Slide 1: Financial Results Q2 2024
NASDAQ : CRCT Financial Results Q2 2024 August 6, 2024 Q2 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… Everyday Apparel Apparel & & Cards Décor Items Accessories Accessories Back to From idea Flowers Flowers School to I did it. Stickers Mugs & Parties Gifts 3 & Labels Q2 2024 Financial Results Drinkware
Slide 4: Q2 Highlights
Q2 Highlights Profitability • Operating income up 37% or $7M Subscriptions Growth • Over 2.8M Paid Subscribers, up 3% YOY Platform revenue slight increase; Products revenue decrease • Connected machines positive unit growth YOY • Accessories and materials declined YOY • Increasing marketing to drive
Slide 5: Improving engagement by focusing on the user experience
Improving engagement by focusing on the user experience Simpler and more delightful onboarding à more engagement • Guided set up for new machines • YoY increase in users who… → completed a project on their first day → completed several projects in their first week • Further expansion of content libr
Slide 6: Reaching new users
Reaching new users • Successful marketing partnerships across diverse platforms • Increased traffic to cricut.com, indicative of marketing success • Deeper promotional strategy is working to drive connected machine growth • Will continue to focus on connected machine sales, engagement trends, user e
Slide 7: 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 experienc
Slide 8: Growth opportunities as the category leader
Discover Growth opportunities as the category leader C Clear opportunities to reaccelerate consumer excitement for the brand and category Content • Attract more new users to buy connected machines • Reverse weakening engagement trends • Re-inject enthusiasm among our users • More effective competito
Slide 9: Focused on continued long-term growth
Focused on continued long-term growth Q2 2024 Financial Results 9
Slide 10: Financial Results
Financial Results Q2 2024 Financial Results 10
Slide 11: Q2 2024 financial highlights
Q2 2024 financial highlights Revenue Operating Income 1 Net Income $167.9M $26.4M $19.8M -6% 37% 23% YoY Decrease YoY Increase YoY Increase 15.7% 11.8% of Total Revenue of Total Revenue Did you know? Q2 2024 was our 22nd consecutive quarter of GAAP profitability 1. Q2 2024 Operating Income includes
Slide 12: Revenue breakdown
Revenue breakdown • Platform revenue increased slightly YoY $177.8M $167.9M $200 • Products revenue declined 10% YoY $180 • Connected Machine revenue $160 grew 18% YoY $140 • Accessories & Materials revenue $120 declined 27% YoY $100 • International revenue increased 3% YoY $80 $60 $40 $20 $0 Q2 202
Slide 13: User base dynamics
User base dynamics 90-Day Active Users Paid Subscribers Engaged Users 5.91M 5.92M 3.7M 3.5M 2.7M 2.8M Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2024 Financial Results 13
Slide 14: Gross margin
Gross margin Total Gross Margin Q2 2024 Contributing Factors 49.3% 53.5% Platform Margins 100% • Slight decline due to higher amortization 90% of capitalized software costs 80% Products Margins 70% • Increase primarily due to benefits from 60% inventory impairment related items compared to prior yea
Slide 15: Operating expense
Operating expense • Lower operating expenses in total due to timing of some expenses that will be larger in Q3, less reserves vs. last year, $68.4M and unwinding of some prior reserves 38% $63.4M • Increased marketing spend 38% to drive excitement and engagement 13% 9% 17% 20% G&A S&M R&D 9% 9% % =
Slide 16: Operating income and net income
Operating income and net income Operating Income Net Income $26.4M $19.8M $19.3M $16.0M Q2 2023 Q2 2024 Q2 2023 Q2 2024 Operating Net Income 10.8% Margins 15.7% 9.0% Margins 11.8% YoY Growth +37% YoY Growth +23% Q2 2024 Financial Results 16
Slide 17: Balance Sheet and Cash Flow highlights
Balance Sheet and Cash Flow highlights Cash, equivalents $299.5M $300.0M as of 6/30/24 Cash, cash equivalents, Untapped credit line marketable securities Cash Flow generated from Operations $92M 6/30/24 YTD vs $160M PY YTD Share Repurchase $9.3M $50M $108M Program & Dividends Used to purchase 1.5M S
Slide 18: Forward looking commentary
Forward looking commentary Total company sales may be down in Q3 YoY and may even decline for full year. Continue deeper promotions and comprehensive marketing on Connected Machines in 2024 with early signs of bearing fruit. A&M sales pressure continues. Remain focused on cost effective and innovati
Slide 19: Let’s make.
Taiwan Germany Let’s make. Netherlands India US Japan Q2 2024 Financial Results 19