Stamps.com Reports First Quarter 2021 Results

Stamps.com, which is a leading company when it comes to providing ecommerce shipping solutions to multiple big companies. The company released its first quarter results for the year. First quarter ends on 31st March 2021. Ken McBride, who is the Stamps.com’s Chairman and CEO said that they continued to improve their strength in their financial performance in the first quarter of this year, which was overshadowed by the crisis of COVID-19 pandemic. The company has continued to exceed its expectation by providing the best services even in the global multi-carrier e-commerce technology solutions to their customers and partners in these challenging times of lockdowns in multiple countries. As the economy begins to show signs of broader recovery after it was hit by the pandemic, the company believes that its e-commerce will continue to be an integral part of the company as it helps in the global economy going forward and the economic recovery as well. The company remains excited about its long-term future business and are confident in their abilities to successfully execute their global e-commerce strategy for their partner companies.

First Quarter highlights

  • Total revenue after the end of the first quarter was $189.1 million, which is 25% more as compared to $151.3 million in the first quarter of the previous year, 2020.
  • GAAP net income after the end of the first quarter was $34.2 million, which is 108% more as compared to $16.5 million in the first quarter of the previous year, 2020.
  • GAAP net income per fully diluted share after the end of the first quarter was $1.74, that is 92% more as compared to $0.91 in the first quarter of the previous year, 2020.
  • Non-GAAP adjusted EBITDA after the first quarter was $59.5 million, which is 43% more as compared to $41.5 million in the first quarter of the previous year, 2020.
  • Non-GAAP adjusted income per fully diluted share after the end of the first quarter was $2.08, which is 58% more as compared to $1.32 in the first quarter of the previous year, 2020.

Taxes

At the end of the first quarter of 2021, the Company reported a GAAP income tax expense of approximately $9.9 million that represents an effective tax rate for the company to be 22.5%. At the end of the first quarter of 2020, the Company had also reported a GAAP income tax expense of $7.1 million representing an effective tax rate for the company to be 30.1%. But the company has warned that the effective tax rate of 22.5% for the first quarter of 2021 should not be assumed to apply for the entire year, and their taxable income during the remainder of the year will likely be reflected at a  higher rate than is reflected in our tax results for the first quarter of 2021. The company’s first quarter 2021 GAAP net income should also be understood to have been impacted in a good way by the lower effective tax rate applicable specifically to this quarter only.

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