Cricut(US:CRCT)2021-05-14 09:53Financial Data and Key Metrics Changes - Revenue in Q1 2021 was $324 million, representing a 125% increase year-over-year, leading to a trailing 12-month run rate exceeding $1 billion [7][21] - EBITDA for Q1 2021 was $68.6 million, a 232% increase compared to Q1 2020 [7][27] - Net income for Q1 2021 was $49.4 million, up 279% from the same period last year, with diluted earnings per share at $0.24 [26] Business Line Data and Key Metrics Changes - Revenue from Connected Machines grew 148% year-over-year [21] - Subscription revenue increased by 141%, while revenue from Accessories and Materials grew by 102% [21] - Ending paid subscribers reached 1.6 million, up 118% year-over-year [23] Market Data and Key Metrics Changes - International revenue grew 253% in Q1 2021, representing 10.3% of total revenue, up from 7.4% in 2020 [21] - User growth was 76% year-over-year, bringing total users to just under 5 million [8][23] Company Strategy and Development Direction - The company aims to continue disciplined investment in growth initiatives while expanding internationally [6][15] - Cricut is focusing on enhancing its platform with new products and software capabilities, such as the Cricut Mug Press [16][17] - The company is targeting a serviceable addressable market (SAM) of approximately 130 million individuals, with less than 4% penetration currently [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining user growth and engagement despite potential normalization post-COVID [29][30] - The company is monitoring engagement metrics closely, anticipating shifts in user behavior as restrictions ease [65] - Management highlighted the importance of community engagement and user creativity as key drivers for future growth [11][30] Other Important Information - The company has a strong focus on maintaining profitability while investing in R&D and marketing [25][26] - Gross margin improved to 37% in Q1 2021, up from 31% in Q1 2020, primarily due to lower tariffs from shifting production to Malaysia [24][26] Q&A Session Summary Question: User growth expectations and seasonal trends - Management expects to match or exceed the number of new users added in 2020, despite typical seasonal declines in Q2 [34][35] Question: Incremental revenue drivers - Incremental revenue growth was attributed to channel fill of machines, strong demand, and the successful launch of the Mug Press [42][43] Question: Supply chain and inventory levels - Supply chain constraints are expected to persist through the end of the year, but the company is working to mitigate these issues [50][51] Question: Engagement trends post-COVID - Engagement has remained strong, with management noting that while some projects may decline, others will increase, such as those related to events and holidays [65][66] Question: Cost pressures from raw materials - The company is experiencing rising commodity prices but believes these impacts will be transitory [52][53]