Cricut(CRCT) - 2025 Q1 - Quarterly Report

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]