Core Points - Cricut, Inc. will report its financial results for Q2 2025 on August 5, 2025, after U.S. market close [1] - A conference call and webcast will be held on the same day at 3:00 p.m. Mountain Time [1] - The earnings call will be accessible via Cricut's investor relations website [2] Company Overview - Cricut, Inc. is a creative technology company that provides a connected platform for DIY projects, including smart cutting machines and design software [4] - The company offers a range of products, including the Cricut Maker series, Cricut Explore series, Cricut Joy, and Cricut Venture, along with tools like Cricut EasyPress and Infusible Ink [4] - Cricut fosters a community of millions of users globally, enhancing the creative experience [4] Investor Relations - Cricut will use its investor relations website and Cricut News Blog to disclose material non-public information [5] - Stakeholders are encouraged to monitor these platforms along with press releases and SEC filings for updates [5]

User Metrics - As of March 31, 2025, Cricut has 5.9 million Active Users, a slight decrease from 5.95 million in 2024[88][97] - The number of Paid Subscribers increased to 2.97 million as of March 31, 2025, up from 2.80 million in 2024, representing a growth of approximately 6.3%[97][100] Revenue Performance - Total revenue for the three months ended March 31, 2025, was $162.63 million, a decrease of 2.3% from $167.39 million in the same period of 2024[112] - Platform revenue for the same period was $79.99 million, an increase of 2.2% compared to $78.29 million in 2024[112] - Products revenue decreased to $82.65 million from $89.11 million, reflecting a decline of approximately 7.2% year-over-year[112] - Total revenue for the three months ended March 31, 2025, was $162.6 million, a decrease of $4.8 million or 3% compared to $167.4 million in the same period of 2024[113] - Platform revenue increased by $1.7 million, or 2%, to $80.0 million, driven by an increase in paid subscribers from nearly 2.8 million to nearly 3.0 million[114] - Products revenue decreased by $6.5 million, or 7%, to $82.6 million, primarily due to fewer units sold and increased promotional activity[115] Profitability - Gross profit for the three months ended March 31, 2025, was $98.35 million, compared to $91.59 million in 2024, indicating an increase of about 7.4%[112] - Total gross profit increased by $6.8 million, or 7%, to $98.3 million, with a gross margin of 60.5%[116] - The gross margin for the fourth quarter of 2024 was 45%, down from 50% for the entire year, indicating seasonal impacts on profitability[92][94] Expenses - Operating expenses totaled $69.01 million, up from $66.39 million in the prior year, representing an increase of approximately 2.4%[112] - Research and development expenses increased by $0.8 million, or 5%, to $15.7 million, representing 10% of total revenue[121] - Sales and marketing expenses rose by $3.7 million, or 11%, to $36.7 million, accounting for 23% of total revenue[122] - General and administrative expenses decreased by $1.8 million, or 10%, to $16.7 million, representing 10% of total revenue[123] Net Income and Cash Flow - Net income for the quarter was $23.91 million, an increase of 21.5% from $19.65 million in the same quarter of 2024[112] - Net cash flows provided by operating activities were $61.2 million, an increase from $56.7 million in the prior year[129] - The company paid a dividend of $21.5 million during the three months ended March 31, 2025[127] Future Outlook - Cricut expects to continue investing in research and development, anticipating an increase in related expenses in the near term as product roadmaps are refined[107] - As of March 31, 2025, the company had cash and cash equivalents totaling $252.1 million and marketable securities of $104.5 million[126]

Group 1: Earnings Performance - Cricut, Inc. reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, and up from $0.09 per share a year ago, representing an earnings surprise of 37.50% [1] - The company posted revenues of $162.63 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.37%, although this is a decline from year-ago revenues of $167.39 million [2] Group 2: Stock Performance and Outlook - Cricut shares have declined approximately 10.9% since the beginning of the year, compared to a decline of 3.9% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $161.29 million, and for the current fiscal year, it is $0.18 on revenues of $690.92 million [7] Group 3: Industry Context - The Technology Services industry, to which Cricut belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Total sales in Q1 decreased by 3% year on year, with revenue of $162.6 million [27] - Operating income increased by 16% year on year, reaching $29.3 million or 18% of revenue [27][33] - Net income for Q1 was $23.9 million, or 11¢ per diluted share, compared to $19.6 million or 9¢ per diluted share in Q1 2024 [33] Business Line Data and Key Metrics Changes - Platform revenue increased by 2% year on year to $80 million, driven by paid subscriber growth [27][28] - Products revenue declined by 7% year on year to $82.6 million, with connected machines revenue up by 4% [28][29] - Accessories and materials sales decreased by 15%, impacted by one-time items [21][28] Market Data and Key Metrics Changes - International revenue for the quarter was $35.1 million, an increase of 8% year on year, representing 22% of total revenue [29] - Strength was noted in the UK, Germany, META, and Latin America markets, while Australia showed continued softness [29] Company Strategy and Development Direction - The company is focused on increasing user acquisition, engagement, and subscriptions, with a particular emphasis on new product launches and marketing strategies [12][20] - A new engagement marketing platform was launched to drive user return and project inspiration [18][19] - The company aims to reclaim market share in accessories and materials by enhancing product offerings and competitive pricing [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty introduced by tariffs but expressed confidence in the company's supply chain configuration [6][44] - The company expects total sales to decline year on year in the first half of 2025, but at a slower rate than in the first half of 2024 [37][38] - Management is optimistic about the potential for an inflection point in business performance, citing improvements in machine sales and platform growth [59][61] Other Important Information - The board approved a special dividend of $0.75 per share and a recurring semiannual dividend of $0.10 per share [8][35] - The company ended Q1 with cash and cash equivalents of $357 million and remains debt-free [34] Q&A Session Summary Question: What are some of the levers to mitigate tariff-related headwinds? - Management highlighted the diversified supply chain as a key advantage and indicated that pricing strategies would be carefully evaluated [42][44] Question: Can you provide details on engagement trends? - Management acknowledged ongoing challenges with engagement but emphasized efforts to improve onboarding experiences and personalized marketing [49][56] Question: What gives confidence in reaching an inflection point this year? - Management pointed to improvements in machine sales, growth in paid subscriptions, and a strong supply chain as indicators of potential positive change [59][61]

Financial Data and Key Metrics Changes - Total sales in Q1 2025 decreased by 3% year on year, with revenue of $162.6 million [7][27] - Net income for Q1 2025 was $23.9 million, representing 14.7% of total sales, compared to $19.6 million or 9% per diluted share in Q1 2024 [34][27] - Operating income increased to $29.3 million or 18% of revenue, up from $25.2 million or 15.1% of revenue in Q1 2024 [34] - Gross margin improved to 60.5% from 54.7% in Q1 2024, with platform gross margin at 89.2% and product gross margin at 32.7% [31][32] Business Line Data and Key Metrics Changes - Platform revenue increased by 2% year on year to $80 million, driven by paid subscriber growth [27][28] - Product revenue declined by 7% year on year to $82.6 million, with connected machines revenue up by 4% but accessories and materials down by 15% [27][29] - Paid subscribers increased by over 6% year on year to just over 2.97 million, with a sequential increase of 15,000 [20][28] Market Data and Key Metrics Changes - International revenue for Q1 2025 was $35.1 million, an increase of 8% year on year, representing 22% of total revenue compared to 19% in Q1 2024 [30] - Strength was noted in the UK, Germany, META, and Latin America markets, while Australia showed continued softness [30] Company Strategy and Development Direction - The company is focused on increasing user acquisition, engagement, and subscriptions, with a particular emphasis on new product launches and marketing strategies [12][20] - A new engagement marketing platform was launched to drive user return and project inspiration [17][54] - The company aims to reclaim market share in accessories and materials by enhancing product offerings and competitive pricing [22][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty introduced by tariffs but expressed confidence in the company's supply chain configuration and profitability [6][39] - The company expects total sales to decline year on year in the first half of 2025 but anticipates a less severe decline compared to the first half of 2024 [40] - Future marketing investments will be data-driven, considering potential changes in consumer spending due to tariffs [39] Other Important Information - The board approved a special dividend of $0.75 per share and a recurring semiannual dividend of $0.10 per share, payable in July 2025 [36][37] - The company remains debt-free and generated $61.2 million in cash from operations in Q1 2025 [35] Q&A Session Summary Question: What are some of the levers to mitigate tariff-related headwinds? - The company has diversified its supply chain outside of China, with most finished goods now sourced from Malaysia and other countries [44] - Pricing strategies will be deliberate, with expectations of some price increases due to reduced promotions [45] Question: Can you provide details on engagement trends? - Engagement continues to be a challenge due to attrition from large cohorts acquired in previous years and lower project creation from newer users [52] - Initiatives are in place to improve onboarding experiences and enhance user engagement through personalized notifications [54][56] Question: What gives confidence in reaching an inflection point this year? - Signs of improvement in machine sales and platform growth, along with successful new product launches, contribute to this confidence [59][61]

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 ...

Core Insights - Cricut, Inc. reported a 6% year-over-year increase in paid subscribers, reaching just over 2.97 million in Q1 2025 [7][10] - The company's revenue for Q1 2025 was $162.6 million, a decrease of 3% compared to Q1 2024 [6][25] - Net income rose to $23.9 million, reflecting a 22% increase from the previous year [4][6] Financial Performance - Q1 2025 revenue breakdown: Platform revenue was $80.0 million (up 2% year-over-year), while Products revenue was $82.6 million (down 7% year-over-year) [6][25] - International revenue increased by 8% year-over-year, accounting for 22% of total revenue, up from 19% in Q1 2024 [6] - Gross margin improved to 60.5%, up from 54.7% in Q1 2024 [6] - Operating income was $29.3 million, representing 18.0% of revenue, an increase of 16% from Q1 2024 [6][25] - Diluted earnings per share increased to $0.11, up from $0.09 in Q1 2024 [6][25] Cash Flow and Capital Allocation - The company generated $61.2 million in cash from operations in Q1 2025, compared to $56.7 million in the same period last year [4][6] - Cricut ended Q1 2025 with cash and cash equivalents of $357 million and remains debt-free [4] - The board approved three capital allocation items: a special dividend of $0.75 per share, a recurring semi-annual dividend of $0.10 per share, and a stock repurchase program of up to $50 million [4][13] Business Strategy and Market Position - The CEO highlighted a focus on increasing speed of execution and accelerating investments in hardware product development, materials, and user engagement to drive future revenue growth [2] - The company has shifted the majority of its finished goods spending outside of China, which is seen as a competitive advantage amid tariff uncertainties [2]

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 ...