Slide 1: Cricut Q4 2021 Earnings Presentation
, ©0109 Ae — 4 NASDAQ: CRCT cricut
Slide 2: Safe Harbor Statement
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 provisionsof the Private Sec
Slide 3: .
. NASDAQ: CRCT
Slide 4: FY 2021 highlights
FY 2021 highlights - Revenue EBITDA* Total Users Added $1.3B $211.6M ~2.1M +36% 16.2% 1.8M YoY Increase EBITDA Margin Users added in 2020 International revenues grew approximately 110% compared to last year and made up 11% of total revenues 1. Net income adjustedto exclude: interest expense, net; in
Slide 5: Total users and engaged users growth
r © Total Users 2 Engaged Users A; Engagement Users Drive Marketing a Acqu, % 6.4M+ 3.8M+ 60% s % o 48% 36% 4% % a YoY Growth YoY Growth Increase from Q3 RK oe *ua 28” Did you know? Since end of 2019, we've added nearly 4M new users to the platform
Slide 6: Cricut's flywheel
Cricut’s flywheel Connected Machines > Subscriptions NE Accessories & Materials Did you know? Over 40% of new customers come from word of mouth
Slide 7: Creativity is universal
\ Creativity is universal ) International Revenue 4 ~ 110% Growth in Q4 2021 YoY Ke Retailer Categories Beyond Craft Specialty Retailers Home Improvement Mass Market Office Supplies Consumer Electronics 16 45+ New markets added Countries where Cricut since end of 2020 products are available Did you
Slide 8: Our powerful social community
Our powerful social community 5 Aa 7 M Social Media Followers 3 3 B Views of #Cricut on TikTok e up from 2B Q4 2020 3x 3M+ YouTube & Pinterest views #cricut posts on Instagram YoY growth Did you know? Our global communities have grown with hundreds of active influencers outside of the US, with a com
Slide 9: Cricut Learn
cricut learn Beginner's Guide Quick Start Guide to Crafting Lear the basics of crafting from our Cricut ‘guide, Alex. She'll teach you about crafting terms, devices, apps, materials, and tools youll need to get started. © Wrminutes Improving the user experience 1 tutorial Videos 3 Inspirational Idea
Slide 10: Growth in Cricut Access
Growth in Cricut Access Featured Contributing Artists 2M+ sic + Subscribers 56% increase YoY / 32% of total user base © 200k new images, 700 fonts, and thousands of ready-to-make projects © Adding new genres, use cases, and international content © Introducing Contributing Artist Program will enable
Slide 11: Expanding our product ecosystem
Expanding our product ecosystem Cricut EasyPress 3 * Bluetooth technology * — First-of-its-kind heat press app to monitor settings Cricut Hat Press * Gift-buying category expansion * Personalized, high-quality Cricut Autopress * Prosumer focus * High-volume projects Cricut Bright 360 ® Adjustable co
Slide 12: Extending the Cricut platform
Extending the Cricut platform User Experience We continue to scale Cricut Access, Design Space, and products apps with seamless updates and enhancements Continue to add new languages to Design Space Curated destination pages * New functionality within mobile apps
Slide 13: Focused on long-term growth
cricut Focused on long-term growt Q4 and Full Year 2021 Financial Results 13
Slide 14: Financial Results
Financial Results
Slide 15: Full year 2021
4 | Full year 2021 Revenue Net Income EBITDA* $1.3B $140.5M $211.6M +36% 10.8% 16.2% YoY Increase Of Total Revenue EBITDA Margin Did youknow? 2021 was our 5‘ consecutive year of GAAP profitability nd depreciation and amortization expense: See reconciliation in the Appendix. FY 2021 EBITDA includes$3
Slide 16: Revenue breakdown
Revenue breakdown © Connected Machine revenue in Q4 declined (7%) YoY and grew nearly 32% on a full year basis © Subscription revenue in Q4 grew 51% YoY and 85% on a full year basis 2 Accessories & Materials revenue in Q4 grew nearly 7% YoY and 28% on a full year basis 2 International revenue in Q4
Slide 17: Growing user base
Growing user base 6.4M 4.3M 2.5M Q4 2019 a4 2020 Q4 2021 Q4 2019 Q4 2020 Did you know? As of the end of 2021, 5.2M of our total 6.4M users have used their connected machine within the prior 365 days 2 Paid Subscribers? 237% 2 yr. basis | 2.0M | 1.3M 0.6M 32% a4 2019 a4 2021
Slide 18: User monetization
User monetization KY Subscriptions ARPU + XA $9.23 $9.18 Q419 Q420 Q421 $6.58 $25.57 FY 19 $32.52 FY 20 $38.37 FY 21 { Z Accessories & Materials ARPU * $32.90 Q419 $40.76 Q420 $28.66 Q421 $111.44 Fy 19 $125.88 $102.91 FY 20 Fy 21
Slide 19: Gross margin
Gross margin 23.1% 33.6% 27.0% | 29.3% 34.7% 35.0% Contributing Factors 100% Q4 2020 90% O Connected machine and accessories and materials gross margins were unusually high due to lower-than-normal promotions as a result of depleted inventory levels Q4 2021 © One-time items impacting connected machi
Slide 20: Increased investments to drive growth
Increased investments to drive growth Efficient Sales & Marketing Spend New users acquired through word-of-mouth and other low-cost channels Catching up deferred pandemic spend Investments for future growth in... International Expansion 2 New Product Development 2 Software 2 Subscriptions $28.6M 16%
Slide 21: Operating Income and Net Income
Operating Income and Net Income $ Operating Income 200.5 $ $192.4 $61.4 | 379.6 | | $39.2 $53.6 $25.8 11.9 $11.5 $7.8 $ [ia = a4i9 0420 aaa FY19.-FY20.—s F241 a4iga420°— aaa FYi9FY20.—s FY 6.6% 21.5% 6.7% «= Ee 41.0% © 20.9% 14.7% 45% 16.6% 3.1% 8.1% 16.1% 10.8%
Slide 22: EBITDA
EBITDA? Q4 2021 vs. Q4 2020 Lower gross margin — driven by lower connected machine gross margin 2 Increased investments and stock-based compensation OQ Going forward, management will focus profitability measures and managing the long-term business on operating income and EPS | $83.5 238% 2 yr. basis
Slide 23: Balance Sheet and Cash Flow highlights
Balance Sheet and Cash Flow highli Strong balance sheet positions ey Cash & Cash Equivalents as of §$3 us well to mitigate supply chain 12/31/21 risk and continue to invest in future growth $241.6M Cash & cash equivalents $150M Credit line remains untapped Cash Flow Used in Operations during FY 12/3
Slide 24: Forward commentary
Forward commentary WELCO mERVEN oe Puli RECEBER VaLKOMMEN OA] QUAL | WELKON TERVETULOA
Slide 25: 2022 dynamics
2022 dynamics © Pre-pandemic!: 1H typically ~ 40% of annual revenues and 2H typically ~ 60% of annual revenues © 2021: 1H = 50% of annual revenues, 2H = 50% of annual revenues © Channel inventory positions create headwind for first half © We expect to end 2022 with at least 8 million total users cri
Slide 26: Strong durable model supports growth and investment
Strong durable model supports growth and investment $1.3B $959.0M $486.6M $339.8M $207.3M 2017 2018 2019 2020 2021 mmm Revenue Operating Margin % Key Focus Areas © Grow international O Drive onboardingand engagement © Drive Cricut Access + Accessories and Materials monetization O Innovate and expand
Slide 27: Let's make
Let’s make
Slide 28: neRaat
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Slide 29: Long-term target model
Long-term target model As % of Revenue Gross Margin R&D Expense S&M Expense G&A Expense Operating Margin’ focused on managingthe b no longer include EBITD c ong-term target model. Prev Long-Term Targets 37 - 38% 7-8% 8 - 10% 3-4% 15 - 19%
Slide 30: Reconciliation of Net Income to EBITDA FY 2019 - FY 2021
[ Reconciliation of Net Income to EBITDA — FY 2019 — FY 2021 THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED 12/31/21 12/31/20 12/31/19 12/31/21 12/31/20 12/31/19 (in thousands) Net Income $11,924 $61,448 $7,789 $140,473 $154,578 $39,211 Net Income Margin 3.