Stamps.com

Last updated

Stamps.com
Stamps.com logo.png
Product typeInternet postage, Custom postage stamps, Shipping software
Owner Auctane
Introduced1996;28 years ago (1996)
Website stamps.com
Auctane
Company type Private
Industry Business Services
Founded1996;28 years ago (1996) (as Stamps.com)
Headquarters Austin, Texas, U.S.
Key people
  • Jim McDermott
  • (Stamps.com Founder)
  • Jeff Green
  • (Stamps.com Founder)
  • Ari Engelberg
  • (Stamps.com Founder)
  • Albert Ko
  • (CEO)
  • Amit Deodhar
  • (CFO)
ProductsInternet postage, Custom postage stamps, Shipping software
RevenueIncrease2.svg US$757.98 million (Stamps.com 2020) [1]
Increase2.svg US$198.152 million (Stamps.com 2020) [1]
Increase2.svg US$178.665 million (Stamps.com 2020) [1]
Total assets Increase2.svg US$1.297 billion (Stamps.com 2020) [1]
Total equity Increase2.svg US$974.119 million (Stamps.com 2020) [1]
Owner Thoma Bravo
Number of employees
1,100 [2]
Subsidiaries
  • ShipStation
  • Stamps.com
  • Packlink
  • ShipEngine
  • Metapack
  • ShippingEasy
  • Endicia
  • ShipWorks
  • GlobalPost
  • Shipsi
Website auctane.com

Stamps.com is a brand and the former corporate name of Auctane, an American company that provides Internet-based mailing and shipping services. Until its acquisition by Thoma Bravo, Stamps.com was a public company traded on the NASDAQ exchange under the symbol STMP. [3] The company's main offices are located in Austin, Texas.

Contents

History

Founded in 1996, [4] Stamps.com was created under the name StampMaster by Jim McDermott, Ari Engelberg, and Jeff Green, who at the time were MBA graduate students at UCLA. [5] [6] StampMaster was among the first companies to obtain approval from the United States Postal Service for beta testing and introducing Internet postage to the market. The Postal Service began announcing proposals for digital delivery of postage in 1996. [7]

Stamps.com finished its Series A funding in February 1998 with $1.5 million. Series B funding followed in August 1998 with $4.52 million. [8] It had its last round of private financing in February 1999, [9] generating an additional $30 million [8] from investors including former Postmaster General, Marvin Runyon. [7] The company went public in June of the same year [6] [10] and raised $55 million in its IPO. [8] Less than six months after its IPO, the company had its secondary public offering. [9] In August 1999, the Postal Service granted permission for Stamps.com to sell its service nationally. [7] Stamps.com purchased IShip.com, a company that compared prices of shipping services, for $305 million in stock or eight million shares, in October 1999. [11] [12]

In 2001, Stamps.com named Ken McBride its CEO. [13] The U.S. Postal Service authorized the first market test of PhotoStamps in 2004. [14] In 2005, the company reported $10.4 million in net income. [13] PhotoStamps was re-launched in May 2005 for another year-long test run. [15] The United States Congress amended a law in January 2006 that had prohibited attaching business advertising to postage, effective in May of that year, which cleared the way for businesses to use PhotoStamps. [14] In September 2006, the company launched Photo NetStamps, which combined its previous NetStamps product with PhotoStamps. This combination allowed PhotoStamps to be used with exact postage printed from Stamps.com software. [16] By 2008, Stamps.com had more than 300,000 customers. [17] The company recorded revenues of $38.6 million in 2012. [13]

By 2013, it had approximately 465,000 registered customers. [4] Stamps.com reported $147.3 million in revenue the following year. [18] It acquired Auctane ShipStation, a web-based multi-carrier shipping vendor based in Austin, Texas, in June 2014 for $50 million and up to 768,900 shares of stock. Auctane LLC, which used the trade name ShipStation, was founded in 2011 and creates tools to import orders from shopping cart platforms for order fulfillment. [19] The acquisition made Auctane an independent subsidiary of Stamps.com operated by its existing management team. [20] In October that same year, Stamps.com acquired ShipWorks, a multi-carrier shipping software company that integrates with shopping cart platforms, for $22 million. ShipWorks continued to operate as an independent, wholly owned subsidiary of Auctane. [21]

In March 2015, Stamps.com entered into an agreement to acquire Endicia, another internet postage company, from Newell Rubbermaid for approximately $215 million. [22] [23] Endicia's products include the DYMO Stamps and PictureItPostage brands. [22]

On June 20, 2016, Stamps.com announced that it had entered into a definitive agreement to purchase ShippingEasy, Inc., an Austin, Texas-based company which offers web-based multi-carrier shipping software that allows online retailers and e-commerce merchants to organize, process, fulfill and ship their orders. Stamps.com agreed to acquire ShippingEasy for $55 million in cash, as well as performance-linked equity awards of 87,000 shares of Stamps.com's common stock. [24]

On July 25, 2018, Stamps.com announced another agreement to purchase Metapack Ltd., a London-based company providing delivery management technology to e-commerce retailers and brands. The agreement was made on the price of approx. £175 million in cash. MetaPack will continue to operate as a wholly owned subsidiary led by its current management team with further details of the acquisition to be discussed on August 1, 2018. [25]

On July 9, 2021, Thoma Bravo announced a pending acquisition of Stamps.com at a $330/share price, and a 40-day "go-shop" period for alternative proposals. [26] [27] The acquisition was completed in October of that year, and in December the company changed its corporate name to Auctane, [28] previously the name of its subsidiary that owned ShipStation, ShippingEasy, ShipEngine, and ShipWorks. [29]

Products

Online postage

USPS First Class Package International via stamps.com USPS First Class Pkg Intl USA-D with Customs Declaration CN 22.jpg
USPS First Class Package International via stamps.com

Stamps.com allows users to print official United States Postal Service stamps and shipping labels for a monthly subscription fee of $19.99. [30] Stamps.com sends customers a digital scale to weigh letters and packages to ensure the correct amount of postage is applied to the piece of mail. The amount of postage applied is then deducted from the customer's Stamps.com account. Customers can print postage on envelopes, regular paper or adhesive labels. The system integrates with external address books applications including Outlook and Act!, small business applications such as Microsoft Word and Intuit's QuickBooks, and e-commerce platforms such as eBay, Shopify, Magento, and Amazon.com. [31]

PhotoStamps

Stamps.com also offered a product called PhotoStamps that allows customers to upload personal photographs or logos to be printed on real U.S. postage stamps. PhotoStamps were sold as a sheet of 20 postage stamps. [32] The service was discontinued on June 10, 2020 after the USPS discontinued its customized postage program. [33] [34]

Stamps.com Corporate headquarters. Los Angeles, California. Stamps.comCORPHQ.jpg
Stamps.com Corporate headquarters. Los Angeles, California.

Controversies

In 2004, the website The Smoking Gun successfully ordered PhotoStamps with controversial images, [35] but Stamps.com updated their policy to prohibit images of world leaders or "any material that is vintage in appearance or depicts images from an older era." [36] [ dead link ] The PhotoStamps program was ended by the USPS in 2020. [37]

Stamps.com settled a $2.5 million consumer protection lawsuit from the State of California in 2015 over free trials that eventually converted into monthly service fees. [38] The press release cited "false and misleading advertising", which was corroborated by independent tech publishers. [39] Stamps.com maintains that such charges are valid and well-explained.

In 2021, the company agreed to a $100 million settlement in a 2019 class-action lawsuit alleging that the company had misled investors about the strength of their relationship with the USPS. [40]

See also

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References

  1. 1 2 3 4 5 "Stamps.com, Inc. 2020 Annual Report" (PDF). stamps.com. December 31, 2020. Retrieved October 6, 2021.
  2. ↑ "Stamps.com's Competitors, Revenue, Number of Employees, Funding, Acquisitions & News - Owler Company Profile".
  3. ↑ "Stamps.com Stockholders Approve Merger with Thoma Bravo" (Press release). Business Wire. September 30, 2021.
  4. 1 2 "Plenty Of Potential For Stamps.com Even After Run Up". Forbes. June 3, 2013. Retrieved May 12, 2015.
  5. ↑ Debora Vrana (February 18, 1999). "Stamps.com Raises $30 Million". LA Times. Retrieved July 11, 2016.
  6. 1 2 Karen Kaplan (June 21, 1999). "Stamps.com Online Postage Due, but First an IPO". LA Times. Retrieved May 12, 2015.
  7. 1 2 3 Melody Petersen (August 10, 1999). "Buying Stamps Can Now Mean Just a Trip to the Computer". The New York Times. Retrieved May 12, 2015.
  8. 1 2 3 "Company description". Built in Los Angeles. Retrieved May 12, 2015.
  9. 1 2 Peter Gumbel (October 2001). "Mail Ego". Los Angeles Magazine.
  10. ↑ Andy Wang (July 20, 1999). "Stock Watch: Stamps.com Rockets After Office Depot Announcement". ECommerce Times. Retrieved May 12, 2015.
  11. ↑ "Stamps.com to Purchase IShip.com". LA Times. October 26, 1999. Retrieved May 12, 2015.
  12. ↑ "Company News; Stamps.com Agrees to Acquire iShip.com". The New York Times. October 26, 1999. Retrieved May 12, 2015.
  13. 1 2 3 Stuart Pfeifer (March 18, 2013). "Stock spotlight: Stamps.com delivering sales, profit growth". LA Times. Retrieved May 12, 2015.
  14. 1 2 "Your Stamp Here". Bloomberg. September 17, 2006. Retrieved May 12, 2015.
  15. ↑ "Photostamps goes live, again". L.A.Biz. May 17, 2005. Retrieved May 12, 2015.
  16. ↑ "Stamps.com Launches Photo NetStamps". Creative Pro. Retrieved May 12, 2015.
  17. ↑ Armando Roggio (December 22, 2008). "The PeC Review: Stamps.com is A Helpful Tool for Many Merchants". Practical ECommerce. Retrieved May 12, 2015.
  18. ↑ "Stamps.com Inc". CNN. Retrieved May 12, 2015.
  19. ↑ "Audited Financial Statements of Auctane LLC at December 31, 2013 and for the year ended December 31, 2013". www.sec.gov. December 31, 2013. Retrieved June 24, 2023.
  20. ↑ ABBY CALLARD (June 17, 2014). "Stamps.com buys shipping software vendor ShipStation". Internet Retailer. Retrieved May 12, 2015.
  21. ↑ Melissah Yang (October 20, 2014). "Stamps.com Acquires ShipWorks". Los Angeles Business Journal. Retrieved May 12, 2015.
  22. 1 2 "Stamps.com To Buy Online Shipping Firm Endicia For $215 Mln". Nasdaq. March 24, 2015. Retrieved May 12, 2015.
  23. ↑ Matt Lindner (March 25, 2015). "Stamps.com acquires Endicia for $215 million in cash". Internet Retailer. Retrieved May 12, 2015.
  24. ↑ "Stamps.com to Acquire ShippingEasy". StreetInsider.com. June 20, 2016. Retrieved July 11, 2016.
  25. ↑ "Stamps.com Announces Definitive Agreement to Acquire Leading UK-Based E-Commerce Shipping Software Company MetaPack Ltd" . Retrieved July 25, 2018.
  26. ↑ Bravo, Thoma. "Stamps.com Enters Definitive Agreement to be Acquired by Thoma Bravo in $6.6 Billion Transaction". www.thomabravo.com. Retrieved July 9, 2021.
  27. ↑ GmbH, finanzen net. "Stamps.com soars 65% after Thoma Bravo announces it will buy the online postage company for $6.6 billion in cash". markets.businessinsider.com. Retrieved July 9, 2021.
  28. ↑ "Global SaaS Logistics Leader "Stamps.com" Becomes "Auctane"". PRWeb (Press release). December 17, 2021.
  29. ↑ Ames, Ben. "Stamps.com rebrands as Auctane to meet broader e-commerce needs | DC Velocity". DC Velocity. Retrieved June 24, 2023.
  30. ↑ "Frequently Asked Questions". stamps.com. Retrieved November 13, 2018.
  31. ↑ Simson L. Garfinkel (December 23, 1999). "Stamp out the postal blues". The Boston Globe. Retrieved May 12, 2015.
  32. ↑ Asha Dave (February 17, 2011). "15-year-old takes stage at NC Jazz Festival". WWayTV. Archived from the original on May 14, 2015. Retrieved May 12, 2015.
  33. ↑ "Order Customized Stamps with Your Own Photos Until June 10". June 8, 2020.
  34. ↑ "PhotoStamps Program Ending".
  35. ↑ "Stamps Of Approval: Rosenbergs, Milosevic, Lewinsky dress now on official U.S. postage". TheSmokingGun.com. August 31, 2004. Retrieved April 10, 2020.
  36. ↑ "Content Restrictions". PhotoStamps.com. Retrieved November 27, 2017.
  37. ↑ McAllister, Bill (May 20, 2020). "Stamps.com challenges USPS decision to end customized postage". Linns Stamp News. Retrieved June 24, 2023.
  38. ↑ "County of Santa Clara Office of the District Attorney". September 25, 2015. Retrieved August 4, 2020.
  39. ↑ ""I got scammed by Stamps.com."". November 16, 2014. Retrieved August 4, 2020.
  40. ↑ Bennett, Jennifer. "Stamps.com, Investors Win Final Nod for $100 Million Settlement". news.bloomberglaw.com. Retrieved June 24, 2023.
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