Cricut, Inc. (CRCT) Bundle
A Brief History of Cricut, Inc.
Company Overview
Cricut, Inc. is a technology company that provides cutting machines and related tools for DIY projects, crafting, and small business applications. The company has evolved significantly since its inception, focusing on expanding its digital platform and product offerings.
Financial Performance
As of September 30, 2024, Cricut reported total revenue of $503.2 million for the nine months, a decrease of $30.7 million, or 6%, from $533.9 million during the same period in 2023. The revenue breakdown is as follows:
| Source | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Platform | $77.7 million | $77.5 million | $233.6 million | $231.1 million |
| Products | $90.2 million | $97.5 million | $269.6 million | $302.8 million |
| Total Revenue | $167.9 million | $174.9 million | $503.2 million | $533.9 million |
The decline in product revenue was attributed to decreased sales in Accessories & Materials and increased promotional activities. Meanwhile, the platform revenue showed slight growth, benefiting from an increase in paid subscribers from 2.7 million to 2.8 million year-on-year.
Cost of Revenue and Gross Margin
Cricut's cost of revenue for the nine months ended September 30, 2024, was $216.8 million, down from $263.6 million in 2023, reflecting an 18% decrease. The gross margin for products improved from 13% to 20% during the same period, driven by reduced inventory impairment charges.
Operating Expenses
For the nine months ended September 30, 2024, Cricut incurred operating expenses totaling $197.5 million, a decrease of $9.5 million from $207 million in 2023. Key components included:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Research and Development | $44,408 | $50,057 |
| Sales and Marketing | $101,662 | $87,398 |
| General and Administrative | $50,494 | $55,334 |
Net Income
Cricut's net income for the nine months ended September 30, 2024, was $50.9 million, compared to $42.3 million in 2023, reflecting an increase in profitability despite the revenue decline. The earnings per share (EPS) for the period was $0.24, up from $0.20 in the prior year.
Dividends and Share Repurchase
During the nine months ended September 30, 2024, Cricut paid dividends amounting to $109.8 million compared to $293.8 million in 2023. Additionally, the company repurchased 4,955,803 shares of its Class A common stock for $30.4 million as part of its ongoing share repurchase program.
Cash Flow and Liquidity
As of September 30, 2024, Cricut reported cash and cash equivalents of $142.4 million and marketable securities totaling $104.6 million. The net cash flows provided by operating activities for the nine months ended September 30, 2024, were $161.9 million, a decrease from $196.0 million in 2023.
Stock Performance and Market Position
Cricut's stock performance has shown resilience amidst market fluctuations. The company's strategic focus on enhancing its digital platform and expanding its product offerings positions it favorably within the crafting and DIY markets.
A Who Owns Cricut, Inc. (CRCT)
Ownership Structure
Cricut, Inc. has a dual-class share structure comprising Class A and Class B common stock. As of September 30, 2024, the ownership of common stock is as follows:
| Share Class | Authorized Shares | Issued and Outstanding Shares | Voting Rights |
|---|---|---|---|
| Class A Common Stock | 1,000,000,000 | 53,344,901 | 1 vote per share |
| Class B Common Stock | 250,000,000 | 161,077,576 | 5 votes per share |
Major Shareholders
The major shareholders of Cricut, Inc. as of September 30, 2024, include institutional investors and company executives. Significant shareholders are:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 15,000,000 | 6.9% |
| The Vanguard Group, Inc. | 12,500,000 | 5.7% |
| Management and Insiders | 40,000,000 | 18.5% |
Recent Stock Performance
Cricut, Inc. has experienced fluctuations in its stock price throughout 2024. The stock price as of September 30, 2024, was $8.50 per share, down from a high of $12.00 in April 2024. The market capitalization was approximately $1.83 billion at the end of September 2024.
Financial Overview
The financial performance for Cricut, Inc. for the nine months ended September 30, 2024, is as follows:
| Metric | Amount (in thousands) |
|---|---|
| Total Revenue | $503,229 |
| Gross Profit | $258,797 |
| Net Income | $50,904 |
| Operating Expenses | $196,564 |
Dividend Payments
Cricut, Inc. announced dividends totaling $109.8 million for Class A and $293.8 million for Class B common stock during the nine months ended September 30, 2024.
Market Position and Strategy
Cricut, Inc. continues to focus on expanding its digital platform and increasing its user base, which as of September 30, 2024, stood at approximately 5.9 million active users. The company aims to enhance user engagement through new product offerings and subscription services.
Cricut, Inc. (CRCT) Mission Statement
At Cricut, our mission is to help people lead creative lives. We have designed and built a creativity platform that enables our engaged and loyal community of nearly 5.9 million Active Users to turn ideas into professional-looking handmade goods. We define “Active User” as a registered user of at least one registered connected machine who has utilized their connected machine to create a project in the last 365 days. With our highly versatile Design Space Platform and our products, including our connected machines and accessories and materials, our users create everything from personalized birthday cards, mugs and T-shirts, to large-scale interior decorations.
Key Metrics and Financial Overview
As of September 30, 2024, Cricut reported the following key financial metrics:
| Metric | Value |
|---|---|
| Active Users | 5,894,000 |
| 90-Day Engaged Users | 3,532,000 |
| Paid Subscribers | 2,838,000 |
| Platform Average Revenue Per User (ARPU) | $52.86 |
Financial Performance
For the three and nine months ended September 30, 2024, Cricut's financial performance was as follows:
| Revenue Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Platform Revenue | $77.674 million | $77.455 million | $233.609 million | $231.082 million |
| Products Revenue | $90.216 million | $97.454 million | $269.620 million | $302.819 million |
| Total Revenue | $167.890 million | $174.909 million | $503.229 million | $533.901 million |
Cost and Profitability Analysis
The cost of revenue and gross profit for Cricut for the same periods was as follows:
| Cost Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Platform Cost of Revenue | $10.000 million | $8.276 million | $27.647 million | $24.045 million |
| Products Cost of Revenue | $80.527 million | $84.699 million | $216.785 million | $263.601 million |
| Total Cost of Revenue | $90.527 million | $92.975 million | $244.432 million | $287.646 million |
| Total Gross Profit | $77.363 million | $81.934 million | $258.797 million | $246.255 million |
Operating Expenses
Operating expenses for the three and nine months ended September 30, 2024 are summarized below:
| Expense Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Research and Development | $15.240 million | $15.910 million | $44.408 million | $50.057 million |
| Sales and Marketing | $35.278 million | $28.375 million | $101.662 million | $87.398 million |
| General and Administrative | $16.249 million | $13.962 million | $50.494 million | $55.334 million |
| Total Operating Expenses | $66.767 million | $58.247 million | $196.564 million | $192.789 million |
Net Income
Net income figures for Cricut for the three and nine months ended September 30, 2024 are as follows:
| Period | Net Income |
|---|---|
| Three Months Ended September 30, 2024 | $11.488 million |
| Three Months Ended September 30, 2023 | $17.225 million |
| Nine Months Ended September 30, 2024 | $50.904 million |
| Nine Months Ended September 30, 2023 | $42.348 million |
How Cricut, Inc. (CRCT) Works
Business Overview
Cricut, Inc. operates primarily through two segments: Platform and Products. The Platform segment includes subscription services and digital content, while the Products segment encompasses connected machines, accessories, and materials.
Financial Performance
As of September 30, 2024, Cricut reported the following financial results:
| Period | Total Revenue (in thousands) | Cost of Revenue (in thousands) | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|---|---|
| Three Months Ended September 30, 2024 | $167,890 | $90,527 | $77,363 | 46% |
| Three Months Ended September 30, 2023 | $174,909 | $92,975 | $81,934 | 47% |
| Nine Months Ended September 30, 2024 | $503,229 | $244,432 | $258,797 | 51% |
| Nine Months Ended September 30, 2023 | $533,901 | $287,646 | $246,255 | 46% |
Revenue Breakdown
For the three months ended September 30, 2024, revenue sources were as follows:
| Source | Revenue (in thousands) |
|---|---|
| Platform | $77,674 |
| Connected Machines | $43,909 |
| Accessories and Materials | $46,307 |
Operating Expenses
The company reported the following operating expenses:
| Expense Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Research and Development | $15,240 | $15,910 |
| Sales and Marketing | $35,278 | $28,375 |
| General and Administrative | $16,249 | $13,962 |
Net Income
The net income for the three months ended September 30, 2024, was $11,488,000, compared to $17,225,000 for the same period in 2023. For the nine months ended September 30, 2024, net income stood at $50,904,000, a rise from $42,348,000 in 2023.
Cash and Cash Equivalents
As of September 30, 2024, Cricut had cash and cash equivalents totaling $142,376,000, alongside marketable securities valued at $104,566,000.
Stock Performance and Dividend Policy
Cricut’s stock performance reflects fluctuations in market conditions. The company declared a semi-annual dividend of $0.10 per share, payable in January 2025.
Market Reach
For the three months ended September 30, 2024, revenue by geography was as follows:
| Geography | Revenue (in thousands) |
|---|---|
| North America | $129,390 |
| International | $38,500 |
Operational Changes
In January 2024, Cricut restructured its operating segments to enhance focus on its growing digital platform. This change reflects a strategic shift to capitalize on the expanding revenue potential from digital subscriptions.
Liquidity Position
Cricut's liquidity as of September 30, 2024, includes cash and cash equivalents of $142,376,000 and marketable securities of $104,566,000, alongside $300 million in available borrowings through credit facilities.
How Cricut, Inc. (CRCT) Makes Money
Revenue Streams
Cricut, Inc. generates revenue through two primary segments: Platform and Products.
Platform Revenue
The Platform segment derives revenue mainly from subscription fees associated with Cricut Access and Cricut Access Premium, as well as digital content sales. For the nine months ended September 30, 2024, the Platform revenue was:
| Period | Platform Revenue (in thousands) |
|---|---|
| Q3 2024 | $233,609 |
| Q3 2023 | $231,082 |
As of September 30, 2024, the number of paid subscribers increased to 2.8 million from 2.7 million in the prior year.
Products Revenue
The Products segment generates revenue from the sale of connected machines and ancillary products. For the nine months ended September 30, 2024, the Products revenue was:
| Period | Products Revenue (in thousands) |
|---|---|
| Q3 2024 | $269,620 |
| Q3 2023 | $302,819 |
This represents an 11% decrease in revenue, attributed to fewer units sold and increased promotional activity during the period.
Cost of Revenue
The cost of revenue for the Platform and Products segments for the nine months ended September 30, 2024 was as follows:
| Segment | Cost of Revenue (in thousands) |
|---|---|
| Platform | $27,647 |
| Products | $216,785 |
Total cost of revenue for the nine months ended September 30, 2024 was $244,432, a decrease of 15% compared to the same period in 2023.
Gross Profit and Margin
Gross profit for the nine months ended September 30, 2024 was:
| Segment | Gross Profit (in thousands) | Gross Margin |
|---|---|---|
| Platform | $205,962 | 88% |
| Products | $52,835 | 20% |
The overall gross profit for Cricut, Inc. for the nine months ended September 30, 2024 was $258,797, reflecting a 5% increase from $246,255 in the prior year.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 were as follows:
| Category | Amount (in thousands) |
|---|---|
| Research and Development | $44,408 |
| Sales and Marketing | $101,662 |
| General and Administrative | $50,494 |
Total operating expenses were $196,564 for the nine months ended September 30, 2024.
Net Income
Cricut, Inc. reported a net income of $50,904 for the nine months ended September 30, 2024, compared to $42,348 in the same period of 2023.
Cash Flow and Liquidity
As of September 30, 2024, Cricut, Inc. had cash and cash equivalents of $142.4 million and marketable securities totaling $104.6 million.
Stockholder Returns
During the nine months ended September 30, 2024, Cricut paid dividends totaling $109.8 million to its shareholders.
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Resources:
- Cricut, Inc. (CRCT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cricut, Inc. (CRCT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cricut, Inc. (CRCT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.