Stamps.com 2015 Annual Report Download - page 34
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Please find page 34 of the 2015 Stamps.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TABLE OF CONTENTS
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Item
6. “Selected Financial Data” of this Report and our financial statements and the related notes thereto included in this Report. This
discussion contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially
from historical results or anticipated results including those set forth in Item 1A. “Risk Factors” of this Report. See the discussion of
forward-looking statements on page 1 of Part I of this Report.
Overview
Stamps.com®isaleadingproviderofInternet-basedmailingandshippingsolutions.UndertheStamps.comandEndiciabranded
solutions,ourcustomersuseourservicetomailandshipavarietyofmailpieces,includingpostcards,envelopes,flatsandpackages,
usingawiderangeofUnitedStatesPostalService(“USPS”)mailclasses,includingFirstClassMail®,PriorityMail®,PriorityMail
Express®,MediaMail®,ParcelSelect®,andothers.CustomersusingourservicereceivediscountedpostageratescomparedtoUSPS
retailoncertainmailpiecessuchasFirstClasslettersanddomesticandinternationalPriorityMailandPriorityMailExpresspackages.
Ourcustomersincludeindividuals,smallbusinesses,homeoffices,medium-sizebusinessesandlargeenterprises.Wewerethefirst
everUSPS-licensedvendortooffermailingandshippinginasoftware-onlybusinessmodelin1999.Wealsooffermulti-carrier
shippingsolutionsunderthebrandnamesShipStation®andShipWorks®.
Mailing and Shipping Business References
Whenwerefertoour“MailingandShippingbusiness”,wearereferringtoourmailingandshippingproductsandservices
includingourMailingandShippingServicesandIntegrations,Mailing&ShippingSuppliesStores,BrandedInsuranceofferingsand
Multi-carrierServices.WedonotincludeourCustomizedPostagebusinesswhenwerefertoourMailingandShippingbusiness.
WehavehistoricallybrokenoutourMailingandShippingbusinessbetweenCoremailingandshippingandNon-Coremailing
andshipping.
Wepreviouslyreferredtoour"Coremailingandshippingbusiness"astheportionofourmailingandshippingbusinesstargeting
oursmallbusiness,enterpriseandhighvolumeshippingcustomersacquiredthroughourCoremailingandshippingmarketingchannels
whichincludepartnerships,onlineadvertising,directmail,directsales,traditionalmediaadvertisingandothers.
Wepreviouslyreferredtoour"Non-Coremailingandshippingbusiness"astheportionofourmailingandshippingbusinessthat
targetedamoreconsumerorientedcustomerthroughtheonlineenhancedpromotionmarketingchannel.
Inlightofouracquisitions,includingtheEndiciaacquisition,wehaveconcludedthattheNon-Coremailingandshippingbusiness
isnotmaterialenoughtobreakoutseparatelyin2015asitnolongerprovidesinvestorswithmaterialadditionalinsightsintoour
business.Suchinformationisshownforpreviousperiodsbelow.
Whenwerefertoour“Mailingandshippingrevenue”,wearereferringtoourservice,productandinsurancerevenuegeneratedby
allofourmailingandshippingcustomers.
Acquisitions
OnJune10,2014,weacquired100%oftheoutstandingequityofAuctaneLLC,whichoperatesShipStation,inacashand
contingentstocktransaction.ShipStation,basedinAustin,Texas,offersmonthlysubscriptionbasede-commerceshippingsoftware
primarilyunderthebrandsShipStationandAuctane.ShipStationisaleadingweb-basedshippingsoftwaresolutionthatallowsonline
retailersande-commercemerchantstoorganize,process,fulfillandshiptheirordersquicklyandeasily.ShipStationsupports
automaticorderimportingfromover100shoppingcartsandmarketplaces,includingeBay,Amazon,Shopify,Bigcommerce,Volusion,
Squarespaceandothers.ShipStationoffersmulti-carriershippingoptions,andautomationfeatureslikecustomhierarchicalrulesand
productprofilesthatallowcustomerstoeasilyandautomaticallyoptimizetheirshipping.UsingShipStation,anonlineretailerore-
commercemerchantcanshiptheirordersfromwherevertheysellandhowevertheyship.
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