Care.com, Inc. (NYSE:CRCM) Q3 2019 Earnings Conference Call - Final Transcript
Nov 06, 2019 • 08:00 am ET
Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] Our first question comes from the line of Darren Aftahi with ROTH Capital Partners. Please proceed with your question.
Hey, guys. Good morning. Thanks for taking my questions. Just few if I may. It's kind of a two-part question. With the amount of cash that you have on your balance sheet, I guess, one, what do you feel like is an ample amount of cash that you need; and then, two, with the performance of Care@Work, is there any way that you guys can invest in that business more aggressively to perhaps accelerate or grow that business faster?
And then on the CEO search, I'm just kind of curious in terms of time frame, when we might see a decision made?
And then third, a couple of quarters back when you guys talked about implementing more stringent requirements for background checks, etc., and you had talked about additional costs. I'm just curious as we passed a couple of quarters now, the added kind of incremental costs, maybe you signal to the market, do you feel like those are still in line, perhaps better, that that number could be a little bit higher? Just trying to get a sense, we're going to have that flows into 2020. Thank you.
Sheila Lirio Marcelo
Thanks, Darren. Let me start with the CEO search question and I'll turn the cash and the background check over to Mike. We are really excited about the candidates that we've been meeting, and as we shared in our prepared remarks, as a board, it's a top priority for us. And we're working expeditiously to go through the interviews. So as we learn more, we will certainly update all of you.
Let me turn it over to Mike on cash and background checks.
Hi, Darren. So cash on the balance sheet, we've talked about many times in the past. We feel like it gives us optionality to head down different roads. I don't know that we would be willing to commit to saying a definitive amount or number as to what we consider ample cash on the balance sheet. I think we're holding where we are based upon what we have in the landscape in front of us and where we think we could invest.
As far as your question on could we invest in Care@Work to grow faster, I think we have a plan in front of us to continue to scale that business. We're continuing to add to the sales team and looking at a strong pipeline. So we believe that we're investing appropriately in that business to scale.
And then to answer your question on the background check costs, we've been rolling that program out. Things have been going well thus far. We like the traction that we're seeing. We like the responsiveness that we're getting both from providers, as well as seekers on the site. And we believe the cost for the check are still in line