0001828962false00018289622024-11-052024-11-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________
FORM 8-K
_________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
November 5, 2024
__________________________________
Cricut, Inc.
(Exact name of registrant as specified in its charter)
___________________________________
Delaware001-4025787-0282025
(State or other jurisdiction of incorporation or organization)(Commission File Number)(I.R.S. Employer Identification Number)
10855 South River Front Parkway
South Jordan, Utah 84095
(Address of principal executive offices, including zip code)
(385) 351-0633
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
_____________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.001 per shareCRCT
The Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02    Results of Operations and Financial Condition.
On November 5, 2024, the Company issued a press release and will hold a conference call announcing its financial results for its third quarter ended September 30, 2024. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.
The information contained herein and in the accompanying exhibit are “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Item 7.01    Regulation FD Disclosure.
The Company announces material information to the public through filings with the Securities and Exchange Commission, or the SEC, the investor relations page on the Company’s website, press releases, public conference calls, webcasts, the Company’s news site at cricut.com/press and blog posts on the Company’s corporate website.
The information disclosed by the foregoing channels could be deemed to be material information. As such, the Company encourages investors, the media and others to follow the channels listed above and to review the information disclosed through such channels.
Any updates to the list of disclosure channels through which the Company announces information will be posted on the investor relations page on the Company’s website.
Item 9.01    Financial Statements and Exhibits.
(d)Exhibits
Exhibit Number
Exhibit Description
99.1
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Cricut, Inc.
Date:November 5, 2024/s/ Kimball Shill
Kimball Shill
Chief Financial Officer


Cricut, Inc. Reports Third Quarter 2024 Financial Results
Paid subscribers over 2.8 million, up 5% over Q3 2023
Q3 2024 revenue of $167.9 million, down 4% compared to Q3 2023
Delivered 23rd consecutive quarter of profitability with net income of $11.5 million
SOUTH JORDAN, Utah, November 5, 2024 (GLOBE NEWSWIRE) -- Cricut, Inc. (“Cricut”) (NASDAQ: CRCT), the creative technology company that has brought a connected platform for making to millions of users worldwide, today announced financial results for its third quarter ended September 30, 2024.

"We are pleased with the increase in paid subscribers in Q3 up 5% YoY to over 2.8 million, which exceeded our expectations. To benefit all members, we continued during the quarter to make improvements to our software platform, specifically in helping them search and find inspiring content on our platform and removing friction in designing their projects in Design Space," said Ashish Arora, Chief Executive Officer of Cricut. "Evidence that these efforts are having a positive impact is that this is the second consecutive quarter of a YoY increase in the share of members who complete a project during their first day and who complete multiple projects in their first week."
Third Quarter 2024 Financial Results
•Revenue was $167.9 million, down 4% from Q3 2023.
•Platform revenue was $77.7 million, slightly up over Q3 2023.
•Products revenue was $90.2 million, down 7% from Q3 2023.
•International revenue increased by 2% over Q3 2023 and was 23% of total revenue, up from 21% of total revenue in Q3 2023.
•Gross margin was 46.1%, down from 46.8% in Q3 2023.
•Operating income was $10.6 million, or 6.3% of total revenue compared to $23.7 million, or 13.5% of revenue in Q3 2023.
•Net income was $11.5 million, or 6.8% of revenue, and down 33% from Q3 2023. Net income in Q3 2023 was $17.2 million, or 9.8% of revenue.
•Diluted earnings per share was $0.05, down from $0.08 per share in Q3 2023.
•Generated $70 million in Cash from Operations in Q3. Used $10.3 million to repurchase 1.8 million shares of our common stock in Q3.

“We remain profitable and continue to expect incremental operating margin improvement for the full year even as we continue to manage the business for the long term. In Q3 2024, we generated $70 million in cash from operations, ended the quarter with $247 million in cash and cash equivalents and marketable securities, and we remain debt free. During Q3, we used $10.3 million of cash to repurchase 1.8 million shares of our stock, resulting in $30.8 million remaining on our $50 million authorized stock repurchase program. In July, we paid approximately $108 million in dividends for the special one-time dividend of $0.40 per share, plus our first recurring semi-annual dividend of $0.10 per share," said Kimball Shill, Chief Financial Officer of Cricut. "We are pleased to announce The Board of Directors authorized our second recurring semi-annual dividend of $0.10 per share for shareholders of record on January 7, 2025, payable on January 21, 2025. We remain committed to our long-term operating margin targets of 15-19%. Our proven model has demonstrated that when we operate at scale and drive top line growth, these margins are achievable.”


Recent Business Highlights
•Paid Subscribers increased to over 2.8 million, up 5% year over year.
•Platform ARPU increased to $52.86, up 3% year over year.
•Active Users decreased slightly year over year to nearly 5.9 million.
•90-Day Engaged Users decreased 3% year over year to over 3.5 million.
Key Performance Metrics
In addition to the measures presented in our condensed consolidated financial statements, we use the following key business metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. We believe these metrics are useful to investors because they can help in monitoring the long-term health of our business. Our determination and presentation of these metrics may differ from that of other companies. The presentation of these metrics is meant to be considered in addition to, not as a substitute for or in isolation from, our financial measures prepared in accordance with GAAP.
As of September 30,
20242023
Active Users (in thousands)5,894 5,929 
90-Day Engaged Users (in thousands)3,532 3,641 
Paid Subscribers (in thousands)2,838 2,699 

Three Months Ended September 30,
20242023
Platform ARPU$52.86 $51.20 
Glossary of Terms
Active Users
We define Active Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 365 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total Active Users and the prior owner is removed from the total Active Users if the prior owner does not own any other registered connected machines. Active Users is a key indicator of the health of our business, because changes in the number of Active Users excludes non-users to better represent opportunities for us to drive additional platform and accessories and materials revenue.
90-Day Engaged Users
We define 90-Day Engaged Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 90 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total 90-Day Engaged Users and the prior owner is removed from the total 90-Day Engaged Users if the prior owner does not own any other registered connected machines. 90-Day Engaged Users excludes non-users to better represent opportunities for us to drive additional platform and accessories and materials revenue.


Paid Subscribers
We define Paid Subscribers as the number of users with a subscription to Cricut Access or Cricut Access Premium, excluding cancelled, unpaid or free trial subscriptions, as of the end of a period. Paid Subscribers is a key metric to track growth in our Platform revenue and potential leverage in our gross margin.
Platform ARPU
We define Platform ARPU as Platform in a 12-month period revenue divided by Active Users. Platform ARPU allows us to forecast Platform revenue over time and is an indicator of our ability to expand with users and of user engagement with our subscription offerings.
Webcast and Conference Call Information
Cricut management will host a conference call and webcast to discuss the results today, Tuesday, November 5, 2024 at 3:00 p.m. Mountain Time (5:00 p.m. Eastern Time). Information about Cricut’s financial results, including a link to the live and archived webcast of the conference call, will be made available on Cricut’s investor relations website at https://investor.cricut.com/.
The live call may also be accessed via telephone. Please pre-register using this link: https://register.vevent.com/register/BI6d47744d9f23418aaa936b2b006064fd. After registering, a confirmation will be sent via email and will include dial-in details and a unique PIN code for entry to the call. To avoid long wait times, we suggest registering at minimum 15 minutes before the start of the call to receive your unique PIN code.
About Cricut, Inc.
Cricut, Inc. is a creative technology company that helps people lead creative lives. Cricut hardware and design software work together as a connected platform for consumers to make beautiful, high-quality DIY projects quickly and easily. These industry-leading products include a flagship line of smart cutting machines — the Cricut Maker® series, the Cricut Explore® series, Cricut Joy™ series, and Cricut Venture™ — accompanied by other unique tools like Cricut EasyPress®, the Infusible Ink™ system, and a diverse collection of materials. In addition to providing tools and materials, Cricut fosters a thriving community of millions of dedicated users worldwide.
Cricut has used, and intends to continue using, its investor relations website and the Cricut News Blog (https://cricut.com/blog/news/) to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website and the Cricut News Blog in addition to following our press releases, SEC filings and public conference calls and webcasts.
Media Contact:
Caitlin Hadley
pr@cricut.com
Investor Contact:
Jim Suva
investors@cricut.com
Source: Cricut, Inc.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 as amended (the “Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements include, but are not limited to, quotations from management, business outlook, strategies, capital allocation plans, market size and growth opportunities. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “anticipates,” “believes,” “targets,” “potential,” “estimates,” “expects,”


“intends,” “plans,” “projects,” “may,” “will” or similar terminology. In particular, statements, express or implied, concerning future actions, conditions or events, future results of operations or the ability to generate revenues, income or cash flow are forward-looking statements. These statements are based on and reflect our current expectations, estimates, assumptions and/ or projections and our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions, many of which are beyond our control, that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections will prove to be correct or that any of our expectations, estimates or projections will be achieved. The forward-looking statements included in this press release are only made as of the date indicated on the relevant materials and are based on our estimates and opinions at the time the statements are made. We disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances or changes in opinion, except as required by law.
Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements including, but not limited to, risks and uncertainties associated with: our ability to attract and engage with our users; competitive risks; supply chain, manufacturing, distribution and fulfillment risks; international risks, including regulation and tariffs that have materially increased our costs and the potential for further trade barriers or disruptions; sales and marketing risks, including our dependence on sales to brick-and-mortar and online retail partners and our need to continue to grow online sales; risks relating to the complexity of our business, which includes connected machines, custom tools, hundreds of materials, design apps, e-commerce software, subscriptions, content, international production, direct sales and retail distribution; risks related to product quality, safety and warranty claims and returns; risks related to the fluctuation of our quarterly results of operations and other operating metrics; risks related to intellectual property, cybersecurity and potential data breaches; risks related to our dependence on our Chief Executive Officer; risks related to our status as a “controlled company”; and the impact of economic and geopolitical events, natural disasters and actual or threatened public health emergencies, current recessionary pressures and any resulting economic slowdown from any of these events, or other resulting interruption to our operations. These risks and uncertainties are described in greater detail, or are incorporated by reference, under the heading “Risk Factors” in the most recent form 10-Q that we have filed with the Securities and Exchange Commission (“SEC”).
In addition, certain risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The forward-looking statements included in these materials are only made as of the date indicated on the relevant materials and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law.


Cricut, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income
(unaudited)
(in thousands, except share and per share amounts)

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenue:
Platform$77,674 $77,455 $233,609 $231,082 
Products90,216 97,454 269,620 302,819 
Total revenue167,890 174,909 503,229 533,901 
Cost of revenue:
Platform10,000 8,276 27,647 24,045 
Products80,527 84,699 216,785 263,601 
Total cost of revenue90,527 92,975 244,432 287,646 
Gross profit77,363 81,934 258,797 246,255 
Operating expenses:
Research and development15,240 15,910 44,408 50,057 
Sales and marketing35,278 28,375 101,662 87,398 
General and administrative16,249 13,962 50,494 55,334 
Total operating expenses66,767 58,247 196,564 192,789 
Income from operations10,596 23,687 62,233 53,466 
Other income (expense):
Interest income2,718 1,340 8,189 6,211 
Interest expense(84)(81)(245)(240)
Other income932 569 2,067 1,863 
Total other income, net3,566 1,828 10,011 7,834 
Income before provision for income taxes14,162 25,515 72,244 61,300 
Provision for income taxes2,674 8,290 21,340 18,952 
Net income$11,488 $17,225 $50,904 $42,348 
Other comprehensive income:
Change in net unrealized gains (losses) on marketable securities, net of tax$46 $76 $— $(54)
Change in foreign currency translation adjustment, net of tax229 (56)140 (88)
Comprehensive income$11,763 $17,245 $51,044 $42,206 
Earnings per share, basic$0.05 $0.08 $0.24 $0.20 
Earnings per share, diluted$0.05 $0.08 $0.24 $0.19 
Weighted-average common shares outstanding, basic214,769,065 217,737,089 214,706,773 216,771,051 
Weighted-average common shares outstanding, diluted215,749,745 220,424,691 215,281,337 219,920,343 








Cricut, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
As of September 30, 2024As of December 31, 2023
(unaudited)
Assets
Current assets:
Cash and cash equivalents$142,376 $142,187 
Marketable securities104,566 102,952 
Accounts receivable, net93,302 111,247 
Inventories167,503 244,469 
Prepaid expenses and other current assets33,010 19,114 
Total current assets540,757 619,969 
Property and equipment, net39,792 47,614 
Operating lease right-of-use asset9,047 12,353 
Deferred tax assets46,839 34,823 
Other assets27,330 35,363 
Total assets$663,765 $750,122 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$45,524 $76,860 
Accrued expenses and other current liabilities77,437 71,933 
Deferred revenue, current portion43,376 40,304 
Operating lease liabilities, current portion4,595 5,230 
Dividends payable, current portion379 2,137 
Total current liabilities171,311 196,464 
Operating lease liabilities, net of current portion5,864 8,938 
Deferred revenue, net of current portion2,530 2,931 
Other non-current liabilities8,224 6,916 
Total liabilities187,929 215,249 
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.001 per share, 100,000,000 shares authorized, no shares issued and outstanding as of September 30, 2024 and December 31, 2023.— — 
Common stock, par value $0.001 per share, 1,250,000,000 shares authorized as of September 30, 2024, 214,422,477 shares issued and outstanding as of September 30, 2024; 1,250,000,000 shares authorized as of December 31, 2023, 217,915,713 shares issued and outstanding as of December 31, 2023.214 218 
Additional paid-in capital463,717 505,864 
Retained earnings11,488 28,514 
Accumulated other comprehensive income417 277 
Total stockholders’ equity475,836 534,873 
Total liabilities and stockholders’ equity$663,765 $750,122 






Cricut, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
Nine Months Ended September 30,
20242023
Cash flows from operating activities:
Net income$50,904 $42,348 
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization (including amortization of debt issuance costs)22,30822,072
Bad debt expense (benefit)(454)2,144
Impairments—1,960
Stock-based compensation33,25534,789
Deferred income tax(12,016)(11,938)
Non-cash lease expense3,8053,727
Unrealized foreign currency loss304950
Provision for inventory obsolescence11017,942
Other(1,810)(1,846)
Changes in operating assets and liabilities:
Accounts receivable18,06141,200
Inventories86,28337,488
Prepaid expenses and other current assets(13,673)7,490
Other assets(605)274
Accounts payable(30,635)17,102
Accrued expenses and other current liabilities and other non-current liabilities
7,574(17,437)
Operating lease liabilities(4,197)(4,056)
Deferred revenue2,6711,817
Net cash and cash equivalents provided by operating activities
161,885196,026
Cash flows from investing activities:
Purchase of marketable securities(110,521)(44,256)
Proceeds from maturities of marketable securities110,52719,200
Purchases of property and equipment, including capitalized software development costs
(14,442)(18,942)
Net cash and cash equivalents used in investing activities(14,436)(43,998)
Cash flows from financing activities:
Repurchase of common stock(30,483)(4,558)
Proceeds from exercise of stock options—382
Employee tax withholding payments on stock-based awards(7,144)(6,328)
Cash dividend(109,775)(293,820)
Net cash and cash equivalents used in financing activities(147,402)(304,324)
Effect of exchange rate on changes on cash and cash equivalents142(95)
Net increase (decrease) in cash and cash equivalents189(152,391)
Cash and cash equivalents at beginning of period142,187224,943
Cash and cash equivalents at end of period$142,376 $72,552 
Supplemental disclosures of cash flow information:
Cash paid during the period for interest$— $— 
Cash paid during the period for income taxes$34,898 $21,590 
Supplemental disclosures of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities$477 $— 
Property and equipment included in accounts payable and accrued expenses and other current liabilities
$1,479 $2,764 
Tax withholdings on stock-based awards included in accrued expenses and other current liabilities$436 $1,129 
Stock-based compensation capitalized for software development costs$1,121 $1,520 
Dividend declared but unpaid$410 $— 

v3.24.3
Cover Page Document
Nov. 05, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 05, 2024
Entity Registrant Name Cricut, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-40257
Entity Tax Identification Number 87-0282025
Entity Address, Address Line One 10855 South River Front Parkway
Entity Address, City or Town South Jordan
Entity Address, State or Province UT
Entity Address, Postal Zip Code 84095
City Area Code 385
Local Phone Number 351-0633
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, par value $0.001 per share
Trading Symbol CRCT
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001828962
Amendment Flag false
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