Revenue during the quarter grew 12.75 percent to $40.79 million from $36.18 million in the previous year period. Gross margin for the quarter contracted 153 basis points over the previous year period to 79.42 percent. Operating margin for the quarter stood at negative 2.02 percent as compared to a negative 16.12 percent for the previous year period.

Operating loss for the quarter was $0.82 million, compared with an operating loss of $5.83 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $1.77 million compared to negative $3.05 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 4.35 percent for the quarter compared to negative 8.42 percent in the last year period.

"We continue to drive strong and sustained profitable growth, beating our Q3 guidance, while solidly progressing on our strategic plans across the business. Our enterprise business Care@Work continues to exceed our expectations, growing 61% year over year, as employers respond to the increasing demand for family care benefits," said Sheila Lirio Marcelo, Founder, chairwoman and chief executive officer of Care.com. "Also during the quarter, we expanded our Care.com Benefits program, which provides household payroll services and access to medical and dental benefits for caregivers, to include Care Benefit Bucks, a groundbreaking pooled, portable, peer-to-peer benefits program available to the 9.6 million caregivers on Care.com. As a leader and innovator in the growing on-demand economy, we consider the Care.com Benefits program a key differentiator in driving user engagement, while supporting caregivers, one of the largest groups of gig economy workers."

For financial year 2016, Care.com Inc expects revenue to be in the range of $159.50 million to $161 million. It projects diluted earnings per share to be in the range of $0.13 to $0.15 on adjusted basis for the same period.

For the fourth-quarter, Care.com Inc expects revenue to be in the range of $41.20 million to $42.70 million. It projects diluted earnings per share to be in the range of $0.14 to $0.16 on an adjusted basis for the same period.

The company has spent $15.57 million cash to meet investing activities during the nine month period as against cash outgo of $4.21 million in the last year period.

Cash flow from financing activities was $0.30 million for the nine month period as against cash outgo of $1.21 million in the last year period.

Cash and cash equivalents stood at $55.83 million as on Sep. 24, 2016, down 6.53 percent or $3.90 million from $59.74 million on Sep. 26, 2015.

Working capital increases sharply
Care.com Inc has recorded an increase in the working capital over the last year. It stood at $48.01 million as at Sep. 24, 2016, up 147.08 percent or $28.58 million from $19.43 million on Sep. 26, 2015. Current ratio was at 2.37 as on Sep. 24, 2016, up from 1.36 on Sep. 26, 2015.

Days sales outstanding went down to 16 days for the quarter compared with 17 days for the same period last year.

At the same time, days payable outstanding went up to 20 days for the quarter from 15 for the same period last year.