• | Revenue for the fourth quarter of 2017 was $44.2 million, an increase of 2% from $43.5 million in the fourth quarter of 2016 (note that 2016 included the impact of a 53rd week; excluding the impact of the 53rd week, the year over year increase was 9%). Revenue for the year was $174.1 million, an increase of 8% from $161.8 million in the fourth quarter of 2017 (excluding the impact of the 53rd week, the year over year increase was 10%). |
◦ | Revenue attributable to the US Consumer offering totaled $34.0 million in the fourth quarter of 2017, a decrease of 2% from $34.7 million in the fourth quarter of 2016 (note that 2016 included the impact of a 53rd week; excluding the impact of the 53rd week, the year over year increase was 5%). For the year, revenue attributable to the US Consumer offering totaled $137.9 million, an increase of 6% from $130.4 million in 2016 (excluding the impact of the 53rd week, the year over year increase was 8%). |
◦ | Revenue attributable to the Care@Work and B2B Offerings, as well as our services in our international markets, totaled $10.2 million in the fourth quarter of 2017, an increase of 16% from $8.8 million in the fourth quarter of 2016 (excluding the impact of the 53rd week, the year over year increase was 28%). For the year, revenue attributable to these offerings totaled $36.2, an increase of 15% from $31.4 million in 2016 (excluding the impact of the 53rd week, the year over year increase was 18%). |
• | Income from continuing operations in the fourth quarter of 2017 was $7.9 million compared to $5.0 million in the fourth quarter of 2016, an improvement of $2.9 million or 6.4 percentage points of margin. For the full year, income from continuing operations was $10.7 million, compared to a loss from continuing operations of $0.7 million in 2016, an improvement of $11.4 million. Note that both the fourth quarter and full year 2017 include the impact of a one-time benefit of $4.0 million related to the recently passed Tax Cuts and Jobs Act. |
• | Adjusted EBITDA was $11.4 million in the fourth quarter of 2017, compared to $9.1 million in the fourth quarter of 2016, an improvement of $2.3 million. For the year, adjusted EBITDA was $23.3 million, compared to $13.4 million in 2016, an improvement of $9.9 million. |
• | GAAP EPS (Diluted) was $0.19 in the fourth quarter of 2017, compared to $0.12 in the fourth quarter of 2016. Q4 GAAP EPS (Diluted) was based on 33.1 million weighted average diluted shares outstanding versus 30.8 million in the fourth quarter of 2016. For the year, GAAP EPS (Diluted) was $0.22, compared to |
• | Non-GAAP EPS (Diluted) was $0.32 in the fourth quarter of 2017, compared to $0.20 in the fourth quarter of 2016. 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. For the year, Non-GAAP EPS (Diluted) was $0.69, compared to $0.19 in 2016. |
• | The Company ended the quarter with $101.7 million in cash and cash equivalents and short-term investments. |
• | Our total members grew 20% to 27.3 million at the end of FY’17, compared to 22.8 million in the same period of 2016. |
• | Total families grew to 15.5 million at the end of FY’17, an increase of 20% over the end of 2016, and total caregivers grew to 11.8 million at the FY’17, an increase of 19% over the end of 2016. |
Q1 2018 | Full Year 2018 | ||||||||||||||
Revenue | $ | 46.5 | — | $ | 47.0 | $ | 190.0 | — | $ | 191.0 | |||||
Adjusted EBITDA | $ | 6.0 | — | $ | 6.5 | $ | 30.0 | — | $ | 31.0 | |||||
Non-GAAP EPS | ~$0.13 | $ | 0.63 | — | $ | 0.65 | |||||||||
Figures in millions except for Non-GAAP EPS | |||||||||||||||
Q1 Non-GAAP EPS based on approximately 38 million weighted average dilutive shares | |||||||||||||||
Full year Non-GAAP EPS based on 40 million weighted average diluted shares |
Care.com, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
December 30, 2017 | December 31, 2016 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 86,728 | $ | 61,094 | |||
Short-term investments | 15,000 | 15,000 | |||||
Accounts receivable (net of allowance of $102 and $163, respectively) (1) | 5,171 | 2,789 | |||||
Unbilled accounts receivable (2) | 5,454 | 5,541 | |||||
Prepaid expenses and other current assets | 4,883 | 3,787 | |||||
Total current assets | 117,236 | 88,211 | |||||
Property and equipment, net | 3,651 | 4,947 | |||||
Intangible assets, net | 1,142 | 1,708 | |||||
Goodwill | 60,281 | 57,910 | |||||
Other non-current assets | 2,066 | 2,448 | |||||
Total assets | $ | 184,376 | $ | 155,224 | |||
Liabilities, redeemable convertible preferred stock, and stockholders' equity | |||||||
Current liabilities: | |||||||
Accounts payable (3) | $ | 1,873 | $ | 2,483 | |||
Accrued expenses and other current liabilities (4) | 17,086 | 12,798 | |||||
Deferred revenue (5) | 18,626 | 15,971 | |||||
Total current liabilities | 37,585 | 31,252 | |||||
Deferred tax liability | 1,292 | 4,276 | |||||
Other non-current liabilities | 5,779 | 5,087 | |||||
Total liabilities | 44,656 | 40,615 | |||||
Series A Redeemable Convertible Preferred Stock, $0.001 par value; 46 shares designated; 46 shares issued and outstanding at December 30, 2017 and December 31, 2016; at aggregate liquidation and redemption value at December 30, 2017 and December 31, 2016 | 50,259 | 47,660 | |||||
Stockholders' equity | |||||||
Preferred Stock, $0.001 par value; 5,000 shares authorized at December 30, 2017 and December 31, 2016, respectively | — | — | |||||
Common stock, $0.001 par value; 300,000 shares authorized; 30,390 and 28,984 shares issued and outstanding at December 30, 2017 and December 31, 2016, respectively | 30 | 29 | |||||
Additional paid-in capital | 266,030 | 255,031 | |||||
Accumulated deficit | (177,145 | ) | (187,808 | ) | |||
Accumulated other comprehensive income (loss) | 546 | (303 | ) | ||||
Total stockholders' equity | 89,461 | 66,949 | |||||
Total liabilities, redeemable convertible preferred stock and stockholders' equity | $ | 184,376 | $ | 155,224 |
Care.com, Inc. | |||||||||||||||
Consolidated Statement of Operations | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 30, 2017 | December 31, 2016 | December 30, 2017 | December 31, 2016 | ||||||||||||
Revenue (1) | $ | 44,216 | $ | 43,513 | $ | 174,090 | $ | 161,754 | |||||||
Cost of revenue | 8,662 | 8,573 | 35,773 | 31,830 | |||||||||||
Operating expenses: | |||||||||||||||
Selling and marketing (2) | 12,107 | 14,163 | 66,906 | 72,266 | |||||||||||
Research and development | 6,566 | 5,376 | 25,423 | 20,402 | |||||||||||
General and administrative | 9,686 | 8,742 | 35,214 | 31,939 | |||||||||||
Depreciation and amortization | 418 | 471 | 1,684 | 2,972 | |||||||||||
Restructuring charges | 158 | — | 3,136 | 714 | |||||||||||
Total operating expenses | 28,935 | 28,752 | 132,363 | 128,293 | |||||||||||
Operating income | 6,619 | 6,188 | 5,954 | 1,631 | |||||||||||
Other income (expense), net | 282 | (854 | ) | 2,203 | (1,064 | ) | |||||||||
Income from continuing operations before income taxes | 6,901 | 5,334 | 8,157 | 567 | |||||||||||
(Benefit from) provision for income taxes | (1,003 | ) | 330 | (2,506 | ) | 1,282 | |||||||||
Income (loss) from continuing operations | 7,904 | 5,004 | 10,663 | (715 | ) | ||||||||||
(Loss) income from discontinued operations, net of tax | — | (24 | ) | — | 7,761 | ||||||||||
Net income | 7,904 | 4,980 | 10,663 | 7,046 | |||||||||||
Accretion of Series A Redeemable Convertible Preferred Stock dividends | (657 | ) | (694 | ) | (2,599 | ) | (1,310 | ) | |||||||
Accretion of Series A Redeemable Convertible Preferred Stock issuance costs | — | — | — | (2,124 | ) | ||||||||||
Net income attributable to Series A Redeemable Convertible Preferred Stock | (992 | ) | (582 | ) | (1,120 | ) | (467 | ) | |||||||
Net income attributable to common stockholders | $ | 6,255 | $ | 3,704 | $ | 6,944 | $ | 3,145 | |||||||
Net income per share attributable to common stockholders (Basic): | |||||||||||||||
Income (loss) from continuing operations attributable to common stockholders | $ | 0.21 | $ | 0.13 | $ | 0.23 | $ | (0.12 | ) | ||||||
Income from discontinued operations attributable to common stockholders | — | — | — | 0.22 | |||||||||||
Net income per share attributable to common stockholders | $ | 0.21 | $ | 0.13 | $ | 0.23 | $ | 0.10 | |||||||
Net income per share attributable to common stockholders (Diluted): | |||||||||||||||
Income (loss) from continuing operations attributable to common stockholders | $ | 0.19 | $ | 0.12 | $ | 0.22 | $ | (0.12 | ) | ||||||
Income from discontinued operations attributable to common stockholders | — | — | — | 0.22 | |||||||||||
Net income per share attributable to common stockholders | $ | 0.19 | $ | 0.12 | $ | 0.22 | $ | 0.10 | |||||||
Weighted-average shares used to compute net income per share attributable to common stockholders: | |||||||||||||||
Basic | 30,189 | 28,864 | 29,680 | 30,535 | |||||||||||
Diluted | 33,128 | 30,815 | 32,406 | 30,535 |
Care.com, Inc. | |||||||
Consolidated Statement of Cash Flows | |||||||
(in thousands) | |||||||
Year Ended | |||||||
December 30, 2017 | December 31, 2016 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 10,663 | 7,046 | ||||
Income from discontinued operations, net of tax | — | 7,761 | |||||
Income (loss) from continuing operations | 10,663 | (715 | ) | ||||
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities: | |||||||
Stock-based compensation | 9,693 | 6,470 | |||||
Depreciation and amortization | 2,240 | 3,722 | |||||
Deferred taxes | (2,983 | ) | 1,110 | ||||
Foreign currency remeasurement (gain) loss | (1,838 | ) | 1,261 | ||||
Other non-operating expenses | 489 | 41 | |||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||
Accounts receivable | (2,349 | ) | 281 | ||||
Unbilled accounts receivable | 95 | (1,947 | ) | ||||
Prepaid expenses and other current assets | (647 | ) | (589 | ) | |||
Other non-current assets | 95 | (3 | ) | ||||
Accounts payable | (638 | ) | (688 | ) | |||
Accrued expenses and other current liabilities | 3,031 | 938 | |||||
Deferred revenue | 2,531 | 2,581 | |||||
Other non-current liabilities | 1,751 | 228 | |||||
Net cash provided by operating activities by continuing operations | 22,133 | 12,690 | |||||
Net cash provided by operating activities by discontinued operations | — | 2,421 | |||||
Net cash provided by operating activities | 22,133 | 15,111 | |||||
Cash flows from investing activities | |||||||
Purchases of property and equipment and software | (792 | ) | (244 | ) | |||
Payments for acquisitions, net of cash acquired | — | (420 | ) | ||||
Proceeds from security deposit for sub-lease | — | 84 | |||||
Payments for security deposits | (33 | ) | — | ||||
Purchases of short-term investments | (15,000 | ) | (15,000 | ) | |||
Sale of short-term investments | 15,000 | — | |||||
Net cash used in investing activities | (825 | ) | (15,580 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from issuance of Series A Redeemable Convertible Preferred Stock, net of issuance costs of $2,124 | — | 44,226 | |||||
Proceeds from exercise of common stock options | 3,906 | 1,406 | |||||
Payment for repurchase of common stock | — | (30,524 | ) | ||||
Net cash provided by (used in) financing activities by continuing operations | 3,906 | 15,108 | |||||
Net cash used in financing activities by discontinued operations | — | (14,510 | ) | ||||
Net cash provided by financing activities | 3,906 | 598 | |||||
Effect of exchange rate changes on cash and cash equivalents | 420 | (275 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 25,634 | (146 | ) | ||||
Cash and cash equivalents, beginning of the period | 61,094 | 61,240 | |||||
Cash and cash equivalents, end of the period | $ | 86,728 | $ | 61,094 |
Care.com, Inc. | |||||||||||||||
Reconciliation of Adjusted EBITDA & Non-GAAP Income | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 30, 2017 | December 31, 2016 | December 30, 2017 | December 31, 2016 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Net income (loss) from continuing operations | $ | 7,904 | $ | 5,004 | $ | 10,663 | $ | (715 | ) | ||||||
Federal, state and franchise taxes | (929 | ) | 408 | (2,228 | ) | 1,619 | |||||||||
Other (income) expense, net | (282 | ) | 854 | (2,203 | ) | 1,064 | |||||||||
Depreciation and amortization | 539 | 652 | 2,240 | 3,722 | |||||||||||
EBITDA | 7,232 | 6,918 | 8,472 | 5,690 | |||||||||||
Stock-based compensation | 3,107 | 1,705 | 9,693 | 6,470 | |||||||||||
Merger and acquisition related costs | 171 | 28 | 407 | 128 | |||||||||||
Restructuring related costs | 158 | — | 3,136 | 714 | |||||||||||
Litigation related costs | 561 | 400 | 636 | 400 | |||||||||||
Software implementation costs | 14 | — | 471 | — | |||||||||||
Severance related costs | 166 | — | 487 | — | |||||||||||
Adjusted EBITDA | $ | 11,409 | $ | 9,051 | $ | 23,302 | $ | 13,402 | |||||||
Add back for Non-GAAP Net Income (Loss) | |||||||||||||||
Federal, state and franchise taxes | 929 | (408 | ) | 2,228 | (1,619 | ) | |||||||||
Other expense, net | 282 | (854 | ) | 2,203 | (1,064 | ) | |||||||||
Depreciation and amortization | (539 | ) | (652 | ) | (2,240 | ) | (3,722 | ) | |||||||
Non-GAAP net income | $ | 12,081 | $ | 7,137 | $ | 25,493 | $ | 6,997 | |||||||
Non-GAAP net income per share: | |||||||||||||||
Basic | $ | 0.40 | $ | 0.25 | $ | 0.86 | $ | 0.23 | |||||||
Diluted | $ | 0.32 | $ | 0.20 | $ | 0.69 | $ | 0.19 | |||||||
Weighted-average shares used to compute non-GAAP net income per share : | |||||||||||||||
Basic | 30,189 | 28,864 | 29,680 | 30,535 | |||||||||||
Diluted | 37,915 | 35,354 | 37,192 | 36,736 |
Care.com, Inc. | ||||||||||||||||
Reconciliation of Non-GAAP EPS | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, 2016 | December 26, 2015 | December 31, 2016 | December 26, 2015 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Weighted-average shares used to compute net income per share: | ||||||||||||||||
Diluted | 37,915 | 35,354 | 37,192 | 36,736 | ||||||||||||
Net income per share (Diluted): | ||||||||||||||||
Net income per share attributable to common stockholders | $ | 0.16 | $ | 0.10 | $ | 0.19 | $ | 0.09 | ||||||||
Impact on net income per share of Series A related costs | 0.04 | 0.04 | 0.10 | 0.11 | ||||||||||||
Adjusted net income per share | $ | 0.21 | $ | 0.14 | $ | 0.29 | $ | 0.19 | ||||||||
Income from discontinued operations, net of tax | — | 0.00 | — | (0.21 | ) | |||||||||||
Stock-based compensation | 0.08 | 0.05 | 0.26 | 0.18 | ||||||||||||
Merger and acquisition related costs | 0.00 | 0.00 | 0.01 | 0.00 | ||||||||||||
Restructuring related costs | 0.00 | — | 0.08 | 0.02 | ||||||||||||
Litigation related costs | 0.01 | 0.01 | 0.02 | 0.01 | ||||||||||||
Software implementation costs | 0.00 | — | 0.01 | — | ||||||||||||
Severance related costs | 0.00 | — | 0.01 | — | ||||||||||||
Non-GAAP net income per share - diluted | $ | 0.32 | $ | 0.20 | $ | 0.69 | $ | 0.19 |
Care.com, Inc. | |||||||
Supplemental Data | |||||||
(in thousands, except monthly average revenue per member) | |||||||
Period Ended | |||||||
December 30, 2017 | December 31, 2016 | ||||||
Total members* | 27,312 | 22,826 | |||||
Total families* | 15,510 | 12,900 | |||||
Total caregivers* | 11,802 | 9,926 | |||||
Paying families - US Consumer Business | 302 | 274 | |||||
* data is cumulative as of the end of the respective period and excludes families from discontinued operations | |||||||
Period Ended | |||||||
December 30, 2017 | December 31, 2016 | ||||||
Monthly average revenue per paying family | |||||||
US Consumer Business | $ | 40 | $ | 40 |