Cricut, Inc. · NASDAQ:CRCT
Cricut — Q4 2024 Earnings Presentation
21 slides from Cricut's earnings presentation, Mar 4, 2025
Slide 1: Q4 2024 Financial Results
NASDAQ : CRCT Financial Results Q4 2024 March 4, 2025 Q4 2024 Financial Results 1
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: I want to make…
I want to make… Apparel & Everyday Cards Décor Accessories Items From idea Back to Flowers to I did it. School Mugs & Stickers Gifts Parties 3 Drinkware & Labels Q4 2024 Financial Results
Slide 4: Q4 and 2024 Highlights
Q4 and 2024 Highlights Sales • Total sales decreased 9% YoY in Q4 and decreased 7% in 2024 • International sales increased 3% YoY in Q4 and increased 1% in 2024 Discover Profitability C • Operating income of $13.9M or 6.6% of sales in Q4 and $76.1M or 10.7% in 2024 • Operating income increased $6.1M
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: New product launches empower creators to elevate their projects
New product launches empower creators to elevate their projects Faster, more cost effective, and easier than ever— right out of the box • Up to 2x faster than earlier models • Tools and materials included for up to 10 projects • Essential Bundle adds more value and materials for up to 100 projects f
Slide 7: Fast. Simple. Amazing. Powerful. Versatile. Revolutionary.
$ 249 $ 399 * Fast. Simple. Amazing. Powerful. Versatile. Revolutionary. * Shown with Essentials Bundle Materials (+$50) Sage bundles only available at Michaels. Seashell bundles available on cricut.com & Amazon. Q4 2024 Financial Results 7
Slide 8: Reaching new users
Reaching new users • Market Mix Analysis shows positive impact on machine sales and attractive ROI • Increased traffic to cricut.com indicative of marketing success • Deeper promotional strategy is working to drive connected machine growth Q4 2024 Financial Results 8
Slide 9: Maximizing engagement for Onboarders & Subscribers
Maximizing engagement for Onboarders & Subscribers • Successfully making it easier for Onboarders to make projects right out of the box • More suggestions and guidance for sizing and project types within Design Space • Increasing marketing messaging both within and outside of our platform • Continue
Slide 10: Positive outlook on subscriptions
Positive outlook on subscriptions 2.96M Paid subscribers 7% YoY à • Paid subscribers growth encouraging • We retain positive outlook despite quarterly fluctuations • We expect to see a boost to subscriptions as engagement efforts bear fruit Woodstk113 Q4 2024 Financial Results 10
Slide 11: Accessories & Materials
Accessories & Materials Continued transformation through innovation and investments • Additional Cricut Value Material SKUs launched due to consumer demand • Products that prioritize affordability that work seamlessly with our machines • Additional innovation, products and cost reductions coming in
Slide 12: Financial Results
Financial Results Q4 2024 Financial Results 12
Slide 13: Full Year 2024 financial highlights
Full Year 2024 financial highlights Revenue Operating Income 1 Net Income $712.5M $76.1M $62.8M -7% 9% 17% YoY Decrease YoY Increase YoY Increase 10.7% 8.8% of Total Revenue of Total Revenue Did you know? Q4 2024 was our 24th consecutive quarter and 8th Consecutive year of GAAP profitability 1. 2024
Slide 14: Revenue breakdown
Revenue breakdown • Platform revenue increased 2% YoY Q4 FY in Q4 and increased 1% on a full year basis • Products revenue declined 15% YoY $765.1M in Q4 and declined 12% on a full year basis $712.5M • Connected Machines revenue declined 13% YoY in Q4 and declined 3% on a full year basis • Accessori
Slide 15: User base dynamics
User base dynamics 90-Day Active Users Paid Subscribers Engaged Users 5.93M 5.89M 3.93M 3.81M 2.96M 2.77M Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2024 Financial Results 15
Slide 16: Gross margin
Gross margin Q4 and 2024 Contributing Factors Q4 FY Platform Margins • Slight decline due to higher hosting fees and higher software development costs 42.0% 44.9% 44.9% 49.5% Products Margins 100% 90% • Increase due to a reduction of inventory 80% impairments and selling through of 70% previously re
Slide 17: Operating expense
Operating expense • Increased marketing spend Q4 FY of $20 million in 2024 to drive excitement and engagement $273.3M $276.7M 36% 39% 10% 11% $80.5M $80.1M 20% 35% 38% 16% 13% 11% 15% 20% 9% 8% 6% 8% Q4 2023 Q4 2024 FY 2023 FY 2024 G&A S&M R&D % = % of total revenue Q4 2024 Financial Results 17
Slide 18: Operating income and net income
Operating income and net income Operating Income Net Income Q4 FY Q4 FY $76.1M $70.0M $62.8M $53.6M $16.5M $13.9M $11.3M $11.9M Q4 23 Q4 24 FY 23 FY 24 Q4 23 Q4 24 FY 23 FY 24 Operating Net Income 7.1% 6.6% Margins 9.1% 10.7% 4.9% 5.7% Margins 7.0% 8.8% 49% -16% YoY $ Growth -12% 9% 4% 6% YoY $ Grow
Slide 19: 2024 Balance Sheet and Cash Flow highlights
2024 Balance Sheet and Cash Flow highlights Cash, equivalents as of 12/31/24 $336.9M $300.0M Cash, cash equivalents, marketable securities Untapped credit line Cash Flow generated from Operations $265M vs $288M PY YTD 12/31/24 YTD Share Repurchase Program & Dividends $38M $110M $21M Used during 2024
Slide 20: Forward looking commentary
Forward looking commentary Expect total company sales to decline YoY in the first half of 2025 compared to the first half of 2024 due to continued pressure in accessories and materials. Expect that the rate of sales decline should be less than the rates we posted in the first half of 2024. We have r
Slide 21: Let’s make.
Taiwan Germany Let’s make. Netherlands India US Japan Q4 2024 Financial Results 21