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Stamps.com's Management To Present At The 14th Annual Needham Growth Conference Call Transcript

The postage that customers buy is a passthrough to the USPS so that's not included in our revenue or financial statements. So the core functionality allows customers to buy and print their own postage, there's three ways that they can print postage, through printing their own stamps, we call net stamps, printing out envelopes or printing on shipping labels designed for packages.

So I will just touch on each of those in a little more detail. Again this is how it works for the customer. The first way to print postage is printing that stamps here, a customer buys a sheet of blank label stock from us and then they use the software to print out the postage as they need it. There is no address associated, no date associated with it as other metering solutions have. So that’s really the most flexible kind of postage a customer can use. They can buy standard labels, theme labels or they can actually upload their business image and we will print out customized label for them to use.

Secondly as a customer can print on an envelope, directly on an envelope around labels that go in on an envelope, typically a customer will print, use this way to print postage if they are already planning on printing the destination address and return address. So we consolidated a two-step process into a one-step process where they print out the postage and the address. We integrate with all the address mailing software, contact management databases. So you don’t have to maintain two different address books. And one of the benefits of this is that we will validate the destination address against the USPS database to ensure that it’s a valid, accurate deliverable address.

So customers can save money by avoiding printing postage on mail pieces that we get returned as undeliverable. The third way to print postage is, it’s a shipping label designed specifically for use with packages, customers can print it on a piece of printer paper and tape it to the package or they can print it on adhesive labels, it supports all the USPS package classes, Priority, Express, Media Mail, Parcel Post.

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