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Sep 30, 2022

Cricut Q3 2022 Earnings Report

Cricut reported a revenue decline but demonstrated positive momentum in user growth and subscription services.

Key Takeaways

Cricut, Inc. reported a 32% decrease in revenue to $177.0 million for Q3 2022 compared to Q3 2021. Despite the revenue decline, the company maintained profitability with a net income of $12.4 million and saw growth in total users and paid subscribers.

Total users grew by 30% year-over-year, reaching nearly 7.5 million.

Paid subscribers increased by 35% year-over-year, totaling nearly 2.5 million.

Gross margin increased to 46.2% from 39.2% in Q3 2021.

The company reported its 15th consecutive quarter of profitability.

Total Revenue
$177M
Previous year: $260M
-32.0%
EPS
$0.06
Previous year: $0.13
-53.8%
Paid Subscribers
2.5M
Previous year: 1.81M
+37.8%
International Revenue Share
15.6%
Previous year: 12%
+30.0%
Gross Profit
$81.8M
Previous year: $102M
-19.8%
Cash and Equivalents
$124M
Previous year: $224M
-44.6%
Total Assets
$920M
Previous year: $981M
-6.2%

Cricut

Cricut

Cricut Revenue by Segment

Cricut Revenue by Geographic Location

Forward Guidance

Cricut believes retailer inventory positions were much healthier exiting the third quarter. The company continues to operate the business from a position of financial strength and believes it is well positioned to deliver healthy long-term operating margins.

Positive Outlook

  • Retailer inventory positions were much healthier
  • The company has a proven track record of profitable growth
  • The company is well positioned to deliver healthy long-term operating margins
  • Continued investment in areas with the highest impact
  • Fostering higher levels of engagement

Revenue & Expenses

Visualization of income flow from segment revenue to net income