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 Fourth Quarter and Full Year 2016 Financial Results” dated March 9, 2017 |
Date: March 9, 2017 | 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 Fourth Quarter and Full Year 2016 Financial Results” dated March 9, 2017 | |
• | 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 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 (Diluted) 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 (Diluted) was $0.20 in the fourth quarter of 2016, compared to $0.14 in 2015. For the year, Non-GAAP EPS (Diluted) 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. |
• | 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. |
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 37 million weighted average diluted shares |
Care.com, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
December 31, 2016 | December 26, 2015 | ||||||
Assets | |||||||
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; 5,000 shares authorized 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, 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 |
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 | ||||||||||||
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 Redeemable Convertible 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 |
Care.com, Inc. | |||||||
Consolidated Statement of Cash Flows | |||||||
(in thousands) | |||||||
Year Ended | |||||||
December 31, 2016 | December 26, 2015 | ||||||
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 (cash 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-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 (used in) 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 investments | (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 Redeemable Convertible 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 | ) | ||||
Payment for repurchase 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) increase 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 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) | (unaudited) | ||||||||||||||
Net 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) | (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 | — | ||||||||||||
Net income (loss) per share | $ | 0.17 | $ | 0.05 | $ | 0.23 | $ | (1.09 | ) | |||||||
(Loss) Income from discontinued operations, net of tax | — | 0.06 | (0.25 | ) | 0.53 | |||||||||||
Stock-based compensation | 0.06 | 0.04 | 0.21 | 0.15 | ||||||||||||
Merger and acquisition related costs | — | — | — | — | ||||||||||||
Restructuring related costs | — | — | 0.02 | — | ||||||||||||
Litigation related costs | 0.01 | — | 0.01 | — | ||||||||||||
Non-GAAP net income (loss) per share | $ | 0.24 | $ | 0.15 | $ | 0.22 | $ | (0.41 | ) |
Care.com, Inc. | |||||||
Supplemental Data | |||||||
(in thousands, except monthly average revenue per member) | |||||||
Period Ended | |||||||
December 31, 2016 | December 26, 2015 | ||||||
Total members* | 22,826 | 18,377 | |||||
Total families* | 12,900 | 10,265 | |||||
Total caregivers* | 9,926 | 8,112 | |||||
Paying families - US Consumer Business | 274 | 266 | |||||
* data is cumulative as of the end of the respective period and excludes families from discontinued operations | |||||||
Period Ended | |||||||
December 31, 2016 | December 26, 2015 | ||||||
Monthly average revenue per paying family | |||||||
US Consumer Business | $ | 40 | $ | 39 |