ALTHAM, Mass.--(BUSINESS WIRE)--Care.com (NYSE:CRCM), the world's largest online destination for finding and managing family care, today is announcing financial results for the second quarter ended June 30, 2018.

“We had a strong second quarter of 2018, with revenue at the top end of our guidance range and – while we were just below breakeven on GAAP net income as a result of the foreign exchange impact of a weakening Euro – EBITDA generated across our businesses exceeded our expectations and EBITDA margin was double prior year at 13%. These notable EBITDA gains were driven by the strength in the underlying health of our core US Consumer business, which continued to show strong improvements in unit economics as we also grew end-of-period paying families by 10% versus prior year. As a result, we generated an incremental $7 million in cash,” said Sheila Lirio Marcelo, Founder, Chairwoman and CEO of Care.com. “Over the past couple of years, we have been pleased with our continuous progress on initiatives that we expect will drive consistent long-term profitable growth – including top line acceleration in 2019 and beyond.”

Financial Results

• Revenue for the second quarter of 2018 was $46.0 million, an increase of 10% from $42.0 million in the second quarter of 2017.
  • Revenue attributable to the US Consumer offering totaled $35.6 million in the second quarter of 2018, an increase of 7% from $33.4 million in the second quarter of 2017.
  • Revenue attributable to the Care@Work and other B2B Offerings, as well as our services in our international markets, totaled $10.4 million in the second quarter of 2018, an increase of 21% from $8.6 million in the second quarter of 2017.
• Net loss was $0.2 million in the second quarter of 2018, compared to net income of $1.7 million in the second quarter of 2017, a decrease of $1.9 million, primarily attributable to an increase in stock-based compensation expense and a foreign exchange loss resulting from the weakening of the Euro.
• Adjusted EBITDA was $5.9 million in the second quarter of 2018, compared to $2.6 million in the second quarter of 2017, an improvement of $3.3 million.
• GAAP EPS (Diluted) was ($0.03) in the second quarter of 2018, compared to $0.03 in the second quarter of 2017. Q2 GAAP EPS (Diluted) was based on 30.6 million weighted average diluted shares outstanding versus 32.2 million in the second quarter of 2017.
• Non-GAAP EPS (Diluted) was $0.14 in the second quarter of 2018, compared to $0.11 in the second quarter of 2017. Note that Non-GAAP EPS excludes the impact of non-cash stock-based compensation, adjustments relating to preferred stock and other non-recurring items, such as M&A expenses and restructuring costs.
• The Company ended the quarter with $113.6 million in cash and cash equivalents and short-term investments.

Business Highlights

• Our total members grew 17% to 29.6 million at the end of the second quarter of 2018, compared to 25.2 million in the same period of 2017.
• Total families grew to 16.9 million at the end of the second quarter of 2018, an increase of 19% over the same period of 2017, and total caregivers grew to 12.7 million at the end of the second quarter of 2018, an increase of 16% over the same period of 2017.

Future GAAP Net Income and GAAP EPS may be significantly affected by changes in ongoing assumptions and judgments, and may also be affected by non-recurring, unusual or unanticipated charges, expenses or gains, which we are not able to estimate and which therefore are excluded in the calculation of the Company’s non-GAAP EPS guidance as described in this press release. Due to the nature of any such items, we are not able to estimate their significance, and it is therefore currently not practical to reconcile adjusted EBITDA and non-GAAP EPS guidance to the most comparable GAAP measure.

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 16.9 million families and 12.7 million caregivers* across more than 20 countries, including the U.S., UK, Canada and parts of Western Europe, and approximately 1.4 million 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 Care.com Benefits, including the household payroll and tax services provided by Care.com HomePay and the Care Benefit Bucks program, a peer-to-peer pooled, portable benefits platform funded by household employer contributions which provides caregivers access to professional benefits. For enterprise clients, Care.com builds 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. Headquartered in Waltham, Massachusetts, Care.com has offices in Berlin, Austin and the San Francisco Bay area.