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Stamps.com's fourth-quarter results on Feb. 25 showed that the leading provider of online postage and shipping software solutions is successfully integrating three major acquisitions -- a process that is generating strong growth in sales and profits.
Stamps.com results: The raw numbers
Data source: Stamps.com Q4 2015 earnings press release.
What happened with Stamps.com this quarter?Total revenue surged 67% year over year to $69.9 million, with mailing and shipping revenue jumping 67% to $67.2 million and customized postage revenue leaping 78% to $2.7 million.
Helping to drive those results was a 21% year-over-year increase in paid customers to 633,000 and a 38% rise in average revenue per unit (ARPU) to $35.35. In addition, total postage printed in Q4 was $1 billion, a 71% increase from the year-ago quarter.
Stamps.com is also improving its profitability, with mailing and shipping gross margin and total gross margin rising to 84.2% and 81.7%, respectively. That's up from 79.9% and 77.8% in the fourth quarter of 2014.
Non-GAAP operating income -- which excludes stock-based compensation expense, acquisition-related charges, income tax benefits, and other special items -- was$29.1 millionin the fourth quarter of 2015, a 144% increase from the year-ago period. And non-GAAP net income soared 140% year over year to $28.1 million.
Looking forward Management expects full-year 2016 revenue to be between $290million and$310 million,and non-GAAP net income per share is projected to be in a range of$5.00to$5.50.
The company also recently approved a new share buyback program that authorizes the repurchase up to$20 millionof Stamps.com's shares during the next six months.
"This was another exceptional year forStamps.comwith strong execution on our business goals, including the integration of our 2014 acquisitions of ShipStation and ShipWorks where we began to realize the synergies we expected from those deals," saidChairman and CEO Ken McBride in a press release. "This year we completed the Endicia acquisition, and we have begun working on the process of integrating their businesses into ours. Together, our three acquisitions have significantly strengthened our position in shipping, and we are excited about our opportunities in 2016 and beyond."
The article Stamps.com Inc. Earnings Soar as Acquisitions Boost Results originally appeared on Fool.com.
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