Why Care.com, Inc. Shares Sank Today

What: Shares of Care.com fell nearly 15% Wednesday after the company turned in disappointing fourth-quarter results.

So what: Though quarterly revenue grew 41% year over year to $22.5 million, Care.com's fourth-quarter loss widened from $2.5 million in the same year-ago period to $3.6 million, or $1.16 per share. Analyst estimates aren't available for the company, which only held its initial public offering last month.

For the full year 2013, Care.com's revenue grew 68% to $81.5 million, which translated to a whopping GAAP loss of $9.45 per share.

For the current quarter, Care.com projects revenue of $23.8 million to $24.8 million, with a loss per share in the range of $0.58 to $0.54. For the full year 2014, it expects revenue of $108 million to $111 million, with a loss per share in the range of $1.16 to $1.06.

Now what: Care.com's full-year guidance indicates the company is headed in the right direction by narrowing its losses, but its slowing top-line growth at this point represents a valid concern for investors wondering when the red ink will actually end. At this point, that's why remain perfectly happy watching this one from the sidelines.

So you want insane growth?
If Care.com doesn't quite whet your appetite for growth, you're in luck!

Let's face it: Every investor wants to get in on revolutionary ideas before they hit it big -- like buying PC maker Dell in the late 1980s, before the consumer computing boom, or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hypergrowth markets. The real trick is to find a small-cap "pure play" and then watch as it grows in explosive fashion within its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 trillion industry. Click here to get the full story in this eye-opening report.


The article Why Care.com, Inc. Shares Sank Today originally appeared on Fool.com.

Steve Symington has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story