BRIGHT HORIZONS FAMILY SOLUTIONS Reports FY2023 Q2 Earnings Results for Period Ended June 30 2023
August 6, 2023
☀️Earnings Overview
On August 1 2023, BRIGHT HORIZONS FAMILY SOLUTIONS ($NYSE:BFAM) announced its financial results for the second quarter of FY2023 ending June 30 2023. The company’s total revenue rose by 23.0% over the same period last year, amounting to USD 603.2 million. Net income, however, decreased by 17.4% year over year to USD 20.6 million.
Market Price
BRIGHT HORIZONS FAMILY SOLUTIONS, a leading provider of child care and early education services, reported its earnings results for the period ending June 30th, 2023 on Tuesday. The company’s stock opened at $96.6 and closed at $94.8, down by 2.3% from its last closing price of 97.0. This marks the first quarter of FY2023 for the company, a period that has seen many businesses struggle to regain their footing due to the economic impacts of the pandemic. This was largely attributed to increased demand for its child care and early education services, as families have sought support in navigating the challenges of both work-life balance and managing childcare needs during the pandemic.
Overall, Bright Horizons Family Solutions reported positive results for Q2 FY2023, with increased demand for its services leading to strong revenue and profits growth. The company will be looking to continue its momentum in the coming quarters as the economy continues to recover from the ongoing pandemic. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BFAM. More…
| Total Revenues | Net Income | Net Margin |
| 2.23k | 64.85 | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BFAM. More…
| Operations | Investing | Financing |
| 242.74 | -323.64 | -118.79 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BFAM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.82k | 2.67k | 19.09 |
Key Ratios Snapshot
Some of the financial key ratios for BFAM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.7% | -5.2% | 7.0% |
| FCF Margin | ROE | ROA |
| 7.1% | 8.8% | 2.5% |
Analysis
GoodWhale recently conducted an analysis of BRIGHT HORIZONS FAMILY SOLUTIONS’s financials. Our Star Chart gave the company a high health score of 7/10, indicating its ability to pay off debt and fund future operations. We classified BRIGHT HORIZONS FAMILY SOLUTIONS as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. BRIGHT HORIZONS FAMILY SOLUTIONS is strongest in terms of sustainability, while it has medium scores in terms of growth, profitability and weak scores in terms of assets and dividends. We believe that these characteristics make it an attractive option for investors looking for a stable but moderate return on investment. Investors who are looking for high returns may want to look elsewhere. More…
Peers
The company operates in the United States, Canada, the United Kingdom, and India. It has a network of more than 1,000 child care centers. The company also offers online learning programs, family support services, and professional development services. The company’s competitors include Mad Paws Holdings Ltd, Rover Group Inc, Mayfield Childcare Ltd.
– Mad Paws Holdings Ltd ($ASX:MPA)
Mad Paws Holdings Ltd is a pet care company that operates in Australia and New Zealand. The company offers a range of services including pet sitting, dog walking, dog daycare, and pet boarding. Mad Paws has a market cap of 39.81M as of 2022 and a ROE of -36.33%.
– Rover Group Inc ($NASDAQ:ROVR)
Rover Group Inc is a publicly traded company that manufactures and sells motor vehicles and related products. The company has a market capitalization of 745.75 million as of 2022 and a return on equity of -12.44%. The company’s products include cars, trucks, buses, and other vehicles.
– Mayfield Childcare Ltd ($ASX:MFD)
Mayfield Childcare Ltd is a publicly traded company that operates in the child care industry. The company has a market capitalization of $63.35 million as of 2022 and a return on equity of 7.15%. Mayfield Childcare Ltd provides child care services to families in the United Kingdom. The company operates a network of child care centers that provide care for children aged 0-5 years old.
Summary
Bright Horizons Family Solutions reported its Q2 2023 earnings results for the period ending June 30th 2023. Total revenue increased by 23.0% year-on-year, reaching USD 603.2 million. Net income declined by 17.4% year-on-year, reaching USD 20.6 million.
Investors should consider the company’s higher revenue as a positive sign, while keeping an eye on the dip in net income and monitoring its impacts in the coming quarters. They should also look for further strategies to boost profitability and explore potential opportunities for growth.
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