A Care.com IPO Roundup - Some Excitement, Some Caution

Friday Jan 24, 2014 by Dennis Keohane - Senior Writer, VentureFizz

Today was a big day for Care.com as it officially went public this morning, with its shares, initially priced at $17, jumping a third in early trading to $22.55. 

The company, who originally was expected to price its shares at $14 to $16, is having a good day so far even though the market in general is trending downward today. 

Being the first tech IPO of 2014, and one of the first Boston tech IPO's in awhile, has brought a ton of attention for the Waltham-based, Matrix-backed company.

Most people are celebrating the IPO as a big win for the Boston-tech community and the start of a trend of what most folks, including myself, think will be a big year for Boston IPO's.

Among those obviously excited are the folks at who invested in Care.com including Matrix, Trinity Ventures, NEA, and Institutional Venture Partners. 

Here is Matrix general partner Antonio Rodriguez on Twitter today:

Here is Sheila Marcelo talking about the Care.com's story and the IPO on The Street, who is bullish on Care.com today:

However, some folks have been a bit more cautious about the Care.com IPO.

Among them, MarketWatch's Russ Britt, who commented, "For those thinking of jumping on the Care.com bandwagon...take heed of the company’s financial situation."

Britt pointed to accelerating losses for Care.com in its IPO prospectus as a reason for caution. As he added, "Care.com says in its prospectus that it expects to continue losing money as it tries to grow its business."

Among the numbers available that Britt and Xconomy's Curt Woodward pointed out from Care.com’s prospectus are: (many of the numbers are estimates)

-The loss of $24.7M during the first nine months of 2013 compared to $17.9M for the same period in 2012. 

-A $20.5M on $48.5M in revenue for 2012 compared with loss of $12.2M on $26M of revenue in 2011.

-A $43.9M spend on sales and marketing in the first nine months of 2013.

The latest numbers via MarketWatch have Care.com [CRCM] trading at a high of $23.24 and a low of $21.21 today. (At 1:00 PM)

Dennis Keohane is the Senior Writer for VentureFizz. You can follow Dennis on Twitter (@DBKeohane) by clicking here.

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