Stamps.com beats EPS and revenue consensus, but down 6% (2Q05 STMP earnings)

Stamps.com (ticker: STMP) saw its stock fall by 6% after announcing earnings despite beating the consensus estimates for revenue and EPS. Details:

Q2 Results
(all comparisons are year over year unless stated otherwise)

• GAAP net income was $2.1 million, or $0.09 per fully diluted share. Consensus was $0.06.
• Revenue was $14.2 million, up 74%, beating consensus of $13.1 million.
• Revenue breakdown: subscription service revenue was $10.4 million up 57%, online store revenue was $1.8 millionup 49%; insurance and licensing fees, and other revenue was $0.8 million; sales of PhotoStamps in six week market test were $1.2 million.
• PhotoStamps: 68 thousand sheets of PhotoStamps were shipped.
• Gross margin was 72%, up from 63%.

2005 Guidance

• Revenue $57 million versus consensus of $56.6 million.
• Core business revenue $52 million, PhotoStamps $5 million.
• Gross margins 70%; core business gross margins in  mid 70% range, PhotoStamps in the mid 30% range. (Face value of postage is included in both the revenue and cost of sales for PhotoStamps.)
• R&D $7 million.
• Sales and marketing $17.5 million.
• G&A $10.5 million.

Q3 Guidance

• Revenue $14.5 million versus consensus of $14.8 million.
• Gross margin 70%.
• EPS $.08 versus consensus of $0.08. Sequential decline due to seasonality and increased investment in PhotoStamps.

Full press release here.

STMP chart below.

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