Tuesday, February 28, 2012

Stamps.com, Inc. (STMP) is “One to Watch”

Stamps.com is a name which has become synonymous with USPS® printable postage to many businesses and consumers. The Web site is widely known for providing the simple, affordable, and extremely convenient PC Postage service that lets users generate precise letter, package, and parcel post labels using an ordinary inkjet/laser printer. Granting customers unprecedented service, STMP has built an impressive reputation in just over a decade and a half.

Since its inception in 1996, Stamps.com has continued to pioneer and innovate within the digital postage space, offering new features and services to make the entire process easier, and gaining market share all the while. Brilliant offerings like the PhotoStamps™ product that lets users turn their digital photos, designs, or corporate logos into functional US postage, helps companies deliver more effective overall branding (and lets users add a familiar touch to correspondence).

The obvious benefits of cost for the majority of users, not to mention the time and effort expended simply effecting traditional means, are amazingly dwarfed by the huge savings businesses can achieve over postage meters. Slashing costs over postage meters by as much as half or more, with total reliability, no multi-year leases to sign and a low, $15.99/month flat rate, the Stamps.com solution also delivers total information environment awareness and allows customers to simply use their own computer and printer (no maintenance fees, no proprietary inks, etc.).

One of the less talked about, but certainly key aspects of this model for users is the robust backend framework and additional tools enabled, in addition to the peace of mind that comes with the added user-level control security. Being able to print postage is cheap and easy, but having complete visibility across the business to see how every penny is being spent via an intuitive, extremely granular Stamps.com Enterprise software dashboard is the kind of thing that can be a real game-changer for thriving businesses.

The company recently proved to investors, yet again, that the STMP model is a powerful revenue vehicle, reporting record Q4 FY11 revenue growth of 27% for Core PC Postage over the same quarter in 2010 ($24.5M). Also among Q4 highlights was the 20% jump in overall revenue ($27.2M) and net income of $13.4M, or $0.81 per fully diluted share.

Core PC Postage continues to be a strong revenue vehicle for STMP, and growth in this segment represents an accelerating trend among consumers, reinforced by the proliferation of printing infrastructure amid the swell of migrations to a more digital space, especially among businesses and enterprise customers who do high volume shipping. E-commerce shipping has never been easier and STMP even has seamless MS Word® and QuickBooks® integration, allowing users to print postage right from the software. Stamps.com also lets you import existing address books from Outlook and other popular platforms.

With Stamps.com, users can also take advantage of discounts they’d never see at the post office and track packages with the click of a button. It is not hard to figure out what the buzz is about here, more and more companies are modernizing and upgrading their overall implementation, and transforming the shipping methodology is often central, especially for entities that do a lot of shipping. Automatic integration with Amazon.com®, eBay®, Paypal®, Etsy®, Yahoo!, Google Checkout™, and even user site-specific shopping carts means never having to fill out forms manually and the ability to batch print multiple labels.

STMP continues to put effort into other Non-core PC Postage revenue channels as well, engaging overdrive in the enhanced promotion program for instance, allowing marketing partners to wow customers with direct promotions online. This kind of customer-centric fan service is part of the winning STMP solution, as the company has always striven to make the customer feel comfortable, secure, and at home. The ability for even a small business to effortlessly transform its shipping and outgoing mail into a much more professional looking and feeling format is powerful, and not having to interact with archaic means/modes is something that can really be felt in the bottom line.

Click, print, and mail for massive savings while controlling waste, abuse, or overspending, all within a secure, digital environment that allows for total information awareness and enterprise-wide process transparency. The service provided by STMP is exemplary, starting with a white glove corporate roll-out program that carefully, thoroughly, and seamlessly helps the business transition its infrastructure to Stamps.com.

For more information on Stamps.com Inc. please visit the company’s website at: www.Stamps.com


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