Stamps.com Inc. (NASDAQ:STMP) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 05:00 pm ET
Good day, and welcome to the Stamps.com Second Quarter 2020 Financial Results Call. [Operator Instructions]
At this time, I'd like to turn the conference over to Ms. Suzanne Park, VP of Finance. Please go ahead, ma'am.
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 second quarter 2020; 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, which could cause actual results to differ materially from those in the forward-looking statements include, the significant and unprecedented uncertainty regarding the business and the economic impact of the ongoing COVID-19 pandemic as well as the impact of efforts of governments, businesses and individuals to mitigate the effects of such pandemic on the company, its customers, its carrier, integration partners and the global economy, which makes it particularly difficult to predict the nature and extent of impact on demand for products and services, making our business outlook subject to considerable uncertainty; the company's ability to successfully integrate and realize the benefits of its past or future strategic acquisitions or investments; the company's ability to diversify its relationships with carriers; and the impact of foreign exchange fluctuations and geopolitical risks; and other important factors that 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 year ended December 31, 2019, quarterly reports on Form 10-Q, particularly the risk factor sections of those reports and current reports on our Form 8-K.
Stamps.com undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect the 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 second quarter of 2020, GAAP net income was $51.7 million and GAAP net income per fully diluted share was $2.73. Our non-GAAP financial measures exclude the following second quarter items: $13.2 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 $11.7 million of additional non-GAAP income tax expense in the second 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 second quarter 2020 earnings release and metrics posted on our investor website for reconciliations of our non-GAAP financial measures to the corresponding GAAP measures.
Now let me hand the call over to Ken.
Thanks, Suzanne, and thank you for joining us today. On today's call, we