Slide 1: Financial Results Q1 2023
NASDAQ : CRCT Financial Results Q1 2023 May 9, 2023 cricut. ( PARTY TIME!
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 provisions of the Private Se
Slide 3: Apparel & Cards y Décor Retin ORech) ee
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Slide 4: Q1 2023 business highlights
1 Q1 2023 business highlights a ] Paid Subscriber Growth ¢ Fiscally Disciplined o 2,7M Paid Subscribers, up o $91M net income 17% YoY and 4% sequentially © 17 consecutive quarters o Subscriptions Revenue up of net income profitability 16% YoY and up 6% o Generated $95.2M in cash sequentially from op
Slide 5: 2023 priorities
1 2023 priorities 1 New User Acquisition 2 User Engagement 3. Subscriptions 4 Accessories & Materials
Slide 6: Simplifying the purchase journey
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Slide 7: Content drives engagement
1 Content drives engagement Engagement is more than just cutting O Improving onboarding process ©. Driving traffic to Design Space O Content discovery through new visual- based search User generated content © Contributing Artists Program (CAP) represents significant source of new images on Design Sp
Slide 8: Focus on subscriptions
1 Focus on subscriptions | EE Automatic Background Remover _ o. J 0 eet NM ) iy Uo Puid subsertb : aid subscribers * _LET'SMAKE. My 2 e 7 M 17% increase YoY : AS MAAME . Z a anal Mi Ns. 4% increase QoQ : ET'S MA : = © Subscribers are our most valuable users _— EETSMARE L MAKE. © New Content + Featur
Slide 9: Accessories and Materials
1 Accessories and Materials 2-Year Strategy to Re-accelerate Business © Focus on cost reductions O Analytical approach to promotional strategy O Differentiated product configurations and new machine bundles © Improved engagement \- Q1 2023 Financial Results Heat / cold activated vinyl Linerless tran
Slide 10: Focused on continued long-term growth
1 Focused on continued long-term growth 10
Slide 11: Financial Results
Financial Results
Slide 12: Revenue, Operating Income, Net Income
1 2. Revenue Operating Income! Net Income? $181.2M $10.5M $9.1M -26.0% 5.8% 5.0% YoY Decrease Of Total Revenue Of Total Revenue Did you know? Q1 was our 17" consecutive quarter of GAAP profitability Q1 2023 Operatin Excluding the inve $10.4 million of st and related ta ne includes nrite-dow have bee
Slide 13: Revenue breakdown
Revenue breakdown | Connected Machine revenue in Q| declined 45% YoY Accessories & Materials revenue in Q\ declined 39% YoY Subscription revenue in Ql grew 16% YoY Int'l revenue in QI declined 8% YoY to $33.5M $244.8M $300 $250 $200 S = $150 © e $100 $50 $o 12022 Subscriptions mAccessories & Materia
Slide 14: Growing user base
Growing user base © Users A; Engaged Users! 2 Paid Subscribers? 6.9M 6.0 4.0 2.0 2.7M 2.3M 54% 45% 33% Q12022 Q12023 Q12022 Q12023 Q12022 Q12023 days icut 1 the trailin ers quarter end
Slide 15: Gross margin
Gross margin 40.5% 42.3% Contributing Factors Connected Machine Margins 608 O Impacted by higher fixed costs as a percentage of revenue in warehousing and operations expense O Positive mix shift towards newer Connected Machine models Gross Margin % Accessories & Materials Margins © Impacted by $8.6M
Slide 16: Operating expense
Operating expense $67.6M 28% 6% Q12022 BRED ¢ Operating Expense BS&M G&A Q1 2023 Financial Results $66.1M 36% 10% Q12023 16
Slide 17: Operating income and net income
Operating income and net income 5 Operating Income ¢ Net Income $31.4M $23.5M $10.5M! $9.1M2 Q12022 Q12023 Q12022 Q12023 12.8% oneresing 5.8% 9.6% wraeome 5.0% Margins Margins
Slide 18: Balance sheet and cash flow highlights
(o] a. | | \ Awa lsetand Cash Flow highlights Cash, equivalents as of 3/31/23 $307.3M Cash, cash equivalents, marketable securities $300.0M Untapped credit line ©) Cash Flow generated eS from Operations 3/31/23 YTD $95.2M vs $15.6M PY YTD Q1 2023 Financial Results Share Repurchase Program & Dividend
Slide 19: Forward looking commentary
1 Forward looking commentary Continue conservative approach to planning. Expect FY 2023 operating margins to be slightly down YoY given QI performance. Expect typical second half seasonality. Se A 2 Paid Subscribers may be flat for the year, or down if current New User trends worsen. Committed to lo
Slide 20: Let's make.
Slide 21: Long-term target model
Long-term target model As % of Revenue FY20 FY21 FY22 Long-Term Targets Gross Margin 35% 35% 39% 37 - 38% R&D Expense 4% 6% 9% 7 - 8% S&M Expense 7% 10% 15% 8-10% G&A Expense 3% 4% 7% 3-4% Operating Margin 21% 15% 9% 15-19% 21