Stamps.com (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.
Stamps.com results: The raw numbers
|
Metric |
Q4 2017 |
Q4 2016 |
Year-Over-Year Change |
|---|---|---|---|
|
Total revenue |
$132.5 million |
$105.9 million |
25% |
|
Net income |
$40.2 million |
$29.0 million |
38% |
|
Earnings per share |
$2.15 |
$1.61 |
34% |
Data source: Stamps.com Q4 2017 earnings release.
What happened with Stamps.com 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 Stamps.com'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, Stamps.com'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 Stamps.com's platform rose 9%, to $1.7 billion.
E-commerce shippers are flocking to Stamps.com 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, Stamps.com's full-year adjusted earnings per share totaled $11.33, besting its own expectations of $9.00 to $10.00.
Looking forward
Stamps.com 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."
