Wed, Mar 5, 11:04 AM (53 days ago)
Cricut, Inc. (CRCT) reported a revenue decline of 7% to $712.5 million for the fiscal year ending December 31, 2024, compared to $765.1 million in 2023. Net income rose 17% to $62.8 million, driven by reduced costs in products and improved gross margins in the Platform segment. Operating expenses increased to $276.7 million, reflecting higher marketing costs. The company maintained a strong cash position of $232.1 million and has a credit facility of $300 million. Cricut's user base remains robust with nearly 5.9 million Active Users, although growth has slowed. The company emphasizes enhancing user engagement through its connected machines and subscriptions, with nearly 3 million Paid Subscribers as of December 31, 2024. Strategically, Cricut aims to expand internationally and innovate its product line, facing risks from supply chain disruptions and competition. The dual-class share structure allows significant control by major shareholders, which may impact stockholder influence on corporate decisions. Overall, Cricut remains focused on balancing operational efficiency with growth investments while navigating a competitive landscape.