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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.

Total Revenue
$647M
EPS
$0.09
Revenue Growth
4.7%
Total Centers
1.57K
Total B&A Sites
1.03K
Cash and Equivalents
$62.3M
Total Assets
$3.65B

Kindercare Learning Cos Inc

Kindercare Learning Cos Inc

Kindercare Learning Cos Inc 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.
  • Possible fluctuations in enrollment trends due to external factors.