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Shares in Stamps.com surge 17% after record first quarter of earnings

Published 05/09/2016, 07:21 PM
Updated 05/09/2016, 07:25 PM
Stamps.com posted record GAAP net income of $13.2 million for the 1Q, the company said Monday
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Investing.com -- Shares in Stamps.com Inc (NASDAQ:STMP)surged more than 17% in after-hours trading after the California-based leading provider of internet-based mailing and shipping services posted record profits last quarter.

During Stamps.com first quarter of Fiscal Year 2016,the company reported record net income of $13.2 million on a GAAP basis, as well as Non-GAAP income per fully diluted share of $1.72, representing a spike of 139% on a year-over-year basis. At the same time, Stamps.com saw its revenue surge 86% to $81.8 million, helping increase adjusted EBITDA by 161% to $34.8 million.

"We were pleased with the first quarter performance across all areas of our business," said Ken McBride, Stamps.com's chairman and CEO. "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, enterprise and high volume shipping businesses, as well as with our prior acquisitions of ShipStation and ShipWorks."

"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."

Within the report, Stamps.com Mailing and Shipping segment saw its revenue increase by 84% to $79.2 million, while its Customized Postage revenue jumped to $2.6 million, representing a surge of 167% from the same period last year. On a non-GAAP basis, the company's Mailing and Shipping gross margin improved to 84.8% for the period.

Moving forward, Stamps.com raised its annual revenue guidance from $290 million to $310 million to a targeted range between $310 and $330 million. Stamps.com also increased its adjusted EPS from a level between 5.00 and 5.50 to 6.00 and 6.50.

Shares in Stamps.com soared 15.16 or 17.16% to 103.50.

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