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Dec 28, 2024
Kindercare Learning Cos Inc Q4 2024 Earnings Report
Kindercare reported its Q4 2024 results with steady revenue growth but posted a net loss due to increased equity-based compensation expenses and lower COVID-19-related reimbursements.
Key Takeaways
Kindercare achieved revenue of $646.96 million in Q4 2024, representing a 4.7% increase compared to the same quarter last year. Despite higher revenues and strong growth in before- and after-school programs, the company reported a net loss of $133.58 million, largely attributed to one-time equity-based compensation expenses related to the IPO. Adjusted net income reached $10.7 million, and adjusted EBITDA was $66 million.
Q4 2024 revenue grew by 4.7% to $646.96 million.
Reported a net loss of $133.58 million due to one-time compensation charges.
Adjusted net income was $10.7 million with adjusted EPS of $0.09.
Operated 1,574 early education centers and 1,025 before- and after-school sites.
Revenue by Segment
Forward Guidance
For FY 2025, Kindercare expects continued revenue growth driven by expanding services and enrollment, targeting revenues between $2.75 billion and $2.85 billion, with adjusted net income per diluted share between $0.75 and $0.85.
Positive Outlook
- Projected revenue growth to $2.75B-$2.85B in FY 2025.
- Adjusted EBITDA expected between $310M-$325M.
- 53rd week to contribute $45M-$50M of revenue.
- Increased focus on expanding partnerships and employer-based solutions.
- Continued growth in before- and after-school program sites.
Challenges Ahead
- Higher operating costs anticipated due to ongoing expansions.
- Potential macroeconomic pressures affecting demand.
- Increased depreciation and amortization from new investments.
- Interest expense impacts from recent debt activities.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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