Care.com Inc

CIK:0001412270|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 29, 2018

Sep. 30, 2019

Sep. 29, 2018

Income Statement [Abstract]

Revenue

^[1]

$ 53,285

$ 49,160

$ 157,599

$ 142,451

Cost of revenue

15,598

11,532

43,050

30,798

Operating expenses:

Selling and marketing

^[2]

17,732

16,439

53,287

49,197

Research and development

8,417

8,860

36,563

25,640

General and administrative

13,281

10,987

35,604

33,047

Depreciation and amortization

478

416

1,408

1,245

Goodwill and intangible asset impairment charge

8,183

Restructuring and right of use asset impairment charges

(134)

2,855

568

Total operating expenses

39,774

36,791

137,900

109,697

Operating (loss) income

(2,087)

837

(23,351)

1,956

Other (expense) income, net

(222)

454

(168)

(Loss) income before income taxes

(2,309)

875

(22,897)

1,788

(Benefit from) provision for income taxes

(73)

(977)

45,172

(2,592)

Net (loss) income

(2,236)

1,852

(68,069)

4,380

Accretion of Series A Redeemable Convertible Preferred Stock dividends

(773)

(718)

(2,192)

(2,063)

Net (income) attributable to Series A Redeemable Convertible Preferred Stock

(155)

(321)

Net (loss) income attributable to common stockholders

$ (3,009)

$ 979

$ (70,261)

$ 1,996

Net (loss) income per share attributable to common stockholders (Basic) (in dollars per share)

$ (0.09)

$ 0.03

$ (2.16)

$ 0.06

Net (loss) income per share attributable to common stockholders (Diluted) (in dollars per share)

$ (0.09)

$ 0.03

$ (2.16)

$ 0.06

Weighted-average shares used to compute net (loss) income per share attributable to common stockholders:

Basic (shares)

32,863

31,356

32,539

30,980

Diluted (shares)

32,863

33,880

32,539

33,633

[1]	Includes related party revenue of $937 and $819 for the three months ended September 30, 2019 and September 29, 2018, respectively. Includes related party revenue of $2,759 and $2,161 for the nine months ended September 30, 2019 and September 29, 2018, respectively. (Note 14)
[2]	Includes related party expenses of $3,482 and $2,912 for the three months ended September 30, 2019 and September 29, 2018, respectively. Includes related party expenses of $9,946 and $8,565 for the nine months ended September 30, 2019 and September 29, 2018, respectively. (Note 14)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 29, 2018
Cash flows from operating activities
Net (loss) income	$ (68,069)	$ 4,380
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Stock-based compensation	13,843	12,981
Depreciation and amortization	2,150	1,527
Deferred income taxes	44,750	(2,712)
Contingent consideration expense	0	29
Change in fair value of contingent consideration	669	257
Loss on impairment of goodwill and intangible assets	8,183	142
Foreign currency remeasurement loss	545	606
Disposal of fixed assets	525	0
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(1,867)	497
Unbilled accounts receivable	(303)	(625)
Prepaid expenses and other current assets	(1,856)	(1,630)
Other non-current assets	(27)	(693)
Operating lease right of use assets and liabilities	(208)	0
Accounts payable	(1,150)	(678)
Accrued expenses and other current liabilities	5,420	4,677
Deferred revenue	4,376	3,645
Payments of contingent consideration in excess of acquisition date fair value	(521)	0
Other non-current liabilities	2,894	1,330
Net cash provided by operating activities	9,354	23,733
Cash flows from investing activities
Purchases of property and equipment; and software	(1,606)	(564)
Payments for acquisitions, net of cash acquired	(7,472)	(9,818)
Purchase of short-term investment	(50,000)	(35,099)
Sale of short-term investment	50,099	15,000
Other	(84)	0
Net cash used in investing activities	(9,063)	(30,481)
Cash flows from financing activities
Proceeds from exercise of common stock options	1,791	4,693
Payments of contingent consideration	(1,112)	0
Net cash provided by financing activities	679	4,693
Effect of exchange rate changes on cash and cash equivalents	(269)	(282)
Net (decrease) increase in cash and cash equivalents and restricted cash	701	(2,337)
Cash and cash equivalents and restricted cash, beginning of the period	95,284	89,024
Cash and cash equivalents and restricted cash, end of the period	95,985	86,687
Cash and cash equivalents and restricted cash, end of the period	95,284	89,024
Supplemental disclosure of cash flow activities
Cash paid for taxes	427	483
Supplemental disclosure of non-cash operating, investing and financing activities
Unpaid purchases of property and equipment	0	297
Series A Redeemable Convertible Preferred Stock dividend accretion	$ 2,192	$ 2,063

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 29, 2018

Current assets:

Cash and cash equivalents

$ 94,560

$ 92,432

Short-term investments

35,000

35,099

Accounts receivable (net of allowance of $100 and $100, respectively)

^[1]

6,488

4,663

Unbilled accounts receivable

^[2]

6,684

6,394

Prepaid expenses and other current assets

7,389

7,223

Total current assets

150,121

145,811

Property and equipment, net

3,336

3,423

Intangible assets, net

3,249

4,061

Goodwill

67,321

68,176

Other non-current assets

3,129

2,859

Operating lease right of use assets, net

23,525

Deferred tax assets

43,737

Total assets

250,681

268,067

Current liabilities:

Accounts payable

^[3]

2,277

3,437

Accrued expenses and other current liabilities

^[4]

25,176

20,463

Current contingent acquisition consideration

1,000

1,527

Deferred revenue

^[5]

24,459

20,176

Current operating lease liabilities

5,587

Total current liabilities

58,499

45,603

Non-current contingent acquisition consideration

438

Deferred tax liability

1,835

Other non-current liabilities

3,568

6,806

Non-current operating lease liabilities

24,619

Total liabilities

88,521

52,847

Contingencies (see Note 6)

Stockholders' equity

Preferred Stock: $0.001 par value - authorized 5,000 shares at September 30, 2019 and December 29, 2018, respectively

Common stock, $0.001 par value; 300,000 shares authorized; 33,082 and 32,057 shares issued and outstanding at September 30, 2019 and December 29, 2018, respectively

Additional paid-in capital

299,679

286,295

Accumulated deficit

(192,191)

(124,122)

Accumulated other comprehensive (loss) income

(560)

Total stockholders' equity

106,961

162,213

Total liabilities, redeemable convertible preferred stock and stockholders' equity

250,681

268,067

Series A Redeemable Convertible Preferred Stock

Current liabilities:

Series A Redeemable Convertible Preferred Stock, $0.001 par value - 46 shares designated; 46 shares issued and outstanding at September 30, 2019 and December 29, 2018; at aggregate liquidation and redemption value at September 30, 2019 and December 29, 2018, respectively

$ 55,199

$ 53,007

[1]	Includes accounts receivable due from related party of $231 and $421 at September 30, 2019 and December 29, 2018, respectively. (Note 14)
[2]	Includes unbilled accounts receivable due from related party of $610 and $680 at September 30, 2019 and December 29, 2018, respectively. (Note 14)
[3]	Includes accounts payable due to related party of $0 and $530 at September 30, 2019 and December 29, 2018, respectively. (Note 14)
[4]	Includes accrued expenses and other current liabilities due to related party of $1,352 and $403 at September 30, 2019 and December 29, 2018, respectively. (Note 14)
[5]	Includes deferred revenue associated with related party of $57 and $1 at September 30, 2019 and December 29, 2018, respectively. (Note 14)