Cricut(CRCT) - 2024 Q4 - Annual Results

Financial Performance - Net income for FY 2024 was $62.8 million, representing an 8.8% margin, a 17% increase from FY 2023[1] - Revenue for FY 2024 was $712.5 million, a 7% decline compared to FY 2023[1] - Operating income for FY 2024 was $76.1 million, or 10.7% of revenue, compared to $70.0 million, or 9.1% of revenue in FY 2023[5] - Gross profit for the year ended December 31, 2024, was $352.8 million, an increase of 2.2% from $343.3 million in 2023[26] - Net income for the year ended December 31, 2024, reached $62.8 million, up 17.2% from $53.6 million in 2023[26] - Total revenue for Q4 2024 was $209.3 million, a decrease of 9.5% compared to $231.2 million in Q4 2023[26] - Q4 2024 revenue decreased 9% to $209.3 million compared to Q4 2023[5] Subscriber and Revenue Metrics - Paid subscribers increased to 2.96 million, up 7% from FY 2023[1] - Platform revenue for FY 2024 increased 1% to $313.0 million, up from $309.0 million in FY 2023[5] - International revenue for FY 2024 was $157.5 million, or 22% of total revenue, a 1% increase from FY 2023[8] Cash Flow and Assets - The company generated $265 million in cash from operations in FY 2024[6] - Cash and cash equivalents at the end of 2024 were $232.1 million, up from $142.2 million at the end of 2023[29] - Total assets decreased to $693.0 million in 2024 from $750.1 million in 2023, primarily due to a reduction in inventories[29] Expenses and Investments - Research and development expenses increased to $60.4 million in 2024, compared to $65.0 million in 2023, reflecting a focus on innovation[26] - Operating expenses for the year were $276.7 million, slightly up from $273.3 million in 2023[26] Shareholder Returns - Cricut repurchased $38.5 million of common stock in 2024, compared to $20.3 million in 2023, indicating a commitment to returning value to shareholders[31] - The company declared dividends totaling $110.0 million in 2024, a decrease from $294.1 million in 2023, reflecting a strategic shift in capital allocation[31] Product Development - New product launches included Cricut Explore 4 and Cricut Maker 4, with positive initial feedback[2] Interest Income - The company reported a significant increase in interest income to $11.0 million in 2024, compared to $8.0 million in 2023[26] Gross Margin - Gross margin for FY 2024 improved to 49.5%, up from 44.9% in FY 2023[5]