Cricut Reports 4% Decline in Q3 Revenue, Net Income Down 33% Year-Over-Year

Cricut, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in total revenue and profitability compared to the same periods in 2023. For the third quarter of 2024, total revenue was $167.9 million, a decrease of 4% from $174.9 million in Q3 2023. The nine-month revenue also fell by 6%, from $533.9 million in 2023 to $503.2 million in 2024. The decline in revenue was primarily attributed to a 7% decrease in Products revenue, which fell to $90.2 million due to increased promotional activity and fewer units sold. In contrast, Platform revenue slightly increased to $77.7 million, driven by a rise in paid subscribers from 2.7 million to 2.8 million.

Despite the revenue decline in Q3, gross profit for the quarter was $77.4 million, down from $81.9 million in the prior year. However, for the nine-month period, gross profit increased by 5% to $258.8 million, compared to $246.3 million in 2023. Income from operations for Q3 2024 was $10.6 million, significantly lower than $23.7 million in Q3 2023, while for the nine months, it rose to $62.2 million from $53.5 million in the previous year. Net income for Q3 2024 was $11.5 million, down from $17.2 million in Q3 2023, but increased for the nine-month period to $50.9 million from $42.3 million.

Cricut's total assets decreased to $663.8 million as of September 30, 2024, from $750.1 million at the end of 2023. Current assets also fell to $540.8 million, while total liabilities decreased to $187.9 million. Stockholders' equity was reported at $475.8 million, down from $534.9 million at the end of 2023.

The company has been actively managing its capital structure, having repurchased 4.96 million shares of Class A common stock for $30.4 million during the nine months ended September 30, 2024. Additionally, Cricut declared a special dividend of $0.40 per share and a recurring semi-annual dividend of $0.10 per share, totaling $121.7 million, significantly lower than the $293.8 million in dividends paid during the same period in 2023.

Cricut's restructuring efforts in early 2024, which consolidated its reportable segments from three to two—Platform and Products—aim to align with the growth of its digital platform, Design Space. The company continues to focus on enhancing its subscription offerings and expanding its user base, with approximately 5.9 million active users reported as of September 30, 2024.