Shares in care service platform Care.com (NYSE:CRCM) have skyrocketed today after the company posted higher-than-expected financial results in their Q1 2018 report.
Care.com is a platform that allows workers in the care industry to advertise their availability. It also allows members of the public to advertise care needs to prospective workers. The platform – which describes itself as the largest of its type – spans sectors including senior care, special needs care, tutoring, dog walking, housekeeping and more.
Both revenue and EBITDA exceeded company expectations, said Care.com CEO and founder Sheila Lirio Marcelo. “As we look ahead to 2018, we will continue to focus on initiatives that we expect will drive long-term profitable growth,” she continued. Revenue for the first quarter 2018 was $47.3 million USD, which was up 9% from the same period in 2017. In addition, net income was placed at $2.7 million for the first quarter of 2018 – an increase of $1.9 million from the year before.
Shares in Care.com are up 19.74% at the time of writing, bringing the per-share price to $18.99 USD and the firm’s market cap to $575.89 million. It marks the steepest share rise for the firm in over half a year. The firm has seen encouraging growth in its share value since the late stages of 2017, and it’s no surprise that this is continuing. The U.S. Bureau of Labor Statistics has shown that daycare businesses will be responsible for some of the fastest employment growth across all industries through 2020, according to a Forbes report. In a report ahead of the company’s IPO in 2013, Care.com allegedly attracted 6.4 million visitors per month, with a new job being posted every 30 seconds. Meanwhile, in Canada, the daycare industry had a total revenue of $8 billion and employed 138,607 workers according to a 2017 report by Ibisworld.
Although Care.com has been relatively quiet this year in terms of company news, the firm participated at the 30th annual ROTH conference for small-to-mid cap companies in March this year. Back in 2017, the company published a survey report claiming that nearly 1 in 3 families in the US spent at least 20% of their household income on child care.
Care.com seems to be directly reflecting such promising statistics, and shareholders are noticing, too.
Featured image: AmericanINNO