INVESTOR PRESENTATION

Transcription

1 INVESTOR PRESENTATION May 2017

2 CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, information about the Company s 2017 priorities. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. The Company's actual results could differ materially from those stated or implied in forward-looking statements. The Company undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to May 3,

3 Sheila Lirio Marcelo FOUNDER, CHAIRWOMAN & CEO Care.com 2017 Proprietary Proprietary Information Information 3

4 Care Education Financial Services Home Services Automotive Care for family members - the most important decision in people s lives Travel Services Entertainment 4

5 Our Mission Families IN-HOME CAREGIVERS CARING COMPANIES 5

6 Company Overview Market Leader Model Network Effects Long Runway Financials Massive fragmented market Disruptive online marketplace Powerful economic model Strong NPS and Word of Mouth Multiple growth opportunities Profitable growth 6

7 4.3% US Matching Penetration Enormous, fragmented 46 M Target U.S. HHs market WE RE EARLY $305 B spend on care in U.S. $8-10B total addressable spending US Matching & Payments $8-10B Total Addressable market assumes approx. 3.0% take-rate on $305 B spend on care. Source: U.S. Census on HH data, IBISWorld market research on annual spending (2016), Care.com Internal Data as of December 2016 of families paying to date 7

8 Disruptive Solution To A Huge Problem Newspapers No search or scale Scale & Breadth Agencies Expensive, limited selection Accessible & Affordable Referrals from friends Reluctance to share favorite caregivers; trust and quality anecdotal Community Recommendations Online Classifieds Lack of trust and quality Trust & Quality 8

9 Our Vision To improve the lives of families and caregivers by building a global care infrastructure that helps companies and economies grow. Provide peace at home by offering access to high-quality care Help companies improve productivity by providing care whenever their employees need it Drive economic growth globally by increasing female participation in the workplace 9

10 How We Think About Our Business B to C: Families and Caregivers B to B: Care service companies, Employers International: Over 20 Countries 10

11 Largest Care Marketplace Platform POWERFUL NETWORK EFFECTS Source: Care.com internal data as of March

12 Breadth Of Coverage 8.8M U.S. Caregivers 90% Coverage of U.S. ZIP Codes Caregiver Density 1, , ,000+ Caregivers w/in 10 miles of 95% of ZIP codes of top 20 metro areas Source: Care.com internal data as of March

13 Affordable For Mass Market $3,000 - $4,000 20% Below U.S. median HH income* 64% Dual-income or single parent HH Avg. Agency Fees per Placement $200 Avg. Care.com Fees per Year 59% Seek part-time care** *Based on median income by ZIP code and Care.com internal data **Care.com internal data from January December

14 Investment In Trust & Quality Basic caregiver screening Third-party background check options Member reviews Social verification options Ongoing monitoring Background Check Options Social Security Verification Criminal Records Check Sex Offender Check Motor Vehicle Records Check 14

15 Mobile: Access and Convenience 68% 6.1M Of all unique visitors to Care.com on mobile platforms Q1 17 Average unique mobile visitors per month in Q rd Top Grossing App in Lifestyle Category on iphone App Store* Source: Care.com internal data as of April 2017; US only *As of May

16 Full Suite of Payments Products CONVENIENCE PAYMENTS Supports multiple transactional use cases FULL PAYROLL & TAX SERVICE Nanny Premium and Mobile client experience 16

17 High Member Satisfaction 82% match rate 76% satisfied with their caregiver Source: Care.com survey results from January December 2016 of members who have 17 downgraded. Methodology will evolve with business model and data capture capability.

18 High Net Promoter Score Likely to recommend service to a friend? CONSUMER MATCHING CONSUMER PAYMENTS NPS 53% 62% NPS 84% 87% 29% 9% 3% 10% Detractors Passives Promoters Detractors Passives Promoters Based on 582K customer survey responses from members who found care through Care.com (through December 2016) Based on customer satisfaction survey data US customers only 18

19 Care.com is the Leading and Preferred Online Service for Care 77% 70% 67% 71% 62% 50% 39% 21% 9% 9% 12% 13% Part-time Child Care Full-time Child Care Senior Care House Keeping Pet Care Tutoring Source: Simon-Kucher analysis of Care.com offline seeker research survey (n= 1,555) Analysis of Q26 BYO Who would you like to provide the ideal package that you created? Assumes package & price are the same. 19

20 Leader in Winner Take All Business GROWTH IN JOBS POSTED GROWTH IN JOB APPLICATIONS CAGR: 57% MORE FAMILIES ATTRACT MORE CAREGIVERS CAGR: 57% (000s) (MM) GROWTH IN FAMILIES GROWTH IN CAREGIVERS CAGR: 68% CAGR: 55% MORE CAREGIVERS ATTRACT MORE FAMILIES (MM) (MM) 20

21 Our 2017 Product Priorities Organic Mobile First Benefits and Other Value-Added Services 21

22 Corporate Benefit Program HIGH-TECH SOLUTIONS. HIGH-TOUCH SERVICE. Care.com is a one-stop shop for families. LinkedIn employees use the service successfully to address a range of needs Pat Wadors, VP of Talent Care.com s broad range of services help ensure that ebay employees have access to quality care John Donahoe, CEO 100%+ 58% Revenue Retention 2016 Revenue Growth 2016 (Y/Y) 90%+ Backup Care Fulfillment Rate % Backup Care Net Promoter Score 2016 Sample Clients: 22

23 Organic ü Extend SEO leadership with increased long-tail coverage across verticals ü Drive deeper engagement pre and post match with community, content, and reviews ü Increase domain authority through high-quality content 24

24 Mobile First ü Improved user experience - responsive design with seamless mobile and desktop interoperability ü Enhancing on-demand features such as real-time payments ü Improving ease of match and overall match rate by investing in modern algorithms and new messaging platform 24

25 Care.com Benefits and More ü Long term relationship building with caregiver with Care.com Benefits ü Sticky features for transactional products ü Future expansion of benefits to protect workforce 25

26 Key Financial Highlights Strong revenue growth Compelling unit economics Leveraging operating expenses and S&M spend Profitable expectation of sustained profitability 26

27 Strong Revenue Growth Total Company Revenue ($M) $139 $162 $36 $38 $39 $38 $41 $44 $43 $111 $33 $32 $30 $30 $48 $81 $18 $19 $16 $14 $22 $23 $25 $26 $26 $9 $10 $ Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Note: 2016 includes the impact of the 53 rd week. Note: Q includes the impact of the 53 rd week. 27

28 Revenue Mix 3% 19% 97% 81% 2011 $26M 2016 $162M Consumer Matching US Consumer (Matching + Payments) 12% 82% Other Other (Care@Work, Marketplace, International) 28

29 Powerful Consumer Business Model US Consumer (Matching + Payments) FY16 $442 $40 per month 13.1 months 84% Lifetime Value (Gross Profit Basis) Average Revenue per User per Month (ARPU) Length of Paid Time (LOPT) Gross Margin 3.6x ROI (given $122 CAC) 29

30 Leveraging Sales & Marketing SALES AND MARKETING ($M) % of Revenue CUSTOMER ACQUISITION COST (CAC)* 68% 67% 53% 45% 17% (12%) (3%) $55 $74 $74 $72 FY'13 FY'14 FY'15 FY'16 $122 $142 $125 $122 FY'13 FY'14 FY'15 FY'16 Percent of Revenue Marketing Spend Excludes impact of Citrus Lane *Excludes Re-Users 30

31 Operating Expense Leverage % REVENUE 65% 61% 61% 55% ($M) COR G&A R&D 53 16% 14% 15% 14% 13% 28% 23% 25% 22% 20% 21% 23% 21% 19% 20%

32 NYSE: CRCM Highlights CLEAR LEADER STRONG MODEL TRUSTED BRAND LONG RUNWAY FAVORABLE TRENDS Dominant leader in large and fragmented care services market Proven business model with compelling unit economics. Profitable growth. Significant brand leadership and trusted platform for growth Still low penetration of addressable market; both vertical and horizontal growth opportunity Strong demographic tailwinds MOTIVATED TEAM Experienced, passionate management 32

33 THANK YOU