Care.com Announces First Quarter 2014 Financial ResultsLeading Care Destination Delivers Record Revenue as Membership Tops 10.7 Million
May 01, 2014
Care.com, Inc. (NYSE: CRCM), the world's largest online care destination for finding and managing family care, today announced financial results for the first quarter ended on March 29, 2014.
Total members grew to 10.7 million at the end of Q1, representing 44% growth over the first quarter 2013.
First quarter 2014 revenue grew 39% to $25.3 million from $18.2 million in the first quarter of 2013. US consumer matching and payments businesses each grew 37% over the first quarter of 2013.
Investments in integrated products and marketing contributed to accelerated payments growth, with 40% of new payments signups via Care.com.
“The start of the year represents one of the peaks in our business as more families look to put care solutions in place for their children, seniors, and homes, and then head into tax season,” said Sheila Lirio Marcelo, Founder and CEO of Care.com. “Our results for the first quarter demonstrate the powerful cross-sell synergies of our platform and the high-ROI potential of our combined core services of US consumer matching and payments. The breadth and scope of our services continues to attract families and caregivers to our platform while also providing a foundation for enhanced offerings designed to enrich the member experience.”
Revenue for the first quarter was $25.3 million, a 39% increase from $18.2 million in the first quarter of 2013.
US consumer matching revenue totaled $18.0 million in Q1, a 37% increase from $13.1 million the first quarter 2013.
Payments revenue totaled $4.2 million in the first quarter, a 37% increase from $3.1 million the first quarter of 2013.
Net loss for the first quarter 2014 was $15.5 million, compared to net loss of $6.8 million in the first quarter of 2013. Net loss was impacted by the planned timing of marketing investments and by $3.0 million of non-recurring preferred stock and warrant valuation adjustments and other IPO-related expenses.
Adjusted EBITDA was a loss of $9.6 million in the first quarter 2014, compared to an adjusted EBITDA loss of $4.3 million in the first quarter of 2013. Adjusted EBITDA included planned increases in marketing investments.
GAAP EPS was $(0.71) in the first quarter, including $(0.14) in non-recurring preferred stock and warrant valuation adjustments and other IPO-related expenses. Q1 GAAP EPS was based on 21.9 million weighted average basic shares outstanding.
Non-GAAP EPS was $(0.51) in the first quarter. Non-GAAP EPS excludes the impact of non-cash stock based compensation and non-recurring items, such as M&A and IPO-related expenses.
The Company ended the quarter with $118.6 million in cash and cash equivalents. For the first quarter of 2014, our cash used by operating activities was $4.1 million compared to $2.5 million used in the first quarter of 2013.
Our total members grew 44% to 10.7 million at the end of Q1, compared to 7.5 million in Q1, 2013. Total families grew 48% to 5.8 million at the end of Q1, and total caregivers grew 40% to 4.9 million at the end of Q1.
We initiated integrated US matching and payments marketing programs to take advantage of payments’ peak tax season and cross sell synergies. As a result, payments growth accelerated and 40% of new payments signups came via Care.com.
We introduced new releases of our iOS and Android apps, and launched enhanced mobile web features. Mobile visitors now make up approximately half of our US traffic, which was an average of 5.7 million total unique monthly visitors, a 36% increase over Q1 of last year.
We acquired the right to hire a highly talented team of mobile developers formerly comprising all of the employees of Consmr, Inc.. This team has joined our existing mobile, product engineering, and data analytics teams to help us accelerate, expand and enhance our mobile product offerings.
Revenue $25.5MM - $26.2MM
Adjusted EBITDA $(7.0)MM - $(6.0)MM
Non GAAP Earnings per Share $(0.28) - $(0.23)
Full Year 2014
Revenue $109MM - $112MM
Adjusted EBITDA $(23)MM - $(20)MM
Non GAAP Earnings per Share $(1.00) - $(0.90)
Figures in millions except for Non GAAP EPS
Non-GAAP EPS based on weighted basic shares
Earnings Teleconference Information
The Company will discuss its first quarter 2014 financial results during a teleconference today, May 1, 2014, at 8:00 AM ET. The conference call can be accessed at (877) 407-4018 or (201) 689-8471 (international), conference ID# 13580146. The call will also be broadcast simultaneously at http://investors.care.com. Following the 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 (877) 870-5176 or (858 384-5517 (international), conference ID # 13580146. The telephone replay will be available from 11:00 AM ET May 1 through 11:59 PM ET May 8, 2014. Additional investor information can be accessed at http://www.care.com