Investor Presentation JUNE 2016 Care.com 2016 Proprietary Information Page 1
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS This supplemental information 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, the Company s financial guidance for the first quarter of 2016 and full year 2016. 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 February 23, 2016. Care.com 2016 Proprietary Information Page 2
Sheila Lirio Marcelo FOUNDER, CHAIRWOMAN & CEO Care.com 2016 2016 Proprietary Information Care.com 2015 Proprietary & Confidential Page 3
Care Education Financial Services Home Services Automotive Care for family members - the most important decision in people s lives Travel Services Entertainment Care.com 2016 Proprietary Information Care.com 2016 Proprietary Information Page 4
Care is a Top Budgetary Item for Families $17K $18K $9K $8K $3K Health $4K Utilities $6K Food Transportation College Tuition Housing Childcare Source: Child Care Aware of America 2013 Report "Parents and the High Cost of Child Care". Based on unweighted averages across regions. Childcare costs are based on 2012 costs for an infant and 4-year old in full-time care in a center. Care.com 2016 Proprietary Information Page 5
Our Mission Families IN-HOME CAREGIVERS Care.com 2016 Proprietary & Confidential CARING COMPANIES Page 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 Care.com 2016 Proprietary Information Page 7
4% US Matching Penetration Enormous, fragmented 44 MM Target U.S. HHs market WE RE EARLY $280 B spend on care in U.S. $8-10B total addressable spending US Matching & Payments $8-10B Total Addressable market assumes a 3.0-3.5% take-rate on $280 B spend on care. Source U.S. Census on HH data, IBIS 2014 on annual spending, Care.com Internal Data as of December 2015 of families paying to date Care.com 2016 Proprietary Information Page 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 Care.com 2016 Proprietary Information Page 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 Care.com 2016 Proprietary Information Page 10
How We Think About Our Business B to C: Families and Caregivers B to B: Care service companies, Employers International: 16 Countries Care.com 2016 Proprietary Information Page 11
Largest Care Marketplace Platform POWERFUL NETWORK EFFECTS Care.com internal data as of December 2015 Care.com 2016 Proprietary Information Page 12
Breadth Of Coverage 7.3M U.S. Caregivers 88%+ Coverage of U.S. ZIP Codes Caregiver Density 1,000+ Caregivers w/in 10 miles of 99% of ZIP codes of top 20 metro areas 1,000+ 500 1,000 250 500 100 250 1-100 Source: Care.com internal data as of March 2016 Care.com 2016 Proprietary Information Page 13
Affordable For Mass Market $3,000 - $4,000 20% <$50K HH Income* 63% 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 2016 Proprietary Information Page 14
Investment In Trust & Quality Basic caregiver screening Third-party background check options Member reviews and references Social verification options Ongoing monitoring Background Check Options Social Security Verification Criminal Records Check Sex Offender Registry Motor Vehicle Records Check Care.com 2016 Proprietary Information Page 15
Mobile: Access and Convenience 68% Of all unique visitors to Care.com on mobile platforms FY2015 5.6M Average unique mobile visitors per month in Q1 16 4+ Rating on Apple and Android app stores Source: Care.com internal data as of March 2016; US only Care.com 2016 Proprietary Information Page 16
Full Suite of Payments Products CONVENIENCE PAYMENTS Support Bookings, Date Night App and other transactional products FULL PAYROLL & TAX SERVICE Nanny Premium, Mobile client experience Care.com 2016 Proprietary Information Page 17
High Member Satisfaction 85% match rate 78% satisfied with their caregiver Match rate based on survey results Methodology will evolve with business model and data capture capability Care.com 2016 Proprietary Information Based on survey data from January - December 2015 Page 18
High Net Promoter Score Likely to recommend service to a friend? CONSUMER MATCHING CONSUMER PAYMENTS NPS 54% 63% NPS 84% 87% 28% 9% 3% 10% Detractors Passives Promoters Detractors Passives Promoters Based on 483K customer survey responses from members who found care through Care.com Based on 2010-2015 customer satisfaction survey data *US only Care.com 2016 Proprietary Information Page 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 2015. (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. Care.com 2016 Proprietary Information Page 20
Leader in Winner Take All Business GROWTH IN JOBS POSTED GROWTH IN JOB APPLICATIONS 1280 2112 MORE FAMILIES ATTRACT MORE CAREGIVERS CAGR: 64% 1743 CAGR: 64% 23.3 30.2 34.8 66 137 217 470 713 1.1 2.9 5.0 10.7 14.5 2008 2009 2010 2011 2012 2013 2014 2015 (000s) 2008 2009 2010 2011 2012 2013 2014 2015 (MM) GROWTH IN FAMILIES 10.3 GROWTH IN CAREGIVERS 8.1 CAGR: 75% 7.6 CAGR: 62% 6.2 0.2 0.5 0.9 1.7 3.6 5.3 MORE CAREGIVERS ATTRACT MORE FAMILIES 0.3 0.7 1.1 1.9 3.1 4.5 2008 2009 2010 2011 2012 2013 2014 2015 (MM) 2008 2009 2010 2011 2012 2013 2014 2015 (MM) Care.com 2016 Proprietary Information Page 21
Our 2016 Top Product Priorities 1. Pre-Match: Care.com Community 2. Match: Merchandising & Mobile Transactional 3. Post-Match: Care.com Benefits and Other Services 4. Care@Work: Enterprise Mobile & Ramping Sales Care.com 2016 Proprietary Information Page 22
PRE-MATCH Care.com Community Platform CARE SMARTS Community-driven question & answer platform BIG TENT Parenting group management platform KINSIGHTS Community powered by data insights Significant traffic growth Low-intent users Minimal traffic growth Solid conversion rates Strong engagement Solid engagement Leverage data science and personalization for monetization CARE.COMMUNITY - Unified Community Platform Traffic from Care Smarts & Big Tent, Powered by Kinsights Technology Care.com 2016 Proprietary Information Page 23
MATCH: Merchandising and Mobile Offer breadth and depth in all verticals Provide free value to drive organic growth Targeted products with varied pricing models CHILDCARE Babysitter & Nanny Pre-schools Daycare Lessons / Activities Camps Tutors SENIOR CARE Companions Home Care Assisted Living Transportation PETCARE Dog Walkers Boarding Grooming Training Care.com Community SUBSCRIPTION MODEL Current pay for success matching product for high involvement products and services Full-time Nanny premium with bundled product with HomePay MOBILE TRANSACTION HOME Housekeepers Errands Chefs New business models for recurring needs Date Night with complete end to end planning and booking After-school care including transportation and part-time care Care.com 2016 Proprietary Information Page 24
POST-MATCH: 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 Care.com 2016 Proprietary Information Page 25
Care@Work: 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%+ 44% Revenue Retention 2015 Revenue Growth Q1 16 90%+ Backup Care Fulfillment Rate 2015 76% Net Promoter Score 2015 Sample Clients: Care.com 2016 Proprietary Information Page 26 26
Key Financial Highlights Strong revenue growth Compelling unit economics Leveraging operating expenses and S&M spend Profitable expectation of sustained profitability Care.com 2016 Proprietary Information Page 27
Strong Revenue Growth Total Company Revenue ($MM) $139 $36 $38 $39 $111 $32 $33 $30$30 $26 $48 $81 $9 $10 $18 $19 $16 $14 $25 $26 $22 $23 $13 2010 2011 2012 2013 2014 2015 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 2012 2013 2014 2015 2016 2015 results unaudited Care.com 2016 Proprietary Information Page 28
Revenue Mix 3% 17% 97% 83% 2011 $26M 2015 $139M Consumer Matching US Consumer (Matching + Payments) 12% 82% Other Other (Care@Work, International, B2B) Care.com 2016 Proprietary Information Page 29
Powerful Consumer Business Model US Consumer (Matching + Payments) FY2015 $39 per month 12.2 months 84% $403 Lifetime Value (Gross Profit Basis) Average Revenue per User per Month (ARPU) Length of Paid Time (LOPT) Gross Margin 3.2x ROI (given $125 CAC) Excludes Care@Work Care.com 2016 Proprietary Information Page 30
Leveraging Sales & Marketing SALES AND MARKETING ($M) % of Revenue CUSTOMER ACQUISITION COST (CAC)* Y-Y % Growth 68% 68% 75% 59% 59% 48% 34% 46% 47% 12% (17%) (21%) $25 $30 $39 $35 $39 $35 H1'13 H2'13 H1'14 H2'14 H1'15 H2'15 $111 $131 $163 $146 $134 $116 H1'13 H2'13 H1'14 H2'14 H1'15 H2'15 Percent of Revenue Marketing Spend Excludes impact of Citrus Lane *Projected *Excludes Re-Users Care.com 2016 Proprietary Information Page 31
Operating Expense Leverage % REVENUE 65% 61% 61% 55% ($M) COR G&A R&D 16% 14% 15% 14% 28% 23% 25% 22% 21% 23% 21% 19% 2012 2013 2014 2015 Care.com 2016 Proprietary Information Page 32
NYSE: CRCM Highlights CLEAR LEADER STRONG MODEL TRUSTED BRAND LONG RUNWAY FAVORABLE TRENDS MOTIVATED TEAM 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 Experienced, passionate management Care.com 2016 Proprietary Information Page 33
Thank you