(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Exhibit Number | Exhibit Description | ||||
99.1 | |||||
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) |
Cricut, Inc. | ||||||||
Date: | November 8, 2022 | /s/ Kimball Shill | ||||||
Kimball Shill | ||||||||
Chief Financial Officer |
As of September 30, | |||||||||||
2022 | 2021 | ||||||||||
Users (in thousands) | 7,457 | 5,732 | |||||||||
Percentage of Users Creating in Trailing 90 Days | 48 | % | 56 | % | |||||||
Paid Subscribers (in thousands) | 2,456 | 1,814 |
Three Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Subscription ARPU | $ | 9.40 | $ | 9.60 | |||||||
Accessories and Materials ARPU | $ | 7.61 | $ | 18.79 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Connected machines | $ | 52,420 | $ | 102,454 | $ | 150,249 | $ | 390,100 | |||||||||||||||
Subscriptions | 68,865 | 53,303 | 201,247 | 150,115 | |||||||||||||||||||
Accessories and materials | 55,711 | 104,329 | 254,040 | 378,186 | |||||||||||||||||||
Total revenue | 176,996 | 260,086 | 605,536 | 918,401 | |||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Connected machines | 49,240 | 87,649 | 144,835 | 323,558 | |||||||||||||||||||
Subscriptions | 6,500 | 5,934 | 18,933 | 15,517 | |||||||||||||||||||
Accessories and materials | 39,422 | 64,440 | 175,486 | 226,698 | |||||||||||||||||||
Total cost of revenue | 95,162 | 158,023 | 339,254 | 565,773 | |||||||||||||||||||
Gross profit | 81,834 | 102,063 | 266,282 | 352,628 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 18,747 | 20,531 | 59,332 | 56,835 | |||||||||||||||||||
Sales and marketing | 29,165 | 30,293 | 93,470 | 90,812 | |||||||||||||||||||
General and administrative | 16,501 | 13,491 | 44,623 | 38,417 | |||||||||||||||||||
Total operating expenses | 64,413 | 64,315 | 197,425 | 186,064 | |||||||||||||||||||
Income from operations | 17,421 | 37,748 | 68,857 | 166,564 | |||||||||||||||||||
Total other income, net | 235 | 24 | 518 | 9 | |||||||||||||||||||
Income before provision for income taxes | 17,656 | 37,772 | 69,375 | 166,573 | |||||||||||||||||||
Provision for income taxes | 5,212 | 7,767 | 19,600 | 38,024 | |||||||||||||||||||
Net income | $ | 12,444 | $ | 30,005 | $ | 49,775 | $ | 128,549 | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Change in net unrealized gains (losses) on marketable securities | 271 | — | (72) | — | |||||||||||||||||||
Change in foreign currency translation adjustment, net of tax | (120) | (16) | (242) | (25) | |||||||||||||||||||
Total other comprehensive income (loss): | 151 | (16) | (314) | (25) | |||||||||||||||||||
Comprehensive income | 12,595 | 29,989 | 49,461 | 128,524 | |||||||||||||||||||
Earnings per share, basic | $ | 0.06 | $ | 0.14 | $ | 0.23 | $ | 0.62 | |||||||||||||||
Earnings per share, diluted | $ | 0.06 | $ | 0.13 | $ | 0.23 | $ | 0.59 | |||||||||||||||
Weighted-average common shares outstanding, basic | 215,347,882 | 208,988,168 | 214,361,026 | 208,169,736 | |||||||||||||||||||
Weighted-average common shares outstanding, diluted | 220,353,807 | 224,331,039 | 221,103,591 | 218,491,114 |
As of September 30, 2022 | As of December 31, 2021 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 124,182 | $ | 241,597 | |||||||
Marketable securities | 73,777 | — | |||||||||
Accounts receivable, net | 87,908 | 199,508 | |||||||||
Inventories | 483,749 | 454,174 | |||||||||
Prepaid expenses and other current assets | 33,610 | 32,820 | |||||||||
Total current assets | 803,226 | 928,099 | |||||||||
Property and equipment, net | 63,388 | 53,261 | |||||||||
Operating lease right-of-use asset | 18,280 | 17,653 | |||||||||
Intangible assets, net | 950 | 1,520 | |||||||||
Deferred tax assets | 3,279 | 3,255 | |||||||||
Other assets | 30,682 | 2,462 | |||||||||
Total assets | $ | 919,805 | $ | 1,006,250 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 71,332 | $ | 204,714 | |||||||
Accrued expenses and other current liabilities | 47,951 | 69,351 | |||||||||
Deferred revenue, current portion | 29,370 | 30,547 | |||||||||
Operating lease liabilities, current portion | 5,342 | 3,755 | |||||||||
Total current liabilities | 153,995 | 308,367 | |||||||||
Operating lease liabilities, net of current portion | 15,262 | 15,780 | |||||||||
Deferred revenue, net of current portion | 3,528 | 4,858 | |||||||||
Other non-current liabilities | 4,321 | 3,269 | |||||||||
Total liabilities | 177,106 | 332,274 | |||||||||
Commitments and contingencies (Note 11) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, par value $0.001 per share, 100,000,000 shares authorized, no shares issued and outstanding as of September 30, 2022 and December 31, 2021. | — | — | |||||||||
Common stock, par value $0.001 per share, 1,250,000,000 shares authorized as of September 30, 2022, 220,811,091 shares issued and outstanding as of September 30, 2022; 1,250,000,000 shares authorized as of December 31, 2021, 221,913,559 shares issued and outstanding as of December 31, 2021. | 221 | 222 | |||||||||
Additional paid-in capital | 736,632 | 717,369 | |||||||||
Retained earnings (accumulated deficit) | 6,215 | (43,560) | |||||||||
Accumulated other comprehensive loss | (369) | (55) | |||||||||
Total stockholders’ equity | 742,699 | 673,976 | |||||||||
Total liabilities and stockholders’ equity | $ | 919,805 | $ | 1,006,250 |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 49,775 | $ | 128,549 | |||||||
Adjustments to reconcile net income to net cash and cash equivalents (used in) provided by operating activities: | |||||||||||
Depreciation and amortization (including amortization of debt issuance costs) | 19,841 | 13,365 | |||||||||
Stock-based compensation | 30,630 | 27,941 | |||||||||
Non-cash lease expense | 3,620 | 3,061 | |||||||||
Provision for inventory obsolescence | 6,197 | 2,283 | |||||||||
Other | 218 | 1,229 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 111,600 | 18,579 | |||||||||
Inventories | (60,844) | (276,223) | |||||||||
Prepaid expenses and other current assets | (897) | (25,578) | |||||||||
Other assets | (309) | 675 | |||||||||
Accounts payable | (132,011) | (1,603) | |||||||||
Accrued expenses and other current liabilities and other non-current liabilities | (21,506) | (24,169) | |||||||||
Operating lease liabilities | (3,176) | (3,466) | |||||||||
Other | (2,508) | 3,564 | |||||||||
Net cash and cash equivalents (used in) provided by operating activities | 630 | (131,793) | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of marketable securities | (180,112) | — | |||||||||
Proceeds from maturities of marketable securities | 21,393 | — | |||||||||
Proceeds from sales of marketable securities | 84,621 | — | |||||||||
Acquisitions of property and equipment, including capitalized software development costs | (26,913) | (28,339) | |||||||||
Net cash and cash equivalents used in investing activities | (101,011) | (28,339) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from capital contributions | — | 200 | |||||||||
Proceeds from issuance of common stock upon initial public offering, net of offering costs | — | 262,007 | |||||||||
Repurchase of common stock | (9,970) | — | |||||||||
Repurchase of compensatory units | (14) | (170) | |||||||||
Proceeds from exercise of stock options | 31 | 108 | |||||||||
Employee tax withholding payments on stock-based awards | (5,401) | (107) | |||||||||
Payments for debt issuance costs | (1,300) | — | |||||||||
Other financing activities, net | — | (48) | |||||||||
Net cash and cash equivalents (used in) provided by financing activities | (16,654) | 261,990 | |||||||||
Effect of exchange rate on changes on cash and cash equivalents | (380) | (70) | |||||||||
Net increase (decrease) in cash and cash equivalents | (117,415) | 101,788 | |||||||||
Cash and cash equivalents at beginning of period | 241,597 | 122,215 | |||||||||
Cash and cash equivalents at end of period | $ | 124,182 | $ | 224,003 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for interest | — | 14 | |||||||||
Cash paid during the period for income taxes | 17,966 | 66,868 | |||||||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 4,264 | $ | 3,585 | |||||||
Property and equipment included in accounts payable and accrued expenses and other current liabilities | $ | 2,967 | $ | 4,910 | |||||||
Tax withholdings on stock-based awards included in accrued expenses and other current liabilities | $ | 575 | $ | 344 | |||||||
Stock-based compensation capitalized for software development costs | $ | 1,815 | $ | 1,149 | |||||||
Reclassification of liability awards to equity upon modification | $ | — | $ | 10,784 | |||||||
Leasehold improvements acquired through tenant allowances | $ | 859 | $ | — | |||||||
Cover Page Document |
Nov. 08, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 08, 2022 |
Entity Registrant Name | Cricut, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-40257 |
Entity Tax Identification Number | 87-0282025 |
Entity Address, Address Line One | 10855 South River Front Parkway |
Entity Address, City or Town | South Jordan |
Entity Address, State or Province | UT |
Entity Address, Postal Zip Code | 84095 |
City Area Code | 385 |
Local Phone Number | 351-0633 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share |
Trading Symbol | CRCT |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001828962 |
Amendment Flag | false |
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