STMP - Earnings call transcript Q1 2021

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Operator

Greetings, and welcome to the Stamps.com’s First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] This conference is being recorded. I would now like to turn the conference over to your host, Suzanne Park, Vice President of Finance. Suzanne. you, Thank

begin. You may

Suzanne Park

you. Thank

XXXX. the call Jeff as McBride; CFO, our first CEO, we'll COVID-XX continuing is having today The agenda are on quarter our Carberry. of is the Ken discuss for the review impact and business. results On We'll today's follows: call

go-forward We and our business plans discuss will progress initiatives various on the in US. the

outlook. we results our our various And business then, on and progress financial initiatives metrics, plans will and discuss our will We discuss our internationally.

As conference in to of financial you today's quarter. have our metrics you, our you listen we encourage the as to call, includes commentary well press front results on and release as which

or subject forward-looking XXXX, operational performance reflect impact uncertainties, results to our and promises on businesses comments our actual fluctuations mitigate our views plans, relationships in particularly global only, May considerable impact the integrate to and which and of as the statements responses for COVID-XX strategic of and management's future expectations. well exchange company's effects to regarding to financial makes statements today, partners business not carrier governments, its other its include prospects unprecedented outlook XXXX actual and such cause statements ability diversify guarantees impact foreign including uncertainty differ significant risks. fiscal future our which business to expectations past and your could include: acquisitions results. of materially ongoing and economic which Important with extent regarding benefits the risks from uncertainty; from it statements and individuals the the Our carriers successfully to These integration statements them of and are the the of for year economies, investments; company, questions or and the pandemic our differ regarding those company's its impacts materially management's geopolitical nature or to predict of X, and customers, its demand and as making the will services, and realize efforts to and cause ability the factors, subject could to forward-looking of products and of the difficult pandemic, are the on and and

Further, cause update Additional information in or for refer not could non-GAAP our today's statements should release to, the as about and adjusted in and GAAP undertake required measures today's be financial including to report materially from isolation XX-K Form with We we SEC, of addition law. factors during call, annual in course measures. will as a forward-looking the that is results potentially but included subsequent differ actual most These by filings. obligation to filings except recent to considered on no our certain press financial measures. substitute

Additional measures, information to press about reconciliation release GAAP today. of our including included comparable is provided these in non-GAAP non-GAAP measures,

metrics website Our Investor available and SEC our are investor filings press at Relations on release, investor.stamps.com.

hand over me let Ken. call the to Now,

Ken McBride

thank joining us and today. Suzanne, Thanks, for you

those continued included XXXX, saw EBITDA customized XX% up which discounted and The announced to our including when was strong million we we general our results well postage many provide and XX%, e-commerce first relevance on ecosystem. first compared pleased strength demonstrate our business will of $XX.X of the The the I trends, that adjusted as the quarter to quarter in the visibility today best-in-class million, our the up was continues business. very performance e-commerce with first quarter in first XXXX quarter up $XXX.X of total of was excluding XX%, financial revenue highlights, metrics. Today, and some Non-GAAP We're compared some solutions. it as Last additional multicarrier we position strength global e-commerce of quarter updates and financial provided to overall XXXX. regarding points.

is consumption, purchasing our e-commerce online customers retail their largely locations. of versus driven traditional beneficiaries customers, that their discussed, we've strong increased been have As own by moved of consumers end have which more generally

have firms that by pulled or by research e-commerce published forward various estimates spending Some marketing been been more. years has two

the those continued to quarter, see and During financials. first in the we metrics our of results trends

customers For more labels all $X in was billion our worldwide customers package volume, total first than example, broadly, total the quarter total XX% US volume, of dollar which of first year-over-year. value up year-over-year. up total in shipping quarter, domestic by More printed our was XX% printed

package reflected to growth US merchandise customers is or XXXX, estimate increasing collective is XX% in the our that its we GMV more of value proposition look the customer the solutions. that by Amazon shipped by over to shipped For that base you strong only collectively solutions of volume our e-commerce demonstrate was customers all billion, our The In than is value year-over-year. US in the of GMV at quarter we When gross X% using percent first generated a in e-commerce. solutions second, our significant. GMV was worldwide aggregate and the over our the that as XX% ecosystem be continues continue global US, the position our we GMV. our platforms. by GMV e-commerce software our total Worldwide, processed, the GMV estimate and total performance total of the In e-commerce, shipped of estimate the GMV of that to by by shipped $XX all our

now UPS me partnership. update on quick our provide a Let

UPS continue of We across strong base. adoption see our customer to very

now XXX,XXX UPS those quarter. by the dramatic also had than of the the during sequentially in through have first more the that value dollar under strong integration. growth partnership We've continued with a driven labels connected customers partnership customers to increase UPS We our seen enhanced

with as using reminder, for or as automatic a login. new As our for is very each UPS set account customer up soon simple they existing an customers

become so great to to UPS off partners, have offer that usage as Stamps.com also With UPS US year. we the have are continue which far increasing the this as turn the builds. as customer let XXXX expect some in UPS volume We discounts, to rates. to much me progress now daily relationship made attractive the and our and of initiatives continue we standard customers see XX% market and

manage we continue expand We First, through merchants partnerships our announced marketing easily on Using Google shipping Google into participate that Google new that on to now on programs. is Buy Buy shipping merchants from now platform. retailers the multi-channel can in ShipStation, orders who checkout plan recently ShipStation. allows solutions and to shoppers on experience directly to products can purchase easily pull our merchants. directly these

gives and Shopify announced key new cross-border participation ShipStation with to Plus channels Plus recently e orders orders Shopify also The outlet access manage codes. information the certified and generation established selling as merchants large the a our product commerce in We and solution. program website a We and capabilities discount thinking, connections online fulfill app shipments next program. joint such

continue carrier our relationships. we expand addition, In to

marketing first variety and We the across and volume or of channels with other we plan carrier during and our industries, in marketing a example, to leading to to partnerships. a and scale For quarter, of focus agreements less-than-truckload, these and solutions sales customers utilize a a with continue shipping on into high and test entered variety XXXX, provider. LTL, data acquiring

our pickup code returns features for support, significant and deliver and functionality returns insurance. dynamic part shipping, to for third-party and QR continuing sophisticated is expand in innovate focused with enhanced plan, drop and off, business. solutions, capabilities, our development e-commerce the application plan off invest in portal the a multi pay our mobile shipping amount carrier drop very the particularly industry customers logistics such resources solutions, in new to branded USPS market. drop continuing of online The the to we Second locations and and simplifying our and tracking, of as of we retail more sophisticated shipping XXXX and We're shipping obtain more process to returns on

taxes. effective continue will customers we private to offer to where through access countries, code bring new tool US through Harmonized faster plan, code packages harmonized to generate for automatically approved global product sending label lookup product. discounted name solutions rates a codes cost carrier international XXXX that we on our customers launched solution, shipments our a in primarily and the In the and GlobalPost other help avoid partnerships. will the customers in XXXX, to April duties the innovative After confirm tool. customs are overpayment to focused characteristics, shipping of that harmonized post and get type Third

continuing to international XXXX, expect and now, expansion to our continue other our ways. In our package discuss With marketing, XXXX. significant in solutions for We drive development international in efforts. these investing domestic development of business some product efforts let in are we me and that customers

targeted marketing markets. we're partnerships, carrier For product developing in ShipStation ShipEngine, strategies our enhancements and and relationships,

French international XX% ShipStation's accounts the of We languages, ShipStation quarter count selecting continue target XXXX. support the XXX% international quarter first Canada, shipments a to as and users now from into is their live France support English, platform. ShipStation and be beta of language, now Spanish. we versus over also new as first expand their U.K. Spanish versus will quarter Australia. adoption A and the in preferred version the year-over-year We're We're strong on Canada of by ShipStation increased in new able increased to we XXXX. log of continuing more to ShipStation our choose than markets. well. of in French ShipStation's merchant and supporting version first All see

actively continue also partner We the international front. to on

first the in executed we with an globally. quarter, carrier system Australia agreements during with partners several management renewed For and important example, agreements existing order

Australia. our brand and a in organization a included efforts, international large UK the wins charitable For in sales fashion notable

and and progress world. XXXX, across customer New MetaPack’s and existing tracker and generated experienced evaluating strong for non-label We strong delivery reported around making a quarter mobile and e-commerce e-commerce improve contact very continues customer the experience, reductions. and in in we're BXC During product when very In EU business products. our options and MetaPack’s delivery big and new its call luxury to new portal our with deals the have and continue the in XX% tracker seeing to business, invest including delivery lead With retailers MetaPack retailers software, within In over global centre phone MetaPack shipping to footprint align had QX, I'll the strategy deliveries delivery of both pet call adoption Zealand, operations. lifestyle customers. and Mexico. chose satisfaction to delivery the online intelligence space. over Ireland the consumer its Other particularly with win additional Early expand levels on post shift meaningful the UK’s Jeff. we a customer a both key new that delivery now, plan we're the returns. J.Barbour acquisition a core of We're coffee turn further in options manager, of retailer markets & Large brand from large food global top-four and international product MetaPack included planning delivery retailer, Sons, operators. to tracker, returns returns of technology. to particular, adopters British to actively shipping

Jeff Carberry

Thanks, by non-GAAP A measures reconciliation websites. our release impacted our of measures. first growth revenue Total Ken. in revenue can shipping today, that revenue the financial was and of our XX% XXXX to by program negatively found $XXX.X first revenue driven no was results. QX in last metrics gap XXXX. shift in We’ll that review quarter in quarter termination quarter has first of versus measures by been investor customized that in the include the earnings our the quarter attributable primarily was continued financial The results discussion The purchasing resulting on online XXXX. strong in financial COVID-XX. June of e-commerce year-over-year area in from non-GAAP QX driven year-over-year in year, corresponding be of the Growth and was in first now of up the of million postage growth the financial to

percentage and our postage revenue. XX% [indiscernible] in We approximately customized of and mailing shipping million revenue shipping mid-XX% XX% was as estimate the range QX of was for grew that $X QX last revenue up effects the total of derived customers in Excluding our the a QX year-over-year from year. year-over-year versus total termination

gross as shipping total of was shipping driven with was associated percentage positively We in growth QX the acquisition innovation in year-over-year e-commerce in year-over-year R&D sales year. We Mailing by related from XX.X% our the margin primarily, revenue last support had QX revenues the in and to and costs, shipping. driven impacted customer strategic in margin marketing and QX growth. also XX.X% estimate increases grew mailing their and a in and customers, in investments was growth as long-term total mid-teens strong gross of derived to operating by well. mid-teens, versus revenue and Mailing and

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

Let's now metrics. discuss customer our

total Our customer was year. driven last increase metric by churn. was X,XX,XXX, up customer of XX% was new in versus customer strong This acquisition, by offset which partially but an QX paid

mailing And the of large in the The be customer believe quality segment basis pre-COVID the meaningfully we X.X%. driven approximately This that customers lifecycle. before customer our the ordinary the first increase XXXX. customers up customer uptick churn we is similar to to in base. year among that Therefore, those base Our during of expected because fourth the churn are churn segment is first equal behavior. quarters was was one and importantly, are given points acquiring was of Most COVID. our uptick by of churn in churn rates. mailing rate the second, appears higher churn are approximately quarter customers are of versus primarily third was the rates mailing customer churn Churn year-over-year. customer at now Furthermore, acquired XXX levels magnitude the shipping

customers. very focus, as long-term see on and ROI from you acquiring has Our know, to high been a shippers we those continue

mailing XX% primarily was flat postage those which the ARPU customers. first in than Our strong metric our we generally growth both customers of lower quarter a volume USPS see mail of with by X.X the shipping XXXX. volume. have usage in mail quarters in to The in us in $XX.XX. mail a consecutive postage USPS decline printed traditional trend who and and After higher was volume shipping of was ARPUs ARPU Total driven long-term growth consistent U.S. year-over-year, XXXX, includes XXXX, quarter first is non-package quarter whole started up declining billion, for growth of versus in total first credit was that

investments cash. in ended partially was by The And $XXX $XX changes and million share end quarter. cash increase the working and with cash cash offset flow, our operating QX, up primarily from is million net million, cash and driven was investments, which repurchases. normal and option capital in it exercises. my strong in last Now of from $XXX at I'll discuss uses We cash of

have no to continue We debt outstanding.

of XXX,XXX approximately company During a QX, repurchased $XX the shares, total approximately at cost million.

of August share XX on was Our XXXX current of by repurchase of February XXXX. $XXX the remains through that in million effect approved plan Board Directors

benefit, solutions, COVID-XX to driven and by a mailing The purchasing growth. in turn XXXX, the more behavior, by drove to for that online contributed worldwide business increased shifts to shipping driven online let's our unprecedented financial our and need, generally business pandemic an Now outlook. meaningful e-commerce

revenue However, as are and February, specific XXXX we we numerical providing discussed not in earnings. guidance for

expect collectively volumes percentage business. track we come that it broader we large As We our e-commerce, trends to various that not global that our of driven a to ship. will that do are are and forecast shipping customers macroeconomic into that GMV affect feel expected give the factors our do accurately able

XXXX, in the of as into mid e-commerce XXXX. move tough second quarter acceleration rest lap we the comparison, faced March we will, like year-over-year began of e-commerce the As of we that

term we will very expect, marketing sales as a to our e-commerce market of platforms discussed proposition shipping it in XXXX, the by And will expenses And XXXX, and initiatives invest significant and for more sensibility our the that, service would strength and increase continue strategic value our our fiscal offerings. about Ken XX% with long-term in area to operating hand to longer or global During of in We expect we total we remain comments. excited additional investments for strong strong today. the back our ROI. to demonstrated continue year. Therefore, long-term very we make support trends to opportunities, secular R&D technology the that I

Ken McBride

our our our our strong, the than total more partnerships software of Value commerce international of the scale the and more strength of forces, our and we and than solutions. and US breadth integrations, size extremely being worldwide about estimated offerings. as technology and US the program. marketing our of solution proposition properties, of into Jeff. you, the e-commerce position We significant excited We've those our of incredibly period successfully of in and events ourselves Thank the of with navigated company achieved change. up growth. long-term of the service for and value The enormous is e-commerce We X% strength provide a and e-commerce, changes XX% shipped multi-carrier e-commerce rapid shipping proposition a an of sales success of XXXX choice and catapulted using future very set depth remain

number plan to back reinvest in significant to our we to opportunities innovation, a continue XXXX business into aggressively. have of We accelerate

a in best is up global that, continue of outcome beyond. continue let company the me continue for business plans to believe it questions. to e-commerce this worldwide shipping. leader we're great the to to execute in with to our out goal a And Our position e-commerce open XXXX and to long-term trends play in myriad position multi-carrier We be to is

Operator

At this Please George question-and-answer time, session. with line proceed be Our the your with we'll comes question conducting first of Instructions] question. Sutton Craig-Hallum. a from [Operator

George Sutton

I lack I will was like from stock I'm of QX. record I the call sorry, think But, then your guidance, challenged to did -- you earnings buyback by the -- guys. clarity from in I result perhaps the Hi, in a broken the sound was QX and response your I that. credit, doubled and share of of guidance a lack come as program? believe challenged

I'm So, attitude optimistic relative again, business Is anything a that suggest today, or would something without than thought the missing but where sitting curious that in partnerships guidance, very tough relationship year-over-year? the we're or terms process a go. should comparison a discomfort just changes of here there other to

Jeff Carberry

question. the Hey, George. for Thanks

truly, outcomes to factors. that that makes there So, it uncertainty there honestly, concerned of potential of but the guidance little And range encompass simply honestly, outcomes, to makes this is those about. reasonable very based lot make and, potential nothing and potential we're wide relevant. on less such a myriad as the outcomes so a wide There's of becomes those range

long can business. with the dividends the exceptional company in e-commerce about In XXXX of a has aspects We factors. short e-commerce pay marketing the too are positioned at the run. dominant of terms provide we for huge just we've our truly range, it's myriad and given incredibly about technology of the going and to we the position us many there's guidance run and the uncertainty be end in a in to think really years the business an many, of us forward; excited We're opportunity marketplace much software really fundamental the through So, developed day, think just going incredibly provider. for confidence that excited

going how the impact really trends factors very impact end to XXXX for their of very, to given business but able we're the we be we're at excited the those the e-commerce, the ends and day, guess of the excited. about So, long-term of secular are anyone's long run on. and super Where capitalize is

Ken McBride

a add, so in couple just think to it e-commerce surprising about talked perhaps we've little to little are that now a bit I'll people last George, think in I over the XX%. was Yes, our position quarters we and more hear I

over process e-commerce. XX% customers of Our collectively US

other So, is that I clearly, with -- which And third-party try you correlated really reports, really as it's think you've very I'm in our to understand to do what going. think sure generated the as to much analysts, trends trends are we where point several, e-commerce. various I well

be our that to going we're those I in think I trends. to heavily business. macro to think macro of forecast the not be position able a correlated trends with And outcome are

George Sutton

you impact see might to will Just and that, be I XX% beyond corollary can expense talked should you you you expansion and further that kind growth. as about benefits expenses, operating that to talk easier? give think as adjunct of an have just and comparisons from the don't that what XXXX where extensively go-to-market that on

Jeff Carberry

Sure.

then we customers. shareholders George, their marketing the those now, our And to financial deliver to investment especially side lifetime. expect customers over and So, make us on sales benefits acquire

So, and frontal in really unit the then out of a you with associate kind have revenues years. those the costs

commentary our we've XXXX analysis is acquired of trends. very with very those that on looking customers in plus based mentioned similar. obviously, XXXX COVID, we and And on cohorts with metrics, we've well, acquisition our done -- As

pre-COVID benefits. empirical customers the the and cohorts and accepted for you've now, So, the value are they given experience requiring us some derive of we've

going So, as short-term, longer in have benefits to In you and the over run. years. money, the to want customer, confident again, acquire they're the deliver the impact to out the spend the the they they we're though,

of throughout as realize us have in acquire then benefits benefit are full throughout and requiring financial So, we as and and continue them the to and XXXX XXXX ramped, we they for year, hit really we're customers investments expected the the fully making acquisition customers. to the the drive those performance

George Sutton

sort you've platform? number way of the through built as functionality added One were other at question, the ShipStation, to ShippingEasy test. features the and that which if the least makes that I be mention Historically, your go-to-market some I that you think Thank I heading. And just to was platform noticed to then focus going ShipStation, can want sort the make of to honestly of you. could, where of he deployed was and me. to I understood at see I you the development sense sure functions

Ken McBride

sure. Yeah,

actually our So combined really Austin. kind operations in we of

So we talked teams ShipStation team The about and ShippingEasy. one development now. are largely

features And more so on case. we're we on working running various roll features within doing is And for brands the we're ShippingEasy positioning But kind solution. will as those I ramp really brand of up what the is we're the user more together, think appropriate. simpler, really out of ShipStation as and the get the for complicated

ShipEngine we they're develop our product choosing products. to of across the in as features customers a the of And just these really So backend to meet areas. in different available target of our through the matter sets features, all in those API those order it's on needs the the

Jeff Carberry

What platform. is have George, across brand we add, to the Throughout speaking in part development terms products and are every as the that that to other Ken hotbeds fact the brands organization, is kind of offering we those strategy of coordinating idea. of me let really welcome that. So, of a is

brand strategically, just development, coordination half. that to of but the greater strategy the enough of we're to deploy really and angry ShipEngine Hobbit in to through deploy then brands the around it's there's company the So reporting that it throughout The terms entire development,

George Sutton

Thanks, clear. Very guys. Understand.

Operator

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

Kevin Liu

to Hey. guys. Good year. congrats strong afternoon, And a start on

Ken McBride

Hi, Kevin.

Kevin Liu

any to growth -- for First a if year-over-year I year? start color wondering saw the in I of the sort you of at how have us terms for volume you you question, just was of offer on turned you on relative up start basis could what -- April

Jeff Carberry

Sure, Kevin.

give see metrics. didn't what of we provided, with So our any But that general this you specific we've moderation. as trended see metrics April you

are obviously it's and that see you strong still, through obviously, the performance. It's, moderation. Now, QX obviously moderation, but the early, numbers but see you still very can good very

comps. leaves to us of the really part what coming as uncertainty with of year. that's balance from tough and So, some really, We're the

now we're seeing tough is but growth but with also So the a work going And growth this some from those you're business, you moderation. good lot moderation numbers very the growth of rates that will see quarters, to certainly continued comps on entirety 'XX rates, see to high those on certainly again, very, expect as extraordinarily expect But early reflect thinks several forward. that for the moderation rates. uncertainty. some year, in again, But just

Kevin Liu

Yes. I Certainly, terms you I and think, or mean, happen. to have levels, kind is of past volumes lower in would obviously? the concepts. seen been moderation, has positive the it declines over overall to But just actually still there quarters continues that trend have few of difficult started see -- holding in

Jeff Carberry

volume. very are Obviously, good in seeing related still We're we mail call, the seeing declines on now started the growth. the mail side, obviously, we as we're on

very we're right. growth rates side, one still as would seeing shipping strong the On expect,

side was not particularly The reverts on very it of are revenue to for of on obviously, trend mail kind as is to declines purely secular a likely business think mail relates monthly know, I more users. longer-term volumes is But as this back a model mail subscription. we businesses side. our the relevant of the the

growth, matter side, rates. And shipping strong that’s strong the seeing financials. obviously impact volumes levels where revenue, the On but still growth moderating moderate of in the very growth there, we're really still on – terms the the growth

Ken McBride

everything kind month would growth the toughest that year, I spiked, where entire Yes, add crazy Kevin, think mean, in metric April is board. we of last had month the just triple-digit I That's our across of like comparison year-over-year the year. I every single almost

the QX with growth far happy we're growth and so that of of business. the of are some generally that, in I that But seen published there e-commerce. by bit, given rest think we've about kind speaking our in overall, optimistic happy year out and certainly the think overall you in with world, seeing of numbers know, in that therefore I we're business. we're trend e-commerce the quite So of moderating the We're performance the a the the that's of analysts terms

Kevin Liu

analysts for little kind Yeah. as guys of of you breakout? on Understood. then on talked the of do of well, asked And bit some getting the Most revenue what the traction. you you one terms related more these know you gross the you margin you this a questions non-label housekeeping, an I MetaPack kind of can Ken, where have segment a and couple big of years? us call about the you business, next And all in insight assume over opportunity contract some of guys like. look couple feel subscriptions. know, might represents are typical Any annual are how I give

Jeff Carberry

didn’t first What of want go part items hear the do you question, Kevin. I the through? to housekeeping

Kevin Liu

gross Just to profit numbers as and MetaPack you breakouts, guys. segment revenue

Jeff Carberry

Got you.

terms And – So their in it XX% revenue was in margin, their revenue MetaPack, for terms was quarter. of their gross of XX.X. the

Ken McBride

Yeah, Kevin, provide. MetaPack that would the no, say, solutions the really and I we've like, we launched, above guess I beyond label that and solutions

it's delivery the lot so really of products. tracker, the post intelligence the a like delivery ship And capabilities

win I so ways, opportunity. just it And it's seen the we speaking, product. by it's But those on varies we've generally just by size, model really generally offer and a a completing think transaction. per customer nice similar some But and in

of posts see make offer tracking to their you kind post these some akin capabilities. opportunity the with, know, and what order the able all a of solutions to like retailers Amazon Amazon the that shipment returns delivery to the So more experience more we're of on you of

Kevin Liu

to where kind still year plan, one. in large just give to going know of And US it's about direct they're XX of it. talked just this shippers they and early last program, their connect the days small terms network. USPS and Got access I one

guys some of or of these through sort the think have more put to look any partner do you business? benefit see do of this you from of kind any of opportunities you to you out, or of non-event a initial closely that your for been details for programs, is kind As types directly

Jeff Carberry

half get Overall, through their of and third know, they seven were the so some think you see of that benefit, they growing almost delivery, in on solutions it that fact on I service you better and plan, had packages we'd as packages. to year operations, day given generally first a start big and to all same package mail higher we're solution, packages. Yeah, our that additional it’s happy through XX than processed know, us, class the, get better of the focus speaking. more that being packages, to really offer, a better they a we at priority level day extent go Certainly,

We will beneficiary. be the

So I optimistic on plan. think the we were

has they challenges. in those. it, new we're I pre-funding required of like lot of Certainly, to see portions to We're can a there. we're overall, waiving confident it be some the do. for requirements But excited the action think there's optimistic. leadership And going some and what congressional think I

Kevin Liu

Okay. Great, I appreciate all the insight.

Jeff Carberry

Kevin. Thanks,

Ken McBride

Kevin. Thanks

Operator

with Instructions] question. [Operator next of question Our the Maxim Allen Klee line proceed comes Please your Group. with from

Allen Klee

than me, stood that afternoon. on Good out faster quarter bottom-line the What the degree grew the to top the line. was

revenue your up I you're adjusted XX%, to EBITDA up up operating XX% for but think I XX%. were guiding And year. XX% year-over-year the plus or expenses noted,

the of like seems a you are in extent there. kind to key got the comment But a So do it of you. they're benefit and that, sustainable? general, that, little behind think Thank could drivers bottom-line the you outperformance, what on little bit you

Jeff Carberry

Sure question. Allen, great

really we've the you're transcribing So the the business. the of we really, and positioned have secular the leverage side shipping is that is fundamental have business. e-commerce why capitalize company really the e-commerce, really we activities have on economics e-commerce of really the underlie to and what done That's that the seeing inherent

of faster attribution seeing obviously, for usually really side actually of So than side the mailing business of us the an the shipping growing as that is you're growth well. and benefits the business, of the

a try to And, with side, On is experience the of finding in tough. a like lot have OpEx hiring. plans with people we observation, COVID ambitious good economy, always companies -- we the it's

more that the over and at OpEx accelerate obviously, we So and with see we'd interview expect headcount in expense. can, But our of XX% is to the up, to year have a of big things the with improving be out place, portion freely. And, economy the in go obviously, we OpEx hiring plans lighting people hopefully able increase form in better. or

source expect, door. or increased better, get our ability them So, OpEx to the as variable, we the I mentioned, as but not big in talent, would just and XX% a

Allen Klee

international thinking the you give versus exact But how I'm an international company Thank asking XXXX? sense for growth you. be just How, can of how a offer about, if you're number. can me in not overall? you --

Jeff Carberry

you growth was Yeah, products much Kevin ShipStation number the other for or I asked of world, what look that higher the for MetaPack. of launching rates. mean, around the they're much, at the international of volume breaks rates growth out, growth smaller MetaPack's XX.X, question basis. mentioned and And We XX%, we're then year-over-year.

for the the to the and into So, a international U.S. back well abroad the us, is, data in at Ship for as internationally bringing shipping huge customers in U.S. U.S. the of as our I look, opportunity for end both as International, well customers, as think, day our

the So solutions of International, the in very attractive. market also in we have tackle, attractive. around US, position the Internationally world obviously, to really merchants us. solutions the is with us how And it but entire while good we front U.S. to I the a not attractive and we is opportunity continue that invest the opportunity our our by is. our the in And for virtue of remains think US, technology And aggressively to just very and in a incredibly ecommerce huge think world. US, bringing marketplace

The it's a So is TAM attractive rather large. market. very

see being Our rates higher expect to contributor they'll growth driven larger are scales our now be ShipStation internationally. rates even and MetaPack principally at internationally, growth we'd by a

Allen Klee

certain so to of year, on being over effectiveness year great. well. doing customer? marketing and down the acquiring comment and is to a you can sales see any there nice talk a It's quarter your percent quarter, that customers the of about Last commentary before the of cost get That's MetaPack a of you gave

Jeff Carberry

didn’t And think with I expect those and about metric. and you'd moderation I And the comms we up, specific on from CPAs. a -- think opening economy think obviously top

remains of In attractive. ROI though, ROI, terms very, the very the

think marketing dollars various marketing with into with up, people the deploying I things more economy expensive. with So opening of lot now a channels, things get will

them we've we deploy they for As of LTVs on We really set strict calculate and know, many a of ways in attractive. years, also customers innovative economics companies our find many, mind. very by with as channel deploy dollars. our with and very, seen to And a our remain many, we by you marketing program lot

expect CPAs capitalize increase dollars I marketing CPAs in the in of we've And think to continue Having ROI And that attractive. material declines the you, down that to terms -- that, surprising. of highlighted think is squeeze coming were So the marketing amounts moderation of on I'd spend. throughout of not saw fundamentally we're But ecommerce. an given strength remain and is we've don't the or ROI, fact going year. dramatically, the on very increase that even very, historically. has We I out able to

Ken McBride

Allen, like that for than been of small decade, add, cost acquisition between $XX tracking more has just $XXX. about and Hey I'll probably band in a a our really

it So there. different advertising opportunities of, depending availability different the the programs fluctuates, on know, and you out

with were obviously down. subsequently So mailers for we acquisition Clearly, looking COVID, been and numbers big distortion. some that of the drove that with there's turned solutions those the surge the -- had out a

and really excited the terrific. particularly that really the under Jeff So really to the the the about we're shippers level covers overall be acquisition economics ROI and to said, got really, are good like, see I one understand is think think to go economics of you And I you we the know, continuing

Allen Klee

seeing Are moderation? in looked maybe we at if the seen think Kevin April, year changes I in just with months do last absolute it -- have But -- a quarter is asked an from tougher My you've something comps. going it terms question year clearly makes how you. you've over moderating sense about an basis? percentage -- are absolute up. in you are of that on the or Thank following as question you the -- are

Ken McBride

moderation you in Everything look April of kind this when also in growth at last year. dramatically, and started of spiking just the rates When things – really was mentioned. it

just that So to day, factors challenging. to is end often the it for that instructive last year, – see of of of last too in then say impact I – terms of extrapolating I explosion trying of the the moderation, And think April given what the the out itself, really given we people. forecast the magnitude guidance to what business, expect at make is business really macro the that of is the that dramatic in further year, April numbers, was spike tough much for we're a you'd April the think the arrange

to given forecast moderation just the given they think attractive. the will incredibly in And but the I XXXX. it excited incredibly April our just, year, the the numbers a balance really terms for and run. run, how is of up, how those and structure XXXX confident of and excited the ended are fundamental uncertainty long table to secular that about term long long – we're But, too of that. where And on to on we we're trends manifest the But in e-commerce. with business. makes tough a lot capitalize early little just ability Those just again, the the the combined tough sure, we're fundamentally value. itself there's business, in is run seeing now bit is are ultimately, obviously, So little for about with of moderation, again, a drivers raw we're of macro shareholder very long in factors business that's me ultimately,

Allen Klee

apologize. I Yeah.

I thinking absolute was sequentially on versus seeing wrong like of basis? think asked I are or the way. I question XQ? absolute, March April the an on you sequentially, What like an absolute basis you're kind

Ken McBride

shipping growth. the Well, are one for is us. two of we months think guess But business out is exciting on obviously I challenging. still month, that That's the seeing very point don't give side my the numbers the numbers,

to it going think year So leave and get not at I of far look that, is what the front balance – I'll too in like.

Jeff Carberry

if speaking, America, like at UPS. our are that a if growth comes you And versus a now of say, look think the is business something overall of everybody main the at, both – a USPS like, – volume from look you – our or driver generally that. we I Allen the e-commerce is in growth financially growth Bank generally knows increasingly third-party, graph of

very are and would very them, they lines do you be – high. squared parallel, if statistics the would see can between are You very,

e-commerce you they're at and look heavily as correlated. So our growth,

And XX% month, seen XX%, this then, those of the likewise, from, so go I think XX%, kind is know, months-by-months track our down to if we've I I year-over-year, seen as number correctly, e-commerce, past we've growth numbers. think in XX%, you remember

so we're trends the much think, following And very I in e-commerce.

the so in it's being reopening year, whatever and terms And various the consumers, of activities or world e offline may what back able says about economy, is it to the not shifts on you commerce on going to follow. really that happen the and business, to going as I in question a think handicap our think we're speaking, by macro related are generally vaccines purchases to may

our what another that's happens, in speaking, likewise, incredible so, see year-over-year, of April. we happy generally expect with last in And will what's April business I didn't the they're saw and but we're as so trends up going to happened well. growth to And year, we've do, have and we e-commerce seen think

Allen Klee

much. Thank Great. so you

Operator

McBride the Ken like back We of And closing to call have to remarks. our reached end will question-and-answer session. CEO, over for now the turn I

Ken McBride

follow always, today. call contact as investor.stamps.com questions, have through website our you our you in. can at any And or us investor investor can for up us Thanks Thanks you if at hotline for joining XXX-XXX-XXXX. tuning

Operator

today's teleconference. concludes This

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

Stamps.com (STMP) 7 May 212021 Q1 Earnings call transcript