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First Quarter 2015 Results Supplement
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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
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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
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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)
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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
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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
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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
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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
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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
$
$
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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)
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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
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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)
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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
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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
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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
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