Care.com (CRCM +2%) is winding down its Citrus Lane platform, which sells products meant for families with kids on a subscription basis. The company expects $2.3M in disposal costs (mostly inventory write-offs), and $0.3M in employee retention and severance costs. (8-K filing)
Citrus Lane was acquired in 2014 for $22.9M in cash, $8.1M in stock, and up to $17.6M earn-out payments based on "Citrus Lane's achievement of certain milestones in 2015 and 2016." It's safe to assume some of the milestones weren't hit.
Last week: Care.com higher after EPS beat, mixed guidance
Having gone into earnings just $0.54 above a post-IPO low of $4.89, Care.com (CRCM +3.2%) is up after posting Q4 results and issuing Q1/2016 guidance that disappointed on sales and were better-than-expected with regards to EPS.
The online family care marketplace expects Q1 revenue of $37.5M-$38.5M and EPS of -$0.07 to -$0.04 vs. a consensus of $39.6M and -$0.14. Full-year guidance is for revenue of $155M-$161M and EPS of $0.05-$0.15 vs. a consensus of $162.8M and -$0.09. The full-year sales outlook implies 14% Y/Y growth at the midpoint.
Metrics: Total members rose 33% Y/Y in 2015 to 18.4M, with total families up 35% to 10.3M, and total caregivers up 31% to 8.1M. U.S. Consumer Business paying members rose 21% to over 266K.
Financials: Cost controls are boosting EPS: GAAP operating expenses rose only 7% Y/Y in Q4 to $27.2M. Care.com ended 2015 with $61.2M in cash (compares with a $177M current market cap) and no debt.