Care.com Announces Second Quarter 2016 Financial Results

7/27/16

WALTHAM, Mass.--(BUSINESS WIRE)--Care.com (NYSE: CRCM), the world's largest online destination for finding and managing family care, today announced financial results for the second quarter ended June 25, 2016.

"I’m excited that we beat our Q2 guidance on both revenue and adjusted EBITDA. We’ve built the largest two-sided network for finding family care in the home with 9.1 million caregivers and 11.6 million families – and we have a sizable opportunity ahead of us,” said Sheila Lirio Marcelo, Founder, Chairwoman and CEO of Care.com. "We are coming off our sixth quarter in a row of solid improvements in sales and marketing leverage and are committed to driving shareholder value through sustained profitable growth. And as part of the Google Capital investment, we now have access to some of the world’s leading experts at Google and Alphabet to help us continue to grow our business and differentiate our products."

Financial Results

  • Revenue for the second quarter of 2016 was $38.2 million, compared to $32.9 million in the second quarter of 2015.
  • Revenue attributable to the US Consumer Business totaled $30.7 million in the second quarter of 2016, a 13% increase from $27.1 million in the second quarter of 2015.
  • Revenue attributable to the Care@Work, International and B2B businesses totaled $7.5 million in the second quarter of 2016, an increase of 28% from the second quarter of 2015.
  • Loss from continuing operations in the second quarter of 2016 was $3.4 million compared to a loss of $5.4 million in 2015, an improvement of $2.0 million.
  • Adjusted EBITDA was income of $1.0 million in the second quarter of 2016, compared to an adjusted EBITDA loss of $2.7 million in the second quarter of 2015, an improvement of $3.7 million.
  • GAAP EPS was $(0.11) in the second quarter of 2016, compared to a $(0.23) in the second quarter of 2015. Q2 GAAP EPS was based on 32.1 million weighted average basic shares outstanding versus 32.0 million shares outstanding in the second quarter of 2015.
  • Non-GAAP EPS was $(0.03) in the second quarter of 2016, compared to $(0.12) in the second quarter of 2015. Non-GAAP EPS excludes the impact of non-cash stock-based compensation and non-recurring items, such as M&A expenses and restructuring costs. The impact of the Company’s better-than-expected EBITDA is offset by $(0.02) due to a timing change in the recognition of its federal tax provision. Non-GAAP EPS for the quarter would have been $(0.01) had it not been for this timing change.
  • The Company ended the quarter with $55.6 million in cash and cash equivalents.

Business Highlights

  • Our total members grew 29% to 20.7 million at the end of the second quarter of 2016, compared to 16.1 million at the end of the second quarter 2015.
  • Total families grew to 11.6 million at the end of the second quarter of 2016, an increase of 30% over the second quarter of 2015, and total caregivers grew to 9.1 million at the end of the second quarter of 2016, an increase of 27% over the second quarter of 2015.

About Care.com

Since launching in 2007, Care.com (NYSE: CRCM) has been committed to solving the complex care challenges that impact families, caregivers, employers, and care service companies. Today, Care.com is the world’s largest online destination for finding and managing family care, with 11.6 million families and 9.1 million caregivers* across 18 countries, including the U.S., UK, Canada and parts of Western Europe, and approximately 800,000 employees of corporate clients having access to our services. Spanning child care to senior care, pet care, housekeeping and more, Care.com provides a sweeping array of services for families and caregivers to find, manage and pay for care or find employment. These include: a comprehensive suite of safety tools and resources members may use to help make more informed hiring decisions - such as third-party background check services, monitored messaging, and tips on hiring best practices; easy ways for caregivers to be paid online or via mobile app; and household payroll and tax services provided by Care.com HomePay. Care.com builds employers customized benefits packages covering child care, back up care and senior care consulting services through its Care@Work business, and serves care businesses with marketing and recruiting support. To connect families further, Care.com acquired community platforms Big Tent and Kinsights in 2013 and 2015, respectively. Headquartered in Waltham, Massachusetts, Care.com has offices in Berlin, Austin, New York City and the San Francisco Bay area.