Cricut, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Cricut, Inc. reported a net income of $62.8 million for FY 2024, representing an 8.8% margin and a 17% increase from the previous year [1][6] - The company generated$ 265 million in cash from operations in 2024 and ended the year with cash and cash equivalents of $337 million, remaining debt-free [1][5] - FY 2024 revenue was$ 712.5 million, reflecting a 7% decline compared to FY 2023 [1][6] Financial Performance - Fourth quarter revenue decreased by 9% to $209.3 million compared to$ 231.2 million in Q4 2023 [6] - Platform revenue increased by 2% to $79.4 million in Q4 2024, while products revenue decreased by 15% to$ 129.9 million [6] - Gross margin improved to 44.9% in Q4 2024, up from 42.0% in Q4 2023 [6] Subscriber and User Metrics - Paid subscribers grew to 2.96 million, a 7% increase over FY 2023 [1][12] - Active users at the end of 2024 were nearly 5.9 million, while 90-day engaged users decreased by 3% to over 3.8 million [12][9] - The platform's average revenue per user (ARPU) increased to $53.12, up 2% from the previous year [12][14] Management Commentary - The CEO expressed confidence in the market potential but acknowledged challenges in execution and the need for improved competition [2] - New product launches, including the Cricut Explore 4 and Cricut Maker 4, received positive initial feedback [2] Cash Flow and Investments - The company plans to remain active with its$ 50 million stock repurchase program, with $22.9 million remaining [5] - Cricut continues to generate healthy cash flow to fund inventory needs and long-term growth investments [5]