Stamps.com Inc. (NASDAQ:STMP) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 05:00 pm ET

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Stamps.com Inc. (NASDAQ:STMP) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Stamps.com Third Quarter 2019 Financial Results Call. [Operator Instructions]. A question-and-answer session will follow the formal presentation. [Operator Instructions]. I would now like to turn the conference over to your host, Suzanne Park, Vice President of Finance. Thank you. You may begin.

Executive
Suzanne Park

Thank you. On the call today are CEO, Ken McBride; and CFO, Jeff Carberry. The agenda for today's call is as follows. We'll review the results of our third quarter 2019. We'll provide an update on elements of our business model and partnerships. And finally, we'll discuss our financial results and talk about our business outlook. But first, the safe harbor statement. Safe harbor statement under the Private Securities Litigation Reform Act of 1995. This release includes forward-looking statements about our anticipated financial metrics and results, all of which involve risks and uncertainties.

Important factors, including the Company's ability to successfully integrate and realize the benefits of its past or future strategic acquisitions or investments, including the Company's ability to complete and ship its products, maintain desirable economics for its products and monetize its customers' transactions with carriers, the timing of when the Company will utilize its deferred tax assets and obtain or maintain regulatory approval, which could cause actual results to differ materially from those in the forward-looking statements are detailed in filings with the Securities and Exchange Commission made from time to time by Stamps.com, including its annual report on Form 10-K for the fiscal year ended December 31st, 2018, quarterly reports on Form 10-Q and current reports on Form 8-K.

Stamps.com undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The financial results we will discuss on the call today include non-GAAP financial measures.

In the third quarter of 2019, GAAP net income was $9.1 million and GAAP net income per fully diluted share was $0.52. Our non-GAAP financial measures exclude the following third quarter items: $11.8 million of non-cash stock-based compensation and $5.6 million of non-cash amortization expense of acquired intangibles and debt issuance costs.

Our non-GAAP financial measures include $7.1 million of additional non-GAAP income tax expense in the third quarter. Our Mailing and Shipping numbers include service revenue, product revenue and insurance revenue and do not include any revenue from customized postage. Please see our third quarter 2019 earnings release and 2019 metrics posted on our investor website for a reconciliations of our non-GAAP financial measures to the corresponding GAAP measures.

Now let me hand the call over to Ken.

Executive
Kenneth McBride

Thank you, Suzanne. Thank you for joining us today. During the third quarter, we continued to execute on our strategy to transform our business into a global multi-carrier and e-commerce solutions Company. Within our domestic multi-carrier products, which include ShipStation, ShippingEasy and ShipWorks, we continue to drive innovation, expand our partnerships and integrations. And during the quarter, we introduced several significant new features, including things like split shipments,