Financial Data and Key Metrics Changes - Total sales in Q3 decreased by 4% year-on-year, with revenue of $167.9 million [26] - Platform revenue was $77.7 million, up slightly year-on-year, while product revenue was $90.2 million, down 7% [26] - Gross margin decreased to 46.1% from 46.8% in Q3 2023, with platform gross margin at 87.1% compared to 89.3% a year ago [30][31] - Net income was $11.5 million or $0.05 per diluted share, down from $17.2 million or $0.08 per diluted share in Q3 2023 [34] Business Line Data and Key Metrics Changes - Revenue from connected machines decreased by 11%, driven by higher promotional activity planned for Q4 [27] - Accessories and materials revenue declined by 3% on favorable comparisons [27] - Paid subscribers increased by 5% year-on-year, totaling over 2.8 million [29] Market Data and Key Metrics Changes - International sales grew by 2% year-on-year, with international revenue at $38.5 million [27] - International sales benefited from foreign exchange rates, contributing just under 2% to the growth [28] Company Strategy and Development Direction - The company is focused on improving user engagement, particularly among new users, to counteract declining engagement from older cohorts [11][23] - A deeper promotional strategy during key selling times is being implemented, with positive results observed from recent promotional events [20] - The company plans to continue increasing marketing spend to drive user acquisition and engagement [19][75] Management's Comments on Operating Environment and Future Outlook - Management expects continued sales pressure on the product segment, with total company revenue likely down year-on-year in Q4 [39] - There is confidence in the ability to improve engagement metrics and subscriber growth despite current challenges [51] - The long-term financial model remains unchanged, with operating margin targets of 15% to 19% [40] Other Important Information - The company generated $70 million in cash from operations, ending Q3 with a cash balance of $247 million [35] - A special one-time dividend of $0.40 per share was paid, along with a recurring semi-annual dividend of $0.10 per share [37] - The company remains debt-free and does not anticipate the need for debt in the near term [38] Q&A Session Summary Question: Active users are declining while paid subscribers are growing - Management explained that engagement pressure is coming from older user cohorts, but they are seeing healthy signs in new user onboarding and engagement metrics [44][51] Question: Long-term margin levels in the platform segment - Management indicated that while there are pressures on platform margins due to increased costs, they expect to maintain a focus on investments that will support long-term growth [58] Question: Trends in accessory revenues and connected machines - Management noted that accessory revenue decline is due to easier comparisons, while connected machines' decline is driven by promotional strategies for Q4 [65][66] Question: Promotional intensity in the crafting category - Management acknowledged increased competition on price points and emphasized their promotional strategy to drive demand during the holiday season [67][68] Question: Key learnings from higher marketing intensity - Management highlighted improvements in traffic to their website and ongoing adjustments to marketing strategies based on performance metrics [73][74]

User Metrics - As of September 30, 2024, Cricut reported 5.9 million Active Users, a slight decrease from 5.93 million in the previous year[120]. - The number of Paid Subscribers increased to 2.84 million, up from 2.70 million year-over-year, representing a growth of approximately 5.2%[120]. - Cricut's digital platform enhancements have led to a 115% increase in Paid Subscribers from 1.3 million in 2020 to nearly 2.8 million in 2023[116]. Revenue and Financial Performance - Total revenue for the three months ended September 30, 2024, was $167.9 million, a decrease of $7.0 million or 4% compared to $174.9 million for the same period in 2023[142]. - Platform revenue accounted for 40% of total revenue in 2023, up from 12% in 2020, indicating a significant shift towards digital offerings[116]. - Platform revenue increased by $0.2 million, or 0%, to $77.7 million for the three months ended September 30, 2024, driven by an increase in paid subscribers from 2.7 million to 2.8 million[143]. - Products revenue decreased by $7.2 million, or 7%, to $90.2 million for the three months ended September 30, 2024, primarily due to increased promotional activity[144]. - Gross profit for the three months ended September 30, 2024, was $77.4 million, a decrease of $4.6 million or 6% compared to $81.9 million for the same period in 2023[147]. - Net income for the three months ended September 30, 2024, was $11.5 million, a decrease of $5.7 million or 33% compared to $17.2 million for the same period in 2023[142]. Cost and Expenses - Gross margin for the fourth quarter of 2023 was 42%, down from 45% for the entire year, attributed to increased promotional discounting during the holiday season[114]. - Total cost of revenue for the three months ended September 30, 2024, was $90.5 million, a decrease of $2.4 million or 3% compared to $92.9 million for the same period in 2023[147]. - Research and development expenses decreased by $0.7 million, or 4%, to $15.2 million for the three months ended September 30, 2024[156]. - Total operating expenses for the three months ended September 30, 2024, were $66.8 million, an increase of $8.5 million or 15% compared to $58.2 million for the same period in 2023[147]. - Sales and marketing expenses increased by $6.9 million, or 24%, to $35.3 million for the three months ended September 30, 2024, compared to $28.4 million for the same period in 2023[159]. - General and administrative expenses increased by $2.3 million, or 16%, to $16.2 million for the three months ended September 30, 2024, compared to $14.0 million for the same period in 2023[161]. Cash Flow and Dividends - Net cash flows provided by operating activities were $161.9 million for the nine months ended September 30, 2024, compared to $196.0 million for the same period in 2023[172]. - The company paid dividends of $109.8 million in 2024, a significant decrease from $293.8 million in 2023[169]. - Cash and cash equivalents and marketable securities totaled $142.4 million and $104.6 million, respectively, as of September 30, 2024[168]. - The company experienced a decrease in net cash flows used in investing activities, primarily due to an increase in proceeds from the maturities of marketable securities in 2024[175]. Strategic Initiatives - Cricut expects to achieve gross savings of approximately $3.2 million in 2024 due to a restructuring plan initiated in Q1 2024[132]. - The company has reduced its reportable segments from three to two, combining Subscriptions and digital content into one Platform segment, reflecting a strategic focus on digital growth[116]. - The company anticipates returning to a more normal seasonality pattern as the impact of the pandemic and global economic challenges abate[114]. - Future capital requirements may vary materially based on revenue growth, R&D spending, and market conditions, with potential needs for additional financing[170].

Core Viewpoint - Cricut, Inc. reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.07 per share, representing an earnings surprise of -28.57% [1] - The company posted revenues of $167.89 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.54%, but down from $174.91 million year-over-year [2] Financial Performance - Cricut's earnings of $0.05 per share for the recent quarter is a decrease from $0.08 per share a year ago [1] - The company has surpassed consensus EPS estimates two times over the last four quarters [2] - Cricut shares have lost approximately 3.3% since the beginning of the year, contrasting with the S&P 500's gain of 19.8% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $228.97 million, and for the current fiscal year, it is $0.29 on revenues of $729.66 million [7] - The estimate revisions trend for Cricut is mixed, leading to a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Technology Services industry, to which Cricut belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Subscriber and User Metrics - Paid subscribers increased to over 2.8 million, up 5% year over year[1] - Active users decreased slightly to nearly 5.9 million, while 90-day engaged users decreased 3% to over 3.5 million[6] Financial Performance - Q3 2024 revenue was $167.9 million, down 4% compared to Q3 2023[3] - Total revenue for Q3 2024 was $167.89 million, a decrease of 4.8% compared to $174.91 million in Q3 2023[21] - Gross profit for Q3 2024 was $77.36 million, down from $81.93 million in Q3 2023, reflecting a gross margin of 46.1%[21] - Net income was $11.5 million, or 6.8% of revenue, down 33% from Q3 2023[4] - Net income for the nine months ended September 30, 2024, was $50.90 million, an increase of 20.0% from $42.35 million in the same period of 2023[23] - Cricut's diluted earnings per share for Q3 2024 was $0.05, down from $0.08 in Q3 2023[21] Revenue Breakdown - Platform revenue was $77.7 million, slightly up over Q3 2023, while products revenue was $90.2 million, down 7% from Q3 2023[3] - International revenue increased by 2% over Q3 2023, accounting for 23% of total revenue, up from 21% in Q3 2023[3] Operating Metrics - Gross margin was 46.1%, down from 46.8% in Q3 2023[3] - Operating income was $10.6 million, or 6.3% of total revenue, compared to $23.7 million, or 13.5% of revenue in Q3 2023[4] - Operating expenses increased to $66.77 million in Q3 2024, compared to $58.25 million in Q3 2023, primarily due to higher sales and marketing expenses[21] Cash and Assets - Generated $70 million in cash from operations in Q3 2024, ending the quarter with $247 million in cash and cash equivalents[5] - Cash and cash equivalents at the end of Q3 2024 were $142.38 million, slightly up from $142.19 million at the end of Q3 2023[22] - Accounts receivable decreased to $93.30 million in Q3 2024 from $111.25 million in Q3 2023, indicating improved collection efforts[22] - Inventories decreased significantly to $167.50 million in Q3 2024 from $244.47 million in Q3 2023, suggesting better inventory management[22] - The company reported a total of $161.89 million in net cash provided by operating activities for the nine months ended September 30, 2024[23] Liabilities - Total liabilities decreased to $187.93 million as of September 30, 2024, from $215.25 million in the previous year[22]

Paid subscribers over 2.8 million, up 5% over Q3 2023 Q3 2024 revenue of $167.9 million, down 4% compared to Q3 2023 Delivered 23rd consecutive quarter of profitability with net income of $11.5 million SOUTH JORDAN, Utah, Nov. 05, 2024 (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 third quarter ended September 30, 2024. "We are pleased with ...

SOUTH JORDAN, Utah, Oct. 15, 2024 (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 third quarter ended September 30, 2024 after the U.S. markets close on Tuesday, November 5, 2024. 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 ...

SOUTH JORDAN, Utah, Sept. 30, 2024 (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 an expansion of the company's board of directors. "We are excited to announce the addition of Heidi Zak as an independent board member and member of our audit committee. This increases the size of our board of directors from seven to eight members," said Jason Makler, Chairman of Cricut' ...

Cricut, Inc. (CRCT) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in ...

Cricut, Inc. (NASDAQ:CRCT) Q2 2024 Results Conference Call August 6, 2024 5:00 PM ET Company Participants Jim Suva - Senior Vice President of Finance and Treasurer Ashish Arora - Chief Executive Officer & Director Kimball Shill - Chief Financial Officer Conference Call Participants Eric Woodring - Morgan Stanley Angus Kelleher - Barclays Operator Good day, and thank you for standing by. Welcome to the Cricut Q2 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After th ...

Cricut, Inc. (CRCT) came out with quarterly earnings of $0.09 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 80%. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.09, delivering a surprise of 28.57%. Over the last four quarters, the company has s ...