Miércoles 23 de Agosto 2017

Care.com Announces Fourth Quarter and Full Year 2016 Financial Results

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Care.com Reports First Full-Year Operating Income, While Exceeding
Guidance on the Top and Bottom Lines

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 fourth quarter and full year ended December 31, 2016.

“2016 was a year of significant progress for Care.com, our first
full-year with operating income as we continued to see overall topline
growth. Key drivers in our results included rapid growth in
our enterprise business, along with continuous optimization of our
customer acquisition costs and improving overall unit economics in our
consumer business. Thus, we exceeded our guidance expectations on both
the top and bottom lines during the fourth quarter and the full year,”
said Sheila Lirio Marcelo, Founder, Chairwoman and CEO of Care.com. “We
plan to further strengthen what is today the largest two-sided network
for finding and managing family care in the home while expanding our OI
and adjusted EBITDA margins in 2017 and increasing shareholder value. We
are committed to growing profitably as we drive toward our long-term
EBITDA margin target of 20 to 25%.”

Financial Results

  • Revenue for the fourth quarter of 2016 was $43.5 million, compared to
    $37.6 million in the fourth quarter of 2015. Revenue for the year was
    $161.8 million in 2016, compared to $138.7 million in 2015.
  • Revenue attributable to the US Consumer offering totaled $34.7 million
    in the fourth quarter of 2016, a 12% increase from $31.1 million in
    the fourth quarter of 2015. For the year, revenue attributable to the
    US Consumer offering totaled $130.4 million in 2016, an increase of
    13% from $115.0 million in 2015.
  • Revenue attributable to the Care@Work and B2B Offerings, as well as
    our services in our international markets, totaled $8.8 million in the
    fourth quarter of 2016, an increase of 35% from $6.5 million in the
    fourth quarter of 2015. For the year, revenue attributable to these
    offerings totaled $31.4 million in 2016, an increase of 32% from $23.7
    million in 2015.
  • Income from continuing operations in the fourth quarter of 2016 was
    $5.0 million compared to $3.7 million in 2015, an improvement of $1.3
    million. For the year, loss from continuing operations was $0.7
    million in 2016 compared to $17.9 million in 2015, an improvement of
    $17.2 million.
  • Adjusted EBITDA was income of $9.1 million in the fourth quarter of
    2016, compared to $6.3 million in 2015, an improvement of $2.8
    million. For the year, Adjusted EBITDA was income of $13.4 million in
    2016, compared to a loss of $5.0 million in 2015, an improvement of
    $18.4 million.
  • GAAP EPS (Diluted) was $0.12 in the fourth quarter of 2016, compared
    to $0.05 in 2015. Q4 GAAP EPS (Diluted) was based on 30.8 million
    weighted average basic shares outstanding versus 33.1 million in the
    fourth quarter of 2015. For the year, GAAP EPS (Diluted) was $0.10 in
    2016, compared to $(1.09) in 2015. FY’16 GAAP EPS was based on 30.5
    million weighted average basic shares outstanding versus 32.0 million
    in 2015. Note that GAAP EPS for both the full year and the fourth
    quarter includes the impact of costs associated with our series A
    preferred stock – a $(0.13) impact for the full year and a $(0.04)
    impact for Q4.
  • Non-GAAP EPS was $0.20 in the fourth quarter of 2016, compared to
    $0.14 in 2015. For the year, Non-GAAP EPS was $0.19 in 2016, compared
    to $(0.40) in 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 Company ended the quarter with $76.1 million in cash and cash
    equivalents and short-term investments.

Business Highlights

  • Our total members grew 24% to 22.8 million at the end of 2016,
    compared to 18.4 million at the end of 2015.
  • Total families grew to 12.9 million at the end of 2016, an increase of
    26% over 2015, and total caregivers grew to 9.9 million at the end of
    2016, an increase of 22% over 2015.

Financial Expectations

        Q1 2017         Full Year 2017
               
Revenue $ 42.25 $ 42.75 $ 170.0 $ 172.0
 
Adjusted EBITDA $ 1.25 $ 1.75 $ 19.0 $ 21.0
 
Non-GAAP EPS $ 0.02 $ 0.03 $ 0.33 $ 0.36

Figures in millions except for Non-GAAP EPS
Q1 Non-GAAP EPS based
on approximately 36 million weighted average dilutive shares
Full
year Non-GAAP EPS based on approximately 37 million weighted average
diluted shares

Future GAAP Net Income (Loss) 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.

Earnings Teleconference Information

The Company will host a conference call at 8:00 AM ET today to discuss
these results. The conference call will be accessible at (877) 407-4018
or (201) 689-8471 (International), conference ID# 13652430. The call
will also be broadcast simultaneously at http://investors.care.com.
Following completion of the call, a recorded replay of the webcast will
be available on Care.com’s website. To listen to the telephone replay,
call toll-free (844) 512-2921 or (412) 317-6671 (International),
conference ID# 13652430. The telephone replay will be available from
11:00 AM ET March 9 through 11:59 PM ET March 16, 2017. Additional
investor information can be accessed at http://www.care.com.

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
12.9 million families and 9.9 million caregivers* across 19 countries,
including the U.S., UK, Canada and parts of Western Europe, and
approximately 1.2 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. 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.

*As of December 2016

Cautionary Language Concerning Forward-Looking Statements:

This press release contains “forward-looking statements” within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995, including but not limited to, statements
regarding the future profitability of our business on an operating
income and adjusted EBITDA basis, our ability to increase shareholder
value, and the Company’s financial guidance for the first quarter of
2017 and full year 2017.

These forward-looking statements are made as of the date they were first
issued and were based on current expectations, estimates, forecasts and
projections as well as the beliefs and assumptions of management. Words
such as “plan,” “expect,” “anticipate,” “should,” “believe,” “hope,”
“target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,”
“will,” “might,” “could,” “intend,” variations of these terms or the
negative of these terms and similar expressions are intended to identify
these forward-looking statements. Forward-looking statements are subject
to a number of risks and uncertainties, many of which involve factors or
circumstances that are beyond the Company’s control. The Company’s
actual results could differ materially from those stated or implied in
forward-looking statements due to a number of factors, including but not
limited to: our ability to grow our membership while leveraging our
investment in sales and marketing, our success in converting non-paying
members to paying members, our ability to cross-sell new and existing
products and services to our members and to develop new products and
services that members consider valuable, our ability to protect our
brand and maintain our reputation among our members, and other risks
detailed in the Company’s other publicly available filings with the
Securities and Exchange Commission. Past performance is not necessarily
indicative of future results. The forward-looking statements included in
this press release represent the Company’s views as of the date of this
press release. The Company anticipates that subsequent events and
developments will cause its views to change. The Company undertakes no
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. These forward-looking statements should not be relied upon as
representing the Company’s views as of any date subsequent to the date
of this press release.

Use of Non-GAAP Financial Measures

To supplement the financial measures presented in the Company’s press
release and related conference call or webcast in accordance with
accounting principles generally accepted in the United States (“GAAP”),
we also present the following non-GAAP measures of financial
performance: adjusted EBITDA, non-GAAP net income (loss) from continuing
operations and non-GAAP earnings per share from continuing operations
(“EPS”).

A “non-GAAP financial measure” refers to a numerical measure of the
Company’s historical or future financial performance, financial
position, or cash flows that excludes (or includes) amounts that are
included in (or excluded from) the most directly comparable measure
calculated and presented in accordance with GAAP in the Company’s
financial statements. The Company provides certain non-GAAP measures as
additional information relating to its operating results as a complement
to results provided in accordance with GAAP. The non-GAAP financial
information presented here should be considered in conjunction with, and
not as a substitute for or superior to, the financial information
presented in accordance with GAAP and should not be considered a measure
of the Company’s liquidity. There are significant limitations associated
with the use of non-GAAP financial measures. Further, these measures may
differ from the non-GAAP information, even where similarly titled, used
by other companies and therefore should not be used to compare the
Company’s performance to that of other companies.

The Company has presented: adjusted EBITDA, non-GAAP net income (loss)
from continuing operations and non-GAAP EPS as non-GAAP financial
measures in this press release. We define adjusted EBITDA as loss from
continuing operations, which excludes the accretion of preferred stock
dividends and issuance costs, plus: federal, state and franchise taxes,
other expense, net, depreciation and amortization, stock-based
compensation, accretion of contingent consideration, merger and
acquisition related costs, and other unusual or non-cash significant
adjustments, such as impairment and restructuring charges. Adjusted
EBITDA eliminates the effects of financing, income taxes and the
accounting effects of capital spending, which is based on the Company’s
estimate of the useful life of tangible and intangible assets. We define
non-GAAP net income (loss) as loss from continuing operations, which
excludes the accretion of preferred stock dividends, plus stock-based
compensation, accretion of contingent consideration, merger and
acquisition related costs, and other unusual or non-cash significant
adjustments such as impairment and restructuring charges. We define
non-GAAP EPS as non-GAAP net income (loss) divided by diluted
weighted-average shares outstanding, using the treasury stock method.

The Company believes the use of non-GAAP financial measures, as a
supplement to GAAP measures, is useful to investors in that they
eliminate items that are either not part of the Company’s core
operations or do not require a cash outlay, such as stock-based
compensation. Care.com’s management uses these non-GAAP financial
measures when evaluating the Company’s operating performance and for
internal planning and forecasting purposes. The Company believes that
these non-GAAP financial measures help indicate underlying trends in the
Company’s business, are important in comparing current results with
prior period results, and are useful to investors and financial analysts
in assessing the Company’s operating performance.

                 
Care.com, Inc.
Consolidated Balance Sheets
(in thousands)

December 31,

2016

December 26,

2015

Assets (unaudited)
Current assets:
Cash and cash equivalents $ 61,094 $ 61,240
Short-term investments 15,000
Accounts receivable (net of allowance of $163 and $125,
respectively) (1)
2,789 3,107
Unbilled accounts receivable (2) 5,541 3,595
Prepaid expenses and other current assets 3,787 2,599
Current assets of discontinued operations       439  
Total current assets 88,211 70,980
Property and equipment, net 4,947 6,371
Intangible assets, net 1,708 3,389
Goodwill 57,910 58,631
Other non-current assets 2,448 3,098
Non-current assets of discontinued operations       9  
Total assets $ 155,224   $ 142,478  
 
Liabilities, redeemable convertible preferred stock, and
stockholders’ equity
Current liabilities:
Accounts payable (3) $ 2,483 $ 3,189
Accrued expenses and other current liabilities (4) 12,798 12,413
Deferred revenue (5) 15,971 13,435
Current liabilities of discontinued operations       17,883  
Total current liabilities 31,252 46,920
Deferred tax liability 4,276 3,166
Other non-current liabilities   5,087     4,140  
Total liabilities 40,615 54,226
 
Series A Redeemable Convertible Preferred Stock, $0.001 par value;
46 shares designated; 46 shares issued and outstanding at December
31, 2016; at aggregate liquidation and redemption value at December
31, 2016
47,660
Stockholders’ equity
Preferred Stock: $0.001 par value – authorized 5,000 shares at
December 31, 2016 and December 26, 2015, respectively
Common stock, $0.001 par value; 300,000 shares authorized; 28,984
and 32,276 shares issued and outstanding at December 31, 2016 and
December 26, 2015 respectively
29 32
Additional paid-in capital 255,031 283,669
Accumulated deficit (187,808 ) (194,854 )
Accumulated other comprehensive loss   (303 )   (595 )
Total stockholders’ equity   66,949     88,252  
Total liabilities, redeemable convertible preferred stock and
stockholders’ equity
$ 155,224   $ 142,478  
 

(1) Includes accounts receivable due from related party of
$150 at December 31, 2016

(2) Includes unbilled accounts receivable due from related
party of $286 at December 31, 2016

(3) Includes accounts payable due to related party of $107 at
December 31, 2016

(4) Includes accrued expenses and other current liabilities
due to related party of $1,055 at December 31, 2016

(5) Includes deferred revenue associated with related party
of $151 as of December 31, 2016

                       
Care.com, Inc.
Consolidated Statement of Operations
(in thousands, except per share data)
    Three Months Ended Year-Ended
December 31,

2016

 

December 26,

2015

  December 31,

2016

December 26,

2015

(unaudited)
 
Revenue (1) $ 43,513 $ 37,550 $ 161,754 $ 138,681
Cost of revenue 8,573 6,321 31,830 26,117
Operating expenses:
Selling and marketing (2) 14,163 13,726 72,266 73,521
Research and development 5,376 4,656 20,402 19,801
General and administrative 8,742 7,857 31,939 30,158
Depreciation and amortization 471 986 2,972 4,503
Restructuring charges           714      
Total operating expenses   28,752     27,225     128,293     127,983  
Operating income (loss) 6,188 4,004 1,631 (15,419 )
Other expense, net   (854 )   (263 )   (1,064 )   (1,239 )
Income (Loss) from continuing operations before income taxes 5,334 3,741 567 (16,658 )
Provision for income taxes   330     58     1,282     1,221  
Income (Loss) from continuing operations 5,004 3,683 (715 ) (17,879 )
(Loss) Income from discontinued operations, net of tax   (24 )   (2,084 )   7,761     (17,116 )
Net income (loss) 4,980 1,599 7,046 (34,995 )
Accretion of Series A Preferred Stock dividends (694 ) (1,310 )
Accretion of Series A Redeemable Convertible Preferred Stock
issuance costs
(2,124 )

Net income attributable to Series A Redeemable Convertible
Preferred Stock

  (582 )       (467 )    
Net income (loss) attributable to common stockholders $ 3,704   $ 1,599   $ 3,145   $ (34,995 )
 
Net income (loss) per share attributable to common stockholders
(Basic):
Income (Loss) per share from continuing operations attributable to
common stockholders
$ 0.13 $ 0.11 $ (0.12 ) $ (0.56 )
Income (Loss) per share from discontinued operations attributable to
common stockholders
      (0.06 )   0.22     (0.53 )
Net income (loss) per share attributable to common stockholders $ 0.13 $ 0.05 $ 0.10 $ (1.09 )
 
Net income (loss) per share attributable to common stockholders
(Diluted):
Income (Loss) per share from continuing operations attributable to
common stockholders
$ 0.12 $ 0.11 $ (0.12 ) $ (0.56 )
Income (Loss) per share from discontinued operations attributable to
common stockholders
$   $ (0.06 ) $ 0.22   $ (0.53 )
Net income (loss) per share attributable to common stockholders $ 0.12 $ 0.05 $ 0.10 $ (1.09 )
 
Weighted-average shares used to compute net income (loss) per share
attributable to common stockholders:
Basic 28,864 32,191 30,535 32,001
Diluted 30,815 33,273 30,535 32,001
 

(1) Includes related party revenue of $628 and $1,593 for the
three months and year ended December 31, 2016, respectively
(2)
Includes related party expenses of $2,706 and $14,724 for the
three months and year ended December 31, 2016, respectively

           
Care.com, Inc.
Consolidated Statement of Cash Flows Year-Ended
(in thousands) December 31,

2016

December 26,

2015

      (unaudited)
Cash flows from operating activities
Net income (loss) $ 7,046 $ (34,995 )
Income (Loss) from discontinued operations, net of tax   7,761     (17,116 )
Loss from continuing operations (715 ) (17,879 )
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Stock-based compensation 6,470 4,926
Depreciation and amortization 3,722 5,218
Deferred taxes 1,110 1,094
Foreign currency remeasurement loss 1,261 1,275
Other non-cash operating income (expenses) 41 (98 )
Changes in operating assets and liabilities, net of effects from
acquisitions:
Accounts receivable 281 (604 )
Unbilled accounts receivable (1,947 ) (291 )
Prepaid expenses and other current assets (589 ) 2,076
Other non-current assets (3 ) (22 )
Accounts payable (688 ) (588 )
Accrued expenses and other current liabilities 938 1,864
Deferred revenue 2,581 2,280
Other non-current liabilities   228     909  
Net cash provided by operating activities by continuing operations 12,690 160
Net cash provided by (used in) operating activities by discontinued
operations
  2,421     (5,124 )
Net cash provided by (used in) operating activities   15,111     (4,964 )
 
Cash flows from investing activities
Purchases of property and equipment (244 ) (4,396 )
Payments for acquisitions, net of cash acquired (420 )
Cash withheld for purchase consideration 73
Proceeds from security deposit for sub-lease 84

Purchases of short-term investment   (15,000 )    
Net cash used in investing activities by continuing operations (15,580 ) (4,323 )
Net cash used in investing activities by discontinued operations  

    (2 )
Net cash used in investing activities   (15,580 )   (4,325 )
 
Cash flows from financing activities
Proceeds from issuance of Series A Preferred Stock, net of issuance
costs of $2,124
44,226
Proceeds from exercise of common stock options 1,406 777
Payments of contingent consideration previously established in
purchase accounting
(1,840 )
Payments for the repurchases of common stock   (30,524 )    
Net cash provided by (used in) financing activities by continuing
operations
15,108 (1,063 )
Net cash used in financing activities by discontinued operations   (14,510 )    
Net cash provided by (used in) financing activities   598     (1,063 )
 
Effect of exchange rate changes on cash and cash equivalents   (275 )   (289 )
Net decrease in cash and cash equivalents (146 ) (10,641 )
Cash and cash equivalents, beginning of the period   61,240     71,881  
Cash and cash equivalents, end of the period $ 61,094   $ 61,240  
 
                       
Care.com, Inc.
Reconciliation of Adjusted EBITDA & Non-GAAP Net Income (Loss)
(in thousands, except per share data)
 
Three Months Ended Year-Ended
December 31,

2016

December 26,

2015

December 31,

2016

December 26,

2015

(unaudited)
 
Income (Loss) from continuing operations $ 5,004 $ 3,683 $ (715 ) $ (17,879 )
 
Federal, state and franchise taxes 408 109 1,619 1,411
Other expense, net 854 263 1,064 1,239
Depreciation and amortization   652     1,152     3,722     5,218  
EBITDA 6,918 5,207 5,690 (10,011 )
 
Stock-based compensation 1,705 1,204 6,470 4,926
Merger and acquisition related costs 28 (82 ) 128 53
Restructuring related costs 714
Litigation related costs   400         400      
Adjusted EBITDA $ 9,051   $ 6,329   $ 13,402   $ (5,032 )
 
Add back for Non-GAAP Net Income (Loss)
 
Federal, state and franchise taxes (408 ) (109 ) (1,619 ) (1,411 )
Other expense, net (854 ) (263 ) (1,064 ) (1,239 )
Depreciation and amortization   (652 )   (1,152 )   (3,722 )   (5,218 )
Non-GAAP net income (loss) $ 7,137   $ 4,805   $ 6,997   $ (12,900 )
 
Non-GAAP net income (loss) per share:
Basic $ 0.25 $ 0.15 $ 0.23 $ (0.40 )
Diluted $ 0.20 $ 0.14 $ 0.19 $ (0.40 )
 
Weighted-average shares used to compute non-GAAP net income (loss)
per share :
Basic 28,864 32,191 30,535 32,001
Diluted 35,354 33,273 36,736 32,001
 
                       
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)
Weighted-average shares used to compute net income (loss) per share:
Basic 28,864 32,191 30,535 32,001
 
Net income (loss) per share (Basic):
Net income (loss) per share attributable to common stockholders $ 0.13 $ 0.05 $ 0.10 $ (1.09 )

Impact on income (loss) per share of Series A related costs

  0.04       0.13      
Adjusted Net income (loss) per share $ 0.17 $ 0.05 $ 0.23 $ (1.09 )
 
(Loss) Income from discontinued operations, net of tax 0.00 0.06 (0.25 ) 0.53
Stock-based compensation 0.06 0.04 0.21 0.15
Merger and acquisition related costs 0.00 (0.00 ) 0.00 0.00
Restructuring related costs 0.02
Litigation related costs   0.01       0.01      
Non-GAAP net income (loss) per share $ 0.25 $ 0.15   $ 0.23   $ (0.40 )
 

Contacts

ICR, Inc.
Denise Garcia, 781-795-7244
investors@care.com

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