UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported): July 30, 2018

Care.com, Inc.
(Exact name of registrant as specified in its charter)

 

					
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)	

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company [x]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [x] 

 

Item 2.02. Results of Operations and Financial Condition
On July 30, 2018 , Care.com, Inc. (the "Company") issued a press release announcing financial results for the second quarter ended on June 30, 2018 . A copy of the press release is furnished as Exhibit 99.1 to this Current Report and is incorporated herein by reference.
The information set forth under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits
(d) The following exhibit relating to Item 2.02 shall be deemed to be furnished and not filed.

			
 	
Exhibit Number	 	Exhibit Title or Description	
 	 	
99.1	 	Press release issued by Care.com, Inc. entitled “Care.com Announces Strong Second Quarter 2018 Financial Results” dated July 30, 2018	

This report on Form 8-K contains projections and other forward-looking statements regarding future events. These statements are only predictions and reflect our current beliefs and expectations. Actual events or results may differ materially from those contained in the projections or forward-looking statements. It is routine for internal projections and expectations to change as the quarter and year progress, and therefore it should be clearly understood that the internal projections and beliefs upon which we base our expectations may change. Although these expectations may change, we will not necessarily inform you if they do nor will we necessarily update the information contained in this report on Form 8-K. Readers are urged to read the reports and documents filed from time to time by the Company with the Securities and Exchange Commission for a discussion of important risk factors that could cause actual results to differ materially from those discussed in the forward-looking statements. Forward-looking statements in this report are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	

 	 	 	 	 	
Dated: July 30, 2018	 	 	By:	/s/ MICHAEL ECHENBERG	
 	 	 	 	Michael Echenberg	
 	 	 	 	Executive Vice President and Chief Financial Officer	

Exhibit 99.1

Care.com Announces Strong Second Quarter 2018 Financial Results

Waltham, MA - July 30, 2018 - Care.com (NYSE: CRCM), the world's largest online destination for finding and managing family care, today is announcing financial results for the second quarter ended June 30, 2018.
“We had a strong second quarter of 2018, with revenue at the top end of our guidance range and - while we were just below breakeven on GAAP net income as a result of the foreign exchange impact of a weakening Euro - EBITDA generated across our businesses exceeded our expectations and EBITDA margin was double prior year at 13%. These notable EBITDA gains were driven by the strength in the underlying health of our core US Consumer business, which continued to show strong improvements in unit economics as we also grew end-of-period paying families by 10% versus prior year.  As a result, we generated an incremental $7 million in cash,” said Sheila Lirio Marcelo, Founder, Chairwoman and CEO of Care.com. “Over the past couple of years, we have been pleased with our continuous progress on initiatives that we expect will drive consistent long-term profitable growth - including top line acceleration in 2019 and beyond.”

Financial Results

•	Revenue for the second quarter of 2018 was $46.0 million , a 10% increase from $42.0 million in the second quarter of 2017 .	

◦	Revenue attributable to the US Consumer offering totaled $35.6 million in the second quarter of 2018 , an increase of 7% from $33.4 million in the second quarter of 2017 .	

◦	Revenue attributable to the Care@Work and other B2B Offerings, as well as our services in our international markets, totaled $10.4 million in the second quarter of 2018 , an increase of 21% from $8.6 million in the second quarter of 2017 .	

•	Net loss was $0.2 million in the second quarter of 2018 , compared to net income of $1.7 million in the second quarter of 2017 , a decrease of $1.9 million , primarily attributable to an increase in stock-based compensation expense and a foreign exchange loss resulting from the weakening of the Euro.	

•	Adjusted EBITDA was $5.9 million in the second quarter of 2018 , compared to $2.6 million in the second quarter of 2017 , an improvement of $3.3 million .	

•	GAAP EPS (Diluted) was $(0.03) in the second quarter of 2018 , compared to $0.03 in the second quarter of 2017 . Q2 GAAP EPS (Diluted) was based on 30.6 million weighted average diluted shares outstanding versus 32.2 million in the second quarter of 2017 .	

•	Non-GAAP EPS (Diluted) was $0.14 in the second quarter of 2018 , compared to $0.11 in the second quarter of 2017 . Note that Non-GAAP EPS excludes the impact of non-cash stock-based compensation, adjustments relating to preferred stock and other non-recurring items, such as M&A expenses and restructuring costs.	

•	The Company ended the quarter with $113.6 million in cash and cash equivalents and short-term investments.	

Business Highlights

•	Our total members grew 17% to 29.6 million at the end of the second quarter of 2018 , compared to 25.2 million in the same period of 2017 .	

		
•	Total families grew to 16.9 million at the end of the second quarter of 2018 , an increase of 19% over the same period of 2017 , and total caregivers grew to 12.7 million at the end of the second quarter of 2018 , an increase of 16% over the same period of 2017 .	

Financial Expectations

																
 	Q3 2018 Guidance	 	Full Year 2018 Guidance	
 	 	 	 	 	 	 	 	
Revenue	$	49.0		—	$	49.3		 	$	191.5		—	$	193.0		
 	 	 	 	 	 	 	 	
Adjusted EBITDA	$	5.25		—	$	5.75		 	$	31.0		—	$	32.0		
 	 	 	 	 	 	 	 	
Non-GAAP EPS	~$0.12	 	$	0.65		—	$	0.67		
 	 	 	 	 	 	 	 	
Figures in millions except for Non-GAAP EPS	
Q3 Non-GAAP EPS based on approximately 39 million weighted average dilutive shares	
FY'18 full year Non-GAAP EPS based on 40 million weighted average diluted shares	

Future GAAP Net Income and GAAP EPS may be significantly affected by changes in ongoing assumptions and judgments, and may also be affected by non-recurring, unusual or unanticipated charges, expenses or gains, which we are not able to estimate and which therefore are excluded in the calculation of the Company’s non-GAAP EPS guidance as described in this press release. Due to the nature of any such items, we are not able to estimate their significance, and it is therefore currently not practical to reconcile adjusted EBITDA and non-GAAP EPS guidance to the most comparable GAAP measure.

Earnings Teleconference Information

The Company will host a conference call at 8:00 AM ET today to discuss these results. The conference call will be accessible at (877) 407-4018 or (201) 689-8471 (International). The call will also be broadcast simultaneously at http://investors.care.com . Following 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 (844) 512-2921 or (412) 317-6671 (International), conference ID# 13681410. The telephone replay will be available from 11:00 AM ET July 30 through 11:59 PM ET August 13, 2018. Additional investor information can be accessed at http://investors.care.com .

About Care.com

Since launching in 2007, Care.com (NYSE: CRCM) has been committed to solving the complex care challenges that impact families, caregivers, employers, and care service companies. Today, Care.com is the world’s largest online destination for finding and managing family care, with 16.9 million families and 12.7 million caregivers* across more than 20 countries, including the U.S., UK, Canada and parts of Western Europe, and approximately 1.4 million employees of corporate clients having access to our services. Spanning child care to senior care, pet care, housekeeping and more, Care.com provides a sweeping array of services for families and caregivers to find, manage and pay for care or find employment. These include: a comprehensive suite of safety tools and resources members may use to help make more informed hiring decisions - such as third-party background check services, monitored messaging, and tips on hiring best practices; easy ways for caregivers to be paid online or via mobile app; and Care.com Benefits, including the household payroll and tax services provided by Care.com HomePay and the Care Benefit Bucks program, a peer-to-peer pooled, portable benefits platform funded by household employer contributions which provides caregivers access to professional benefits. For enterprise clients, Care.com builds customized benefits packages covering child care, back up care and senior care consulting services through its Care@Work business, and

serves care businesses with marketing and recruiting support. Headquartered in Waltham, Massachusetts, Care.com has offices in Berlin, Austin and the San Francisco Bay area.
*As of June 2018
Cautionary Language Concerning Forward-Looking Statements:
This press release 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, statements regarding the expected results of product investments and initiatives, anticipated revenue growth, and the Company’s financial guidance for the third quarter of 2018 and full year 2018. 

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. Words such as “plan,” "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," “designed,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control.  The Company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: our ability to grow our membership while leveraging our investment in sales and marketing, our success in converting non-paying members to paying members and extending the length of time that paying members continue to pay for our services, our ability to cross-sell new and existing products and services to our members and to develop new products and services that members consider valuable, our ability to protect our brand and maintain our reputation among our members, and other risks detailed in the Company's other publicly available filings with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent the Company's views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change.  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 the date of this press release.
Use of Non-GAAP Financial Measures

To supplement the financial measures presented in the Company’s press release and related conference call or webcast in accordance with accounting principles generally accepted in the United States ("GAAP"), we also present the following non-GAAP measures of financial performance: adjusted EBITDA, non-GAAP net income 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 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.

The Company has presented: adjusted EBITDA, non-GAAP net income and non-GAAP EPS as non-GAAP financial measures in this press release. We define adjusted EBITDA as income / (loss), which excludes the accretion of preferred stock dividends and issuance costs, as well as: federal, state and franchise taxes, other income (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, such as impairment and restructuring charges. Adjusted EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital

spending, which is based on the Company's estimate of the useful life of tangible and intangible assets. We define non-GAAP net income as income / (loss), which excludes the accretion of preferred stock dividends, plus stock-based compensation, accretion of contingent consideration, merger and acquisition related costs, and other unusual or non-cash significant adjustments such as impairment and restructuring charges. We define non-GAAP EPS as non-GAAP net income divided by diluted weighted-average shares outstanding, using the treasury stock method.

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 Company believes that these non-GAAP financial measures help indicate underlying trends in the Company’s business, are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing the Company’s operating performance.

	
								
Care.com, Inc.	 	 	 	
Consolidated Balance Sheets	 	 	 	
(in thousands)	 	 	 	

 	June 30, 2018	 	December 30, 2017	
Assets	 	 	 	
Current assets:	 	 	 	
Cash and cash equivalents	$	98,455		 	$	86,728		
Short-term investments	15,099		 	15,000		
Accounts receivable (net of allowance of $139 and $102, respectively) (1)  	4,714		 	5,171		
Unbilled accounts receivable (2)  	5,692		 	5,454		
Prepaid expenses and other current assets	6,235		 	4,883		
Total current assets	130,195		 	117,236		
Property and equipment, net	3,469		 	3,651		
Intangible assets, net	2,188		 	1,142		
Goodwill	64,603		 	60,281		
Other non-current assets	2,708		 	2,066		
Total assets	$	203,163		 	$	184,376		
 	 	 	 	
Liabilities, redeemable convertible preferred stock, and stockholders' equity	 	 	 	
Current liabilities:	 	 	 	
Accounts payable (3)  	$	2,042		 	$	1,873		
Accrued expenses and other current liabilities (4)  	16,928		 	17,086		
Current contingent acquisition consideration	485		 	—		
Deferred revenue (5)	21,579		 	18,626		
Total current liabilities	41,034		 	37,585		
Non-current contingent acquisition consideration	428		 	—		
Deferred tax liability	1,327		 	1,292		
Other non-current liabilities	6,347		 	5,779		
Total liabilities	49,136		 	44,656		
 	 	 	 	
Series A Redeemable Convertible Preferred Stock, $0.001 par value - 46 shares designated; 46 shares issued and outstanding at June 30, 2018 and December 30, 2017; at aggregate liquidation and redemption value at June 30, 2018 and December 30, 2017, respectively	51,604		 	50,259		
Stockholders' equity	 	 	 	
Preferred Stock: $0.001 par value - authorized 5,000 shares at June 30, 2018 and December 30, 2017, respectively	—		 	—		
Common stock, $0.001 par value; 300,000 shares authorized; 31,239 and 30,390 shares issued and outstanding at June 30, 2018 and December 30, 2017, respectively	31		 	30		
Additional paid-in capital	276,580		 	266,030		
Accumulated deficit	(174,484	)	 	(177,145	)	
Accumulated other comprehensive income	296		 	546		
Total stockholders' equity	102,423		 	89,461		

	
								
Total liabilities, redeemable convertible preferred stock and stockholders' equity	$	203,163		 	$	184,376		
(1) Includes accounts receivable due from related party of $896 and $307 at June 30, 2018 and December 30, 2017, respectively   
(2) Includes unbilled accounts receivable due from related party of $389 and $222 at June 30, 2018 and December 30, 2017, respectively   
(3) Includes accounts payable due to related party of $10 and $128 at June 30, 2018 and December 30, 2017, respectively   
(4) Includes accrued expenses and other current liabilities due to related party of $780 and $542 at June 30, 2018 and December 30, 2017, respectively   
(5) Includes deferred revenue associated with related party of $92 and $2 at June 30, 2018 and December 30, 2017, respectively   

 

																
Care.com, Inc.	 	 	 	 	 	 	 	
Consolidated Statement of Operations	 	 	 	 	 	 	 	
(in thousands, except per share data)	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Six Months Ended	
 	June 30,
2018	 	July 1,
2017	 	June 30,
2018	 	July 1,
2017	
 	 	 	 	 	 	 	 	
Revenue (1)	$	45,966		 	$	41,972		 	$	93,291		 	$	85,338		
Cost of revenue	9,823		 	9,000		 	19,266		 	17,766		
Operating expenses:	 	 	 	 	 	 	 	
Selling and marketing (2)	15,901		 	17,853		 	32,758		 	37,050		
Research and development	8,492		 	6,666		 	16,780		 	12,655		
General and administrative	11,593		 	8,433		 	22,060		 	16,688		
Depreciation and amortization	411		 	423		 	829		 	847		
Restructuring charges	17		 	—		 	479		 	—		
Total operating expenses	36,414		 	33,375		 	72,906		 	67,240		
Operating (loss) income	(271	)	 	(403	)	 	1,119		 	332		
Other (expense) income, net	(768	)	 	1,008		 	(206	)	 	1,309		
(Loss) Income before income taxes	(1,039	)	 	605		 	913		 	1,641		
Benefit from income taxes	(870	)	 	(1,068	)	 	(1,615	)	 	(856	)	
Net (loss) income	(169	)	 	1,673		 	2,528		 	2,497		
Accretion of Series A Redeemable Convertible Preferred Stock dividends	(665	)	 	(660	)	 	(1,345	)	 	(1,262	)	
Net income attributable to Series A Redeemable Convertible Preferred Stock	—		 	(139	)	 	(163	)	 	(169	)	
Net (loss) income attributable to common stockholders	$	(834	)	 	$	874		 	$	1,020		 	$	1,066		
 	 	 	 	 	 	 	 	
Net (loss) income per share attributable to common stockholders (Basic):	$	(0.03	)	 	$	0.03		 	$	0.03		 	$	0.04		
Net (loss) income per share attributable to common stockholders (Diluted):	$	(0.03	)	 	$	0.03		 	$	0.03		 	$	0.03		
 	 	 	 	 	 	 	 	
Weighted-average shares used to compute net (loss) income per share attributable to common stockholders:	 	 	 	 	 	 	 	
Basic	30,591		 	29,556		 	30,792		 	29,352		
Diluted	30,591		 	32,220		 	33,486		 	31,746		
(1) Includes related party revenue of $705 and $432 for the three months ended June 30, 2018 and July 1, 2017, respectively. Includes related party revenue of $1,342 and $825 for the six months ended June 30, 2018 and July 1, 2017, respectively.   
(2) Includes related party expenses of $2,617 and $4,120 for the three months ended June 30, 2018 and July 1, 2017, respectively. Includes related party expenses of $5,653 and $7,820 for the six months ended June 30, 2018 and July 1, 2017, respectively.   

	
								
Care.com, Inc.	 	 	 	
Consolidated Statement of Cash Flows	 	 	 	
(in thousands)	 	 	 	
 	Six Months Ended	
 	June 30, 2018	 	July 1, 2017	
Cash flows from operating activities	 	 	 	
Net income	$	2,528		 	$	2,497		
Adjustments to reconcile net income to net cash provided by operating activities:	 	 	 	
Stock-based compensation	8,700		 	3,551		
Depreciation and amortization	924		 	1,199		
Deferred income taxes	(1,691	)	 	196		
Contingent consideration expense	19		 	—		
Loss on impairment of intangible assets	142		 	—		
Foreign currency remeasurement loss	478		 	1,157		
Changes in operating assets and liabilities, net of effects from acquisitions:	 	 	 	
Accounts receivable	441		 	(1,448	)	
Unbilled accounts receivable	(241	)	 	(191	)	
Prepaid expenses and other current assets	390		 	(1,358	)	
Other non-current assets	(381	)	 	—		
Accounts payable	178		 	879		
Accrued expenses and other current liabilities	(715	)	 	1,258		
Deferred revenue	3,086		 	3,469		
Other non-current liabilities	780		 	(69	)	
Net cash provided by operating activities	14,638		 	11,140		
 	 	 	 	
Cash flows from investing activities	 	 	 	
Purchases of property and equipment; and software	(399	)	 	(387	)	
Payments for acquisitions, net of cash acquired	(5,309	)	 	—		
Purchase of short-term investment	(15,099	)	 	(15,000	)	
Sale of short-term investment	15,000		 	15,000		
Net cash used in investing activities	(5,807	)	 	(387	)	
 	 	 	 	
Cash flows from financing activities	 	 	 	
Proceeds from exercise of common stock options	3,192		 	2,037		
Net cash provided by financing activities	3,192		 	2,037		
 	 	 	 	
Effect of exchange rate changes on cash and cash equivalents	(296	)	 	(2,045	)	
Net increase in cash and cash equivalents and restricted cash	11,727		 	10,745		
Cash and cash equivalents and restricted cash, beginning of the period	86,728		 	61,094		
Cash and cash equivalents and restricted cash, end of the period	$	98,455		 	$	71,839		

	
																
Care.com, Inc.	 	 	 	 	 	 	 	
Reconciliation of Adjusted EBITDA & Non-GAAP Income	 	 	 	 	
(in thousands, except per share data)	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Six Months Ended	
 	June 30,
2018	 	July 1,
2017	 	June 30,
2018	 	July 1,
2017	
 	(unaudited)	 	(unaudited)	
 	 	 	 	 	 	 	 	
Net (loss) income	$	(169	)	 	$	1,673		 	$	2,528		 	$	2,497		
 	 	 	 	 	 	 	 	
Federal, state and franchise taxes	(783	)	 	(1,004	)	 	(1,222	)	 	(710	)	
Other expense (income), net	768		 	(1,008	)	 	206		 	(1,309	)	
Depreciation and amortization	461		 	598		 	924		 	1,199		
EBITDA	277		 	259		 	2,436		 	1,677		
 	 	 	 	 	 	 	 	
Stock-based compensation	4,988		 	1,948		 	8,700		 	3,551		
Merger and acquisition related costs	335		 	95		 	511		 	95		
Restructuring related costs	17		 	—		 	479		 	—		
Litigation related costs	20		 	—		 	20		 	75		
Software implementation costs	150		 	216		 	303		 	216		
Severance related costs	—		 	90		 	67		 	121		
Impairment of intangible assets	142		 	—		 	142		 	—		
Adjusted EBITDA	$	5,929		 	$	2,608		 	$	12,658		 	$	5,735		
 	 	 	 	 	 	 	 	
Add back for Non-GAAP Net Income	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
Federal, state and franchise taxes	783		 	1,004		 	1,222		 	710		
Other (expense) income, net	(768	)	 	1,008		 	(206	)	 	1,309		
Depreciation and amortization	(461	)	 	(598	)	 	(924	)	 	(1,199	)	
Non-GAAP net income	$	5,483		 	$	4,022		 	$	12,750		 	$	6,555		
 	 	 	 	 	 	 	 	
Non-GAAP net income per share:	 	 	 	 	 	 	 	
Basic	$	0.18		 	$	0.14		 	$	0.41		 	$	0.22		
Diluted	$	0.14		 	$	0.11		 	$	0.33		 	$	0.18		
 	 	 	 	 	 	 	 	
Weighted-average shares used to compute non-GAAP net income per share:	 	 	 	 	 	 	 	
Basic	30,591		 	29,556		 	30,792		 	29,352		
Diluted	38,047		 	36,879		 	38,401		 	36,405		

	
																
Care.com, Inc.	 	 	 	 	 	 	 	
Reconciliation of Non-GAAP EPS	 	 	 	 	 	 	 	
(in thousands, except per share data)	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Six Months Ended	
 	June 30, 2018	 	July 1, 2017	 	June 30, 2018	 	July 1, 2017	
 	(unaudited)	 	(unaudited)	
Weighted-average shares used to compute net income per share:	 	 	 	 	 	 	 	
Diluted	38,047		 	36,879		 	38,401		 	36,405		
 	 	 	 	 	 	 	 	
Net income per share (Diluted):	 	 	 	 	 	 	 	
Net (loss) income per share attributable to common stockholders	$	(0.02	)	 	$	0.02		 	$	0.03		 	$	0.03		
Impact on net income per share of Series A related costs	0.02		 	0.02		 	0.04		 	0.04		
Adjusted net income per share	$ (0.00)		 	$	0.05		 	$	0.07		 	$	0.07		
 	 	 	 	 	 	 	 	
Stock-based compensation	0.13		 	0.05		 	0.23		 	0.10		
Merger and acquisition related costs	0.01		 	0.00		 	0.01		 	0.00		
Restructuring related costs	0.00		 	—		 	0.01		 	—		
Litigation related costs	0.00		 	—		 	0.00		 	0.00		
Software implementation costs	0.00		 	0.01		 	0.01		 	0.01		
Severance related costs	—		 	0.00		 	0.00		 	0.00		
Impairment of intangible assets	0.00		 	—		 	0.00		 	—		
Non-GAAP net income per share - diluted	$	0.14		 	$	0.11		 	$	0.33		 	$	0.18		

	
								
Care.com, Inc.	 	 	 	
Supplemental Data	 	 	 	
(in thousands, except monthly average revenue per member)	
 	 	
 	Period Ended	
 	June 30, 2018	 	July 1, 2017	
Total members	29,560		 	25,198		
Total families	16,874		 	14,239		
Total caregivers	12,686		 	10,959		
 	 	 	 	
Paying families - US Consumer Business	324		 	294		
 	 	 	 	
 	Period Ended	
 	June 30, 2018	 	July 1, 2017	
Monthly average revenue per paying family	 	 	 	
US Consumer Business	$	37		 	$	38