you hi. I if you was for something were you that that Last XX% sure taking quarter. of around heard customer if acquisition a metric down kind not I'm

of is that on If thinking in you spin how terms did about sales rate and what thank and doing your then you're marketing, you?

Jeff Carberry

extremely another that streaming quarter the down say our strength -- direct did have customer good TV cost radio, all we're across all online and mail third online done was we acquisition to the XX% well. channels particularly online great, year-over-year doing Yeah, is and from podcast so marketing, for seeing online

acquisition. likewise So we're cost we're seeing acquisition low record seeing in per and growth record

great aggressively in ramp of we're we're several lifetime value spending dollars seeing terms up those ROI spend. and continuing multiples think acquisition I we're and the to on higher So than that that cost the is

Operator

any you may turn no time. at back this call Thank are have. further you. over to remarks There like the I'd questions to closing management for

Ken McBride

have you. us as questions, our Relations always Investor and any can you us joining Thank through is for Thanks hotline contact if investor.stamps.com. you

Operator

webcast. and today's this Ladies concludes gentlemen,

may your disconnect for time. and have a Thank lines at your day. participation great this You you now

Stamps.com (STMP) 5 Nov 202020 Q3 Earnings call transcript