Delaware 000-26427 77-0454966
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.001 per share
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STMP
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The NASDAQ Stock Market
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Stamps.com Inc.
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(Registrant)
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May 8, 2019
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/s/ Ken McBride
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Date
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(Signature)
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Ken McBride
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Chief Executive Officer
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•
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Total revenue was $136.0 million, up 2% compared to $133.6 million in the first quarter of 2018.
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•
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GAAP net income was $15.8 million, down 67% compared to $47.0 million in the first quarter of 2018.
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•
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GAAP net income per fully diluted share was $0.87, down 66% compared to $2.54 in the first quarter of 2018.
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•
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Non-GAAP adjusted EBITDA was $39.2 million, down 37% compared to $62.1 million in the first quarter of 2018.
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•
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Non-GAAP adjusted income per fully diluted share was $1.23, down 51% compared to $2.54 in the first quarter of 2018.
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First Quarter Fiscal 2019
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Stock-Based
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Intangible
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Debt
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||||||||||||
All amounts in millions except
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GAAP
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Compensation
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Amortization
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Amortization
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Income Tax
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Non-GAAP
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||||||||||||
per share data:
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Amounts
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Expense
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Expense
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Expense
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Adjustments
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Amounts
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||||||||||||
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||||||||||||
Cost of Revenues
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$
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36.34
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$
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0.65
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$
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—
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$
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—
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$
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—
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$
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35.69
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Research & Development
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17.31
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2.30
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—
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—
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—
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15.01
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||||||
Sales & Marketing
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32.88
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2.05
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—
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—
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—
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30.83
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General & Administrative
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26.23
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3.89
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5.55
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—
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—
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16.79
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Total Expenses
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112.76
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8.89
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5.55
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—
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—
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98.32
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Income (Loss) from Operations
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23.24
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(8.89
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)
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(5.55
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)
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—
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—
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37.68
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Interest and Other Income (Loss)
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(0.74
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)
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—
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—
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(0.09
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)
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—
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(0.65
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)
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Benefit (Expense) for Income Taxes
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(6.74
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)
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—
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—
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—
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8.07
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(14.81
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)
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Adjusted Income (Loss)
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15.76
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(8.89
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)
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(5.55
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)
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(0.09
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)
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8.07
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22.22
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On a diluted per share basis
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$
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0.87
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$
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(0.49
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)
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$
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(0.31
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)
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$
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(0.01
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)
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$
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0.45
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$
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1.23
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Shares used in per share calculation
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18.01
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18.01
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18.01
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18.01
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18.01
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18.01
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First Quarter Fiscal 2018
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Stock-Based
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Intangible
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Debt
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All amounts in millions except
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GAAP
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Compensation
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Amortization
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Amortization
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Income Tax
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Non-GAAP
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||||||||||||
per share data:
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Amounts
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Expense
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Expense
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Expense
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Adjustments
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Amounts
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||||||||||||
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Cost of Revenues
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$
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25.53
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$
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0.48
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$
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—
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$
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—
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$
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—
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$
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25.05
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Research & Development
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12.07
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1.93
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—
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—
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—
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10.15
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Sales & Marketing
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25.75
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1.52
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—
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—
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—
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24.23
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General & Administrative
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21.02
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3.62
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4.00
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—
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—
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13.40
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Total Expenses
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84.37
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7.55
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4.00
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—
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—
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72.82
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Income (Loss) from Operations
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49.20
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(7.55
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)
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(4.00
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)
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—
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—
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60.75
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Interest and Other Income (Loss)
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(0.54
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)
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—
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—
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(0.09
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)
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—
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(0.45
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)
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Benefit (Expense) for Income Taxes
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(1.62
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)
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—
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—
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—
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11.65
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(13.27
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)
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Adjusted Income (Loss)
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47.04
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(7.55
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)
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(4.00
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)
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(0.09
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)
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11.65
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47.03
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On a diluted per share basis
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$
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2.54
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$
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(0.41
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)
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$
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(0.22
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)
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$
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(0.01
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)
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$
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0.63
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$
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2.54
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Shares used in per share calculation
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18.51
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18.51
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18.51
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18.51
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18.51
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18.51
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Three Months ended
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All amounts in millions
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March 31,
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2019
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2018
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GAAP Net Income (Loss)
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$15.76
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$47.04
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Depreciation and Amortization expense
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$7.04
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$5.34
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Interest & Other Expense (Income), net
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$0.74
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$0.54
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Income Tax Expense (Benefit), net
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$6.74
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$1.62
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Stock-based Compensation Expense
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$8.89
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$7.55
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Adjusted EBITDA
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$39.17
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$62.08
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•
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We expect total revenue to be in a range of approximately $510 million to $560 million; this compares to previous guidance of $540 million to $570 million.
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•
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We expect GAAP net income to be in a range of approximately $21 million to $45 million; this compares to previous guidance of $55 million to $69 million.
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•
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We expect GAAP net income per fully diluted share to be in a range of approximately $1.15 to $2.56; this compares to previous guidance of $2.86 to $3.76.
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•
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We expect our 2019 effective tax rate to be 40.0%; this compares to previous guidance of 30.0%.
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•
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We expect non-GAAP adjusted EBITDA to be in a range of approximately $110 million to $150 million; this compares to previous guidance of $145 million to $165 million.
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•
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We expect non-GAAP adjusted income per fully diluted share to be in a range of $3.35 to $4.85; this compares to previous guidance of $5.15 to $6.15.
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Fiscal Year 2019 Guidance
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All amounts in millions
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Low End of Range
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High End of Range
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GAAP net income
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$21.1
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$45.1
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Adjustments to reconcile adjusted EBITDA to GAAP net income:
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Depreciation and amortization expense
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$27.5
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$27.5
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Stock-based compensation expense
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$45.0
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$45.0
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Interest and other expense (income), net
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$2.4
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$2.4
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Income tax expense
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$14.0
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$30.0
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Total adjustments excluded from adjusted EBITDA
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$88.9
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$104.9
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Adjusted EBITDA
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$110.0
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$150.0
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Fiscal Year 2019 Guidance
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All amounts in millions except percentages and per share data
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Low End of Range
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High End of Range
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GAAP net income per fully diluted share
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$1.15
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$2.56
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Adjustments to reconcile non-GAAP to GAAP:
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Stock-based compensation expense
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$45.0
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$45.0
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Amortization of acquired intangibles
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$22.0
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$22.0
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Amortization of debt issuance costs
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$0.4
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$0.4
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Total adjustments excluded from non-GAAP
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$67.4
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$67.4
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Projected effective tax rate
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40.0%
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40.0%
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Increased tax expense from non-GAAP adjustments
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$27.0
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$27.0
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Total tax affected adjustments excluded from non-GAAP
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$40.4
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$40.4
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Fully diluted shares
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18.4
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17.6
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Total adjustments excluded from non-GAAP adjusted income per fully diluted share
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$2.20
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$2.29
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Non-GAAP adjusted income per fully diluted share
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$3.35
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$4.85
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CONDENSED CONSOLIDATED BALANCE SHEETS
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(in thousands, unaudited)
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|||
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March 31,
|
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December 31,
|
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2019
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2018
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ASSETS
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Cash and cash equivalents
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$ 110,925
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$ 113,757
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Accounts receivable, net
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76,079
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|
83,595
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Current income taxes
|
1,723
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|
8,465
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Prepaid expenses and other current assets
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28,846
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|
23,794
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Property and equipment, net
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35,101
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|
36,337
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Goodwill and intangible assets, net
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543,966
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|
545,569
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Deferred income taxes, net
|
29,874
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|
29,874
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Other assets
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29,895
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|
11,383
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Total assets
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$ 856,409
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$ 852,774
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Liabilities:
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Accounts payable, accrued expenses, and other liabilities
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$ 157,572
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$ 152,642
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Debt, net of debt issuance costs
|
58,158
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|
60,643
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Deferred income taxes, net
|
18,749
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|
18,665
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Deferred revenue
|
7,301
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|
7,159
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Total liabilities
|
241,780
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|
239,109
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Stockholders' equity:
|
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Common stock
|
56
|
|
56
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Additional paid-in capital
|
1,063,007
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|
1,049,669
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Treasury stock
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(560,620)
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|
(528,529)
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Retained earnings
|
107,467
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|
91,712
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Accumulated other comprehensive income
|
4,719
|
|
757
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Total stockholders' equity
|
614,629
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|
613,665
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Total liabilities and stockholders' equity
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$ 856,409
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$ 852,774
|