Accessories and Materials We generate Accessories and Materials revenue from sales of ancillary products, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, project materials such as vinyl and iron-on and sales of à la carte digital content purchases, including fonts, images and projects. Accessories and Materials 24 revenue is recognized for sales of such items, net of sales discounts, incentives and returns and includes amounts allocated to the material right for ...

NASDAQ : CRCT Financial Q2 2023 August 8, 2023 cricut. 1 Safe Harbor Statement 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 relate strictly to historical o ...

Cricut, Inc. (NASDAQ:CRCT) Q2 2023 Earnings Conference Call August 8, 2023 5:00 PM ET Company Participants Jim Suva - Senior Vice President, Finance Ashish Arora - President & CEO Kimball Shill - CFO Conference Call Participants Erik Woodring - Morgan Stanley Paul Kearney - Barclays Mark Altschwager - Baird Operator Good day, and thank you for standing by. Welcome to the Cricut Q2 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After speakers' presentation, there wil ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-40257 Cricut, Inc. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Address, including zip c ...

Cricut, Inc. (NASDAQ:CRCT) Q1 2023 Results Conference Call May 9, 2023 5:00 PM ET Company Participants Jim Suva - Senior Vice President of Finance Ashish Arora - Chief Executive Officer Kimball Shill - Chief Financial Officer Conference Call Participants Mark Altschwager - Baird Operator Good day, and thank you for standing by. Welcome to the Circuit Q1 Earnings Conference Call [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to turn it over to our spea ...

Digital content is an important element of the overall content that we make available to our users. To secure the rights to use certain fonts, images, ready-to-make projects, patterns and other digital contents that are used on or with our products and services, we enter into agreements to obtain licenses from rights holders such as copyright owners or their agents. We pay royalties to such parties or their agents around the world. In other instances, we enter into agreements with various third parties to p ...

Revenue Performance - Revenue for the year ended December 31, 2022, decreased to $886.3 million, down 32% from $1,306.2 million in 2021[210] - Accessories and materials revenue decreased by $190.8 million, or 35%, to $361.4 million for the year ended December 31, 2022, from $552.2 million in 2021[190] - Connected machine revenue decreased by $295.6 million, or 54%, to $252.6 million for the year ended December 31, 2022, from $548.2 million in 2021[213] - The company is experiencing declining revenue growth rates compared to the COVID-19 pandemic years of 2020 and 2021, with current economic conditions adversely affecting demand for its products[274] Subscriber and User Engagement - The number of paid subscribers could remain flat or decline in the short term due to declining user engagement[186] - Subscription ARPU and Accessories and Materials ARPU have declined in recent periods and may continue to decline, adversely affecting revenue[186] - The company regularly reviews user metrics, including the number of active users and paid subscribers, to evaluate engagement and growth trends[272] - As of December 31, 2022, Cricut had 2.6 million paid subscribers, representing approximately 33% of its total users[377] Market and Competitive Landscape - The top seven brick-and-mortar and online retail partners accounted for 37% of total revenue for the year ended December 31, 2022, down from 52% in 2021[217] - The company faces competitive risks in attracting and engaging users, which could adversely affect growth rates[184] - The company aims to tap into a large untapped market opportunity beyond its current user base, emphasizing inclusivity in creativity[380] Operational Risks - The company relies on Amazon Web Services for a substantial portion of its services, and any disruption could adversely affect its financial condition[203] - The company relies on a limited number of distributors for domestic sales, which could adversely affect operations if key distributors are lost or unable to meet demand[222] - The company relies primarily on a single contract manufacturer, Intretech, for the production of connected machines, which poses risks if manufacturing is disrupted[285] - The company is vulnerable to economic downturns, which may reduce consumer discretionary spending on its products and subscriptions[242] Supply Chain and Manufacturing Challenges - Manufacturing operations are significantly affected by social, political, and economic developments in Malaysia and China, potentially impacting revenue and gross margins[289] - The company faces supply chain risks due to reliance on a limited number of suppliers, which may lead to shortages and increased lead times[290] - There are ongoing shortages in global electronic component supply, which could materially affect the performance of connected machines[293] - Increased shipping costs and potential disruptions in logistics could adversely affect the company's financial results[298] Financial and Credit Risks - The company's debt is secured by a substantial portion of its assets, and variable interest rates could increase financial costs in a rising rate environment[244] - The New Credit Agreement may limit the company's ability to obtain additional financing and could expose it to risks associated with increasing interest rates[245] - The company is subject to financial covenants under the New Credit Agreement, which may restrict its operational flexibility and ability to respond to changes in the business environment[276] Regulatory and Compliance Issues - Compliance with new privacy laws, such as the CCPA and CPRA, may require the company to incur substantial costs and modify data processing practices[348] - The GDPR imposes penalties of up to €20 million or 4% of annual global revenue for noncompliance, affecting the company's operations in the EU[360] - The company is subject to numerous federal, state, local, and international laws regarding privacy and data protection, which are subject to change and could create compliance challenges[359] Brand and Reputation Risks - The company's brand value is crucial for maintaining a loyal user community, and failure to protect it could lead to decreased user engagement and revenue[226] - Negative publicity regarding suppliers or labor practices could harm the company's reputation and user loyalty, potentially resulting in decreased revenue[227] Management and Leadership - The company relies heavily on the services of its CEO, Ashish Arora, for strategic direction and future vision, which is critical for business growth[256] - The management team has limited experience managing a publicly traded company, which may affect the company's ability to comply with regulatory obligations[281] Product and Service Offerings - Cricut offers a subscription service, Cricut Access, which includes a library of over 300,000 images and thousands of ready-to-make projects[377] - Cricut's products empower users to create professional-looking homemade goods, expanding opportunities beyond the traditional craft market[382] - Approximately 25% of Cricut users create projects to sell, indicating a significant entrepreneurial engagement within the user base[379]

Cricut, Inc. (NASDAQ:CRCT) Q4 2022 Earnings Conference Call March 7, 2023 5:00 PM ET Company Participants Stacie Clements – Investor Relations-The Blueshirt Group Ashish Arora – Chief Executive Officer Kimball Shill – Chief Financial Officer. Conference Call Participants Mark Altschwager – Baird Jim Suva – Citi Adrienne Yih – Barclays Stacie Clements Thank you, operator, and good afternoon, everyone. Thank you for joining us on Cricut’s Fourth Quarter and Year Ended 2022 Earnings Call. Please note that toda ...

NASDAQ : CRCT Results cricut. Safe Harbor Statement Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements including, but not limited to, risks and uncertainties associated with: our ability to attract and engage with our users; competitive risks; supply chain, manufacturing, distribution and fulfillment risks; international risks, including regulation and tariffs that have materially increased our costs and the potential ...

Cricut, Inc. (NASDAQ:CRCT) Q3 2022 Earnings Conference Call November 8, 2022 5:00 PM ET Company Participants Stacie Clements - IR, The Blueshirt Group Ashish Arora - President and CEO Kimball Shill - CFO Conference Call Participants Mark Altschwager - Baird Jim Suva - Citi Erik Woodring - Morgan Stanley Paul Kearney - Barclays Operator Good day, and thank you for standing by. Welcome to the Cricut Q3 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' ...