Slide 1: Financial Results Q3 2024
NASDAQ : CRCT Financial Results Q3 2024 November 5, 2024 Q3 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 Q3 2024 Financial Results Drinkware
Slide 4: Q3 Highlights
Q3 Highlights Sales • Total sales decreased 4% YoY • International sales increased 2% YoY Profitability • Operating income $10.6M or 6.3% of sales • Q3 2024 was our 23rd consecutive quarter of GAAP profitability Discover C Subscriptions Growth • Over 2.8M Paid Subscribers, up 5% YOY Content Portfoli
Slide 5: Improving engagement by focusing on the user experience
Improving engagement by focusing on the user experience Improvement in leading indicator metrics for Onboarders • Nearly 50% YoY increase in new users who successfully connect their machine within the first 5 minutes of the connection process • YoY increase in users who… → completed a project on the
Slide 6: 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 Reading Corner Wall Decor Q3 2024 Financial Results 6
Slide 7: Accessories & Materials
Accessories & Materials Continued transformation through innovation and investments • Additional Cricut Value Material SKUs launched due to consumer demand • Reengineering products that prioritize affordability and that work seamlessly with our machines • Additional innovation, products and cost red
Slide 8: 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 9: Financial Results
Financial Results Q3 2024 Financial Results 9
Slide 10: Q3 2024 financial highlights
Q3 2024 financial highlights Revenue Operating Income 1 Net Income $167.9M $10.6M $11.5M -4% -55% -33% YoY Decrease YoY Decrease YoY Decrease 6.3% 6.8% of Total Revenue of Total Revenue Did you know? Q3 2024 was our 23rd consecutive quarter of GAAP profitability 1. Q3 2024 Operating Income includes
Slide 11: Revenue breakdown
Revenue breakdown • Platform revenue increased slightly YoY $174.9M $167.9M • Products revenue declined 7% YoY $200 $180 • Connected Machines revenue $160 declined 11% YoY $140 • Accessories & Materials revenue $120 declined 3% YoY $100 • International revenue increased 2% YoY $80 $60 $40 $20 $0 Q3
Slide 12: User base dynamics
User base dynamics 90-Day Active Users Paid Subscribers Engaged Users 5.93M 5.89M 3.6M 3.5M 2.7M 2.8M Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2024 Financial Results 12
Slide 13: Gross margin
Gross margin Total Gross Margin Q3 2024 Contributing Factors 46.8% 46.1% Platform Margins 100% 90% • Slight decline due to higher software development costs and higher hosting 80% fees 70% Products Margins 60% • Decrease primarily due to increased 50% promotional activity, offset partially by 40% le
Slide 14: Operating expense
Operating expense • Increased marketing spend to drive excitement and engagement $66.8M • Q3 2023 benefitted from a net bad 40% $58.2M debt reversal of $4.5M 33% 10% 8% 21% 16% G&A S&M R&D 9% 9% % = % of total revenue Q3 2023 Q3 2024 Q3 2024 Financial Results 14
Slide 15: Operating income and net income
Operating income and net income Operating Income Net Income $23.7M $17.2M $11.5M $10.6M Q3 2023 Q3 2024 Q3 2023 Q3 2024 Operating Net Income 13.5% Margins 6.3% 9.8% Margins 6.8% YoY Growth -55% YoY Growth -33% Q3 2024 Financial Results 15
Slide 16: Balance Sheet and Cash Flow highlights
Balance Sheet and Cash Flow highlights Cash, equivalents $246.9M $300.0M as of 9/30/24 Cash, cash equivalents, Untapped credit line marketable securities Cash Flow generated from Operations $162M vs $196M PY YTD 9/30/24 YTD Share Repurchase $10.3M $108M $22M Program & Dividends Used to purchase 1.8M
Slide 17: Forward looking commentary
Forward looking commentary Total company sales likely will be down Q4 YoY and given the first three quarters of the year, expect sales will decline for the full year. Expect paid subscribers to grow compared to Q4 2023 and expect Platform revenue to be up slightly. Expect continued sales pressure on
Slide 18: Let’s make.
Taiwan Germany Let’s make. Netherlands India US Japan Q3 2024 Financial Results 18