Please ensure Javascript is enabled for purposes of website accessibility Inc. Sales Soar 86%

By Joe Tenebruso - May 14, 2016 at 6:50AM

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The Web-based postage company is enjoying torrid growth across all of its major business lines.

Image source: (STMP) reported first-quarter results on May 9. The provider of Internet-based postage and shipping services saw its profits more than double, causing the company to boost its revenue and earnings outlook for the year ahead. results: The raw numbers


Q1 2016

Q1 2015

Growth (YOY)


$81.837 million

$44.052 million


Net income

$13.238 million



Earnings per share




Data source: Q4 2014 earnings press release.

What happened with this quarter?

Total revenue surged 86% year over year to $81.8 million, with mailing and shipping revenue jumping 84% to $79.2 million and customized postage revenue leaping 167% to $2.6 million.

Helping to drive those results was a 17% year-over-year increase in paid customers to 649,000, and a 58% rise in average revenue per unit (ARPU) to $40.65. In addition, total postage printed in Q1 was $1.2 billion, a 122% increase from the year-ago quarter. also continues to improve its profitability, with mailing and shipping gross margin and total gross margin rising to 84.3% and 82.1%, respectively, from 79.6% and 78.1% in the first quarter of 2015.

That helped EBITDA (earnings before interest, taxes, depreciation, and amortization) -- adjusted to exclude stock-based compensation expense, acquisition-related charges, and certain other items -- surge 161% to $34.8 million. And adjusted (non-GAAP) operating income was $33.6 million in the first quarter, a 170% increase from the year-ago period.

All told, non-GAAP net income soared 163% year over year to $32 million, and non-GAAP EPS rose 139% to $1.72.

What management had to say

Chairman and CEO Ken McBride said in a press release:

We were pleased with the first quarter performance across all areas of our business. We made significant progress in the integration of Endicia and we began to realize synergies with that business. In addition, we experienced continued strong performance within our traditional SOHO [small office / home office], enterprise and high volume shipping businesses, as well as with our prior acquisitions of ShipStation and ShipWorks.

Looking forward

Those strong first-quarter results encouraged management to raise its sales and profit outlook for 2016. The company now expects full-year revenue to be between $310 million and $330 million, up from its prior forecast of $290 million to $310 million. And 2016 non-GAAP earnings per share are projected to be in a range of $6.00 to $6.50, up from previous estimates of $5.00 to $5.50.

"As a result of the across-the-board strength we generated record top and bottom line performance, and we achieved record outcomes in several metrics such as paid customers, average revenue per paid customer, and total postage printed," added McBride. "With the expected continued strength in all areas of our businesses, we increased our 2016 guidance today."

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