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Dec 31, 2024
Cricut Q4 2024 Earnings Report
Cricut reported a revenue decline but improved profitability in Q4 2024.
Key Takeaways
Cricut, Inc. generated $209.3 million in revenue for Q4 2024, reflecting a 9% year-over-year decline. However, net income increased to $11.9 million, and gross margin expanded to 44.9%. Platform revenue grew slightly, while product revenue declined 15%. The company maintained strong cash flow and remains optimistic about new product launches in 2025.
Revenue declined 9% year-over-year to $209.3 million.
Net income increased to $11.9 million, up from $11.3 million in Q4 2023.
Gross margin expanded to 44.9% from 42.0% in Q4 2023.
International revenue grew 3% and now represents 25% of total revenue.
Cricut
Cricut
Cricut Revenue by Segment
Cricut Revenue by Geographic Location
Revenue by Segment
Platform Revenue
CapyFin.comProducts Revenue
CapyFin.comRevenue by Geographic Location
International Revenue
CapyFin.com Forward Guidance
Cricut expects profitability in each quarter of 2025 and anticipates an inflection point in revenue growth in the second half of the year, supported by new product launches.
Positive Outlook
- Company expects to remain profitable throughout 2025.
- New product launches, including Cricut Explore 4 and Maker 4, show positive initial feedback.
- Operating income continues to improve despite revenue declines.
- Strong cash position of $232 million and no debt obligations.
- Stock repurchase program remains active, with $22.9 million available.
Challenges Ahead
- Revenue decline continues to be a challenge, particularly in product sales.
- International market growth remains slow despite a 3% increase.
- Subscriber growth is modest, limiting platform revenue expansion.
- Operating margins are slightly lower compared to last year.
- Macroeconomic conditions could impact consumer spending on creative products.
Revenue & Expenses
Visualization of income flow from segment revenue to net income