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]

Cricut (CRCT) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Company Participants Jim Suva - Senior Vice President of Finance, Treasurer & Investor RelationsAshish Arora - President and CEOKimball Shill - CFOMichael Cadiz - Assistant Vice President, Equity researchAngus Kelleher-Ferguson - Equity Research Associate Conference Call Participants Maya Neuman - Analyst Operator Good day, and thank you for standing by. Welcome to Cricket's first quarter twenty twenty five earnings call. At this time, all partici ...

Cricut (CRCT) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Speaker0 Good day, and thank you for standing by. Welcome to Cricket's first quarter twenty twenty five earnings call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you'll need to press 11 on your telephone. You'll then hear an automated message advising your hand is raised. To withdraw your question, please press 11 aga ...

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 ...

Paid subscribers up 6% over Q1 2024 to just over 2.97 million Q1 2025 revenue of $162.6 million, down 3% compared to Q1 2024 Net income of $23.9 million, up 22% compared to Q1 2024 Board authorizes three capital allocation items SOUTH JORDAN, Utah, May 06, 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. ...

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 ...

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $209.3 million, a 9% decline compared to the prior year, with full-year revenue at $712.5 million, down 7% from 2023 [33] - Net income for Q4 was $11.9 million, or 5.7% of total sales, while full-year net income was $62.8 million, representing 8.8% of total sales, marking the eighth consecutive year of positive net income [34][44] - Operating income for Q4 was $13.9 million, or 6.6% of revenue, compared to $16.5 million, or 7.1% of revenue in Q4 2023; full-year operating income increased to $76.1 million, up 9% from $70 million in 2023 [43][44] Business Line Data and Key Metrics Changes - Platform revenue in Q4 was $79.4 million, up 2% year on year, while product revenue was $129.9 million, down 15% year on year [34] - Paid subscribers increased by 7% to 2.96 million, with a sequential increase of 121,000 in Q4 [34][23] - Accessories and materials sales declined by 20% for the full year, with a 18% decrease in Q4 [25][36] Market Data and Key Metrics Changes - International revenue for Q4 was $52.9 million, an increase of 3% compared to Q4 2023, representing 25% of total revenue [37] - The company experienced growth in France, Meza, and Latin America, while Australia showed continued softness [38][75] - For the full year, international sales increased by 1%, representing 22% of total revenue compared to 20% in 2023 [37] Company Strategy and Development Direction - The company is focused on increasing speed of execution and accelerating investments in hardware product development, materials, and engagement [11][12] - Key priorities include new user acquisition, user engagement, subscriptions, and accessories and materials [13][14] - The company launched new connected machines, Cricut Explore 4 and Cricut Maker 4, which are expected to enhance user experience and drive sales [15] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the inability to capitalize on market opportunities despite a strong conviction in the market potential [8] - The company expects total sales to decline year on year in the first half of 2025 but anticipates an inflection point in the second half of the year [49][50] - Management highlighted the need to attract new users and reverse engagement trends to drive future growth [12][19] Other Important Information - The company generated $265 million in cash from operations in 2024, down from $288 million in 2023, and ended the year with cash and cash equivalents of $337 million [45] - The company initiated litigation to protect its intellectual property, which is expected to impact general and administrative expenses [11][29] Q&A Session Summary Question: Engagement trends have been declining; what gives confidence in future improvements? - Management acknowledged the pressure on engagement due to user acquisition trends and emphasized the need for faster execution of strategies to improve engagement [59][61] Question: What does the inflection point in the second half of the year refer to? - Management clarified that they are not calling for full-year growth but are optimistic about platform revenue growth and improved performance in the machines business [66][68] Question: How will the bankruptcy of a wholesale partner impact financials? - Management confirmed that the bankruptcy is reflected in Q4 numbers but is not material to financials [83] Question: What are the drivers of the expected decline in operating margins? - Management highlighted increased marketing spend, R&D investments, and IP protection actions as key drivers of higher operating expenses [88][90]