Delaware | 001-36269 | 20-5785879 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
77 Fourth Avenue, Fifth Floor 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 2015 Financial Results” dated August 4, 2015 |
Date: August 4, 2015 | By: | /s/ MICHAEL ECHENBERG | ||
Michael Echenberg | ||||
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 2015 Financial Results” dated August 4, 2015 | |
• | Second quarter consolidated revenue was $35.7 million, an increase of 38% over the second quarter of 2014. Organic revenue, which excludes revenue from Citrus Lane, a company we acquired in Q3 2014, grew 27%, while we kept organic sales and marketing expenses roughly flat. As compared to the second quarter of 2014, this led to a 15 percentage point reduction in organic sales and marketing expenses as a percent of revenue. |
• | Second quarter net loss on a consolidated basis was $7.2 million, as compared to a net loss of $9.9 million in the second quarter 2014. This represents margin improvement of 18 percentage points. Excluding the impact of Citrus Lane, net margin improvement was 22 percentage points. |
• | On an adjusted EBITDA basis for the consolidated business, the second quarter 2015 loss was $3.7 million. This compares to an adjusted EBITDA loss of $6.6 million in second quarter of 2014. The resulting margin improvement was 15 percentage points. Excluding the impact of Citrus Lane, adjusted EBITDA margin improvement was 17 percentage points. |
• | Revenue for the second quarter was $35.7 million, compared to $25.8 million in the second quarter of 2014. |
◦ | Revenue attributable to the US Consumer Businesses, which includes our US Matching and Payments businesses, totaled $27.1 million in the second quarter, a 27% increase from $21.3 million in second quarter of 2014. |
◦ | Revenue attributable to the Workplace Solutions, International and B2B businesses totaled $5.8 million in the second quarter, an increase of 29% from Q2 2014, or 41% on a constant currency basis. |
◦ | Revenue attributable to the Citrus Lane, which we acquired in Q3 2014, totaled $2.7 million in the second quarter of 2015. |
• | GAAP net loss for the second quarter was $7.2 million, compared to a net loss of $9.9 million in the second quarter of 2014. |
• | Adjusted EBITDA was a loss of $3.7 million in the second quarter 2015, compared to an adjusted EBITDA loss of $6.6 million in the second quarter of 2014. |
• | GAAP EPS was a $(0.23) loss in the second quarter 2015 compared to a $(0.32) loss in the second quarter 2014. Q2 2015 GAAP EPS was based on 32.0 million weighted average basic shares outstanding versus 31.0 million shares outstanding in the second quarter of 2014. |
• | Non-GAAP EPS was a $(0.16) loss in the second quarter 2015. Non-GAAP EPS excludes the impact of non-cash stock based compensation and non-recurring items, such as M&A expenses. |
• | The Company ended the quarter with $56.5 million in cash and cash equivalents. |
• | Our total members grew 40% to 16.5 million at the end of the second quarter, compared to 11.8 million at the end of the second quarter 2014. |
• | Total families grew to 9.3 million at the end of the second quarter, a 45% increase over the second quarter of 2014, and total caregivers grew to 7.2 million at the end of the quarter, a 33% increase over the second quarter of 2014. |
• | Second quarter 2015 US Consumer Business end-of-period paying members grew to over 254,000, a 24% increase over the second quarter of 2014. |
• | Cross-sell between our US Consumer Matching and high-ROI Payments businesses was robust. In the second quarter of 2015, over 53% of new Payments members were influenced by cross-platform initiatives and the overarching Care.com brand, as compared to 46% in the second quarter of 2014. |
• | Average US monthly unique visitors were 8.2 million in Q2 2015, a 30% increase over Q2 2014, with 67% of visitors via mobile. |
• | Unpaid SEO traffic saw continued strong growth, up 38% compared to the second quarter of 2014. |
Q3 2015 | Full Year 2015 | ||||||
Revenue | |||||||
Organic (ex. Citrus Lane) | $ 34.0 | - | $ 36.0 | $134.0 | - | $140.0 | |
Citrus Lane | $ 2.5 | - | $ 3.5 | $ 12.0 | - | $ 13.0 | |
Total | $ 36.5 | - | $ 39.5 | $146.0 | - | $153.0 | |
Adjusted EBITDA | |||||||
Organic (ex. Citrus Lane) | $ (5.5) | - | $ (4.5) | $ (9.5) | - | $ (7.5) | |
Citrus Lane | $ (0.5) | - | $ (0.5) | $ (3.5) | - | $ (2.5) | |
Total | $ (6.0) | - | $ (5.0) | $ (13.0) | - | $ (10.0) | |
Non-GAAP EPS | $ (0.27) | - | $(0.24) | $ (0.68) | - | $ (0.60) | |
Figures in millions except for Non-GAAP EPS | |||||||
Non-GAAP EPS based on weighted average shares |
Care.com, Inc. | ||||||
Consolidated Balance Sheets | ||||||
(in thousands) | ||||||
June 27, 2015 | December 27, 2014 | |||||
Assets | (unaudited) | |||||
Current assets: | ||||||
Cash and cash equivalents | $ 56,495 | $ 71,881 | ||||
Accounts receivable | 2,958 | 2,592 | ||||
Unbilled accounts receivable | 3,755 | 3,541 | ||||
Prepaid expenses and other current assets | 7,049 | 8,046 | ||||
Total current assets | 70,257 | 86,060 | ||||
Property and equipment, net | 6,876 | 6,323 | ||||
Intangible assets, net | 6,692 | 8,965 | ||||
Goodwill | 67,020 | 68,685 | ||||
Other non-current assets | 3,068 | 3,071 | ||||
Total assets | $ 153,913 | $ 173,104 | ||||
Liabilities and stockholders' equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ 664 | $ 5,463 | ||||
Accrued expenses and other current liabilities | 15,350 | 12,732 | ||||
Current contingent acquisition consideration | 8,162 | 10,685 | ||||
Deferred revenue | 14,626 | 13,346 | ||||
Total current liabilities | 38,802 | 42,226 | ||||
Contingent acquisition consideration | 7,567 | 7,267 | ||||
Deferred tax liability | 2,886 | 2,119 | ||||
Other non-current liabilities | 3,789 | 3,442 | ||||
Total liabilities | 53,044 | 55,054 | ||||
Stockholders' equity | ||||||
Common stock, $0.001 par value; 300,000 shares authorized; 32,052 and 31,615 shares issued and outstanding, respectively | 32 | 32 | ||||
Additional paid-in capital | 280,581 | 277,583 | ||||
Accumulated deficit | (179,106) | (159,859) | ||||
Accumulated other comprehensive (loss) income | (638) | 294 | ||||
Total stockholders' equity | 100,869 | 118,050 | ||||
Total liabilities and stockholders' equity | $ 153,913 | $ 173,104 | ||||
Care.com, Inc. | ||||||||||||||||||
Consolidated Statement of Operations | ||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||
June 27, 2015 | June 28, 2014 | June 27, 2015 | June 28, 2014 | |||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||
Revenue | $ | 35,653 | $ | 25,836 | $ | 70,773 | $ | 51,107 | ||||||||||
Cost of revenue | 9,224 | 5,713 | 18,772 | 11,484 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Selling and marketing | 18,721 | 18,022 | 39,763 | 38,471 | ||||||||||||||
Research and development | 5,406 | 4,078 | 10,421 | 8,142 | ||||||||||||||
General and administrative | 8,428 | 6,588 | 16,929 | 12,820 | ||||||||||||||
Depreciation and amortization | 1,251 | 1,068 | 2,526 | 2,136 | ||||||||||||||
Total operating expenses | 33,806 | 29,756 | 69,639 | 61,569 | ||||||||||||||
Operating loss | (7,377 | ) | (9,633 | ) | (17,638 | ) | (21,946 | ) | ||||||||||
Other income (expense), net | 487 | 67 | (704 | ) | (2,679 | ) | ||||||||||||
Loss before income taxes | (6,890 | ) | (9,566 | ) | (18,342 | ) | (24,625 | ) | ||||||||||
Provision for income taxes | 345 | 309 | 905 | 794 | ||||||||||||||
Net loss | $ | (7,235 | ) | $ | (9,875 | ) | $ | (19,247 | ) | $ | (25,419 | ) | ||||||
Accretion of preferred stock | — | — | — | (4 | ) | |||||||||||||
Net loss attributable to common stockholders | $ | (7,235 | ) | $ | (9,875 | ) | $ | (19,247 | ) | $ | (25,423 | ) | ||||||
Net loss per share attributable to common stockholders: | ||||||||||||||||||
Basic and diluted | $ | (0.23 | ) | $ | (0.32 | ) | $ | (0.6 | ) | $ | (0.96 | ) | ||||||
Weighted-average shares used to compute net loss per share attributable to common stockholders: | ||||||||||||||||||
Basic and diluted | 31,981 | 30,980 | 31,872 | 26,439 |
Care.com, Inc. | ||||||||
Consolidated Statement of Cash Flows | Six Months Ended | |||||||
(in thousands) | June 27, 2015 | June 28, 2014 | ||||||
(unaudited) | ||||||||
Cash flows from operating activities | ||||||||
Net loss | $ (19,247) | $ (25,419) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock-based compensation | 2,595 | 2,082 | ||||||
Depreciation and amortization | 2,978 | 2,520 | ||||||
Deferred taxes | 801 | 672 | ||||||
Contingent consideration expense | 622 | 147 | ||||||
Change in fair value of contingent consideration payable in preferred stock | — | 2,258 | ||||||
Change in fair value of stock warrants | — | 606 | ||||||
Other non-operating expenses | 7 | — | ||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||||||
Accounts receivable | (378) | (611) | ||||||
Unbilled accounts receivable | (451) | (622) | ||||||
Prepaid expenses and other current assets | 699 | (1,257) | ||||||
Other non-current assets | (13) | (5) | ||||||
Accounts payable | (4,235) | 1,540 | ||||||
Accrued expenses and other current liabilities | 3,662 | 6,671 | ||||||
Deferred revenue | 1,593 | 2,613 | ||||||
Other non-current liabilities | 400 | (36) | ||||||
Net cash used in operating activities | (10,967) | (8,841) | ||||||
Cash flows from investing activities | ||||||||
Purchases of property and equipment | (3,981) | (400) | ||||||
Payments for acquisitions, net of cash acquired | — | (489) | ||||||
Cash withheld for purchase consideration | 73 | (73) | ||||||
Net cash used in investing activities | (3,908) | (962) | ||||||
Cash flows from financing activities | ||||||||
Proceeds from initial public offering net of offering costs | — | 96,011 | ||||||
Proceeds from exercise of common stock options | 611 | 245 | ||||||
Payments of contingent consideration previously established in purchase accounting | (1,840) | (2,845) | ||||||
Net cash (used in) provided by financing activities | (1,229) | 93,411 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 718 | (169) | ||||||
Net (decrease) increase in cash and cash equivalents | (15,386) | 83,439 | ||||||
Cash and cash equivalents, beginning of the period | 71,881 | 29,959 | ||||||
Cash and cash equivalents, end of the period | $ 56,495 | $ 113,398 |
Care.com, Inc. | |||||||||
Reconciliation of Adjusted EBITDA | |||||||||
(in thousands) | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 27, 2015 | June 28, 2014 | June 27, 2015 | June 28, 2014 | ||||||
(unaudited) | (unaudited) | ||||||||
Net Loss | $ (7,235) | $ (9,875) | $ (19,247) | $ (25,419) | |||||
Federal, state and franchise taxes | 306 | 439 | 995 | 972 | |||||
Other (income) expense, net | (487) | (67) | 704 | 2,679 | |||||
Depreciation and amortization | 1,481 | 1,259 | 2,978 | 2,520 | |||||
EBITDA | (5,935) | (8,244) | (14,570) | (19,248) | |||||
Stock-based compensation | 1,657 | 983 | 2,595 | 2,082 | |||||
Accretion of contingent consideration | 314 | 74 | 622 | 147 | |||||
Merger and acquisition related costs | 299 | 575 | 626 | 652 | |||||
IPO related costs | — | 10 | — | 164 | |||||
Adjusted EBITDA | $ (3,665) | $ (6,602) | $ (10,727) | $ (16,203) |
Care.com, Inc. | ||||||||||
Reconciliation of Non-GAAP Net Loss | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
(in thousands, except per share data) | June 27, 2015 | June 28, 2014 | June 27, 2015 | June 28, 2014 | ||||||
(unaudited) | (unaudited) | |||||||||
Net loss | $ (7,235) | $ (9,875) | $ (19,247) | $ (25,419) | ||||||
Stock-based compensation | 1,657 | 983 | 2,595 | 2,082 | ||||||
Accretion of contingent consideration | 314 | 74 | 622 | 147 | ||||||
Merger and acquisition related costs | 299 | 575 | 626 | 652 | ||||||
IPO related costs | — | 10 | — | 164 | ||||||
Preferred stock and warrant valuation adjustments | — | — | — | 2,864 | ||||||
Non-GAAP net loss | $ (4,965) | $ (8,233) | $ (15,404) | $ (19,510) | ||||||
Non-GAAP net loss per share attributable to common stockholders: | ||||||||||
Basic and diluted | $ (0.16) | $ (0.27) | $ (0.48) | $ (0.74) | ||||||
Weighted-average shares used to compute non-GAAP net loss per share attributable to common stockholders: | ||||||||||
Basic and diluted | 31,981 | 30,980 | 31,872 | 26,439 |
Care.com, Inc. | |||||||||||||||
Reconciliation of Non-GAAP Organic Revenue | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
(in thousands) | June 27, 2015 | June 28, 2014 | June 27, 2015 | June 28, 2014 | |||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Revenue | $ | 35,653 | $ | 25,836 | $ | 70,773 | $ | 51,107 | |||||||
Citrus Lane revenue | 2,750 | — | 5,821 | — | |||||||||||
Organic revenue | $ | 32,903 | $ | 25,836 | $ | 64,952 | $ | 51,107 | |||||||
Care.com, Inc. | Three Months Ended | Six Months Ended | |||||||||||||
Reconciliation of Non-GAAP Sales and Marketing | June 27, 2015 | June 28, 2014 | June 27, 2015 | June 28, 2014 | |||||||||||
(in thousands) | (unaudited) | (unaudited) | |||||||||||||
Selling and marketing | $ | 18,721 | $ | 18,022 | $ | 39,763 | $ | 38,471 | |||||||
Citrus Lane selling and marketing | 627 | — | 1,311 | — | |||||||||||
Organic selling and marketing | $ | 18,094 | $ | 18,022 | $ | 38,452 | $ | 38,471 | |||||||
Care.com, Inc. | |||||||||||||||
Reconciliation of Organic Adjusted EBITDA | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
(in thousands) | June 27, 2015 | June 28, 2014 | June 27, 2015 | June 28, 2014 | |||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Adjusted EBITDA | $ | (3,665 | ) | $ | (6,602 | ) | $ | (10,727 | ) | $ | (16,203 | ) | |||
Citrus Lane adjusted EBITDA | (1,001 | ) | — | (2,459 | ) | — | |||||||||
Organic adjusted EBITDA | $ | (2,664 | ) | $ | (6,602 | ) | $ | (8,268 | ) | $ | (16,203 | ) | |||
Care.com, Inc. | ||||
Supplemental Data | ||||
(in thousands) | ||||
Three Months Ended | ||||
June 27, 2015 | June 28, 2014 | |||
Total members** | 16,472 | 11,826 | ||
Total families** | 9,284 | 6,437 | ||
Total caregivers* | 7,188 | 5,389 | ||
Paying members - US Consumer Matching & Payments | 254 | 205 | ||
** data is cumulative as of the end of the respective period and includes approximately 300k members via our acquisition of Citrus Lane | ||||
* data is cumulative as of the end of the respective period | ||||
Three Months Ended | ||||
June 27, 2015 | June 28, 2014 | |||
Monthly Average Revenue per Member | ||||
US Consumer Matching & Payments | $ 38 | $ 37 |
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