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 second quarter ended June 29, 2019.

“During Q2 we began to feel the effects of downward pressure on conversion and on traffic from word of mouth within the U.S. Matching business, which led to slower revenue growth in Q2 and lowered revenue guidance for the full year,” said Shelia Lirio Marcelo, Founder, Chairwoman and CEO of Care.com. “Care@Work, on the other hand, continues to grow impressively. Overall, as the leading digital care marketplace by a large margin, we remain optimistic about the market opportunity and look forward to our next chapter of growth.”

Financial Results

• Revenue for the second quarter of 2019 was $51.0 million, an increase of 11% from $46.0 million in the second quarter of 2018.
  • Revenue attributable to the US Consumer offering totaled $38.2 million in the second quarter of 2019, an increase of 7% from $35.6 million in the second quarter of 2018.
  • Revenue attributable to our Other businesses totaled $12.8 million in the second quarter of 2019, an increase of 23% from $10.4 million in the second quarter of 2018.

• Net loss was $64.8 million in the second quarter of 2019, compared to net loss of $0.2 million in the second quarter of 2018, a decrease of $64.6 million. The significant decrease was primarily attributable to the establishment of a valuation allowance related to certain net operating losses and deferred tax assets and, to a lesser extent, the impairment and other charges recognized on the Figure 8 acquisition.

• Adjusted EBITDA was a $5.9 million in the second quarter of 2019, compared to $5.9 million in the second quarter of 2018.

• GAAP EPS (Diluted) was a loss of $2.01 in the second quarter of 2019, compared to a loss of $0.03 in the second quarter of 2018. Q2 GAAP EPS (Diluted) was based on 32.5 million weighted average diluted shares outstanding versus 30.6 million in the second quarter of 2018.

• Non-GAAP EPS (Diluted) was $0.09 in the second quarter of 2019, compared to the second quarter of 2018, which was $0.14. 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, and the realization of a valuation allowance on deferred tax assets.

• The Company ended the quarter with $124.8 million in cash and cash equivalents and short-term investments.

Sheila Lirio Marcelo to be named Executive Chairwoman

• Today, Ms. Marcelo announced that the Company will initiate a search for a new Chief Executive Officer and that she will transition to the role of Executive Chairwoman to focus her efforts on advocating for improvements and innovations in the country’s care infrastructure to better enable families to find quality care and caregivers to find meaningful work. Ms. Marcelo will remain CEO until her successor is appointed, participating in the search process with the other members of the Board of Directors, and transition to Executive Chairwoman at that time.

Business Highlights

• Our total members grew 15% to 34.1 million at the end of the second quarter of 2019, compared to 29.6 million in the same period of 2018.

• Total families grew to 19.8 million at the end of the second quarter of 2019, an increase of 17% over the same period of 2018, and total caregivers grew to 14.3 million at the end of the second quarter of 2019, an increase of 13% over the same period of 2018.

Financial Expectations

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 19.8 million families and 14.3 million caregivers* across more than 20 countries, including the U.S., UK, Canada and parts of Western Europe, and approximately 1.7 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.