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 First Quarter 2016 Financial Results” dated April 28, 2016 |
Date: April 28, 2016 | 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 First Quarter 2016 Financial Results” dated April 28, 2016 | |
• | Revenue for the first quarter of 2016 was $39.3 million, a 23% increase from $32.0 million in the first quarter of 2015. |
◦ | Revenue attributable to the US Consumer Business totaled $32.1 million in the first quarter of 2016, a 21% increase from $26.6 million in the first quarter of 2015. |
◦ | Revenue attributable to the Care@Work (formally WPS), International and B2B businesses totaled $7.2 million in the first quarter of 2016, an increase of 32% from $5.4 million in the first quarter of 2015, or 33% on a constant currency basis. |
• | Loss from continuing operations in the first quarter of 2016 was $1.1 million compared to a loss of $9.8 million in 2015, an improvement of $8.7 million or 28 percentage points of margin. |
• | Discontinued operations contributed income of $7.9 million in the first quarter of 2016, as compared to a loss of $2.2 million in 2015, primarily attributed to $8.0 million of gain recognized from the settlement we reached with Citrus Lane’s former investors. |
• | Adjusted EBITDA was income of $1.6 million in the first quarter of 2016, compared to an adjusted EBITDA loss of $5.6 million in the first quarter of 2015, an improvement of $7.6 million or 22 percentage points of margin. |
• | GAAP EPS, which includes income from discontinued operations was $0.20 in the first quarter of 2016, compared to a $(0.38) loss in the first quarter of 2015. Q1 GAAP EPS was based on 33.6 million weighted average diluted shares outstanding versus 31.8 million shares outstanding in the first quarter of 2015. |
• | Non-GAAP EPS, which excludes discontinued operations was $0.01 in the first quarter of 2016, compared to a $(0.28) loss in the first quarter of 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 $52.3 million in cash and cash equivalents. |
• | Our total members grew 31% to 19.5 million at the end of the first quarter of 2016, compared to 14.9 million at the end of the first quarter 2015. |
• | Total families grew to 11.0 million at the end of the first quarter of 2016, an increase of 32% over the first quarter of 2015, and total caregivers grew to 8.6 million at the end of the first quarter of 2016, an increase of 30% over the first quarter of 2015. |
Q2 2016 | Full Year 2016 | ||||||||||||||
Revenue | $ | 37.5 | — | $ | 38.0 | $ | 158.0 | — | $ | 162.0 | |||||
Adjusted EBITDA | $ | 0.25 | — | $ | 0.75 | $ | 8.0 | — | $ | 12.0 | |||||
Non-GAAP EPS | $ | (0.04 | ) | — | $ | (0.02 | ) | $ | 0.09 | — | $ | 0.19 | |||
Figures in millions except for Non-GAAP EPS | |||||||||||||||
Full year guidance includes the impact of a 53rd week; we operate on a 4-4-5 accounting calendar | |||||||||||||||
Q2 Non-GAAP EPS based on 32.2 million weighted average shares | |||||||||||||||
Full year Non-GAAP EPS based on 34.5 million weighted average shares |
Care.com, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
March 26, 2016 | December 26, 2015 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 52,292 | $ | 61,240 | |||
Accounts receivable (net of allowance of $161 and $125, respectively) | 3,101 | 3,107 | |||||
Unbilled accounts receivable | 3,826 | 3,595 | |||||
Prepaid expenses and other current assets | 3,072 | 2,599 | |||||
Current assets of discontinued operations | 315 | 439 | |||||
Total current assets | 62,606 | 70,980 | |||||
Property and equipment, net | 5,982 | 6,371 | |||||
Intangible assets, net | 3,075 | 3,389 | |||||
Goodwill | 58,961 | 58,631 | |||||
Other non-current assets | 3,102 | 3,098 | |||||
Non-current assets of discontinued operations | — | 9 | |||||
Total assets | $ | 133,726 | $ | 142,478 | |||
Liabilities and stockholders' equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 3,209 | $ | 3,189 | |||
Accrued expenses and other current liabilities | 13,158 | 12,413 | |||||
Deferred revenue | 14,884 | 13,435 | |||||
Current liabilities of discontinued operations | 386 | 17,883 | |||||
Total current liabilities | 31,637 | 46,920 | |||||
Deferred tax liability | 3,166 | 3,166 | |||||
Other non-current liabilities | 4,239 | 4,140 | |||||
Total liabilities | 39,042 | 54,226 | |||||
Stockholders' equity | |||||||
Preferred Stock, $0.001 par value; 5,000 shares authorized, no shares issued | |||||||
Common stock, $0.001 par value; 300,000 shares authorized; 32,070 and 32,276 shares issued and outstanding, respectively | 32 | 32 | |||||
Additional paid-in capital | 283,028 | 283,669 | |||||
Accumulated deficit | (188,099 | ) | (194,854 | ) | |||
Accumulated other comprehensive loss | (277 | ) | (595 | ) | |||
Treasury stock, at cost (478 shares at March 26, 2016) | — | — | |||||
Total stockholders' equity | 94,684 | 88,252 | |||||
Total liabilities and stockholders' equity | $ | 133,726 | $ | 142,478 |
Care.com, Inc. | |||||||
Consolidated Statement of Operations | |||||||
(in thousands, except per share data) | |||||||
Three Months Ended | |||||||
March 26, 2016 | March 28, 2015 | ||||||
Revenue | $ | 39,266 | $ | 32,049 | |||
Cost of revenue | 7,242 | 6,272 | |||||
Operating expenses: | |||||||
Selling and marketing | 19,467 | 20,357 | |||||
Research and development | 4,875 | 4,609 | |||||
General and administrative | 7,819 | 7,625 | |||||
Depreciation and amortization | 972 | 1,231 | |||||
Total operating expenses | 33,133 | 33,822 | |||||
Operating loss | (1,109 | ) | (8,045 | ) | |||
Other expense, net | (14 | ) | (1,191 | ) | |||
Loss from continuing operations before income taxes | (1,123 | ) | (9,236 | ) | |||
Provision for income taxes | — | 560 | |||||
Loss from continuing operations | (1,123 | ) | (9,796 | ) | |||
Income (Loss) from discontinued operations, net of tax | 7,878 | (2,216 | ) | ||||
Net income (loss) | $ | 6,755 | $ | (12,012 | ) | ||
Net income (loss) per share (Basic): | |||||||
Loss from continuing operations | $ | (0.03 | ) | $ | (0.31 | ) | |
Income (Loss) from discontinued operations | $ | 0.24 | $ | (0.07 | ) | ||
Net income (loss) per share | $ | 0.21 | $ | (0.38 | ) | ||
Net income (loss) per share (Diluted): | |||||||
Loss from continuing operations | $ | (0.03 | ) | $ | (0.31 | ) | |
Income (Loss) from discontinued operations | $ | 0.23 | $ | (0.07 | ) | ||
Net income (loss) per share | $ | 0.20 | $ | (0.38 | ) | ||
Weighted-average shares outstanding: | |||||||
Basic | 32,229 | 31,763 | |||||
Diluted | 33,588 | 31,763 |
Care.com, Inc. | |||||||
Consolidated Statement of Cash Flows | |||||||
(in thousands) | |||||||
Three Months Ended | |||||||
March 26, 2016 | March 28, 2015 | ||||||
Cash flows from operating activities | |||||||
Net income (loss) | $ | 6,755 | $ | (12,012 | ) | ||
Income (Loss) from discontinued operations, net of tax | 7,878 | (2,216 | ) | ||||
Loss from continuing operations | (1,123 | ) | (9,796 | ) | |||
Adjustments to reconcile net loss from continuing operations to net cash provided by (used in) operating activities: | |||||||
Stock-based compensation | 1,368 | 826 | |||||
Depreciation and amortization | 1,169 | 1,424 | |||||
Deferred taxes | — | 498 | |||||
Foreign currency remeasurement loss | 24 | 1,171 | |||||
Other non-cash operating expenses | (56 | ) | (56 | ) | |||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||
Accounts receivable | 2 | (256 | ) | ||||
Unbilled accounts receivable | (231 | ) | (336 | ) | |||
Prepaid expenses and other current assets | (465 | ) | (518 | ) | |||
Other non-current assets | — | 14 | |||||
Accounts payable | 19 | 3,167 | |||||
Accrued expenses and other current liabilities | 558 | (669 | ) | ||||
Deferred revenue | 1,437 | 2,286 | |||||
Other non-current liabilities | 154 | 187 | |||||
Net cash provided by (used in) operating activities by continuing operations | 2,856 | (2,058 | ) | ||||
Net cash provided by (used in) operating activities by discontinued operations | 2,602 | (2,499 | ) | ||||
Net cash provided by (used in) operating activities | 5,458 | (4,557 | ) | ||||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (26 | ) | (3,272 | ) | |||
Payments for acquisitions, net of cash acquired | (420 | ) | — | ||||
Changes in restricted cash balance | — | 73 | |||||
Net cash used in investing activities | (446 | ) | (3,199 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from exercise of common stock options | 579 | 524 | |||||
Payments of contingent consideration previously established in purchase accounting | — | (1,840 | ) | ||||
Net cash provided by (used in) financing activities by continuing operations | 579 | (1,316 | ) | ||||
Net cash used in financing activities by discontinued operations | (14,510 | ) | — | ||||
Net cash used in financing activities | (13,931 | ) | (1,316 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (29 | ) | (64 | ) | |||
Net decrease in cash and cash equivalents | (8,948 | ) | (9,136 | ) | |||
Cash and cash equivalents, beginning of the period | 61,240 | 71,881 | |||||
Cash and cash equivalents, end of the period | $ | 52,292 | $ | 62,745 |
Care.com, Inc. | |||||||
Reconciliation of Adjusted EBITDA & Non-GAAP Income (Loss) | |||||||
(in thousands, except per share data) | |||||||
Three Months Ended | |||||||
March 26 2016 | March 28, 2015 | ||||||
(unaudited) | |||||||
Net loss from continuing operations | $ | (1,123 | ) | $ | (9,796 | ) | |
Federal, state and franchise taxes | 89 | 689 | |||||
Other expense, net | 14 | 1,191 | |||||
Depreciation and amortization | 1,169 | 1,424 | |||||
EBITDA | 149 | (6,492 | ) | ||||
Stock-based compensation | 1,368 | 826 | |||||
Merger and acquisition related costs | 58 | 66 | |||||
Adjusted EBITDA | $ | 1,575 | $ | (5,600 | ) | ||
Add back for Non-GAAP Net Income (Loss) | |||||||
Federal, state and franchise taxes | (89 | ) | (689 | ) | |||
Other expense, net | (14 | ) | (1,191 | ) | |||
Depreciation and amortization | (1,169 | ) | (1,424 | ) | |||
Non-GAAP net Income (Loss) | $ | 303 | $ | (8,904 | ) | ||
Non-GAAP net income (loss) per share: | |||||||
Basic | $ | 0.01 | $ | (0.28 | ) | ||
Diluted | $ | 0.01 | $ | (0.28 | ) | ||
Weighted-average shares used to compute non-GAAP net income (loss) per share : | |||||||
Basic | 32,229 | 31,763 | |||||
Diluted | 33,588 | 31,763 |
Care.com, Inc. | |||||||
Supplemental Data | |||||||
(in thousands) | |||||||
Period Ended | |||||||
March 26 2016 | March 28, 2015 | ||||||
Total members* | 19,540 | 14,896 | |||||
Total families* | 10,954 | 8,291 | |||||
Total caregivers* | 8,586 | 6,605 | |||||
Paying members - US Consumer Business | 272 | 230 | |||||
* data is cumulative as of the end of the respective period and excludes families from discontinued operations | |||||||
Period Ended | |||||||
March 26 2016 | March 28, 2015 | ||||||
Monthly Average Revenue per Member | |||||||
US Consumer Business | $ | 40 | $ | 38 |