Slide 1: Financial Results Q1 2021
NASDAQ : CRCT Financial Results Q1 2021 May 13, 2021 Q1 2021 Financial Results 1
Slide 2: 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 Securities Litigation Re
Slide 3: Welcome!
NASDAQ: CRCT Welcome! Q1 2021 Financial Results 3
Slide 4: Q1 2021 Highlights
Q1 2021 Highlights Net Revenue Net Income EBITDA1 $324M $49M $69M 125% 279% 232% YoY Increase YoY Increase YoY Increase $0.24 EPS IPO March 2021 $243M Raised as of March 31 1. Net income adjusted to exclude: interest expense, net; income taxes; and depreciation and amortization expense. See reconcil
Slide 5: Strong user acquisition + healthy engagement
Strong user acquisition + healthy engagement Acquisition drives Engagement Total Ending Paid engagement. % Users Subscribers 62% 4.9M+ 1.6M Up from 60% Q1 2020 76% 118% YoY Growth YoY Growth Did you know? 42% of new customers come from word-of-mouth. Q1 2021 Financial Results 5
Slide 6: The Cricut Platform
The Cricut Platform Connected Accessories Machines Subscriptions & Materials Software Q1 2021 Financial Results 6
Slide 7: Long-term trends
Long-term trends 1 Personalization 2 Digitization of tools 3 Technology enabling a new generation of entrepreneurs 4 Proliferation of social media Q1 2021 Financial Results 7
Slide 8: Our user journey typically starts with a Connected Machine
Our user journey typically starts with a Connected Machine Let’s get started. Q1 2021 Financial Results 8
Slide 9: Subscriptions give users access to premium content and more
Subscriptions give users access to premium content and more Cricut Access Cricut Premium o Access to over 140K images o All “Cricut Access” benefits, plus o 6K+ ready-to-make projects o Additional discounts o Hundreds of fonts o Preferred shipping o Discounts and priority Cricut Member Care Did you
Slide 10: Our cloud-based software enables a seamless creative user experience
Our cloud-based software enables a seamless creative user experience Data-driven innovation Last year was…well, you know. But your creativity made staying home more special and creating connections more meaningful. Here are just a few ways you “made” your way through 2020. Thanks for adding your mag
Slide 11: Social networks are an engagement hub for users
Social networks are an engagement hub for users 5M+ Social Media Followers ~2B Views of #cricut on TikTok Q1 2021 Financial Results 11
Slide 12: Engaging hobbyists and entrepreneurs alike
Engaging hobbyists and entrepreneurs alike Empowering Entrepreneurs Enabling Small Businesses Celebrating Diversity “Having the Cricut Maker is a game “Our company has made more money this Dedicated efforts to amplify Black changer.” year than our (18-month) contract with [a creators during Black Hi
Slide 13: We estimate we still have millions to reach
We estimate we still have millions to reach International 153M International 44M Total SAM 129M Total TAM 248M 85M US + Canada US + Canada 402M 4.9M Users <4% Penetration SAM: Active Users TAM: Potential Creatives (number of people) (number of people) Note: International opportunity includes Austral
Slide 14: Creativity is universal
Creativity is universal International Expanded Global New Continued Retail Revenue Cricut Team Markets Expansion Middle East Spain UK 253% Africa Nordics Australia Growth In Q1 2021 YoY Asia Mexico France Germany Did you know? 10.3% of revenue was generated by international in Q1 2021. Q1 2021 Finan
Slide 15: Expanding our product ecosystem and platform
Expanding our product ecosystem and platform Cricut Mug Press Launch o Machine accessory that allows users to easily create professional-looking, personalized mugs o Launch included new software capabilities, content, materials, and compatible mug blanks Q1 2021 Financial Results 15
Slide 16: Software innovation creates platform extensibility
Software innovation creates platform extensibility Strategic Software Updates o Tutorials and education inside Design Space o Search enhancements o Project collections o Offset feature Q1 2021 Financial Results 16
Slide 17: Let's
Let’s Q1 2021 Financial Results 17
Slide 18: Financial Results
Financial Results Q1 2021 Financial Results 18
Slide 19: Cricut's Flywheel
Cricut’s Flywheel Connected Machines Subscriptions $141.3M Revenue $46.1M Revenue Cricut Platform Did you know? Accessories & Materials Gross profit from our connected machines mostly covers our customer acquisition cost. $136.4M Revenue Q1 2021 Financial Results 19
Slide 20: Revenue Breakdown
Revenue Breakdown 125% YoY growth o Connected Machine $400 $371.0M revenue grew 148% YoY $350 $323.8M o Subscriptions revenue grew $300 141% YoY $ in millions $250 $233.3M o Accessories and Materials $200 $209.0M revenue grew 102% YoY $143.7M $150 o International revenue grew $100 253% YoY and repre
Slide 21: Healthy Engagement
Healthy Engagement 90-day Engagement Unique Users Ending Paid Subscribers 76% 118% YoY growth YoY growth 1.6M 4.9M 4.3M 1.3M 63% 63% 65% 62% 3.7M 1.2M 60% 3.3M 1.0M 2.8M 0.7M Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Perce
Slide 22: Increased User Monetization
Increased User Monetization Subscriptions ARPU 1 Accessories & Materials ARPU 1 $40.76 $9.96 $8.97 $9.23 $32.23 $7.91 $29.41 $29.45 $7.20 $25.40 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 1. ARPU = Average Revenue Per User Q1 2021 Financial Results 22
Slide 23: Gross Margin %
Significant increase in 31.1% 31.1% 42.8% 33.6% 37.1% gross margin 100% 90% 80% Contributing Factors 70% o Shift in Manufacturing 60% Gross Margin % Reduction in tariffs by shifting production of connected 50% machines from China to Malaysia 40% o Product Mix 30% Subscription revenue continues to in
Slide 24: Efficient business growth
Efficient business growth Operating Expense $27.3M $27.5M $31.8M $45.2M $55.6M o Efficient Sales & Marketing spend $60,000 o Continue to invest for $50,000 4% future growth $40,000 3% o Fixed cost leverage $ in 000s $30,000 8% 4% 4% 2% 6% $20,000 7% 9% 6% $10,000 5% 6% 4% 5% 3% $0 Q1 2020 Q2 2020 Q3
Slide 25: Strong growth in net income and EBITDA
Strong growth in net income and EBITDA Net Income EBITDA 1 $83.5M $68.6M $61.5M $61.0M $45.2M $49.4M $49.2M 34.9M $20.7M $13.0M Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Net Income EBITDA Margin 9.1% 14.8% 21.6% 16.6% 15.3% Margin 14.4% 20.9% 29.2% 22.5% 21.2% 1
Slide 26: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights NASDAQ : CRCT Cash & Cash Equivalents as of Cash Flow Used in Ops 3/31/21 as of 3/31/21 — $261M $337M $22M Total raised to date from IPO Cash, cash equivalents & market securities YTD cash flow used in operations Including$18M Including the $243M raised from ou
Slide 27: Long-term target model
Long-term target model Long-Term As % of Revenue FY18 FY19 FY20 Targets Gross Margin 33% 29% 35% 37 - 38% R&D Expense 7% 5% 4% 7 - 8% S&M Expense 9% 8% 7% 8 - 10% G&A Expense 5% 5% 3% 3 - 4% EBITDA Margin1 14% 13% 22% 17 - 20% 1. Non-GAAP financial measure. See Appendix at the end of this presentati
Slide 28: Questions?
Questions? Q1 2021 Financial Results 28
Slide 29: Thanks!
NASDAQ : CRCT Thanks! Q1 2021 Financial Results 29
Slide 30: Appendix
Appendix Q1 2021 Financial Results 30
Slide 31: Preliminary Reconciliation of Net Income to EBITDA
Preliminary Reconciliation of Net Income to EBITDA THREE MONTHS ENDED 3/31/21 THREE MONTHS ENDED 3/31/20 (in thousands) Net Income $49,418 $13,040 Net Income Margin 15.3% 9.1% Adjusted to exclude the following: Depreciation and Amortization Expense $3,886 $3,236 Interest Expense, Net $79 $574 Corpor
Slide 32: Preliminary Reconciliation of Net Income to EBITDA
Preliminary Reconciliation of Net Income to EBITDA THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS THREE MONTHS ENDED 3/31/20 ENDED 6/30/20 ENDED 9/30/20 ENDED 12/31/20 ENDED 3/31/21 (in thousands) Net Income $13,040 $34,879 $45,211 $61,448 $49,418 Net Income Margin 9.1% 14.8% 21.6% 16.6% 15.3%
Slide 33: Preliminary Reconciliation of Net Income to EBITDA
Preliminary Reconciliation of Net Income to EBITDA YEAR ENDED YEAR ENDED YEAR ENDED 2018 2019 2020 (in thousands) Net Income $27,432 $39,211 $154,578 Net Income Margin 8.1% 8.1% 16.1% Adjusted to exclude the following: Depreciation and Amortization Expense $8,016 $9,108 $14,003 Interest Expense, Net
Slide 34: SAM/TAM – Additional Information
SAM/TAM – Additional Information We believe that everyone is innately creative and thus anyone can be a part of the Cricut community of users. This presents us with a large, untapped market opportunity in addition to our current user base. We quantify our market opportunity in terms of a Serviceable