Cricut(US:CRCT)2024-08-06 20:08Financial Performance - Revenue for Q2 2024 was $167.9 million, down 6% compared to Q2 2023[1] - Total revenue for Q2 2024 was $167.947 million, a decrease of 5.6% compared to $177.765 million in Q2 2023[17] - Gross profit increased to $89.840 million in Q2 2024, up from $87.655 million in Q2 2023, representing a growth of 2.5%[17] - Net income was $19.8 million, representing an increase of 23% from Q2 2023[3] - Net income for Q2 2024 was $19.769 million, compared to $16.024 million in Q2 2023, reflecting a year-over-year increase of 23.3%[17] - Operating income was $26.4 million, or 15.7% of total revenue, compared to $19.3 million, or 10.8% in Q2 2023[3] - The company reported a comprehensive income of $20.010 million for Q2 2024, compared to $15.656 million in Q2 2023, an increase of 27.5%[17] - Net income for the six months ended June 30, 2024, was $39,416,000, compared to $25,123,000 for the same period in 2023, representing a 57% increase[19] Subscriber and User Metrics - Paid subscribers increased to over 2.8 million, up 3% year over year[1] - Active users slightly increased to over 5.9 million, while 90-day engaged users decreased by 3% to over 3.5 million[5] Cost and Expense Management - Research and development expenses decreased to $14.315 million in Q2 2024 from $16.346 million in Q2 2023, a reduction of 12.4%[17] - Total operating expenses decreased to $63.408 million in Q2 2024 from $68.405 million in Q2 2023, a decline of 7.3%[17] - Stock-based compensation decreased slightly to $21,376,000 from $22,307,000, a reduction of 4%[19] Cash Flow and Liquidity - Cash from operations generated in Q2 was $35 million, with $9.3 million used for stock repurchase[4] - Net cash provided by operating activities decreased to $91,648,000 from $159,612,000, a decline of 43% year-over-year[19] - Total cash and cash equivalents at the end of the period were $195,552,000, down from $286,121,000, reflecting a 32% decrease[19] - Cash and cash equivalents increased to $195.552 million as of June 30, 2024, compared to $142.187 million in 2023, a growth of 37.5%[18] Balance Sheet Highlights - Total current assets as of June 30, 2024, were $611.151 million, slightly down from $619.969 million in 2023[18] - Total liabilities rose to $293.567 million as of June 30, 2024, up from $215.249 million in 2023, indicating an increase of 36.4%[18] Inventory and Receivables Management - Accounts receivable decreased by $13,345,000, from $40,665,000 to $27,320,000, indicating improved cash flow management[19] - Inventories increased to $56,928,000 from $50,356,000, a rise of 13% year-over-year[19] - The company reported a provision for inventory obsolescence of $(3,028,000), significantly improved from $10,280,000 in the previous year, indicating better inventory management[19] - The company reported a bad debt benefit of $(454,000) compared to an expense of $6,563,000 in the prior year, indicating improved receivables management[19] Shareholder Returns - The company repurchased common stock totaling $20,103,000, compared to $4,210,000 in the previous year, indicating a significant increase in shareholder returns[19] - Cash dividends paid were $1,547,000, a decrease from $75,808,000 in the prior year, reflecting a strategic shift in capital allocation[19] Key Performance Indicators - Platform ARPU increased to $52.61, up 5% year over year[5] - International revenue accounted for 20% of total revenue, up from 18% in Q2 2023[3] - Earnings per share (diluted) for Q2 2024 was $0.09, compared to $0.07 in Q2 2023, marking a 28.6% increase[17] - Gross margin improved to 53.5%, up from 49.3% in Q2 2023[3]