Stamps.com Q4 Results Climb, Warns On FY21, Sees Higher Expenses; Stock Down

(RTTNews) - Shares of Stamps.com (STMP) were losing around 9 percent in the extended trading on Wednesday after the provider of postage online and shipping software warned that there is substantial uncertainty in 2021, despite reporting strong fourth-quarter results. The company also projects higher operating expenses.

The fourth-quarter net income was $46.5 million, up 129 percent from last year's $20.3 million. Earnings per share were $2.36, 108 percent higher than last year's $1.13.

Adjusted income per share was $4.13, compared to $2.12 a year ago.Adjusted EBITDA was $74.0 million, up 44 percent from prior year's $51.4 million.

Total revenue climbed 28 percent to $206 million from $160.9 million last year. Total Paid Customers for the fourth quarter was 1.02 million, up 266 thousand from the previous year.

Looking ahead, the company said it is not providing specific earnings guidance for fiscal 2021 this time as there is substantial uncertainty from the myriad of macroeconomic factors associated with the ongoing pandemic, and the resulting effect on global e-commerce.

The company said it plans to continue to invest in global technology platforms and would expect operating expenses in 2021 to increase as much as 20 percent or more, reflecting annualization of investments made during 2020 as well as additional investments expected in 2021.

Stamps.com shares closed Wednesday's trading at $260.88, down 4.8 percent. In the after hours trading, shares fell 9.5 percent to $236.