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PART I.
This Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities
Act
”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). You can find many (but not all) of these
statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “would,”
“may” or other similar expressions in this Report. Our forward-looking statements relate to future events or our future performance and
include, but are not limited to, statements concerning our business strategy, future commercial revenues, market growth, capital requirements,
new product introductions, expansion plans and the adequacy of our funding. Other statements contained in this Report that are not historical
facts are also forward
-looking statements.
We claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995. We caution investors that any
forward
-looking statements presented in this Report, or that we may make orally or in writing from time to time, are based on beliefs and
assumptions made by us and information currently available to us. Such statements are based on assumptions, and the actual outcome will be
affected by known and unknown risks, trends, uncertainties and factors that are beyond our control or ability to predict. Although we believe
that our assumptions are reasonable, they are not guarantees of future performance, and some will inevitably prove to be incorrect. As a result,
our actual future results can be expected to differ from our expectations, and those differences may be material. Accordingly, investors should
use caution in relying on forward-looking statements, which are based on known results and trends at the time they are made, to anticipate
future results or trends.
For discussion of some of the factors that could affect our results, see Item 7.
“Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and Item 1A.“Risk Factors.”
This Report and all subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly
qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release
publicly any revisions to our forward
-looking statements to reflect events or circumstances after the date of this Report.
Stamps.com, NetStamps, Stamps.com Internet Postage, PhotoStamps, Hidden Postage and the Stamps.com logo are our trademarks. This Report
also references trademarks of other entities. References in this Report to “we” “us” “our” or “company” are references to Stamps.com, Inc.
and its subsidiaries.
Overview
Stamps.com is the leading provider of Internet-based postage solutions. Our customers use our service to mail and ship a variety of mail
pieces, including postcards, envelopes, flats and packages, using a wide range of United States Postal Service (“USPS”) mail classes, including
First Class Mail®, Priority Mail®, Priority Mail Express®, Media Mail®, Parcel Select®, and others. Customers using our service receive
discounted postage rates compared to USPS retail on certain mail pieces such as First Class letters and domestic and international Priority Mail
and Priority Mail Express packages. Our customers include individuals, small businesses, home offices, medium-size businesses and large
enterprises, and within these segments we target both mailers and shippers. We were the first ever USPS-licensed vendor to offer PC Postage®
in a software-only business model in 1999.
Services and Products
PC Postage Business
Our PC Postage solutions enable our customers to buy and print USPS approved postage and services with just a personal computer (“PC”),
printer and Internet connection, right from their home or office.
We offer the following PC Postage products and services to our customers:
1
Table of Contents
ITEM 1.
BUSINESS.
•
PC Postage Services.
After completing the registration process, customers can purchase and print postage 24 hours a day, seven days a
week, through our software or web interface. Typically, when a customer purchases postage for use through our service, the customer pays
the face value of the postage, and the funds are transferred directly from the customer’s account to the USPS’s account. The customer then
draws down their prepaid account balance as they print postage and repurchases postage as necessary. Customers typically pay a monthly
subscription fee for access to our service.