Bright Horizons Family Solutions Inc. · NYSE:BFAM

Bright Horizons Family Solutions — Q4 2024 Earnings Presentation

29 slides from Bright Horizons Family Solutions's earnings presentation, Feb 13, 2025

  1. Slide 1: Investor Presentation Q4 2024

    Investor Presentation Q4 2024

  2. Slide 2: Forward Looking Statement Disclaimer

    Forward Looking Statement Disclaimer This presentation includes “forward-looking statements” within the meaning of, and made pursuant to, the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not

  3. Slide 3: We don't make a product

    We don’t make a product. we Wake an Wvact. We don't build structures. We Build Futuyes. We don’t sell goods. We DO Good.

  4. Slide 4: Key Business Highlights

    KEY BUSINESS HIGHLIGHTS

  5. Slide 5: Bright Horizons at a Glance

    Bright Horizons at a Glance By the Numbers $ 2,686 $ 409 MM MM 15.2% 1,019 1,450+ 95% Revenue Adjusted Adjusted EBITDA Centers Clients Served Employer–Sponsored (2024) EBITDA Margin Globally Globally Center Client (2024) (2024) (4Q24) (2024) Retention (2024) Highlights 25+ years of sales growth (exc

  6. Slide 6: A Family of Solutions at Work

    A Family of Solutions at Work Bright Horizons is in the business of human potential. Our mission is to provide innovative solutions that help children, families, employees and employers work together to unlock their full potential. Early Education & Childcare Back-Up Care Educational Advisory Family

  7. Slide 7: 25+ Years of Growth

    25+ Years of Growth YoY % 20% 19% 18% 16% 17% 13% 12% 11% 5% 5% 3% 11% 10% 14% 11% 8% 8% 11% 9% 8% (27)% 16% 15% 20% 11% Growth Dot-com The Great COVID- Impacted Recession Recession Adj. EBITDA Margin Revenue ($MM) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

  8. Slide 8: Business Model Overview

    Business Model Overview

  9. Slide 9: Extending Support Through All Life & Career Stages

    Extending Support Through All Life & Career Stages LIFE STAGES CAREER STAGES Expectant Parent of Parent of Parent of Parent of Caregiver Parent Infant Preschooler School Ager Teenager for a Senior Early Career Mid-Career Late Career Early Childhood Education Back-Up Care Elder Care College Coach Enh

  10. Slide 10: Competitive Advantages

    Competitive Advantages Commitment to Mission-critical A market leader Economically delivering the Favorable market services with a unique resilient business highest quality and industry supported by value proposition through past service for our dynamics employer-driven for employers economic cycles

  11. Slide 11: Large Addressable Market For Our Service Offerings

    Large Addressable Market For Our Service Offerings 79 Million 2 NOW Nearly +46% 50% of Households have both parents working 3 of the 25 Million 1 80’s Workforce +60% of Families Seek Center-Based Childcare 4 Number of Women Choosing to Pursue Full-Time Households Increasingly have Both Parents Worki

  12. Slide 12: Diversified Blue Chip Client Base

    Diversified Blue Chip Client Base Customer End Markets Representative Clients (2024 – All Segments) Gov't 3% Industrial 7% Tech 9% Professional Services/Other 10% Consumer 10% Education 12% Financial Services 17% Healthcare & Pharmaceuticals 32% >1,450 Client Relationships Largest Customer 1% of Rev

  13. Slide 13: Strength of Employer Partnership

    Strength of Employer Partnership Strong, Stable Model  Contracts with built-in escalators in line with consumer price index  Recurring revenue stream with near-term forward visibility  Employer-funded investment Employer Sponsorship and  Strong cash flow generation and consistent operating lever

  14. Slide 14: Global Presence and Strategic Rationale

    Global Presence U.S. U.K. Netherlands Australia Employees(1): 18,250 8,650 2,650 2,500 Centers(2): 599 268 72 80 Capacity(2): 79,000 23,000 6,500 7,500 Strategic Rationale Educated workforce Quality provider in fragmented market with Client sponsored centers with government strong demand tailwinds a

  15. Slide 15: Multiple Growth Channels

    Multiple Growth Channels  1,450+ existing clients,  Opportunity in every more than 480 clients buy industry sector > one service  Addressable market of  Extension of service lines ~13,000 employers with (e.g. summer camps, >1,000 employees in the academic tutoring, petcare, U.S. and U.K. New Cli

  16. Slide 16: Diverse Operating Models Support Capital Efficiency & Mitigate Financial Risk

    Diverse Operating Models Support Capital Efficiency & Mitigate Financial Risk Client Sponsor Model Cost Plus Single Sponsor / Bottom Line Consortium Lease Initial Term 3-5Yr + Renewal Initial Term 3-10Yr + Renewal Initial Term 10-15Yr  Client funds development / CAPEX /  Client funds development /

  17. Slide 17: Client Funding of Center Capital Drives High Returns on Investment

    Client Funding of Center Capital Drives High Returns on Investment Full Service Child Care center operating models with targeted return profiles: United States International Single Sponsor Consortium ($ in ‘000s) Cost Plus / Bottom Line Lease Lease % of Total Centers ~35% ~25% ~40% ~95% Revenue / Ce

  18. Slide 18: Full Service – Lease Models

    Full Service – Lease Models Lease Model Opportunities Example Pro-forma Lease Model Gross Profit $ Sample Geographies: Core Criteria:  Amsterdam  Urban / Suburban 0.17  Boston  Proximity to Work Hubs / 0.1 0.6  Chicago Residential Corridors / Clients 0.4  Greater London  Young Professionals /

  19. Slide 19: Acquisitions

    Acquisitions Licensed Centers by Geography Geographic Mix: Recent Acquisitions AUS 100 8,000 77 NL UK 57 10,000 30,000 36 US 14 18 5 7 2 10 100,000 2 2014 2019 2024 US UK NL AUS Acquisition History Ed Link Jovie Enter Enter Australia Work Netherlands Steve & College My Options EdAssist Kates Coach F

  20. Slide 20: Back-Up Care: Complementary Service With Accretive Growth Profile

    Back-Up Care: Complementary Service With Accretive Growth Profile Back-Up Care - Revenue ($MM) Back-Up Care - EBIT ($MM) ’19-’24 EBIT Margin ’19-’24 CAGR 16% CAGR 16% $610 28% 27% $171 $296 $81 2019 2024 2019 2024  Back-Up contracts range from 2-5 yrs  Annual contract range: $50K - $4M  Contracts

  21. Slide 21: Educational Advisory: Above-Average Growth & Margin Characteristics

    Educational Advisory: Above-Average Growth & Margin Characteristics Educational Advisory - Revenue ($MM) Educational Advisory - EBIT ($MM) ‘19-’24 EBIT Margin ’19-’24 CAGR 7% CAGR 2% $114 26% $82 20% $21 $23 2019 2024 2019 2024  EdAssist / College advising contracts 1-3 yrs  Typical annual contrac

  22. Slide 22: Financial Highlights

    FINANCIAL HIGHLIGHTS

  23. Slide 23: Performance Drivers

    Performance Drivers Long track record of Sticky, recurring growth and margin revenue base expansion Diversified across High free cash flow services and conversion geography © 2025 Bright Horizons Family Solutions LLC 23

  24. Slide 24: Consolidated Revenue & Earnings Performance

    Consolidated Revenue & Earnings Performance Total Revenue Adjusted EBITDA & Margin 20 YR 20 YR CAGR 8% CAGR 10% COVID- COVID- Impacted 19% Impacted $2,686 15% 16% 15% 15% 15% $2,062 $395 $398 Growth % 8% (27%) 16% 15% 20% 11% Growth % 11% (43%) 21% 17% 11% 13% 2019 2024 2019 2024 Centers 1,084 1,014

  25. Slide 25: Steady State Long-Term Revenue Bridge

    Steady State Long-Term Revenue Bridge Back-Up + Acquisitions Ed Advisory +1-2% Center +1-2% Enrollment Closings (1-2)% Tuition +1-3% Increase Total Revenue Growth +8-10% +3-4% New Centers +1-2% © 2025 Bright Horizons Family Solutions LLC 25

  26. Slide 26: Q4 2024 Operating Performance

    Q4 2024 Operating Performance 4Q23 4Q24 % Change Full Service Center-Based Child Care 447 485 8% Back-Up Care 137 157 15% Educational Advisory Services 32 32 2% Total Revenue 616 674 10% Gross Profit 116 141 21% % Margin 18.8% 20.8% Adj. EBITDA 99 111 12% % Margin 16.1% 16.4% Adj. Operating Income 6

  27. Slide 27: Historical Segment View

    Historical Segment View Historicals CAGRs Fin. in (M M USD) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 '14 - '19 '19 - '24 F ul l Ser vi ce $ 1, 157 $ 1, 2 3 7 $ 1,3 2 2 $ 1,4 58 $ 1,58 6 $ 1,6 8 4 $ 1, 0 3 2 $ 1, 2 9 7 $ 1, 4 9 4 $ 1, 78 1 $ 1, 9 6 2 7. 8 % 3 . 1% %Growt h 10.2% 6.9% 6.

  28. Slide 28: Summary of Adjustments to EBITDA and Net Income

    Summary of Adjustments to EBITDA and Net Income Fin. in ( MM USD) Fiscal Year Ended Decem ber 31, Adjustments to EBITDA 2019 2020 2021 2022 2023 2024 EBITDA $376 $165 $235 $258 $282 $345 Non-cash operating lease expense 1 - - - - - Stock-based compensation expense 17 21 23 28 29 34 Loss on extinguis

  29. Slide 29: Bright Horizons Family Solutions

    BRIGHT HORIZONS FAMILY SOLUTIONS An industry leader with unmatched experience  Impactful support for each life stage  Safe, high-quality child care on location or nationwide  Back-Up Care program with vetted and trained care network  Preferred access and discounts on tutoring, nannies, summer ca

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