Cricut, Inc. · NASDAQ:CRCT
Cricut — Q1 2024 Earnings Presentation
24 slides from Cricut's earnings presentation, May 7, 2024
Slide 1: Financial Results Q1 2024
NASDAQ: CRCT Financial Results Ql 2024 May 7, 2024 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 provisions of the Private Se
Slide 3: From idea to I-did-it
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Slide 4: Profitability and Capital Allocation; Subscriptions Growth
Profitability and Capital Allocation • • Subscriptions Growth • Platform revenue increase; Products revenue decrease • • • 4
Slide 5: Growth opportunities as the category leader
Growth opportunities as the category leader Clear opportunities to reaccelerate consumer excitement for the brand and category * Attract more new users to buy connected machines * Reverse weakening engagement trends * Re-inject enthusiasm among our users * More effective competitors in accessories a
Slide 6: User engagement, acquisition and subscriptions framework
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Slide 7: Focus on new users
Make 2 a carn Mom's Day Make your big day a total bast. - = ore —— 3 DE ey — Focus on new users ) Sarr What do you think? ° * 595M Active Users, up slightly YOY Cricut wedding * Healthy funnel continues * Increased investment in marketing efforts * Successful focused marketing for target user demogr
Slide 8: Discover, Content, Share, Make
→ → Discover • • • • Content • Share Make 8
Slide 9: Embracing and Using Artificial Intelligence (AI)
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Slide 10: Paid subscribers
[GI Automatic Background Remover © cootwooi Regular BEC Haunted House et’ bo this. Let clo this Let's do this. LETS DO THIS, LETS DO THIS. Y. Stendard Wide “This subscription has so much content. | use it almost daily and | love it.” Subscriptions increase in line with expectations Paid subscribers
Slide 11: Accessories & Materials
Accessories & Materials Continued transformation through innovation and investments * Launched Cricut Value Materials online + Reengineering products that prioritize affordability and that work seamlessly with our machines * Continued promotional cadence * — Intense focus on overall customer experie
Slide 12: User engagement, acquisition and subscriptions framework
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Slide 13: 13
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Slide 14: One-time dividend, recurring dividend and stock repurchase program
G One-time dividend $0.40 per share* ww {7 — 4 | / | Laie = Recurring semi- C annual dividend & New $0.10 $50M per share* stock repurchase program
Slide 15: Active Users, Engaged Users, Paid Subscribers, Platform ARPU
Active Users → 90-Day Engaged Users → Paid Subscribers → Platform ARPU → 15
Slide 16: Q1 2024 financial highlights
Q1 2024 financial highlights Revenue Operating Income! Net Income $167.4M $25.2M $19.6M -8% 139% 116% YoY Decrease YoY Increase YoY Increase 15.1% 11.7% of Total Revenue of Total Revenue Did you know? QI 2024 was our 21% consecutive quarter of GAAP profitability nillion of stock-based compensation e
Slide 17: Revenue breakdown
Revenue breakdown * Platform revenue increased 3% YoY * Products revenue declined 15% YoY * Connected Machine revenue grew 8% YoY * Accessories & Materials revenue declined 26% YoY * International revenue declined 3% YoY $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 $181.2M Q12023 (26%) mPlatform
Slide 18: Key user and subscriber metrics Q1 2023 vs Q1 2024
2.7M 2.8M 3.7M 3.5M 5.94M 5.95M Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 18
Slide 19: Gross margin
Gross margin Ql 2024 Contributing Factors Platform Margins * Slight decline due to higher amortization of capitalized software costs Products Margins * Increase primarily due to less impairment in materials than last year 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Total Gross Margin 42.3% Ql 2023 m
Slide 20: Operating expense
Operating expense G&A BS&M mRE&D % = % of total revenue $66.1IM 36% 10% Q12023 cial Results $66.4M 40% N% Q12024 20
Slide 21: Operating income and net income
Operating income and net income ¢ Operating Income $25.2M $10.5M Q12023 Q12024 oO ti 5.8% Margins: 15.1% YoY Growth +139% cial Results ¢ Net Income $19.6M $9.1M Q12023 Q12024 Net Ir 5.0% Margins 11.7% YoY Growth +116% 21
Slide 22: Cash, liquidity and capital allocation
$281.7M $57M $10.8M $300.0M $50M 22
Slide 23: FY24 outlook
Expect paid subscribers and subscription revenue to grow slightly for FY24 but do not expect total company Q2 revenue growth; possible decline YoY Materials New for FY24. s & Us rie e Continue deeper promotions and comprehensive marketing on rA o ess Connected Machines in 2024. cqu Acc isitio A&M sa
Slide 24: make.
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