Q1 2025 May 6, 2025 NASDAQ : CRCT Financial Results replace Safe Harbor Statement Q1 2025 Financial Results 1 This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not ...

Cricut, Inc. Reports First Quarter 2025 Financial Results Net income of $23.9 million, up 22% compared to Q1 2024 Board authorizes three capital allocation items SOUTH JORDAN, Utah, May 6, 2025 (GLOBE NEWSWIRE) -- Cricut, Inc. ("Cricut") (NASDAQ: CRCT), the creative technology company that has brought a connected platform for making to millions of users worldwide, today announced financial results for its first quarter ended March 31, 2025. Paid subscribers up 6% over Q1 2024 to just over 2.97 million Q1 20 ...

Paid subscribers up 6% over Q1 2024 to just over 2.97 million Q1 2025 revenue of $162.6 million, down 3% compared to Q1 2024 Net income of $23.9 million, up 22% compared to Q1 2024 Board authorizes three capital allocation items SOUTH JORDAN, Utah, May 06, 2025 (GLOBE NEWSWIRE) -- Cricut, Inc. ("Cricut") (NASDAQ: CRCT), the creative technology company that has brought a connected platform for making to millions of users worldwide, today announced financial results for its first quarter ended March 31, 2025. ...

SOUTH JORDAN, Utah, April 15, 2025 (GLOBE NEWSWIRE) -- Cricut, Inc. (“Cricut”) (NASDAQ: CRCT), the creative technology company that has brought a connected platform for making to millions of users worldwide, today announced it will report its financial results for the first quarter ended March 31, 2025 after the U.S. markets close on Tuesday, May 6, 2025. Cricut management will host a conference call and webcast to discuss the results that afternoon at 3:00 p.m. Mountain Time (5:00 p.m. Eastern Time). A liv ...

I wrote about Cricut Inc. (NASDAQ: CRCT ) previously with a hold rating as I saw multiple headwinds that would pressure earnings growth over the near term. In particular, I was very worried about the y/y decline inI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [his ...

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $209.3 million, a 9% decline compared to the prior year, with full-year revenue at $712.5 million, down 7% from 2023 [33] - Net income for Q4 was $11.9 million, or 5.7% of total sales, while full-year net income was $62.8 million, representing 8.8% of total sales, marking the eighth consecutive year of positive net income [34][44] - Operating income for Q4 was $13.9 million, or 6.6% of revenue, compared to $16.5 million, or 7.1% of revenue in Q4 2023; full-year operating income increased to $76.1 million, up 9% from $70 million in 2023 [43][44] Business Line Data and Key Metrics Changes - Platform revenue in Q4 was $79.4 million, up 2% year on year, while product revenue was $129.9 million, down 15% year on year [34] - Paid subscribers increased by 7% to 2.96 million, with a sequential increase of 121,000 in Q4 [23][34] - Accessories and materials revenue decreased by 20% for the full year, with a 18% decline in Q4 [25][36] Market Data and Key Metrics Changes - International revenue for Q4 was $52.9 million, an increase of 3% compared to Q4 2023, representing 25% of total revenue [37] - The company experienced growth in France, Meza, and Latin America, while Australia showed continued softness [38] - For the full year, international sales increased 1% and represented 22% of total revenue, up from 20% in 2023 [37] Company Strategy and Development Direction - The company is focused on increasing execution speed and accelerating investments in hardware product development, materials, and engagement [11][12] - Key priorities include new user acquisition, user engagement, subscriptions, and accessories and materials [13] - The launch of new cutting machines, Cricut Explore 4 and Cricut Maker 4, aims to attract more users and enhance engagement [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the inability to capitalize on market opportunities despite a strong conviction in the category's potential [8] - The company expects total sales to decline year on year in the first half of 2025 but anticipates an inflection point in the second half of the year [49][50] - Operating income is expected to decline in 2025 due to increased investments and marketing efforts [52] Other Important Information - The company generated $265 million in cash from operations in 2024, down from $288 million in 2023, and ended the year with cash and cash equivalents of $337 million [45] - The company initiated litigation to protect its intellectual property over accessories and materials [29] - A board member, Len Blackwell, will not stand for reelection at the upcoming annual shareholder meeting [30] Q&A Session Summary Question: Engagement trends have been declining; what is being done to improve this? - Management acknowledged the pressure on engagement due to user acquisition trends and emphasized the need for faster execution of strategies to enhance user engagement [59][61] Question: What does the inflection point in the second half of the year refer to? - Management clarified that they are not calling for full-year growth but are optimistic about platform revenue growth and improved performance in the machines business due to marketing efforts and new product launches [66][67] Question: Impact of a wholesale partner's bankruptcy on Q4 results? - Management confirmed that the bankruptcy is reflected in Q4 numbers but is not material to financials, as risks had been managed over the past two years [83] Question: What are the drivers behind the expected decline in operating margins? - Management highlighted increased marketing spend, R&D investments, and IP protection actions as key drivers of higher operating expenses, leading to a projected decline in operating margins [88][89]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $209.3 million, a 9% decline compared to the prior year, with full-year revenue at $712.5 million, down 7% from 2023 [33] - Net income for Q4 was $11.9 million, or 5.7% of total sales, while full-year net income was $62.8 million, representing 8.8% of total sales, marking the eighth consecutive year of positive net income [34][44] - Operating income for Q4 was $13.9 million, or 6.6% of revenue, compared to $16.5 million, or 7.1% of revenue in Q4 2023; full-year operating income increased to $76.1 million, up 9% from $70 million in 2023 [43][44] Business Line Data and Key Metrics Changes - Platform revenue in Q4 was $79.4 million, up 2% year on year, while product revenue was $129.9 million, down 15% year on year [34] - Paid subscribers increased by 7% to 2.96 million, with a sequential increase of 121,000 in Q4 [34][23] - Accessories and materials sales declined by 20% for the full year, with a 18% decrease in Q4 [25][36] Market Data and Key Metrics Changes - International revenue for Q4 was $52.9 million, an increase of 3% compared to Q4 2023, representing 25% of total revenue [37] - The company experienced growth in France, Meza, and Latin America, while Australia showed continued softness [38][75] - For the full year, international sales increased by 1%, representing 22% of total revenue compared to 20% in 2023 [37] Company Strategy and Development Direction - The company is focused on increasing speed of execution and accelerating investments in hardware product development, materials, and engagement [11][12] - Key priorities include new user acquisition, user engagement, subscriptions, and accessories and materials [13][14] - The company launched new connected machines, Cricut Explore 4 and Cricut Maker 4, which are expected to enhance user experience and drive sales [15] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the inability to capitalize on market opportunities despite a strong conviction in the market potential [8] - The company expects total sales to decline year on year in the first half of 2025 but anticipates an inflection point in the second half of the year [49][50] - Management highlighted the need to attract new users and reverse engagement trends to drive future growth [12][19] Other Important Information - The company generated $265 million in cash from operations in 2024, down from $288 million in 2023, and ended the year with cash and cash equivalents of $337 million [45] - The company initiated litigation to protect its intellectual property, which is expected to impact general and administrative expenses [11][29] Q&A Session Summary Question: Engagement trends have been declining; what gives confidence in future improvements? - Management acknowledged the pressure on engagement due to user acquisition trends and emphasized the need for faster execution of strategies to improve engagement [59][61] Question: What does the inflection point in the second half of the year refer to? - Management clarified that they are not calling for full-year growth but are optimistic about platform revenue growth and improved performance in the machines business [66][68] Question: How will the bankruptcy of a wholesale partner impact financials? - Management confirmed that the bankruptcy is reflected in Q4 numbers but is not material to financials [83] Question: What are the drivers of the expected decline in operating margins? - Management highlighted increased marketing spend, R&D investments, and IP protection actions as key drivers of higher operating expenses [88][90]

Revenue Trends - Revenue for the year ended December 31, 2024, was $712.5 million, a decline from $765.1 million in 2023 and $886.3 million in 2022, indicating a downward trend in revenue growth [102]. - Connected machine revenue decreased by $5.9 million, or 3.0%, to $192.4 million for the year ended December 31, 2024, down from $198.3 million in 2023 [107]. - Accessories and materials revenue decreased by $50.7 million, or 19.7%, to $207.1 million for the year ended December 31, 2024, compared to $257.8 million in 2023 [108]. - The company anticipates a decline in revenue growth rates compared to prior years due to increased competition and changing consumer preferences [102]. - Revenue peaked at $1.3 billion in 2021, declining to $886.3 million in 2022, $765.1 million in 2023, and $712.5 million in 2024 [136]. Subscriber Metrics - The number of Paid Subscribers could remain flat or decline, reflecting challenges in user engagement and retention [99]. - The number of Paid Subscribers may remain flat or decline in the short term due to declining user growth rates [140]. Retail Partnerships - The top seven brick-and-mortar and online retail partners accounted for 30% of total revenue for the twelve months ended December 31, 2024, down from 33% in 2023, indicating a slight decrease in revenue concentration [111]. - The company relies heavily on brick-and-mortar and online retail partners, and any loss of key partners could adversely affect financial performance [110]. - The company relies on brick-and-mortar and online retail partners for sales, and any financial distress among these partners could adversely affect revenue and profitability [115]. - Top seven retail partners accounted for 33% of total revenue in 2023 and 30% in 2024, indicating reliance on a few key partners [150]. Supply Chain and Manufacturing - Supply chain conditions have improved during 2023 and 2024, but any future challenges could pressure margins [109]. - The company relies on three contract manufacturers for production, and any disruptions could negatively impact the supply of connected machines and revenue growth [197]. - Manufacturing operations are primarily based in Malaysia, China, Thailand, and South Korea, exposing the company to risks from political, social, and economic developments in these regions [202]. - The company faces risks related to a limited number of suppliers, which may lead to supply shortages and long lead times for components, potentially disrupting the supply chain [204]. - The global availability of critical components for connected machines remains constrained, with no alternative suppliers for several key components, which could materially affect the business if suppliers fail to meet demand [207]. Competition and Market Challenges - The company faces intense competition in the accessories and materials market, which could negatively impact revenue and results of operations [123]. - Economic conditions, inflation, and changes in consumer spending could impact sales through retail partners [115]. - The company faces challenges in managing growth and complexity, which could strain existing resources and affect financial performance [136]. Marketing and User Engagement - The introduction of new products is critical for maintaining user engagement, and delays in product launches could harm business performance [104]. - Advertising and marketing spending as a percentage of revenue increased from 15% in 2022 to 20% in 2024 [137]. - The company's marketing strategy relies heavily on word-of-mouth referrals, and any decline in this could lead to increased marketing expenses [175]. Financial Risks and Debt - The company has a credit agreement with JPMorgan Chase Bank for a five-year senior secured revolving credit facility with aggregate lender commitments of $300 million, which can be increased to $450 million [179]. - The company's debt is subject to variable interest rates, which may increase borrowing costs in a rising rate environment [186]. - The company may require additional capital to support business growth and objectives, potentially leading to stockholder dilution if funding is not available on reasonable terms [188]. Regulatory and Compliance Issues - The company is subject to various federal, state, and international regulations, including the Consumer Product Safety Improvement Act, which imposes significant requirements on manufacturing and labeling [171]. - Compliance with privacy laws, such as the GDPR, could result in penalties of up to €20 million or 4% of annual global revenue for noncompliance [235]. - The company faces significant risks related to compliance with privacy laws such as GDPR, LGPD, and CCPA, which may lead to increased costs and operational burdens [244]. Cybersecurity and Data Protection - Cybersecurity risks are a major concern, with potential impacts on financial accuracy and operational efficiency due to transaction errors and data breaches [246]. - The company has experienced past cyberattacks and security breaches, which could lead to unauthorized access to sensitive information and significant liability [247]. - The company maintains cybersecurity insurance, but there is uncertainty regarding coverage adequacy and availability, which could affect financial stability [252]. International Operations and Currency Risks - The company is subject to potential fluctuations in currency exchange rates, which could impact financial performance in international operations [259]. - International distributors purchase products in U.S. dollars and sell in local currencies, making them vulnerable to currency fluctuations that could impact their profitability and ability to buy products [154]. - The company faces risks from limited control over contract manufacturers and suppliers, which could affect product quality and timely delivery [218]. Workforce and Personnel - Employee headcount decreased from over 775 in 2022 to over 690 in 2023, and further to over 640 in 2024, reflecting a workforce reduction of approximately 8% in March 2024 [136]. - The company is highly dependent on key personnel, including the CEO, for its strategic direction and future success, with potential risks associated with losing any key employees [155]. - Competition for skilled personnel is intense, and the company may face challenges in attracting and retaining qualified employees, which could harm future growth prospects [157].

Cricut, Inc. (CRCT) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.05, delivering a surprise of -28.57%.Over the last four quarters, the company has s ...

NASDAQ : CRCT Financial Results Q4 2024 March 4, 2025 Q4 2024 Financial Results 1 Safe Harbor Statement This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate ...