Company profile

Ticker
CRCM
Exchange
Website
CEO
Sheila Lirio Marcelo
Employees
Incorporated in
Location
Fiscal year end
SEC CIK

CRCM stock data

(
)

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

6 Nov 19
13 Dec 19
31 Dec 19

News

Company financial data Financial data

Quarter (USD) Sep 19 Jun 19 Mar 19 Dec 18
Revenue 53.29M 50.98M 53.34M 49.81M
Net income -2.24M -64.81M -1.03M 48.51M
Diluted EPS -0.09 -2.01 -0.05 1.23
Net profit margin -4.20% -127% -1.93% 97.39%
Operating income -2.09M -18.98M -2.28M 5.83M
Net change in cash 5.11M -569K -2.41M 7.86M
Cash on hand 94.56M 89.45M 90.02M 92.43M
Cost of revenue 15.6M 13.65M 13.8M 11.91M
Annual (USD) Dec 18 Dec 17 Dec 16 Dec 15
Revenue 192.26M 174.09M 161.75M 138.68M
Net income 52.89M 10.66M 7.05M -35M
Diluted EPS 1.29 0.22 0.1 -1.09
Net profit margin 27.51% 6.12% 4.36% -25.23%
Operating income 7.78M 5.95M 1.63M -15.42M
Net change in cash 5.7M 25.63M -146K -10.64M
Cash on hand 92.43M 86.73M 61.09M 61.24M
Cost of revenue 42.71M 35.77M 31.83M 26.12M

Financial data from Care.com earnings reports

Financial report summary

?
Risks
  • We may not maintain our current rate of revenue growth.
  • We expect our revenue and operating results to fluctuate on a quarterly and annual basis, which may result in a decline in our stock price.
  • We operate in an evolving industry, which makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful.
  • If the revenue generated by paying families differs significantly from our expectations, or if our membership acquisition costs differ significantly from our expectations, we may not be able to recover our membership acquisition costs or generate profits from these investments.
  • We have a significant accumulated deficit and may have operating losses as we continue to grow our business.
  • Many individuals use mobile devices to access online services. If we are unable to effectively operate or monetize on mobile devices, our business could be adversely affected.
  • Our business depends on the strength of our brand. If we are the subject of negative publicity, if the services we provide fail to meet our members’ expectations, if inappropriate actions by certain of our members are attributed to us, or if we are the target of lawsuits or investigations, our brand may be damaged, and we may be unable to maintain or expand our base of members and paying families.
  • We depend on highly skilled personnel to grow and operate our business and if we are unable to hire, retain and motivate our personnel, we may not be able to grow effectively.
  • If we fail to manage our growth effectively, our business, operating and financial results may suffer.
  • We recently announced additional investments in our business that may increase our expenses and adversely affect our results of operations.
  • We make product and investment decisions that may not prioritize short-term financial results and may not produce the long-term benefits that we expect.
  • Our ongoing investments in safety may reveal additional instances in which caregivers with criminal backgrounds have been able to use our website to provide services to families seeking care.
  • If we fail to cost-effectively attract and retain qualified caregivers, or to increase the utilization of our platform by existing caregivers, our business, financial condition and results of operations could be harmed.
  • If we fail to adapt our operations to meet the increased contractual demands of our Care@Work clients, our brand and results of operations may be negatively impacted.
  • If evolving consumer behavior in the era of mobile devices and messaging/social networking apps hinders our ability to effectively market to and communicate with members and potential members, our business, financial condition and results of operations could be adversely affected.
  • If we fail to expand and increase adoption of our Care@Work and consumer payments solutions, our future growth could suffer.
  • We depend on search engines and job board sites to attract a significant percentage of our members, and changes to those businesses’ rankings or listings practices, algorithms or pricing could impact our ability to attract new members.
  • Data security and integrity are critically important to our business, and breaches of security, unauthorized disclosure of information about our members, denial of service attacks or the perception that member information is not secure could result in a material loss of business, substantial legal liability or significant harm to our reputation.
  • The expansion of our service offerings exposes us to increased litigation risk and costs related to our on-demand caregivers and may create confusion between our various service models.
  • If the businesses we have acquired do not perform as expected or we are unable to effectively integrate acquired businesses, our operating results and prospects could be harmed.
  • We may make acquisitions of or investments in complementary businesses in the future, which could require significant management attention, disrupt our business, result in dilution to our stockholders, and adversely affect our financial results.
  • We have recorded significant goodwill impairment charges from our discontinued operations and may be required to record additional charges to future earnings if our goodwill or intangible assets become impaired.
  • Our international operations are subject to certain challenges and risks.
  • The number of our registered families is significantly higher than the number of our paying families and substantially all of our revenue is derived from our paying families.
  • Our business may be harmed if users view our marketplace as primarily limited to finding regularly scheduled caregivers for children.
  • We may not timely and effectively scale and adapt our existing technology and network infrastructure to ensure that our platform is accessible, and our business is subject to risks of events outside of our control.
  • Interruptions or delays in service arising from our third-party vendors could impair the delivery of our service and harm our business.
  • If we or our service providers fail to process payment transactions effectively and accurately or fail to protect against potential fraudulent activities relating to payment transactions, we may incur expenses and suffer reputational harm.
  • We may not be able to compete successfully against current and future competitors.
  • We may incur liability or other expenses if caregivers or other users of our services engage in inappropriate, harmful or illegal conduct, or if we do not notify our members of alleged inappropriate or illegal conduct.
  • Adverse economic conditions may adversely impact our business.
  • If we require additional funds from outside sources in the future, those funds may not be available on acceptable terms, or at all.
  • Our business is subject to a variety of U.S. and foreign laws, some of which are unsettled and still developing and which could subject us to claims or investigations, or otherwise harm our business.
  • Our practices surrounding the auto-renewal of our paid subscriptions have been, and may in the future be, the subject of regulatory scrutiny and litigation.
  • We could be subjected to lawsuits or investigations in numerous jurisdictions, including those in which we do not have any operations.
  • As we develop and sell new products, services and features, we may be subject to additional and unexpected regulations, which could increase our costs or otherwise harm our business.
  • We could face liability or other expenses for information on or accessible through our online marketplace, including background check reports.
  • If we are unable to protect our intellectual property rights, our competitive position could be harmed or we could be required to incur significant expenses to enforce our rights.
  • Assertions by third parties of infringement or other violation by us of their intellectual property rights could result in significant costs and substantially harm our business and operating results.
  • If we fail to maintain proper and effective internal controls, our ability to produce accurate financial statements on a timely basis could be impaired, which would adversely affect our business and our stock price.
  • Our revenue may be negatively affected if we are required to charge sales tax or other transaction taxes on all or a portion of our past and future sales in jurisdictions where we are currently not collecting and reporting tax.
  • Changes in our provision for (benefit from) income taxes or adverse outcomes resulting from examination of our income tax returns could adversely affect our results.
  • Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
  • Our international operations subject us to potentially adverse tax consequences.
  • Comprehensive tax reform bills could adversely affect our business and financial condition.
  • We may not be able to successfully prevent others, including copycat websites and mobile apps, from misappropriating our content.
  • Some of our solutions contain open-source software, which may pose particular risks to our proprietary software and solutions.
  • We are an ‘‘emerging growth company,’’ and the reduced disclosure requirements applicable to emerging growth companies may make our common stock less attractive to investors.
  • The results of the United Kingdom’s referendum on withdrawal from the E.U. may have a negative effect on global economic conditions, financial markets and our business.
  • Our stock price may be volatile, and the value of an investment in our common stock may decline.
  • If securities or industry analysts publish inaccurate or unfavorable research about our business, cease coverage of our company or make projections that exceed our actual results, our stock price and trading volume could decline.
  • Certain stockholders could attempt to influence changes within our Company which could adversely affect our operations, financial condition and the value of our common stock.
  • Short sellers of our stock have been, and may in the future be, manipulative and may drive down the market price of our common stock.
  • Our management has broad discretion over our existing cash resources and might not use such funds in ways that increase the value of your investment.
  • Concentration of ownership among our officers, directors, large stockholders and their affiliates may prevent new investors from influencing corporate decisions.
  • We do not intend to pay dividends for the foreseeable future.
  • Anti-takeover provisions contained in our certificate of incorporation and by-laws, as well as provisions of Delaware law, could impair a takeover attempt.
  • The issuance of shares of our Series A Preferred Stock to CapitalG LP reduces the relative voting power of holders of our common stock, dilutes the ownership of such holders, may adversely affect the market price of our common stock and could discourage a change in control of our company.
Management Discussion
  • We generate revenue primarily through (a) subscription fees to our suite of products and services, which enable families to manage their diverse and evolving care needs, and caregivers to describe their unique skills and experience and otherwise differentiate and market themselves in a highly fragmented marketplace; and (b) annual contracts with corporate employers, both to provide access to our suite of products and services as an employee benefit, and to allow businesses to recruit employees and advertise their business profiles. Substantially all of our revenue earned is recognized on a ratable basis over the period the service is provided, with the exception of revenue from individually purchased background checks, which is recognized when the services are delivered to the end customer.
Content analysis ?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Good
New words: activist, advent, codified, commerce, complicate, context, contractor, fell, hope, led, letter, motion, naked, passage, pursuit, speculative, stake, Supreme, wage
Removed: arrive, commence, extension, stated