First Quarter 2015 Results Supplement 1 Cautionary Language Concerning Forward-Looking Statements This supplemental information contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, the Company’s financial guidance for the second quarter of 2015 and full year 2015. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. The Company's actual results could differ materially from those stated or implied in forward-looking statements. The Company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to May 12, 2015. Care.com 2015 | Proprietary Information 2 Q1’15 Performance Q1 Consolidated Results Rev enue Y-Y % Gross Profit Sales & Marketing Research & Dev elopment General & Administrativ e Depreciation & Amortization Total Opex Adjusted EBI TDA* Cash Balance Organic Results** Rev enue Y-Y % Adjusted EBI TDA 35.1 39% 25.6 21.0 5.0 8.5 1.3 35.8 (7.1) 62.7 32.0 27% (5.6) *Net loss, plus: federal, state and franchise taxes, other expense, net, depreciation and amortization, stock-based compensation, accretion of contingent consideration, merger and acquisition related costs and other unusual or non-cash significant adjustments ** Excludes the impact of Citrus Lane 3 In millions except % of revenue Care.com 2015 | Proprietary Information Key Performance Metrics Members (millions) Q1’14 Q2’14 Q3’14 Q4’14 FY2014 Q1’15 - Members – Total Company 10.7 11.8 13.3 14.1 14.1 15.2 - Families – Total Company* 5.8 6.4 7.5 7.9 7.9 8.6 - Caregivers – Total Company* 4.9 5.4 5.8 6.2 6.2 6.6 - US Matching 18.0 19.1 22.3 22.7 82.0 22.6 - Payments 4.2 3.3 3.5 3.5 14.5 5.5 - Citrus Lane - - 2.5 3.6 6.0 3.1 3.0 3.4 3.8 3.8 14.2 3.9 14.5 11.9 14.9 6.7 48.1 12.4 - End of Period Paying Members (000’s) 180 192 225 208 208 230 - ARPU $35 $34 $36 $35 $37 $34 - LOPT (2012 cohort estimated at 4 yrs – in months) 8.1 8.3 8.4 8.4 8.4 8.6 12.2 12.8 13.4 13.9 13.9 15.4 $122 $88 $88 $85 $97 $125 41 41 41 41 41 41 Revenue (millions) - Other Direct Marketing Spend (Matching + Payments) US Matching Payments - End of Period Paying Members (000’s) - ARPU - LOPT (historical – in months) 4 Care.com 2015 | Proprietary Information US Matching Cohort Data Length of Paid Time Actuals (as of EOP Q1’15) 9.0 7.9 8.0 7.0 Average Months 6.0 7.5 7.0 7.0 6.6 6.4 6.0 5.6 After 1 yr 6.2 5.9 After 2 yrs 5.5 After 3 yrs 5.1 After 4 yrs 5.0 4.2 4.3 2008 2009 4.5 4.6 2010 2011 4.8 4.0 3.0 *Latest 4 year estimated LOPT at 8.6 months for 2012 cohort Annual Cohort Care.com 2015 | Proprietary Information 2012* Includes projected Workplace Solutions 5 Guidance Rev enue Organic Care.com Citrus Lane Total Care.com Adjusted EBI TDA Total Care.com Q2 2015 Full Year 2015 $31.5 - $32.5 $2.5 - $3.5 $134 - $141 $12 - $14 $34 - $36 $146 - $155 ($6.5) - ($5.5) ($15) - ($9) In millions As of May 12, 2015 6 Care.com 2015 | Proprietary Information Appendix 7 Care.com 2015 | Proprietary Information Care.com, Inc. Consolidated Balance Sheets (in thousands) March 28, December 27, 2015 2014 (unaudited) Assets Current assets: Cash and cash equivalents Restricted cash Accounts receivable Unbilled accounts receivable Prepaid expenses and other current assets Total current assets Property and equipment, net Intangible assets, net Goodwill Other non-current assets Total assets $ $ Liabilities and stockholders' equity Current liabilities: Accounts payable Accrued expenses and other current liabilities Current contingent acquisition consideration Deferred revenue Total current liabilities Contingent acquisition consideration Deferred tax liability Other non-current liabilities Total liabilities $ 62,745 492 2,828 3,636 8,077 77,778 6,932 7,780 66,536 3,030 162,056 $ 5,697 13,325 8,000 15,117 42,139 7,415 2,587 3,626 55,767 $ $ 71,881 85 2,592 3,541 7,961 86,060 6,323 8,965 68,685 3,071 173,104 5,463 12,732 10,685 13,346 42,226 7,267 2,119 3,442 55,054 Stockholders' equity Common stock, $0.001 par value; 300,000 shares authorized; 31,943 and 31,615 shares issued and outstanding, respectively Additional paid-in capital Accumulated deficit Accumulated other comprehensive (loss) income Total stockholders' equity Total liabilities and stockholders' equity $ Care.com 2015 | Proprietary Information 32 278,838 (171,871) (710) 106,289 162,056 $ 32 277,583 (159,859) 294 118,050 173,104 8 Care.com, Inc. Consolidated Statement of Operations (in thousands, except per share data) Three Months Ended March 28, March 29, 2015 2014 (unaudited) Revenue Cost of revenue Operating expenses: Selling and marketing Research and development General and administrative Depreciation and amortization Total operating expenses Operating loss Other expense, net Loss before income taxes Provision for income taxes Net loss Accretion of preferred stock Net loss attributable to common stockholders Net loss per share attributable to common stockholders: Basic and diluted $ 35,120 9,548 $ 21,042 5,015 8,501 1,275 35,833 (10,261) (1,191) (11,452) 560 (12,012) (12,012) $ (0.38) $ Weighted-average shares used to compute net loss per share attributable to common stockholders: Basic and diluted 31,763 $ 25,271 5,771 $ 20,449 4,064 6,232 1,068 31,813 (12,313) (2,746) (15,059) 485 (15,544) (4) (15,548) $ (0.71) $ 21,899 9 Care.com 2015 | Proprietary Information Care.com, Inc. Consolidated Statement of Cash Flows Three Months Ended March 28, March 29, 2015 2014 (unaudited) (in thousands) Cash flows from operating activities Net loss Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation Depreciation and amortization Deferred taxes Contingent consideration expense Change in fair value of contingent consideration payable in preferred stock Change in fair value of stock warrants Other non-operating expenses Changes in operating assets and liabilities, net of effects from acquisitions: Restricted cash Accounts receivable Unbilled accounts receivable Prepaid expenses and other current assets Other non-current assets Accounts payable Accrued expenses and other current liabilities Deferred revenue Other non-current liabilities Net cash used in operating activities $ (12,012) $ (15,544) 938 1,497 498 308 (56) 1,099 1,261 415 73 2,258 606 - (480) (253) (336) (356) 14 2,513 (296) 2,080 213 (5,728) (431) (592) (560) (203) (3) 2,142 3,266 2,103 (13) (4,123) Cash flows from investing activities Purchases of property and equipment Payments for acquisitions, net of cash acquired Cash withheld for purchase consideration Net cash used in investing activities (3,272) 73 (3,199) (128) (489) (86) (703) Cash flows from financing activities Proceeds from initial public offering net of offering costs Proceeds from exercise of common stock options Payments of contingent consideration previously established in purchase accounting Net cash (used in) provided by financing activities 524 (1,840) (1,316) 96,242 157 (2,845) 93,554 Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents, beginning of the period Cash and cash equivalents, end of the period 1,107 (9,136) 71,881 62,745 (125) 88,603 29,959 118,562 Care.com 2015 | Proprietary Information $ $ 10 Care.com, Inc. Reconciliation of Adjusted EBITDA (in thousands) Three Months Ended March 28, March 29, 2015 2014 (unaudited) Net Loss $ Federal, state and franchise taxes Other expense, net Depreciation and amortization EBITDA Stock-based compensation Accretion of contingent consideration Merger and acquisition related costs IPO related costs Adjusted EBITDA (12,012) $ 689 1,191 1,497 485 2,746 1,261 (8,635) (11,052) 938 308 327 $ (15,544) (7,062) 1,099 73 77 154 $ (9,649) 11 Care.com 2015 | Proprietary Information Care.com, Inc. Reconciliation of Non-GAAP Net Loss Three Months Ended March 28, March 29, 2015 2014 (unaudited) (in thousands, except per share data) Net loss Stock-based compensation Accretion of contingent consideration Merger and acquisition related costs IPO related costs Non-GAAP net loss Non-GAAP net loss per share attributable to common stockholders: Basic and diluted Weighted-average shares used to compute non-GAAP net loss per share attributable to common stockholders: Basic and diluted $ (12,012) $ (15,544) $ 938 308 327 (10,439) $ 1,099 73 77 154 (14,141) $ (0.33) $ (0.65) 31,763 21,899 12 Care.com 2015 | Proprietary Information Care.com, Inc. Reconciliation of Non-GAAP Organic Revenue Three Months Ended March 28, March 29, 2015 2014 (unaudited) (in thousands) Revenue $ 35,120 Citrus Lane revenue $ 3,071 Organic revenue $ 32,049 25,271 - $ 25,271 Three Months Ended March 28, March 29, 2015 2014 (unaudited) (in thousands) Sellingand andmarketing marketing Sales $ 21,042 Citrus Lane Lane sales selling and marketing and marketing Organic selling marketing Organic sales andand marketing $ 684 $ 20,358 20,449 - $ 20,449 Reconciliation of Organic Adjusted EBITDA Three Months Ended March 28, March 29, 2015 2014 (unaudited) (in thousands) Adjusted EBITDA $ Citrus Lane adjusted EBITDA Organic adjusted EBITDA (7,062) $ (1,458) $ Care.com 2015 | Proprietary Information (5,604) (9,649) - $ (9,649) 13 Care.com, Inc. Supplemental Data (in thousands) Three Months Ended Total members** Total families** Total caregivers* March 28, 2015 15,243 8,638 6,605 March 29, 2014 10,706 5,815 4,891 230 15 180 12 Paying members - US Matching Paying members - Payments ** 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 March 28, 2015 Monthly Average Revenue per Member US Matching Payments $ $ 35 125 March 29, 2014 $ $ 34 121 14 Care.com 2015 | Proprietary Information Use of Non-GAAP Financial Measures To supplement the financial measures presented in this supplemental information, we also present, in accordance with accounting principles generally accepted in the United States ("GAAP“), the following non-GAAP measures of financial performance: organic revenue and revenue growth, organic sales & marketing, adjusted EBITDA, organic adjusted EBITDA, non-GAAP net loss and non-GAAP earnings per share (“EPS”). A “non-GAAP financial measure” refers to a numerical measure of the Company’s historical or future financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s financial statements. The Company provides certain non-GAAP measures as additional information relating to its operating results as a complement to results provided in accordance with GAAP. The Company believes the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of the Company's core operations or do not require a cash outlay, such as stock-based compensation. Care.com’s management uses these non-GAAP financial measures when evaluating the Company’s operating performance and for internal planning and forecasting purposes. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of the Company’s liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare the Company’s performance to that of other companies. Care.com 2015 | Proprietary Information 15
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