Cricut Reports $712.5 Million Revenue, 7% Decrease, and 17% Increase in Net Income for Fiscal Year 2024

Cricut, Inc. reported a total revenue of $712.5 million for the fiscal year ending December 31, 2024, a decrease of 7% from $765.1 million in 2023. The company's net income for the same period was $62.8 million, reflecting a 17% increase compared to $53.6 million in the previous year. This growth in profitability was attributed to a rise in the number of paid subscribers for its Cricut Access service, which increased by 7% to nearly 3 million, despite a decline in product sales, particularly in accessories and materials.

The company's revenue from its Platform segment, which includes subscription services and digital content, grew by 1% to $313 million, driven by the increase in paid subscribers. In contrast, revenue from the Products segment, which encompasses connected machines and accessories, fell by 12% to $399.6 million, primarily due to a decrease in sales volume and increased promotional activities. The overall decline in revenue was influenced by a challenging market environment and a shift in consumer spending patterns post-pandemic.

Cricut's operational metrics indicate a stable user base, with approximately 5.9 million active users as of December 31, 2024, maintaining engagement levels with 3.8 million users cutting on their machines in the last 90 days. The company continues to focus on enhancing its product offerings and user experience, with significant investments in research and development, which totaled $60.4 million in 2024, down from $65 million in 2023. The company also undertook a restructuring plan in early 2024, resulting in a workforce reduction of about 8%, aimed at improving operational efficiency.

Geographically, Cricut's revenue remains heavily concentrated in North America, which accounted for $555 million, while international sales contributed $157.5 million. The company is actively pursuing international expansion, having localized its design app for various markets and targeting countries with large populations of active creatives. However, the company faces challenges related to supply chain management, particularly with its reliance on a limited number of contract manufacturers based in Asia, which could impact its ability to meet consumer demand.

Looking ahead, Cricut anticipates continued pressure on revenue growth due to market conditions and competition. The company plans to enhance its marketing efforts and expand its product lines to attract new users and increase engagement among existing customers. Additionally, Cricut's board of directors declared a recurring semi-annual dividend of $0.10 per share, reflecting its commitment to returning value to shareholders while navigating the evolving market landscape.