Stamps.com Company Presentation November 2019
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Stamps.com Company Presentation
November 2019
1
Safe Harbor
This presentation includes forward-looking statements about anticipated
results 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, complete and ship its products,
maintain desirable economics for its products 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 year ended
December 31, 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.
2
2
Agenda
• Service Overview
• Industry and Marketing Overview
• Financial and Metrics Overview
• Additional slides
3
3
Stamps.com’s Brands & Solutions
Stamps.com offers online mailing and shipping solutions under the following brands:
• Stamps.com branded solutions are USPS mailing and shipping solutions targeted at a
broad range of customers including SOHO and enterprise mailers, eCommerce shippers,
and high volume shippers. UPS shipping solutions to be added in 2020.
• Endicia branded solutions are USPS mailing and shipping solutions targeted primarily at
eCommerce shippers and very high volume shippers (warehouses, fulfillment houses,
large retailers, etc.). UPS shipping solutions to be added in 2020.
• ShipStation and ShipEngine offer web-based multi-carrier shipping solutions targeted at
eCommerce and high volume shipping customers
• ShipWorks offers client-based multi-carrier shipping solutions targeted at eCommerce
and high volume shippers
• ShippingEasy offers web-based multi-carrier shipping solutions targeted at online
retailers and eCommerce customers
• MetaPack offers worldwide shipping and delivery solutions and post-purchase
optimization tools targeted at brands and large omni channel retailers 4
4
Stamps.com Branded Service Overview
• Internet service that lets customers print USPS approved mailing and shipping labels
− USPS-approved PC Postage company since 1999. UPS to be added in 2020.
− Web or client based solution
− Monthly subscription service fee (+ the cost of postage)
• Multiple form factors, classes, and types of mail supported
− Prints on shipping labels, envelopes, stamps (“Netstamps®”), and others
− Choose from First class, Priority, Express, domestic and international, media mail, etc.
− 9 mailpiece types (packages, flats, envelopes, postcards, certified mail, flat rate boxes, etc.)
• Sophisticated features for higher volume shippers
− Batch printing automatically prints 100s of shipping labels in a single step
− E-Commerce integrations with over 75 marketplaces, shopping carts, tools, etc.
− Automatically take care of daily repetitive tasks (automatic emails, post back shipping details
to marketplaces, pre-fill customs forms, etc.)
5
5
Endicia® Service Overview (acquired November 18, 2015)
• Leading provider of high volume USPS mailing and shipping labels
− USPS-approved PC Postage company since 2000, located in Mountain View, CA. UPS shipping
solutions to be added in 2020.
− Solutions to help businesses run USPS shipping solutions more effectively
− A significant strategic investment in our high-volume and e-commerce shipping business
• Sophisticated features for large retailers, warehouses & fulfillment houses
− High volume feature set (e.g., batch printing, scan-based return labels, database integration,
email shipment notifications, XML integration, thermal printers, etc.)
− Integrations with over 250 high volume shipping software products, marketplaces, shopping
carts, eCommerce tools, etc.
− Supports automation & customization (label customization, automatic international customs
forms, automatic USPS package pickup, etc.)
6
6
ShipStation® Service Overview (acquired June 10, 2014)
• Leading web-based multi-carrier e-commerce shipping solutions
− Allows online retailers and e-commerce merchants to organize, process, fulfill and ship their
orders quickly and easily through ShipStation’s web-based interface and ShipEngine’s API
− Supports over 40 different national carriers, regional carriers, international carriers, and
fulfillment services including USPS, UPS, FedEx, DHL and others
− Includes over 275 partner integrations with integration tools, shopping carts and
marketplaces (eBay, PayPal, Amazon, Etsy, Square, Shopify, BigCommerce, Alibaba, etc.)
− Facilitates order management (inventory management, consolidated order views, search
engine & filters, combined & split orders, order hold, manual order addition, etc.)
− Core printing & shipping (automatic tracking data sent to marketplace, generate manifesting
forms, add insurance, pre-filled customs forms, rate comparisons, etc.)
− Provides automation of large volumes of daily orders (batch processing, packing slips, custom
hierarchical rules, shipping presets, automatic emails, etc.)
− Facilitates customization (branded shipping labels, customized emails, custom packing slips,
custom label messages, etc.)
7
7
ShipWorks® Service Overview (acquired August 29, 2014)
• Leading client-based multi-carrier shipping software company
− Allows large retailers, fulfillment houses, and e-commerce merchants to organize, process,
fulfill and ship their orders quickly and easily
− Sophisticated automation features such as a custom rules engine, automated order importing,
automatic product profile detection, and fulfillment automation
− Supports over 15 different national carriers, regional carriers, international carriers, and
fulfillment services including USPS, UPS, FedEx, DHL and others
− Over 100 partner integrations with integration tools, shopping carts and marketplaces (eBay,
PayPal, Amazon, Etsy, Square, Shopify, BigCommerce, etc.)
− Automation of large volumes of daily orders (schedule shipping and order management tasks,
automatically print pick lists/shipping labels/packing slips, trigger automatic tasks based on
events, auto learning common tasks, etc.)
− Customization (customizable templates for invoices, emails, reports and more)
− Rich support of complex shipping solutions (international customs forms, complex
international documentation, return shipping labels, etc.)
8
8ShippingEasy® Service Overview (acquired July 1, 2016)
• Leading web-based multi-carrier e-commerce shipping solutions
− Allows online retailers and e-commerce merchants to organize, process, fulfill and ship their
orders quickly and easily
− Supports 7 different national carriers, regional carriers, international carriers, and fulfillment
services including USPS, UPS, FedEx and DHL
− Includes over 50 partner integrations with integration tools, shopping carts and marketplaces
(eBay, PayPal, Amazon, Etsy, Volusion, Shopify, WooCommerce, etc.)
− Robust and easy to use feature set combined with a knowledgeable customer support team
− Facilitates order management automation (batch processing, combined & split orders, order
type filters, management of order notes, gift order management, return management, etc.)
− Product management (product catalog support, assignment of product categories, etc.)
− Core printing & shipping (rate comparison, customizable packing slips with bar codes, tracking
status and confirmation emails, multi-location support, automated customs forms,
consolidator support, multi-printer routing, bar code scanning, etc.)
− Value-add features that help e-commerce sellers run their business more effectively, such as
Customer Marketing and Inventory Management
9
9MetaPack® Service Overview (acquired August 15, 2018)
• Global Technology Leader in Omni Channel eCommerce Delivery
− Extraordinary eCommerce Delivery Experiences: Allows brands and worldwide omni channel
retailers to provide an expansive selection of optimized, customizable shipping, delivery and
post-purchase experiences designed to reduce cart abandonment and increase sales
− Expansive Carrier Label Library: Provides a single point of integration into an expansive
carrier library, with support for over 4,500 different delivery services from over 400 national
carriers, regional carriers, and international carriers including DHL, Hermes and Royal Mail
− Expansive Choice of Delivery Options: Offers access to 200+ countries including an expansive
network of over 250,000 PUDO (Pick-Up/Drop-Off) locations, plus options for “Ship To Store”,
“Ship from Store”, and “Click and Collect”
− Accurate, Comprehensive End-to-End Tracking: Provides seamless, branded tracking
experiences featuring customizable tracking portals and customer communications.
Translates over 25,000 status events across all carriers into 61 common events that are easily
understood by consumers and customer service teams.
− Sophisticated Delivery Intelligence with Real-Time Carrier Performance Data: Offers built-in
delivery intelligence that provides actionable metrics for past delivery performance and
allows for real-time adjustments to ensure fulfillment of consumer delivery expectations
10
10Confiden
Stamps.com Portfolio of Solutions tial
Year
Launched 1999 2000 / 2015 2010 / 2014 2001 / 2014 2012 /2016 1999 / 2018
/ Acquired
Parcel Over 40 Over 15 Over 5 Over 400
USPS USPS
Carriers1,2 parcel carriers parcel carriers parcel carriers parcel services
Software Software or Software or Software or
Web-based Software Web-based
Solution Web-based web-based web-based
Third Party
Software 75+ 250+ 275+ 100+ 50+ 50+
Integrations
Mail, Mail,
Piece Types Packages Packages Packages Packages
Packages Packages
Retailers
SOHO Mailers
Business eCommerce
Customer Business E-Commerce E-Commerce E-Commerce
High Volume Shippers
Targets Shippers Shippers Shippers
High Volume Shippers
Shippers High Volume
Shippers
1—Includes fulfillment solutions such as Fulfillment by Amazon, etc. 11
2—UPS shipping solutions to be added in 2020 for Stamps.com and Endicia
11Target Customer Segments
• Individual Mailers
− Single users who are primarily mailers but also send some packages
• Small Business and Home Office Mailers (“SOHO”)
− Single home office or small businesses with one or a few employees who are primarily mailers
but also send some packages
• Enterprise Mailers
− Larger organizations with distributed office users who are primarily mailers but also send
some packages
• eCommerce Shippers
− Individuals and businesses that sell online and send packages in medium to high volumes
• High Volume Shippers
− Large production shipping environments
− For example, warehouses, fulfillment houses and omni channel retailers
12
12Individual/SOHO/Enterprise Mailer Segment Overview
13
13eCommerce Segment Overview
14
14High Volume Shipping Segment Overview
15
15Customer Benefits (Shippers)
• Save time by streamlining and simplifying shipping operations
− Easily access over 400 domestic & international carriers from a single user interface
− Support all of a customer’s selling channels from a single user interface (multiple marketplaces,
shopping carts, eCommerce tools, and multi-carrier solutions available)
− Organize daily shipping tasks into a single unified list (search, filter, combine orders, etc.)
− Support operations & label printing (e.g. address verification, rate comparison, breadth of high
volume scales & printers supported, convenient insurance, packing slips, etc.)
− Automate and simplify processing of large volumes of daily orders (batch processing, custom
hierarchical rules, shipping presets, automated customer emails, etc.)
• Save money by optimizing between carriers and access to package discounts
− Optimize between carriers based on package size, weight & delivery times
− Customers can receive a discount of up to 40% compared to USPS.com or retail, and launching in Q4
of 2019, up to 55% off UPS daily rates, including various waived surcharges
− Access to cost effective mail classes & options (First-Class packages, media mail, parcel select, etc.)
− Shippers can receive additional discounts on domestic and international packages directly or
through Stamps.com’s partners 16
16Customer Benefits (SOHO & Enterprise Mailers)
• Save time by eliminating trips to the post office
− All services of the post office available 24x7x365 from any PC
• Save money versus a traditional postage meter
− Save 50% or more versus the total cost of an entry-level postage meter
− Also gain greater visibility into postage activity and better support for package shipping
• Save money with more accurate postage, discounts, and better controls
− Avoid costly returned mail with address verification
− Avoid wasted postage by calculating exact postage amount
− 5 cent discount off single piece first class letter mail ($0.50 vs $0.55)
− Eliminate unauthorized usage with better tracking and control
− Centralized visibility and control of postage spend across multiple distributed locations
17
17Agenda
• Service Overview
• Industry and Marketing Overview
• Financial and Metrics Overview
• Additional slides
18
18We Represent Only 4% of Top 4 Carriers’ Revenue
1
Source: Publicly available data for all mailing & shipping revenue in top 4 carriers
1 Combined 2018 U.S. dollar value of shipping labels printed by Stamps.com, Endicia, ShipStation, ShipWorks, ShippingEasy and MetaPack 19
19Over 30 million Potential Customers
24,000,000
16,000,000
12,000,000
8,000,000 6,000,000
4,000,000
1,000,000 743,000
0
Home Businesses Small Businesses Enterprise Mailers Stamps.com
Source: International Data Corporation, Small Business Administration, Statistics of U.S. Business, Colography, USPS, and Company Estimates 20
20Competitive Landscape
• In the SOHO and Enterprise mailing & shipping segment we compete against:
− Retail post offices
− Traditional postage meters, pbSmartPostage
− Low volume shipping solutions (Click-N-Ship, UPS.com, Fedex.com)
• In the eCommerce and high volume shipping segment we compete against:
− Single-carrier solutions (e.g. UPS WorldShip, FedEx Ship Manager, etc.)
− Other PC Postage Solutions (e.g. Pitney Bowes SendPro)
− Other multi-carrier solutions
− Internally developed solutions
• USPS also provides alternative access formats for postage payment
− These are basic building blocks that must be productized by a 3rd party
− eVS for high volume “bulk” packages (50 packages/day minimum)
− ePostage for marketplaces (e.g. Amazon & Etsy)
• Customer value is created primarily through providing complete solutions (rich
features, deep integrations, etc.) built around multiple carriers 21
21Stamps.com vs. Competitor USPS Shipping Solutions
All Stamps.com Other PC Postage USPS eVS,
Solutions Solutions ePostage
Batch label printing Yes No No
Major high volume features1 Over 75 0 0
Parcel carriers supported2 Over 400 3 1
USPS mail classes supported3 18 9 8
USPS mailpiece types supported4 9 5 5
Number of unique integrations with
marketplaces, shopping carts, Over 500 0 0
ecommerce tools, shipping software5
Upfront cost6 $0 $0 Significant
1 For example, SCAN forms, pre-filled customs forms, mobile app, shipping automation (picking class, carrier, adding insurance, etc.), automatically download and upload of order information from/to
online marketplaces, search engines and filters to organize information, etc.. SendPro has only basic single label printing. ePostage includes no native features (user must build them all).
2 Carriers include but are not limited to USPS, UPS, FedEx, DHL, Newgistics, OnTrac, Asendia, Globegistics, APC Postal, Access Worldwide, Canada Post, DCL Corp, FedEx Canada, FedEx Europe, FedEx
United Kingdom, First Mile, InXpress, Lone Star Overnight, Preferred Shipping, Unishippers, IBC, UPS Canada, DHL Express, DHL Global Mail, IMEX, LSO, RR Donnelley, Australia Post, UPS Australia,
UPS United Kingdom, Purolator, FIMS, Sendle and Webgistix. PB SendPro supports USPS, UPS and FedEx. ePostage is a USPS-only solution.
3 Stamps.com, PB and ePostage support First Class, Priority Mail, Priority Mail Express, First Class International, Priority Mail International, Express International, Parcel Select, and Media Mail. PB and
Stamps.com also support Library Mail. Stamps.com also supports PMOD, PMEOD, scan-based returns, matter for the blind, MBAG, GXG, ePacket, ISAL, IPA.
4 Stamps.com supports letters, standard flats, packages, flat rate boxes, flat rate envelopes, postcards, certified mail forms, NetStamps, and customs forms. PB SendPro and ePostage/eVS support only
letters, standard flats, packages, flat rate envelopes, flat rate packages, and customs forms.
5 Sample integrations include Amazon, eBay, Yahoo!, PayPal, Google, Etsy, NetSuite, BigCommerce, Shopify, Magento, Volusion, Squarespace, Zen Cart, X-Cart, ChannelAdvisor and others.
6 Stamps.com and PB Sendpro both have user interfaces. ePostage requires significant upfront costs to build a user interface and supporting servers to provide the basic functionality listed in the chart
here, including address cleansing, label generation, account management, payment processing, label manifesting, tracking generation, customs form generation, carrier pickup, and others. Certain
MetaPack customers may incur professional services fees to implement the solution.
22
22Stamps.com vs. Postage Meter
• We compete against traditional meters in small business and enterprise segments
• We target distributed offices; we do not compete in centralized mail rooms
• Stamps.com is typically significantly less expensive than a lower level postage meter
Category Entry Level Meter Stamps.com
Max. Print Speed 18 letters/minute At speed of printer
Monthly Fee $19.99/month¹ $17.99/month
(rental plus 5 lbs. scale) (1-Year Auto Renew Lease) (No Lease)
Proprietary Ink &
$17 to $24² None
Labels
Estimated Monthly Total
~$37 to $54 $18
Cost of Ownership
1 Entry level small business meter with an integrated scale
2 Assumes monthly prints of 60 letters and 10 large envelopes per month; proprietary ink fees of $.09 - $.19 per print; proprietary label fees of $.26 per label
(source: competitor pricing and STMP estimates) 23
23Sales and Marketing
• National salesforce
• Direct mail
• Radio
• Television
• Search engine marketing
• Search engine optimization
• Online media
• Affiliate programs
• Lead generation programs
• Shipping integrations (Online marketplaces, Shopping carts, Shipping mgmt.)
• Strategic partnerships
• Telemarketing
• Tradeshows
24
24Collectively Over 500 Unique Partnerships and Integrations
25
252019 Mailing & Shipping Plan
• Invest for growth in the shipping part of our business
− Expand the features and functionality of our shipping solutions
− Add new features and functionality that will improve the value proposition of our solutions for
shippers including adding new integrations for easier data export and import, and adding new
carrier and partner integrations
− Expand support for new products such as inventory management, customer management,
mobile solutions, and services such as our international shipping program, which bundles
international shipping with valuable customer benefits such as free package pickup, free loss-
protection, upgraded delivery speeds, enhanced tracking, simpler customs procedures, and
other benefits
− Continue to develop partnerships and market our solutions in international markets
− Continue driving our international shipping program which bundles international shipping with
valuable customer benefits such as free package pickup, free loss-protection, upgraded
delivery speeds, enhanced tracking, simpler customs procedures, and other benefits
26
262019 Mailing & Shipping Plan (cont.)
• Leverage our portfolio of mailing and shipping solutions to drive growth
− Leverage our technology, product features, partner integrations and supported carriers across
our branded solutions to acquire new customers and retain existing customers
• Increase our sales and marketing investment
− Increase our total sales and marketing expense through our marketing channels including
direct sales, direct mail, traditional media, radio, television, search engine marketing, and
search engine optimization
− Refine our customer acquisition process through affiliates, partners, telemarketing and others
• Enhance our distributed Enterprise sales marketing efforts
− Increase, optimize and refine our lead generation and sales and marketing efforts
27
27Agenda
• Product Overview
• Industry and Marketing Overview
• Financial and Metrics Overview
• Additional slides
28
28Financial Overview
• The Mailing & Shipping business has a recurring revenue based model
− Service revenue is earned from different subscription and transaction based models
− Supplies store and package insurance revenue are recurring with usage
• Stamps.com has an attractive financial model
− Adjusted EBITDA of $34.5M and Adjusted EBITDA margin of 25% (Q3-19)
− Low capital expenditure requirements ($1.0M1 for Q3-19)
− Results in strong cash flow generation
• Stamps.com has a history of returning excess cash to shareholders
− Stamps.com has returned ~$716M to shareholders since 2002
− $107M via special dividends and $610M via share repurchases
• Stamps.com has a strong balance sheet (as of 9-30-19)
− $143M in cash and investments
− $54M in debt (ex debt issuance costs) and low leverage (debt / adjusted EBITDA < 1.0X)
− $30M deferred tax asset (no valuation allowance)
• The Mailing & Shipping business generates attractive expected returns
− Customer lifetime values significantly higher than the cost to acquire the customer
1 Business capital expenditures which excludes investments in the company’s corporate headquarters 29
29Total Revenue
Q3-19 Total revenue was $136.2M, down 5% YoY
Quarterly Total Revenue Annual Total Revenue
($ Millions) ($ Millions)
$180 $170.2 $586.9
$600
$160
$139.6 $143.5 $136.0 $138.8 $136.2
$500 $468.7
$140 $132.5 $133.6
$120 $115.1 $400 $364.3
$100 $300
$80 $214.0
$200
$147.3
$60 $115.7$127.8
$100 $85.5$101.6
$40
$20 $0
2010 2011 2012 2013 2014 2015 2016 2017 2018
YoY YoY
24% 25% 27% 20% 25% 29% 2% -1% -5% 4% 19% 14% 11% 15% 45% 70% 29% 25%
Growth Growth
30
30Mailing & Shipping Revenue
Q3-19 Mailing & Shipping revenue was $132.9M, down 3% YoY
Quarterly Mailing & Shipping Revenue 1 Annual Mailing & Shipping Revenue 1
($ Millions) ($ Millions)
$180 $600 $567.3
$165.4
$160
$500
$449.4
$140 $134.4 $136.5 $132.6 $135.6 $132.9
$128.5 $131.0
$400
$120 $350.6
$106.5
$100 $300
$80 $206.7
$200
$141.8
$60
$110.0$123.1
$100 $78.4 $93.3
$40
$20 $0
2010 2011 2012 2013 2014 2015 2016 2017 2018
YoY YoY
21% 26% 28% 20% 28% 29% 1% 1% -3% 6% 19% 18% 12% 15% 46% 70% 28% 26%
Growth Growth
1 Mailing & Shipping revenue includes service, store supplies and package insurance revenue from all our mailing and shipping solutions and
excludes our customized postage revenue
31
31Paid Customers
Paid Customer trends reflect our focus on shipping customers
Quarterly Paid Customers1 Annual Paid Customers1
(Mailing & Shipping Business) (Mailing & Shipping Business)
800 (Thousands) 800 (Thousands)
733 736
750 740 737 736 736 742 743 700
736 735 732 656
700 600 581
512
650 500 484
439
600 400
390
363
550 300
500 200
2010 2011 2012 2013 2014 2015 2016 2017 2018
YoY YoY
13% 8% 3% 0% 0% 0% -1% 1% 1% 1% 8% 13% 10% 6% 14% 13% 12% 1%
Growth Growth
1 Mailing and Shipping paid customers for the quarter is defined as the number of unique Mailing and Shipping customers that the Company earned revenue from during that
quarter. Paid customers for the year is calculated as the average of the paid customers for the four quarters during that year. Paid customers include ShipStation customers as
of Q3-14, ShipWorks customers as of Q4-14, Endicia customers as of Q4-15, ShippingEasy customers as of Q3-16, and MetaPack customers as of Q4-18
32
32Customer Churn Rates
Paid Customer Churn trends reflect our focus and growth in Shipping
Quarterly Paid Customer Churn Rate1,2 Annual Average Paid Customer Churn Rate1,2
4.0%
(Mailing & Shipping Business) 4.0%
(Mailing & Shipping Business)
3.9%
3.8%
3.6% 3.5% 3.5% 3.5%
3.5% 3.4%
3.4% 3.4% 3.3%
3.2% 3.2%
3.1% 3.2%
3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
3.0% 3.0%
2.9% 2.8%
2.8%
2.6%
2.5%
2.4%
2.2%
2.0% 2.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018
YoY YoY
0.0% 0.1% 0.6% 0.4% 0.0% (0.1%) 0.1% 0.2% 0.2% N/A (0.4%) 0.0% 0.0% (0.1%) (0.1%) (0.3%) (0.2%) 0.2%
Change Change
1 Calculated as [ (Lost Paid Customers) / (Prior Quarter Paid Customers + Current Quarter New Paid Customers) ] / 3 months
2 Includes all mailing and shipping paid customers using any of Stamps.com’s solutions. Paid customers include ShipStation customers as of Q3-14, ShipWorks customers as of Q4-14,
Endicia customers as of Q4-15, ShippingEasy customers as of Q3-16, and MetaPack customers as of Q4-18
33
33Avg Monthly Revenue Per Paid Customer (ARPU)
Q3-19 Monthly ARPU was $59.60, down 4% YoY
Quarterly Average Monthly Revenue per Annual Average Monthly Revenue
Paid Customer (ARPU) 1 per Paid Customer (ARPU)1
$90 (Mailing & Shipping Business) $70 (Mailing & Shipping Business) $64.20
$80 $74.93 $60
$70 $51.11
$60.79 $62.14 $60.05 $60.96 $59.60 $50
$60 $58.28 $58.96 $44.52
$50 $48.23 $40
$40 $29.64
$30
$23.08
$30 $19.92$20.86$21.21
$18.01
$20
$20
$10
$10
$0 $0
2010 2011 2012 2013 2014 2015 2016 2017 2018
YoY YoY
7% 16% 24% 20% 29% 29% 2% 0% -4% 5% 11% 5% 2% 9% 28% 50% 15% 26%
Growth Growth
1 Calculated as [ Mailing and Shipping revenue for the quarter] / [Mailing and Shipping paid customers for the quarter] / 3 months. Monthly ARPU for the year is
calculated as [Mailing and Shipping revenue for the year] / [Mailing and Shipping paid customers for the year] / 12 months.
34
34Total Postage Printed
Q3-19 Posted Printed was $1.6B, up 3% YoY
Quarterly Postage Printed1 Annual Postage Printed1
($ Millions) ($ Millions)
$2,000 $7,000 $6,489
$1,804 $6,090
$1,800 $1,724
$1,591 $1,575 $1,626 $1,634 $6,000 $5,518
$1,600 $1,519 $1,562
$1,406
$1,400 $5,000
$1,200
$4,000
$1,000
$800 $3,000 $2,677
$600 $2,000 $1,770
$1,565
$400 $1,148
$1,000 $672
$200 $447
$0 $0
2010 2011 2012 2013 2014 2015 2016 2017 2018
YoY YoY
8% 9% 8% 6% 8% 5% 2% 4% 3% 26% 50% 71% 36% 13% 51% 106% 10% 7%
Growth Growth
1 Mailing and shipping postage printed includes postage printed by the Company’s mailing and shipping customers using its solutions. Includes ShipStation as of Q3-14,
ShipWorks as of Q4-14, Endicia as of the acquisition closing date, and ShippingEasy as of Q3-16. Beginning Q4-16, we updated our methodology for measuring the
amount of mailing and shipping postage printed. Q1-16 through Q3-16 metrics have also been revised upwards using the updated methodology.
35
35Adjusted EBITDA
Q3-19 Adjusted EBITDA was $34.5M, down 43% YoY with an Adjusted EBITDA margin of 25%
Quarterly Adjusted EBITDA1 Annual Adjusted EBITDA1
($ Millions) ($ Millions)
$80.0 $300.0
$71.3 $258.0
$70.0 $250.0
$64.1 $62.1 $63.6 $229.9
$61.0
$60.0 $56.6
$200.0
$50.0 $174.4
$39.2 $39.3 $150.0
$40.0 $34.5
$30.0 $100.0 $82.6
$20.0
$50.0 $40.8 $44.2
$10.0 $13.8 $21.5 $29.8
$0.0 $0.0
2010 2011 2012 2013 2014 2015 2016 2017 2018
YoY YoY
Growth 24% 15% 21% 10% 8% 11% (37%) (38%) (43%) 32% 55% 38% 37% 8% 87% 111% 32% 12%
Growth
Adj EBITDA Adj EBITDA
Margin 49% 48% 46% 46% 43% 42% 29% 28% 25% 16% 21% 26% 32% 30% 39% 48% 49% 44%
Margin
1 Adjusted EBITDA is calculated as Non-GAAP Operating Income plus operating depreciation and amortization contained in cost of sales and operating expenses (see
Company’s 8-K filings for reconciliation of non-GAAP to GAAP).
36
36Key Investment Takeaways
• Large global addressable opportunity
• Significant and differentiated customer benefits
• Significant strategic assets in the form of technology, integrations, partnerships,
package volume, customers, and sales force expertise
• Attractive expected return on sales and marketing spend in our Mailing & Shipping
business with its recurring revenue model and favorable margins and eCommerce
trends
• Attractive strategic opportunities within the domestic and international shipping
businesses to leverage our assets and expertise
• Strong cash flow and balance sheet
• Demonstrated history of returning capital to shareholders
37
37Agenda
• Product Overview
• Industry and Marketing Overview
• Financial and Metrics Overview
• Additional slides
38
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