STAMPS.COM REPORTS FIRST QUARTER 2000 FINANCIAL RESULTS
First Quarter Revenue Grows 470 percent; End-of-quarter Customers More Than Double to 187,057
SANTA MONICA, Calif. – April 10, 2000 – Stamps.com(tm) (Nasdaq: STMP), today announced that first quarter revenue increased 470 percent from the previous quarter to $2.04 million while adding more than 114,000 new customers to end the quarter with 187,057 customers. First quarter operating loss was $41.8 million, while net loss applicable to common shareholders was $36.8 million. Earnings per share excluding non-cash charges was a loss of $0.66, based on the weighted average common shares outstanding of 43 million.
“The rapid revenue growth, low churn and significantly declining customer acquisition costs we experienced this quarter validate the strategy we have developed for pursuing this enormous market opportunity,” said Stamps.com Chairman and CEO John Payne. “We grew revenue by almost five hundred percent, more than doubled the size of our base of paying customers, generated over 20% of revenue from our new Enterprise Strategic Business Unit efforts and saw per customer acquisition costs decline by more than 28 percent quarter over quarter.”
Summary of Recent Events
April 3, 2000 – Stamps.com announced a set of Web tools – the Price It API(tm) , Track It API(tm) and Sell It API(tm) – that will enable e-commerce companies to turn shipping operations from a cost center to profit center, provide multiple delivery options to buyers, and reduce customer service costs.
March 30, 2000 – Stamps.com announced three new partners – ADP, NetLedger, and Register.com – which will expand the marketing and distribution platform of the company’s mailing and shipping services.
March 15, 2000 – Stamps.com announced its auction “Power Sellers” program with strategic alliances with leading online auction and resource sites. The new partnerships – Andale(tm), AuctionRover.com(tm), AuctionWatch.com, and Swap.com – will allow online auction users and power sellers to take advantage of the convenience and time-savings of Stamps.com’s online mailing and shipping services.
March 14, 2000 – Stamps.com extended its reach into the business-to-business (B2B) e-commerce market by establishing two new Strategic Business Units (SBUs) charged with providing Internet mailing and shipping services to large corporations and e-commerce companies. Leveraging the acquisition of iShip.com(tm), the new organization combines Stamps.com’s industry domain expertise in Internet Postage(tm) and Internet-based, multi-carrier shipping services.
March 8, 2000 – Stamps.com announced that it completed its acquisition of the online shipping company iShip.com. The acquisition establishes Stamps.com as a single marketplace on the Web for shipping and mailing.
February 17, 2000 – Stamps.com announced that its EncrypTix, Inc. unit secured a $30 million private financing led by Paul Allen’s Vulcan Ventures and a premier list of nine strategic partners in the events, movie, travel and financial service industries. Investors include American Express Travel Related Services Company, Inc., Galileo International, GetThere.com, Inc., Loews Cineplex Entertainment Corporation, Mail Boxes Etc. USA, Inc., Mitsubishi International Corporation, Sabre, Inc., SunAmerica Investment Inc. and Tickets.com, Inc.
February 9, 2000 – Stamps.com announced that its software-only Internet Postage service is now accessible through Netscape Netcenter. Netscape is offering Stamps.com Internet Postage to its more than 20 million registered users through several Netscape services.
January 18, 2000 – Stamps.com announced a distribution and marketing alliance with Hewlett-Packard Company to provide the cost-effectiveness and time savings of Internet Postage(tm) to new HP customers and the more than 100 million existing HP printer owners.
Stamps.com(tm) is the leading provider of easy, convenient and cost-effective Internet mailing and shipping services for small businesses, large corporations and e-commerce vendors. Anchored by its partnerships with the U.S. Postal Service and United Parcel Service (UPS), Stamps.com’s customers can choose the best carrier for any transaction based on cost comparisons and delivery options. With just an Internet connection, Stamps.com customers will have immediate access to select a carrier, print postage or multi-carrier shipping labels, schedule a pick-up and track a package.
Stamps.com has partnerships with major companies such as America Online, eBay, Hewlett-Packard, IBM, Intel, Mail Boxes Etc., Microsoft, Office Depot, Intuit and 3M. Visit sdcmainprod.wpengine.com for more information.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. Important factors, 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 fiscal year ended December 31, 1999. 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.