#Usps stamps endicia free

embarked on an M&A crusade in the back halves of 20. Shippo is a perfect example of a modern internet company moving into direct competition with STMP. Additionally, new competitors are beginning to surface that target the same audience as STMP, but with a more contemporary and efficient interface that includes a larger variety of shipping options. terminated its partnership with STMP entirely for the same reasons as Amazon. We see this as representative of a market trend towards internalizing as much of shipping operations as possible. This act of cutting out the 'middle-man' is part of an attempt to cut shipping costs based on external pressure. In 2012, Amazon ( AMZN) forwent its relationship with STMP and initiated a relationship directly with USPS. We see competition approaching the market from angles that STMP has neglected to address. STMP has experienced some key reductions to its customer base as eCommerce platforms begin to internalize shipping operations. We see Q1'16 missing revenue expectations and future earnings reverting to a lower floor that better reflects the slower organic growth rate of STMP with its newly added businesses.ĭeteriorating Customer Base and Threats by New Entrants Compare this to a historical quarterly growth rate of 3.3%īottom line: The dramatic boost in Q4'15 revenue is not reflective of the actual earning power of going forward.

20 average quarterly growth rates grew to 6.7% and 14.3% respectively, boosted by the acquisitions of ShipWorks, ShipStation, and Endicia.

Endicia recently lost one of its biggest clients in Etsy, Inc.

The newly acquired Endicia accounts for over a quarter of the combined company's revenue and has significantly slower growth than STMP's historical average 8.1% for Endicia versus 13.9% for STMP on an annual basis.

STMP does not generate enough organic growth to meet inflated expectations.

#Usps stamps endicia free

In fact, we see FY16 revenue coming in just under the conservative side of the company's $290-310M forecast and unlevered free cash flows dropping precipitously after 2015's one-time contingencies and settlements. STMP FY15 results revealed quarterly revenue growth of over 35% which, if interpreted incorrectly, severely overstates STMP's future growth potential. Misleading 2015 Numbers Inflate 2016 Estimates The company's presence in this field was established with its acquisitions of ShipStation and ShipWorks in 2014. STMP's second product offering caters to high volume clientele with multi-carrier solutions. STMP, Pitney Bowes ( PBI), and Shippo are the only three companies in this space authorized to deal U.S. The primary function of these products is to offer customers a portal with which to access USPS services while adding a layer of benefits such as discounts, printable postage, contacts management, mass-label printing, and customizable stamps. The first is its internet-based platform for purchasing and printing postage, which consists of coupled with the recently acquired Endicia. Its product offering can be split into two primary classes. (NASDAQ: NASDAQ: STMP) provides postage solutions to individuals and businesses through a unique relationship with the U.S. Look out for a big miss on Q1'16 earnings from this high flying stamps vendor. Management has collateralized the entire company on its November 2015 acquisition of competitor Endicia while doing its utmost to conceal vital performance metrics on this purchase and two other acquisitions made in mid-2014.

Its stock is up 720% since March, 2011, and 102% YoY on recent acquisitions which we are convinced can only disappoint on overheated earnings expectations. is the hottest tech stock in a dying industry. By Joshua Kim, Blake Shirk, Brandon Shirk, and Thomason Waldo