Care.com, Inc. (NYSE:CRCM) Q3 2018 Earnings Conference Call - Final Transcript

Nov 08, 2018 • 08:00 am ET

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Care.com, Inc. (NYSE:CRCM) Q3 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to Care.com's Third Quarter 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to Mike Goss, VP of Finance. Thank you, you may begin.

Executive
Mike Goss

Thank you. Good morning, and welcome to Care.com's financial results call for the third quarter ended September 29, 2018.

(Forward-Looking Cautionary Statements)

We will also be referring to non-GAAP measures on this call, including adjusted EBITDA, which we refer to as EBITDA throughout this presentation. This measure represents pretax income or loss, including the accretion of preferred stock dividends less depreciation and amortization, as well as certain other unusual and noncash adjustments such as stock-based compensation, M&A and restructuring costs.

We also refer to non-GAAP EPS, which represents net income or loss less certain unusual or noncash expenses, such as stock-based compensation, M&A and restructuring costs. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. Reconciliations to the most directly comparable GAAP financial measures are provided in the tables in the press release and Form 10-Q to be filed.

We will also be referring to profitability on this call. When we refer to profitability, we're referring to it on an adjusted EBITDA basis, unless otherwise noted.

Today's call is available via webcast and a telephone replay will be available for one week following the conclusion of this call. To access the press release, supplemental and financial information or the webcast replay, please consult the IR website.

With that, let me turn the call over to Sheila Lirio Marcelo, Founder, Chairwoman and CEO of Care.com.

Executive
Sheila Lirio Marcelo

Thank you, Mike. Good morning, and thank you to everyone for joining us. Q3 was another quarter of profitable growth and healthy cash generation for us. With 12 quarters of consistent profitable growth under our belt, we continue to invest in the founding vision of the company to penetrate ever more of our large total addressable market with 48 million households in the US alone.

Our mobile-first platform provides families access to affordable, high-quality care options for families from full-time care for their children to afterschool care to senior care and situational needs through Care@Work. In addition, our mission is focused on improving the overall care provider experience and being the leading destination for millions of caregivers to find sustainable jobs. Between our leading consumer and enterprise platforms, we believe we play a critical role in building a scalable care infrastructure to address the future of work for both families and caregivers. We are excited to have made great progress toward driving long-term growth and believe the building blocks are in place to accelerate growth in 2019.

Now turning to our Q3 financial highlights. Total revenue was $49.2 million, growing 10% versus the third quarter of 2017 and in line with expectations, while Q3 EBITDA totaled $6.9 million, exceeding our expectations. And with