Cricut(CRCT) - 2024 Q3 - Quarterly Results

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]