Care.com Inc (CRCM) has reported 87.80 percent plunge in profit for the quarter ended Apr. 01, 2017. The company has earned $0.82 million, or $0.01 a share in the quarter, compared with $6.76 million, or $0.20 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2.53 million, or $0.07 a share compared with $0.30 million or $0.01 a share, a year ago.

Revenue during the quarter grew 10.44 percent to $43.37 million from $39.27 million in the previous year period. Gross margin for the quarter contracted 177 basis points over the previous year period to 79.79 percent. Operating margin for the quarter period stood at positive 1.69 percent as compared to a negative 2.82 percent for the previous year period.

Operating income for the quarter was $0.74 million, compared with an operating loss of $1.11 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $3.13 million compared with $1.58 million in the prior year period. At the same time, adjusted EBITDA margin improved 320 basis points in the quarter to 7.21 percent from 4.01 percent in the last year period.

"Q1 was a strong start to 2017 for us. We exceeded our expectations on both the top and bottom lines and increased our guidance for the full year," said Sheila Lirio Marcelo, Founder, chairwoman and chief executive officer of Care.com.

For the second-quarter, Care.com Inc expects revenue to be in the range of $41 million to $41.50 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.01 to $0.02. 

For financial year 2017, Care.com Inc expects revenue to be in the range of $171 million to $173 million. The company projects diluted earnings per share to be in the range of $0.35 to $0.38 on adjusted basis.

The company has spent $0.27 million cash to meet investing activities during the quarter as against cash outgo of $0.45 million in the last year period.

Cash flow from financing activities was $1.33 million for the quarter as against cash outgo of $13.93 million in the last year period.

Cash and cash equivalents stood at $66.32 million as on Apr. 01, 2017, up 26.82 percent or $14.02 million from $52.29 million on Mar. 26, 2016.

Working capital increases sharply
Care.com Inc has recorded an increase in the working capital over the last year. It stood at $61.08 million as at Apr. 01, 2017, up 97.22 percent or $30.11 million from $30.97 million on Mar. 26, 2016. Current ratio was at 2.72 as on Apr. 01, 2017, up from 1.98 on Mar. 26, 2016.

Days sales outstanding went up to 18 days for the quarter compared with 16 days for the same period last year.

At the same time, days payable outstanding went down to 26 days for the quarter from 40 for the same period last year.