Annual report pursuant to Section 13 and 15(d)

Segment Information and Geographic Data

v3.19.3.a.u2
Segment Information and Geographic Data
12 Months Ended
Dec. 31, 2019
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.
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.
In 2019, the Company allocated share-based compensation expense to the Stamps.com and MetaPack segments. Previously, share-based compensation expense was allocated to the Stamps.com segment only. Amounts in prior periods have been reclassified to conform with current period presentation.

Information about segments during the periods presented were as follows (in thousands):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Segment revenues
 
 
 
 
 
Stamps.com
$
519,088

 
$
566,580

 
$
468,709

MetaPack
52,762

 
20,350

 

Total revenues
$
571,850

 
$
586,930

 
$
468,709

 
 
 
 
 
 
Segment income (loss) from operations
 
 
 
 
 
Stamps.com
$
105,242

 
$
195,409

 
$
163,503

MetaPack
(11,679
)
 
(1,010
)
 

Total income from operations
$
93,563

 
$
194,399

 
$
163,503

 
 
 
 
 
 
Company's total segment income from operations
$
93,563

 
$
194,399

 
$
163,503

Foreign currency exchange loss, net
(506
)
 
(992
)
 

Interest expense
(2,513
)
 
(2,595
)
 
(3,669
)
Interest income and other income, net
205

 
102

 
414

Income before income taxes  
$
90,749

 
$
190,914

 
$
160,248



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, 2019, 2018, or 2017.
The following table presents our revenues by geography, based on the billing addresses of our customers (in thousands, unaudited):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Revenues
 
 
 
 
 
United States
$
517,987

 
$
564,731

 
$
468,709

International
53,863

 
22,199

 

Total revenues
$
571,850

 
$
586,930

 
$
468,709