Aug. 25 at 7:01 PM
We are adding Cricut, Inc. (
$CRCT) to the PRISM Emerging Consumer Products Index.
Cricut sells smart cutting machines, then sells a design subscription to the people who buy them. That second part is now the bigger business. Platform revenue grew more than 5% to
$85.0 million in the second quarter and passed product sales for the first time.
Paid Subscribers hit 3.10 million, up 3% from a year ago. Each active user is spending more, with Platform ARPU up 5% to
$56.37.
Machine sales were softer. Products revenue fell 22%, pulling total revenue down 9% to
$156.3 million. But the shift toward subscriptions did real work on margins. Gross margin jumped to 74.5% from 59.0%, and net income rose 59% to
$39.1 million, which management said included some unique items.
Cricut pulled in
$50 million of cash from operations during the quarter and ended it with
$266.9 million in cash. The company paid a
$0.10 semi-annual dividend in July and bought back about 1.7 million shares.
https://prismmarketview.com/companies/cricut-inc/
