Cricut, Inc. · NASDAQ:CRCT
Cricut — Q3 2023 Earnings Presentation
24 slides from Cricut's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Financial Results
NASDAQ : CRCT Financial Results Q3 2023 November 7, 2023 Q3 2023 Financial Results 1
Slide 2: Safe Harbor Statement
Safe Harbor 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 Securities L
Slide 3: I want to make…
I want to make… Apparel & Stickers Everyday Cards Accessories & Labels Items Flowers From idea School to I did it. Supplies Mugs & Gifts Décor Parties 3 Drinkware Q3 2023 Financial Results
Slide 4: Cricut Joy Xtra
Cricut Joy Xtra™ Expanding the platform and cutting machine portfolio • Make letter-sized projects on a machine mat and up to 4 feet long with Smart Materials • Precisely cut around images printed by your inkjet printer to create full-color stickers and more • Cuts 50+ materials • Foils, writes, and
Slide 5: Cricut Venture
Cricut Venture™ Empowering entrepreneurs, organizations & serious crafters alike • Large-format cutting, writing, foiling, and scoring • Commercial speed (up to 25” per second) • Compatible with current Smart materials • Enhanced software features in Design Space with a focus on UX • Showcases our c
Slide 6: Q3 2023 Financial Results
cricur Posts cricut ang 6,181 likes cenicut Meet Cricut Joy Xtra™- small enough to fit just about anyurhere, but big enough to help you make our ‘most popular projects. #CricutJoyXtra cuts our most popular vinyl, iron-on, and printable materials so you can make everything perfectly personalized. “®
Slide 7: 2023 priorities
2023 priorities 1 New User Acquisition 2 User Engagement 3 Subscriptions 4 Accessories & Materials Q3 2023 Financial Results 7
Slide 8: Focus on new users
Focus on new users • 193K users added in Q3 • Healthy funnel continues into holidays • Encouraging Prime Day results • Deeper holiday promos will drive sales and product adoption Q3 2023 Financial Results 8
Slide 9: Discover Make Share
Discover Make Share Engagement is more than cutting Discover • 3.6M+ engaged users • YoY increase in number of days new members cut within their first 30 days after registering their machines • Positive click-through-rate results for personalized content within Design Space Content • Community p
Slide 10: Discover Make Share
Discover Make Share Step-by-step guidance A great place to start—complete these fun, interactive exercises with the materials in your box. Q3 2023 Financial Results 10
Slide 11: Positive outlook on subscriptions
Positive outlook on subscriptions ~2.7M Paid subscribers 11% YoY • In the month of October and thus far in November our paid subscriber count has been positive • Roadmap includes premium design tools and content strategies • As engagement efforts bear fruit, we expect to see a boost to subscriptio
Slide 12: Accessories & Materials
Accessories & Materials Positive trends from innovation and investments • Continue promotional cadence • Optimizing products for lower costs that work seamlessly with our machines • Intense focus on overall customer experience New materials launched • Printable materials – waterproof stickers, iron-
Slide 13: Focused on continued long-term growth
Focused on continued long-term growth Q3 2023 Financial Results 13
Slide 14: Financial Results
Financial Results Q3 2023 Financial Results 14
Slide 15: Q3 2023 financial highlights
Q3 2023 financial highlights Revenue Operating Income1 Net Income $174.9M $23.7M $17.2M -1% +36% +38% YoY Decrease YoY Increase YoY Increase 13.5% 9.8% of Total Revenue of Total Revenue Did you know? Q3 was our 19th consecutive quarter of GAAP profitability 1. Q3 2023 Operating Income includes $12.5
Slide 16: Revenue breakdown
Revenue breakdown $177.0M $174.9M • Connected Machine revenue in Q3 $200 declined 6% YoY $180 • Accessories & Materials revenue in $160 Q3 declined 12% YoY $140 Subscription revenue in Q3 grew 11% YoY $ in millions • $120 $100 • International revenue in Q3 grew 36% YoY and grew 15% sequentially to $
Slide 17: Growing user base
Growing user base Users Engaged Users Paid Subscribers1 8.6M 2.7M 7.5M 2.4M 3.6M 3.6M 33% 31% Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 1. Paid subscriber attach rate = percentage of total users that were paid subscribers to Cricut Access or Cricut Access Premium as of quarter end. Q3 2023 Fin
Slide 18: Gross margin
Gross margin Contributing Factors 46.2% 46.8% Connected Machine Margins 100% • Positive mix shift towards newer 90% Connected Machine models and fewer entitlements 80% 70% • Impacted by higher fixed costs as a Gross Margin % percentage of revenue in warehousing 60% and operations expense 50% Accesso
Slide 19: Operating expense
Operating expense $64.4M $58.2M 36% 33% 9% 8% G&A S&M 16% R&D 16% % = % of total revenue 11% 9% Q3 2022 Q3 2023 Q3 2023 Financial Results 19
Slide 20: Operating income and net income
Operating income and net income Operating Income Net Income $23.7M $17.4M $17.2M $12.4M Q3 2022 Q3 2023 Q3 2022 Q3 2023 Operating Net Income 9.8% Margins 13.5% 7.0% Margins 9.8% YoY Growth +36% YoY Growth +38% Q3 2023 Financial Results 20
Slide 21: Balance Sheet and Cash Flow highlights
Balance Sheet and Cash Flow highlights Cash, equivalents Cash Flow generated from Share Repurchase as of 9/30/23 Operations 9/30/23 YTD Program & Dividend $173.6M $196.0M $347K Cash, cash equivalents, vs $0.6M PY YTD Used to purchase 39K shares in Q3 marketable securities $300.0M $234.6M 1 Untapped
Slide 22: Forward looking commentary
Forward looking commentary Continue conservative approach to planning. Expect second half revenue to be softer as a percentage of full year revenues and lower sequential growth rate in Q4 compared to historical norms. Anticipate increase in Paid Subscriber count from Q3 to Q4. Deeper promotions and
Slide 23: Let's make.
Let’s make. Q3 2023 Financial Results 23
Slide 24: 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% Q3 2023 Financial Results 24