Care.com Seeks $80M IPO, Still Unprofitable
We knew this was coming—media reports had already picked up on the Waltham, MA-based company’s confidential IPO filing, which companies with less than $1 billion in annual sales can do under new federal rules.
Care.com is seeking $80 million in the offering. The company was founded in 2006 by Sheila Marcelo, who had previously been an entrepreneur in residence at Matrix Partners—check out this excellent 2009 report by the Boston Globe’s Scott Kirsner detailing the controversial history of Care.com’s founding.
The company charges both caregivers and consumers for its services, and claims 5.1 million families and 4.4 million caregivers in its network. It has raised some $111 million in private investment over its lifetime, including a $50 million Series E round last year.
Care.com is in an expensive business. It lost about $12.2 million on some $26 million in sales in 2011, and saw that loss hit about $20.5 million on about $48.5 million in revenue last year. In the first nine months of 2013, Care.com lost nearly $24.7 million on about $59 million in sales.
Most of that spending goes to sales and marketing, which cost Care.com $43.9 million in the first nine months of this year, compared to $27.9 million in the same period last year.