Stamps.com Reports First Quarter 2021 Results

Rhea-AI Summary

Stamps.com (Nasdaq: STMP) reported strong financial results for Q1 2021, with total revenue reaching $189.1 million, up 25% year-over-year. GAAP net income surged 108% to $34.2 million, translating to $1.74 per diluted share, a 92% increase. Non-GAAP adjusted EBITDA also saw a 43% growth, totaling $59.5 million. Despite a 100% drop in Customized Postage revenue due to the USPS program termination, the company remains optimistic about long-term growth in e-commerce, citing resilience during pandemic challenges.

Positive

• Total revenue increased by 25% to $189.1 million.
• GAAP net income rose 108% to $34.2 million.
• GAAP net income per share increased by 92% to $1.74.
• Non-GAAP adjusted EBITDA grew by 43% to $59.5 million.
• Non-GAAP adjusted income per share reached $2.08, up 58%.

Negative

• Customized Postage revenue fell to $0 million, down 100% due to USPS program termination.

Stamps.com® (Nasdaq: STMP), a leading provider of e-commerce shipping solutions, today announced results for the quarter ended March 31, 2021.

First Quarter 2021 Highlights

• Total revenue was $189.1 million, up 25% compared to $151.3 million in the first quarter of 2020.
• GAAP net income was $34.2 million, up 108% compared to $16.5 million in the first quarter of 2020.
• GAAP net income per fully diluted share was $1.74, up 92% compared to $0.91 in the first quarter of 2020.
• Non-GAAP adjusted EBITDA was $59.5 million, up 43% compared to $41.5 million in the first quarter of 2020.
• Non-GAAP adjusted income per fully diluted share was $2.08, up 58% compared to $1.32 in the first quarter of 2020.

”We continued to see strength in our financial performance in the first quarter of the year, which marked the anniversary of the COVID-19 pandemic. Our company has continued to outperform by providing best-in-class global multi-carrier e-commerce technology solutions to our customers and partners in these challenging times. As the economy begins to show signs of broader recovery, we believe e-commerce will continue to be an integral part of both the global economy going forward and the economic recovery. We remain excited about the long-term future of our business and confident in our ability to successfully execute our global e-commerce strategy,” said Ken McBride, Stamps.com’s Chairman and CEO.

First Quarter 2021 Detailed Results

First quarter 2021 total revenue was $189.1 million, up 25% compared to the first quarter of 2020. First quarter 2021 Mailing and Shipping revenue (which includes service, product and insurance revenue but excludes Customized Postage) was $189.1 million, up 28% compared to the first quarter of 2020. First quarter 2021 Customized Postage revenue was $0 million, down 100% compared to the first quarter of 2020 as the USPS terminated its customized postage program effective June 16, 2020.

First quarter 2021 GAAP income from operations was $44.3 million, GAAP net income was $34.2 million, and GAAP net income per share was $1.74 based on 19.6 million fully diluted shares outstanding. This compares to first quarter 2020 GAAP income from operations of $24.2 million, GAAP net income of $16.5 million, and GAAP net income per share of $0.91 based on 18.2 million fully diluted shares outstanding. First quarter 2021 GAAP income from operations, GAAP net income, and GAAP income per fully diluted share increased by 83%, 108%, and 92% year-over-year, respectively.

First quarter 2021 GAAP income from operations included $8.7 million of non-cash stock-based compensation expense and $5.5 million of non-cash amortization of acquired intangibles. First quarter 2021 GAAP net income included $95 thousand of non-cash amortization of debt issuance costs. First quarter 2021 GAAP income tax expense was $9.9 million and non-GAAP income tax expense was $17.5 million, resulting in a $7.6 million non-GAAP tax expense adjustment. The higher non-GAAP tax expense reflects the tax impact on the non-GAAP pre-tax income at a non-GAAP effective tax rate of 30.0% for the first quarter. See the section later in this release entitled, “About Our Business Outlook and Non-GAAP Financial Measures” for more information on how non-GAAP taxes are calculated. Excluding the non-cash stock-based compensation expense and non-cash amortization of acquired intangibles, first quarter 2021 non-GAAP income from operations was $58.6 million. Also excluding non-cash amortization of debt issuance costs and including the non-GAAP tax expense adjustment, first quarter 2021 non-GAAP adjusted income was $40.9 million or $2.08 per share based on 19.6 million fully diluted shares outstanding.

First quarter 2020 GAAP income from operations included $10.7 million of non-cash stock-based compensation expense and $5.5 million of non-cash amortization of acquired intangibles. First quarter 2020 GAAP net income included $93 thousand of non-cash amortization of debt issuance costs. First quarter 2020 GAAP income tax expense was $7.1 million and non-GAAP income tax expense was $16.0 million, resulting in an $8.9 million non-GAAP tax expense adjustment. The higher non-GAAP tax expense reflects the tax impact on the non-GAAP pre-tax income at a non-GAAP effective tax rate of 40.0% for the first quarter. Excluding the non-cash stock-based compensation expense and non-cash amortization of acquired intangibles, first quarter 2020 non-GAAP income from operations was $40.4 million. Also excluding non-cash amortization of debt issuance costs and including the non-GAAP tax expense adjustment, first quarter 2020 non-GAAP adjusted income was $24.0 million or $1.32 per share based on 18.2 million fully diluted shares outstanding.

Therefore, first quarter 2021 non-GAAP income from operations, non-GAAP adjusted income, and non-GAAP adjusted income per fully diluted share increased by 45%, 71%, and 58% year-over-year, respectively.

Non-GAAP income from operations, non-GAAP adjusted income, and non-GAAP adjusted income per share are described further in the “About Our Business Outlook and Non-GAAP Financial Measures” section of this press release and are reconciled to the corresponding GAAP measures in the followi

FAQ

What were Stamps.com's Q1 2021 revenue results?

Stamps.com reported total revenue of $189.1 million for Q1 2021, a 25% increase compared to Q1 2020.

How much did Stamps.com earn in Q1 2021?

Stamps.com reported a GAAP net income of $34.2 million for Q1 2021, up 108% year-over-year.

What is the earnings per share for Stamps.com in Q1 2021?

The GAAP net income per fully diluted share for Q1 2021 was $1.74, a 92% increase from the previous year.

What is the non-GAAP adjusted EBITDA for Stamps.com in Q1 2021?

Stamps.com reported a non-GAAP adjusted EBITDA of $59.5 million for Q1 2021, which is a 43% increase year-over-year.

How did the Customized Postage program affect Stamps.com's revenue in Q1 2021?

The Customized Postage revenue dropped to $0 million in Q1 2021, a 100% decline, due to the termination of the USPS program.