Delaware | 001-36269 | 20-5785879 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
201 Jones Road, Suite 500 Waltham, MA 02451 (Address of principal executive offices) (Zip Code) | ||||
(781) 642-5900 (Registrant’s telephone number, include area code) | ||||
N/A (Former Name or Former Address, if Changed Since Last Report) |
Exhibit Number | Exhibit Title or Description | |
99.1 | Press release issued by Care.com, Inc. entitled “Care.com Announces Second Quarter 2014 Financial Results” dated July 31, 2014 |
Date: July 31, 2014 | By: | /s/ John Leahy | ||
John Leahy | ||||
Executive Vice President and Chief Financial Officer |
Exhibit Number | Exhibit Title or Description | |
99.1 | Press release issued by Care.com, Inc. entitled “Care.com Announces Second Quarter 2014 Financial Results” dated July 31, 2014 | |
• | Total members grew to 11.8 million at the end of Q2, representing 44% growth over the second quarter 2013. |
• | Second quarter revenue was $25.8 million, an increase of 35% over the second quarter of 2013. |
• | Acquired Citrus Lane, the leading social commerce platform designed for Moms to drive overall engagement and lifetime value across the Care.com matching and payments membership base. |
• | Introduced the Big Tent by Care.com mobile app as the first step towards the Company’s “Care.com Everyday” strategy, focused on driving daily engagement across all Care.com properties. |
• | Revenue for the second quarter was $25.8 million, a 35% increase from $19.1 million in the second quarter of 2013. |
• | US consumer matching revenue totaled $19.1 million in Q2, a 30% increase from $14.6 million in the second quarter 2013. |
• | Payments revenue totaled $3.3 million in the second quarter, a 35% increase from $2.5 million in the second quarter of 2013. |
• | Other revenue totaled $3.4 million in Q2, a 68% increase from $2.0 million in the second quarter of 2013. |
• | Net loss for the second quarter 2014 was $9.9 million, compared to net loss of $6.1 million in the second quarter of 2013. Net loss for the second quarter included $575 thousand in transaction costs related to the acquisition of Citrus Lane. |
• | Adjusted EBITDA was a loss of $6.6 million in the second quarter 2014, compared to an adjusted EBITDA loss of $3.6 million in the second quarter of 2013. |
• | GAAP EPS was $(0.32) in the second quarter. Q2 GAAP EPS was based on 31.0 million weighted average basic shares outstanding. GAAP EPS was impacted by $(0.02) as a result of transaction costs related to the acquisition of Citrus Lane. |
• | Non-GAAP EPS was $(0.27) in the second quarter. Non-GAAP EPS excludes the impact of non-cash stock based compensation and non-recurring items, such as M&A. |
• | The Company ended the quarter with $113.4 million in cash and cash equivalents. |
• | Our total members grew 44% to 11.8 million at the end of Q2, compared to 8.2 million in Q2, 2013. Total families grew 48% to 6.4 million at the end of Q2 and total caregivers grew 40% to 5.4 million at the end of Q2. |
• | Q2 2014 U.S. Matching end of period paying members grew to 192 thousand, a 28% increase over last year. |
• | Q2 2014 payment members grew to 13 thousand, a 28% increase over Q2 2013. |
• | Average monthly unique visitors grew to 6.3 million, an 8% increase over Q1, with more than 50% of visitors via mobile device. |
• | Unpaid traffic accelerated as we expanded our SEO footprint, resulting in a 39% increase in organic search traffic over Q1, and an 85% increase over Q2 of last year. |
• | In July, we acquired Citrus Lane, the largest social commerce platform designed for moms, with 400 thousand members and 45 thousand monthly paying subscribers. Citrus Lane’s highly engaged community is a natural extension of the Care.com marketplace, and brings significant opportunities to drive higher LTV across our membership base. |
• | We are announcing today our launch of the Big Tent mobile app by Care.com. We acquired this hosted community platform in 2013. Big Tent is becoming the core of Care.com’s community offering, and we expect it to drive daily engagement across all properties. |
Financial Expectations | ||||||||||||||||
Q3 2014 | Full Year 2014 | |||||||||||||||
Revenue | ||||||||||||||||
Base Care.com | $ | 29.0 | - | $ | 30.0 | $ | 109.0 | - | $ | 112.0 | ||||||
Citrus Lane Impact | 2.0 | - | 3.0 | 5.0 | - | 7.0 | ||||||||||
Consolidated | $ | 31.0 | - | $ | 33.0 | $ | 114.0 | - | $ | 119.0 | ||||||
Adjusted EBITDA | ||||||||||||||||
Base Care.com | $ | (9.0 | ) | - | $ | 8.0 | $ | (23.0 | ) | - | $ | (20.0 | ) | |||
Citrus Lane Impact | (2.5 | ) | - | 1.5 | (3.5 | ) | - | (2.5 | ) | |||||||
Consolidated | $ | (11.5 | ) | - | $ | 9.5 | $ | (26.5 | ) | - | $ | (22.5 | ) | |||
Non GAAP EPS | ||||||||||||||||
Base Care.com | $ | (0.35 | ) | - | $ | (0.31 | ) | $ | (1.01 | ) | - | $ | (0.91 | ) | ||
Citrus Lane Impact | (0.09 | ) | - | (0.06 | ) | (0.16 | ) | - | (0.13 | ) | ||||||
Consolidated | $ | (0.44 | ) | - | $ | (0.37 | ) | $ | (1.17 | ) | - | $ | (1.04 | ) | ||
Weighted average basic shares | 31.7 | 31.7 | 29.2 | 29.2 | ||||||||||||
Figures in millions except for GAAP EPS and Non GAAP EPS | ||||||||||||||||
Non-GAAP EPS based on weighted average basic shares | ||||||||||||||||
Note: Expectations include Impact of Citrus Lane for July 18-December 28 |
Care.com, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
June 28, 2014 | December 28, 2013 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | 113,398 | $ | 29,959 | ||||
Restricted cash | 538 | 246 | |||||
Accounts receivable (net of allowance of $0 and $56, respectively) | 2,218 | 1,609 | |||||
Unbilled accounts receivable | 3,098 | 2,477 | |||||
Prepaid expenses and other current assets | 2,993 | 1,731 | |||||
Total current assets | 122,245 | 36,022 | |||||
Property and equipment, net | 1,606 | 1,553 | |||||
Intangible assets, net | 9,279 | 11,418 | |||||
Goodwill | 62,957 | 62,686 | |||||
Other non-current assets | $ | 145 | 2,150 | ||||
Total assets | $ | 196,232 | $ | 113,829 | |||
Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,427 | $ | 2,031 | |||
Accrued expenses and other current liabilities | 13,301 | 7,023 | |||||
Current contingent acquisition consideration | 2,690 | 5,463 | |||||
Deferred revenue | 10,913 | 8,304 | |||||
Total current liabilities | 30,331 | 22,821 | |||||
Contingent acquisition consideration | — | 5,166 | |||||
Deferred tax liability | 1,795 | 1,112 | |||||
Other non-current liabilities | 374 | 785 | |||||
Total liabilities | 32,500 | 29,884 | |||||
Redeemable convertible preferred stock, $0.01 par value; 22,632 shares authorized at December 28, 2013; 21,299 shares issued and outstanding at December 28, 2013; aggregate liquidation value of $161,666 as of December 28, 2013 | — | 152,251 | |||||
Stockholders' equity (deficit) | |||||||
Preferred stock, $0.01 par value; 5,000 shares authorized; no shares issued and outstanding | — | — | |||||
Common stock, $0.001 par value; 300,000 shares authorized; 30,985 and 3,197 shares issued and outstanding as of June 28, 2014 and December 28, 2013, respectively | 31 | 3 | |||||
Additional paid-in capital | 267,147 | 9,311 | |||||
Accumulated deficit | (104,986 | ) | (79,563 | ) | |||
Accumulated other comprehensive income | 1,540 | 1,943 | |||||
Total stockholders' equity (deficit) | 163,732 | (68,306 | ) | ||||
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ | 196,232 | $ | 113,829 |
Care.com, Inc. | |||||||||||||||
Consolidated Statement of Operations | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 28, 2014 | June 30, 2013 | June 28, 2014 | June 30, 2013 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Revenue | $ | 25,836 | $ | 19,133 | $ | 51,107 | $ | 37,295 | |||||||
Cost of revenue | 5,713 | 4,607 | 11,484 | 8,834 | |||||||||||
Operating expenses: | |||||||||||||||
Selling and marketing | 18,022 | 12,329 | 38,471 | 25,262 | |||||||||||
Research and development | 4,078 | 2,890 | 8,142 | 5,557 | |||||||||||
General and administrative | 6,588 | 4,156 | 12,820 | 7,857 | |||||||||||
Depreciation and amortization | 1,068 | 1,057 | 2,136 | 2,076 | |||||||||||
Total operating expenses | 29,756 | 20,432 | 61,569 | 40,752 | |||||||||||
Operating loss | (9,633 | ) | (5,906 | ) | (21,946 | ) | (12,291 | ) | |||||||
Other income (expense), net | 67 | 10 | (2,679 | ) | (117 | ) | |||||||||
Loss before income taxes | (9,566 | ) | (5,896 | ) | (24,625 | ) | (12,408 | ) | |||||||
Provision for income taxes | 309 | 218 | 794 | 525 | |||||||||||
Net loss | (9,875 | ) | (6,114 | ) | (25,419 | ) | (12,933 | ) | |||||||
Accretion of preferred stock | — | (14 | ) | (4 | ) | (28 | ) | ||||||||
Net loss attributable to common stockholders | $ | (9,875 | ) | $ | (6,128 | ) | $ | (25,423 | ) | $ | (12,961 | ) | |||
Net loss per share attributable to common stockholders: | |||||||||||||||
Basic and diluted | $ | (0.32 | ) | $ | (2.08 | ) | $ | (0.96 | ) | $ | (4.45 | ) | |||
Weighted-average shares used to compute net loss per share attributable to common stockholders: | |||||||||||||||
Basic and diluted | 30,980 | 2,941 | 26,439 | 2,915 | |||||||||||
Care.com, Inc. | |||||||
Consolidated Statement of Cash Flows | |||||||
(in thousands) | |||||||
Six Months Ended | |||||||
June 28, 2014 | June 30, 2013 | ||||||
(unaudited) | |||||||
Cash flows from operating activities | |||||||
Net loss | (25,419 | ) | (12,933 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Stock-based compensation | 2,082 | 718 | |||||
Depreciation and amortization | 2,520 | 3,366 | |||||
Deferred taxes | 672 | 496 | |||||
Contingent consideration expense | 147 | 276 | |||||
Change in fair value of contingent consideration payable in preferred stock | 2,258 | — | |||||
Change in fair value of stock warrants | 606 | (6 | ) | ||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||
Restricted cash | (449 | ) | 26 | ||||
Accounts receivable | (611 | ) | (515 | ) | |||
Unbilled accounts receivable | (622 | ) | (277 | ) | |||
Prepaid expenses and other current assets | (808 | ) | (36 | ) | |||
Other non-current assets | (5 | ) | 5 | ||||
Accounts payable | 1,540 | 2,210 | |||||
Accrued expenses and other current liabilities | 6,671 | 2,165 | |||||
Deferred revenue | 2,613 | 1,363 | |||||
Other non-current liabilities | (36 | ) | (18 | ) | |||
Net cash used in operating activities | (8,841 | ) | (3,160 | ) | |||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (400 | ) | (935 | ) | |||
Payments for acquisitions, net of cash acquired | (489 | ) | (398 | ) | |||
Cash withheld for purchase consideration | (73 | ) | — | ||||
Net cash used in investing activities | (962 | ) | (1,333 | ) | |||
Cash flows from financing activities | |||||||
Net proceeds from issuance of common stock upon initial public offering | 96,011 | — | |||||
Proceeds from the issuance of common stock | 245 | 196 | |||||
Payments for deferred offering costs | — | — | |||||
Payments of contingent consideration previously established in purchase accounting | (2,845 | ) | — | ||||
Net cash provided by financing activities | 93,411 | 196 | |||||
Effect of exchange rate changes on cash and cash equivalents | (169 | ) | 103 | ||||
Net increase (decrease) in cash and cash equivalents | 83,439 | (4,194 | ) | ||||
Cash and cash equivalents, beginning of the period | 29,959 | 44,776 | |||||
Cash and cash equivalents, end of the period | $ | 113,398 | $ | 40,582 |
Care.com, Inc. | |||||||||||||||||
Reconciliation of Adjusted EBITDA | |||||||||||||||||
(in thousands) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 28, 2014 | June 30, 2013 | June 28, 2014 | June 30, 2013 | ||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
Net loss | $ | (9,875 | ) | $ | (6,114 | ) | $ | (25,419 | ) | $ | (12,933 | ) | |||||
Federal, state and franchise taxes | 439 | 218 | 972 | 525 | |||||||||||||
Other expense, net | (67 | ) | (10 | ) | 2,679 | 117 | |||||||||||
Depreciation and amortization | 1,259 | 1,700 | 2,520 | 3,366 | |||||||||||||
EBITDA | (8,244 | ) | (4,206 | ) | (19,248 | ) | (8,925 | ) | |||||||||
Stock-based compensation | 983 | 421 | 2,082 | 718 | |||||||||||||
Accretion of contingent consideration | 74 | 141 | 147 | 276 | |||||||||||||
Merger and acquisition related costs | 575 | — | 652 | — | |||||||||||||
IPO related costs | 10 | — | 164 | — | |||||||||||||
Adjusted EBITDA | $ | (6,602 | ) | $ | (3,644 | ) | $ | (16,203 | ) | $ | (7,931 | ) | |||||
Care.com, Inc. | |||||||||||||||
Reconciliation of Non-GAAP Net Loss | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 28, 2014 | June 30, 2013 | June 28, 2014 | June 30, 2013 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Net loss | $ | (9,875 | ) | $ | (6,114 | ) | $ | (25,419 | ) | $ | (12,933 | ) | |||
Stock-based compensation | 983 | 421 | 2,082 | 718 | |||||||||||
Accretion of contingent consideration | 74 | 141 | 147 | 276 | |||||||||||
Merger and acquisition related costs | 575 | — | 652 | — | |||||||||||
IPO related costs | 10 | — | 164 | — | |||||||||||
Preferred stock and warrant valuation adjustments | — | (6 | ) | 2,864 | (6 | ) | |||||||||
Non-GAAP net loss | $ | (8,233 | ) | $ | (5,558 | ) | $ | (19,510 | ) | $ | (11,945 | ) | |||
Non-GAAP net loss per share attributable to common stockholders: | |||||||||||||||
Basic and diluted | $ | (0.27 | ) | $ | (1.89 | ) | $ | (0.74 | ) | $ | (4.10 | ) | |||
Weighted-average shares used to compute non-GAAP net loss per share attributable to common stockholders: | |||||||||||||||
Basic and diluted | 30,980 | 2,941 | 26,439 | 2,915 |
Care.com, Inc. | |||||||||
Supplemental Data | |||||||||
(in thousands) | |||||||||
Fiscal Quarter Ended | |||||||||
June 28, 2014 | June 30, 2013 | ||||||||
Total members* | 11,826 | 8,211 | |||||||
Total families* | 6,437 | 4,354 | |||||||
Total caregivers* | 5,389 | 3,857 | |||||||
Paying members - US Matching | 192 | 150 | |||||||
Paying members - Payments | 13 | 10 | |||||||
* data is cumulative as of the end of the respective period | |||||||||
Fiscal Quarter Ended | |||||||||
June 28, 2014 | June 30, 2013 | ||||||||
Monthly Average Revenue per Member | |||||||||
US Matching | $ | 34 | $ | 33 | |||||
Payments | $ | 88 | $ | 83 | |||||
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