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Sep 30, 2020
Bright Horizons Q3 2020 Earnings Report
Bright Horizons' Q3 2020 financial performance was impacted by the COVID-19 pandemic, with revenue declining due to center closures and reduced enrollment, although back-up care and educational advisory services provided some offset.
Key Takeaways
Bright Horizons Family Solutions reported a challenging third quarter in 2020 due to the COVID-19 pandemic. Revenue decreased by 34% compared to the same period in 2019. The company experienced a loss from operations and a net loss, though Back-up Care and Educational Advisory services partially offset the impact.
Revenue decreased by 34% to $338 million due to the COVID-19 pandemic.
Loss from operations was $6 million, a significant drop from the $63 million income from operations in Q3 2019.
Net loss was $7 million, compared to a net income of $41.3 million in the same period last year.
Approximately 900 child care centers were open as of September 30, 2020, out of a total of 1,026 centers.
Bright Horizons
Bright Horizons
Bright Horizons Revenue by Segment
Revenue by Segment
Full service center-based child care Revenue
CapyFin.comBack-up care Revenue
CapyFin.comEducational advisory services Revenue
CapyFin.com Forward Guidance
Due to the unpredictable nature of the COVID-19 pandemic, Bright Horizons is not providing financial guidance for the remainder of fiscal year 2020.
Positive Outlook
- The company will continue to work with local teams on operational decisions.
- Prudent management of spending to support current operations will continue.
- The company will continue to re-ramp enrollment.
- Re-opening of the remainder of the business will continue.
- The value proposition to families, staff and clients remains consistent and strong.
Challenges Ahead
- The duration and scope of the ongoing business disruption cannot be predicted.
- The pace of enrollment ramping at re-opened centers cannot be predicted.
- The re-opening of the remaining temporarily closed centers cannot be predicted.
- The situation is dependent on many interdependent variables and decisions by government authorities and client partners.
- The situation is dependent on demand, economic trends, and developments in the persistence and treatment of COVID-19.
Revenue & Expenses
Visualization of income flow from segment revenue to net income