(NASDAQ:STMP) continues to defy its critics. With e-commerce serving as a powerful growth driver, the provider of shipping software solutions once again delivered solid increases in sales and profits in the fourth quarter. results: The raw numbers


Q4 2017

Q4 2016

Year-Over-Year Change

Total revenue

$132.5 million

$105.9 million


Net income

$40.2 million

$29.0 million


Earnings per share




Data source: Q4 2017 earnings release.

What happened with this quarter?

Total revenue soared 25% year over year to $132.5 million, driven by a 26% jump in mailing and shipping revenue, to $128.5 million, and a 9% increase in customized postage revenue, to $3.9 million. That placed's full-year sales at $468.7 million, which was well above its guidance for revenue of $435 million to $460 million.

Notably, paid customers increased 8% to 735,000. Moreover,'s heightened focus on the shipping portion of its business continues to pay dividends: Monthly average revenue per paid customer jumped 16% to $58.28, and the average monthly churn rate remained low at 3%. In all, total postage printed via's platform rose 9%, to $1.7 billion.

A person holding a package without a shipping label

E-commerce shippers are flocking to for their postage needs. Image source: Getty Images.

All told, EBITDA -- adjusted to exclude stock-based compensation expense, acquisition-related charges, and certain other items -- grew 15% to $64.1 million. Adjusted operating income likewise rose 15%, to $62.7 million. And adjusted net income, which was positively impacted by a tax benefit adjustment, soared 78% to $49.2 million, or $4.68 per share. In turn,'s full-year adjusted earnings per share totaled $11.33, besting its own expectations of $9.00 to $10.00.

Looking forward issued a financial forecast for 2018, including:

  • Total revenue of approximately $530 million to $560 million, representing year-over-year growth of 13% to 19%.
  • GAAP net income of $138 million to $153 million, compared to $150.6 million in 2017.
  • GAAP EPS of $7.09 to $8.04, down from $8.19.
  • Adjusted EPS of $8.80 to $9.80, down from $11.33.
  • Adjusted EBITDA of $245 million to $265 million, up from $229.9 million.

"We achieved strong financial results driven by exceptional performance in our shipping business," Chairman and CEO Ken McBride said in a press release. "We believe we are well positioned for 2018 and we remain excited about our long-term business opportunities."

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