Annual report pursuant to Section 13 and 15(d)

Segment Information and Geographic Data

v3.20.4
Segment Information and Geographic Data
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information and Geographic Data Segment Information and Geographic Data
    Segment Information
Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (CODM) for purposes of allocating resources and evaluating financial performance. The Company's Chairman and Chief Executive Officer has been identified as the CODM as defined by guidance regarding segment disclosures.
The Company’s reportable segments have been determined based on the distinct nature of their operations and customer bases, and the financial information that is evaluated regularly by the CODM. Following the Metapack acquisition (see Note 3) in 2018, the Company added a new segment for the Metapack business. Previously, the Company had a single reportable segment.
The Stamps.com segment derives revenue from external customers from offering mailing and shipping labels online and shipping software solutions to consumers, small businesses, e-commerce shippers, enterprise mailers, and high volume shippers. The Stamps.com reportable segment includes the results of brand names Stamps.com, Endicia, ShippingEasy, ShipStation, and ShipWorks. Stamps.com's customers are primarily located in the US.
Beginning October 1, 2020, the Stamps.com segment includes operations in Atlanta, Georgia that were previously reported as part of the Metapack segment. Prior period segment revenues and income (loss) from operations have not been restated as the impact was not material.
The Metapack segment consists of the operations of Metapack which derives revenues from external customers from offering multi-carrier enterprise-level shipping software solutions to large e-commerce retailers and brands. Metapack's customers are primarily located in Europe.
Revenues, cost of revenues, and operating expenses are generally directly attributed to our segments. Inter-segment revenues are not presented separately, as these amounts are immaterial. Our CODM does not evaluate operating segments using asset information, and therefore total segment assets are not presented.
The following table presents our segment information and includes a reconciliation of income from operations to income before income taxes (in thousands):
Year Ended December 31,
2020 2019 2018
Segment revenues
Stamps.com $ 695,929  $ 519,088  $ 566,580 
Metapack 62,051  52,762  20,350 
Total revenues $ 757,980  $ 571,850  $ 586,930 
Segment income (loss) from operations
Stamps.com $ 205,863  $ 105,242  $ 195,409 
Metapack (7,711) (11,679) (1,010)
Total income (loss) from operations $ 198,152  $ 93,563  $ 194,399 
Company's total segment income from operations $ 198,152  $ 93,563  $ 194,399 
Foreign currency exchange loss, net (470) (506) (992)
Interest expense (1,114) (2,513) (2,595)
Interest income and other income, net 68  205  102 
Income before income taxes $ 196,636  $ 90,749  $ 190,914 
Stamps.com segment income from operations included depreciation and amortization expense of $19.1 million, $20.4 million, and $21.3 million in the years ended December 31, 2020, 2019 and 2018, respectively. Metapack segment loss from operations included depreciation and amortization expense of $6.9 million, $7.5 million, and $2.8 million in years ended December 31, 2020, 2019 and 2018, respectively.
Stamps.com segment income from operations included share-based compensation expense of $36.6 million, $38.2 million, and $33.7 million in years ended December 31, 2020, 2019 and 2018, respectively. Metapack segment loss from operations included share-based compensation expense of $6.9 million, $4.7 million, and $2.6 million in years ended December 31, 2020, 2019 and 2018, respectively.
    Geographic Data
No sales to an individual customer or country other than the US accounted for more than 10% of revenue for the years ended December 31, 2020, 2019, or 2018.
The following table presents our revenues by geography, based on the billing addresses of our customers (in thousands, unaudited):
Year Ended December 31,
2020 2019 2018
Revenues
United States $ 691,891  $ 517,987  $ 564,731 
International 66,089  53,863  22,199 
Total revenues $ 757,980  $ 571,850  $ 586,930