WALTHAM, 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 third quarter ended September 29, 2018.

“Q3 was another quarter of profitable growth for us. We saw net income grow $1.6 million vs. prior and had another consecutive quarter of double-digit EBITDA margins,” said Sheila Lirio Marcelo, Founder, Chairwoman and CEO of Care.com. “We continued making progress on our key strategic initiatives – including increasing the penetration of Care@Work among the largest and most admired employers – and believe that the building blocks are in place to accelerate top-line growth in 2019 and beyond.”

Financial Results

• Revenue for the third quarter of 2018 was $49.2 million, an increase of 10% from $44.5 million in the third quarter of 2017.

• Revenue attributable to the US Consumer offering totaled $38.5 million in the third quarter of 2018, an increase of 9% from $35.4 million in the third quarter of 2017.
• Revenue attributable to our Other businesses totaled $10.7 million in the third quarter of 2018, an increase of 18% from $9.1 million in the third quarter of 2017.

• Net income was $1.9 million in the third quarter of 2018, compared to $0.3 million in the third quarter of 2017, an increase of $1.6 million.
• Adjusted EBITDA was $6.9 million in the third quarter of 2018, compared to $6.1 million in the third quarter of 2017, an improvement of $0.7 million.
• GAAP EPS (Diluted) was $0.03 in the third quarter of 2018, compared to a loss of $0.01 in the third quarter of 2017. Q3 GAAP EPS (Diluted) was based on 33.9 million weighted average diluted shares outstanding versus 32.5 million in the third quarter of 2017.
• Non-GAAP EPS (Diluted) was $0.18 in the third quarter of 2018, in line with the third quarter of 2017, which was also $0.18. 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 $119.7 million in cash and cash equivalents and short-term investments.

Business Highlights

• Our total members grew 17% to 30.8 million at the end of the third quarter of 2018, compared to 26.4 million in the same period of 2017.
• Total families grew to 17.7 million at the end of the third quarter of 2018, an increase of 18% over the same period of 2017, and total caregivers grew to 13.1 million at the end of the third quarter of 2018, an increase of 15% over the same period of 2017.

Financial Expectations

Figures in millions except for Non-GAAP EPS
Q4 Non-GAAP EPS based on approximately 39 million weighted average dilutive shares
FY'18 full-year Non-GAAP EPS based on approximately 39 million weighted average diluted shares

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 17.7 million families and 13.1 million caregivers* across more than 20 countries, including the U.S., UK, Canada and parts of Western Europe, and approximately 1.5 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.