10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-40257

Cricut, Inc.

(Exact name of Registrant as specified in its charter)

Delaware	87-0282025
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

10855 South River Front Parkway

South Jordan, Utah 84095

(385) 351-0633

(Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.001 per share	CRCT	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒ No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

☐	Large accelerated filer	☒	Accelerated filer
☐	Non-accelerated filer	☐	Smaller reporting company
☐	Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of August 1, 2024, the registrant had 53,522,018 shares of Class A Common Stock, and 162,845,967 shares of Class B Common Stock, outstanding.

TABLE OF CONTENTS

		PAGE
NOTE REGARDING FORWARD-LOOKING STATEMENTS		2
PART I.	FINANCIAL INFORMATION	4
Item 1.	Financial Statements (unaudited)	4
	Condensed Consolidated Balance Sheets (unaudited)	4
	Condensed Consolidated Statements of Operations and Comprehensive Income (unaudited)	5
	Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)	6
	Condensed Consolidated Statements of Cash Flows (unaudited)	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
PART II.	OTHER INFORMATION	33
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Default Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	35
	Signatures	36

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve substantial risk and uncertainties. These forward-looking statements, which are subject to a number of risks, uncertainties and assumptions about us, generally relate to future events or our future financial or operating performance. In some cases, you can identify these statements by forward-looking words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,” “could,” “plan,” “potential,” “predict,” “seek,” “should,” “would,” “target,” “project” or “contemplate” or the negative version of these words and other comparable terminology that concern our expectations, strategy, plans, intentions or projections. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

•our ability to attract and engage users and attract and expand our relationships with brick-and-mortar and online retail partners and distributors;

•our future results of operations, including trends in revenue, costs, operating expenses and key metrics;

•our ability to compete successfully in competitive markets;

•our expectations and management of future growth;

•our ability to manage our supply chain, manufacturing, distribution and fulfillment, including the ability to forecast demand and manage our inventory;

•our ability to enter new markets and manage our expansion efforts, including internationally;

•our ability to attract and retain management, key employees and qualified personnel;

•our ability to effectively and efficiently protect our brand;

•our ability to maintain, protect and enhance our intellectual property and not infringe upon others’ intellectual property;

•our continued use of open source software;

•our estimated Serviceable Addressable Market, or SAM, and Total Addressable Market, or TAM;

•our ability to prevent serious errors, defects or vulnerabilities in our products and software;

•the adequacy of our capital resources to fund operations and growth;

•our ability to remain in compliance with laws and regulations that currently apply or become applicable to our business both domestically and internationally;

•Petrus’ significant influence over us and our status as a “controlled company” under the rules of the Nasdaq Global Select Market, or the Exchange;

•expectations regarding the financial condition of our brick-and-mortar and online retail partners, online and e-commerce channels and users;

•risks related to general socio-economic and political conditions, consumer confidence, as well as current macro-economic and post-COVID-19 factors; and

•the other factors identified under, or incorporated by reference in, the section titled “Risk Factors” appearing elsewhere in this Quarterly Report on Form 10-Q.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

You should not rely upon forward-looking statements as predictions of future events. These statements are only predictions based primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. There are important factors that could cause our actual results, events or circumstances to differ materially from the results, events or circumstances expressed or implied by the forward-looking statements, including those factors discussed, or incorporated by reference, in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. You should specifically consider the numerous risks outlined, or incorporated by reference, in the section titled “Risk Factors.” Moreover, we operate in a very competitive and rapidly changing environment. New risks and

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uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained, or incorporated by reference, in this Quarterly Report on Form 10-Q.

Neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Moreover, the forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any of these forward-looking statements after the date of this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Cricut, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share )

	As of June 30, 2024		As of December 31, 2023
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	195,552	$	142,187
Marketable securities	103,907		102,952
Accounts receivable, net	83,752		111,247
Inventories	192,340		244,469
Prepaid expenses and other current assets	35,600		19,114
Total current assets	611,151		619,969
Property and equipment, net	42,074		47,614
Operating lease right-of-use asset	10,286		12,353
Deferred tax assets	44,322		34,823
Other assets	34,278		35,363
Total assets	$	742,111	$	750,122
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	33,974	$	76,860
Accrued expenses and other current liabilities	70,492		71,933
Deferred revenue, current portion	44,530		40,304
Operating lease liabilities, current portion	4,964		5,230
Dividends payable, current portion	122,302		2,137
Total current liabilities	276,262		196,464
Operating lease liabilities, net of current portion	6,862		8,938
Deferred revenue, net of current portion	2,595		2,931
Other non-current liabilities	7,848		6,916
Total liabilities	293,567		215,249
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 June 30, 2024 and December 31, 2023.	—		—
Common stock, par value $0.001 per share, 1,250,000,000 shares authorized as of June 30, 2024, 216,086,013 shares issued and outstanding as of June 30, 2024; 1,250,000,000 shares authorized as of December 31, 2023, 217,915,713 shares issued and outstanding as of December 31, 2023.	216		218
Additional paid-in capital	448,186		505,864
Retained earnings	—		28,514
Accumulated other comprehensive income	142		277
Total stockholders’ equity	448,544		534,873
Total liabilities and stockholders’ equity	$	742,111	$	750,122

    

See accompanying notes to these unaudited condensed consolidated financial statements.

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Cricut, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income

(unaudited)

(in thousands, except share and per share amounts)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenue:
Platform	$	77,649	$	77,386	$	155,935	$	153,627
Products	90,298		100,379		179,404		205,365
Total revenue	167,947		177,765		335,339		358,992
Cost of revenue:
Platform	8,888		8,008		17,647		15,769
Products	69,219		82,102		136,258		178,902
Total cost of revenue	78,107		90,110		153,905		194,671
Gross profit	89,840		87,655		181,434		164,321
Operating expenses:
Research and development	14,315		16,346		29,168		34,147
Sales and marketing	33,354		29,407		66,384		59,023
General and administrative	15,739		22,652		34,245		41,372
Total operating expenses	63,408		68,405		129,797		134,542
Income from operations	26,432		19,250		51,637		29,779
Other income (expense):
Interest income	3,053		3,118		5,471		4,871
Interest expense	(80)		(80)		(161)		(159)
Other income	387		653		1,135		1,294
Total other income, net	3,360		3,691		6,445		6,006
Income before provision for income taxes	29,792		22,941		58,082		35,785
Provision for income taxes	10,023		6,917		18,666		10,662
Net income	$	19,769	$	16,024	$	39,416	$	25,123
Other comprehensive income (loss):
Change in net unrealized gains (losses) on marketable securities, net of tax	$	242	$	(318)	$	(46)	$	(130)
Change in foreign currency translation adjustment, net of tax	(1)		(50)		(89)		(32)
Comprehensive income	$	20,010	$	15,656	$	39,281	$	24,961
Earnings per share, basic	$	0.09	$	0.07	$	0.18	$	0.12
Earnings per share, diluted	$	0.09	$	0.07	$	0.18	$	0.11
Weighted-average common shares outstanding, basic	216,422,513		216,963,697		215,986,713		216,236,887
Weighted-average common shares outstanding, diluted	217,501,646		219,915,839		217,390,891		219,597,977

See accompanying notes to these unaudited condensed consolidated financial statements.

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Cricut, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

(in thousands, except share amounts)

	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2023	217,915,713	$	218	$	505,864	$	28,514	$	277	$	534,873
Net income	—	—		—		19,647		—		19,647
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	548,344	1		(2,324)		—		—		(2,323)
Forfeiture of unvested common stock and dividend equivalents	(64,001)	—		73		—		—		73
Repurchase of common stock	(1,697,272)	(2)		(10,793)		—		—		(10,795)
Stock-based compensation	—	—		11,473		—		—		11,473
Other comprehensive loss	—	—		—		—		(376)		(376)
Balance as of March 31, 2024	216,702,784	$	217	$	504,293	$	48,161	$	(99)	$	552,572
Net income	—	—		—		19,769		—		19,769
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	880,919	1		(4,426)		—		—		(4,425)
Forfeiture of unvested common stock and dividend equivalents	(24,629)	—		48		—		—		48
Repurchase of common stock	(1,473,061)	(2)		(9,306)		—		—		(9,308)
Dividends declared	—	—		(53,727)		(67,930)		—		(121,657)
Stock-based compensation	—	—		11,304		—		—		11,304
Other comprehensive income	—	—		—		—		241		241
Balance as of June 30, 2024	216,086,013	$	216	$	448,186	$	—	$	142	$	448,544

	Common Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other ComprehensiveLoss		Total Stockholders’ Equity
	Shares	Amount
Balance as of December 31, 2022	219,656,587	$	220	$	672,990	$	—	$	(475)	$	672,735
Net income	—	—		—		9,099		—		9,099
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	43,671	—		(169)		—		—		(169)
Forfeiture of unvested common stock and dividend equivalents	(103,906)	—		275		—		—		275
Repurchase of common stock	(346,699)	(1)		(3,243)		—		—		(3,244)
Dividend equivalents issued	—	—		4,366		—		—		4,366
Stock-based compensation	—	—		10,895		—		—		10,895
Other comprehensive income	—	—		—		—		206		206
Balance as of March 31, 2023	219,249,653	$	219	$	685,114	$	9,099	$	(269)	$	694,163
Net income	—	—		—		16,024		—		16,024
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	884,619	1		(4,583)		—		—		(4,582)
Forfeiture of unvested common stock and dividend equivalents	(199,898)	—		120		—		—		120
Repurchase of common stock	(104,070)	—		(967)		—		—		(967)
Dividends declared	—	—		(209,502)		(25,123)		—		(234,625)
Stock-based compensation	—	—		12,542		—		—		12,542
Other comprehensive loss	—	—		—		—		(368)		(368)
Balance as of June 30, 2023	219,830,304	$	220	$	482,724	$	—	$	(637)	$	482,307

See accompanying notes to these unaudited condensed consolidated financial statements.

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Cricut, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income	$	39,416	$	25,123
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization (including amortization of debt issuance costs)	15,094		14,378
Bad debt expense (benefit)	(454)		6,563
Impairments	—		1,959
Stock-based compensation	21,376		22,307
Deferred income tax	(9,484)		(7,447)
Non-cash lease expense	2,539		2,478
Unrealized foreign currency (gain) loss	589		599
Provision for inventory obsolescence	(3,028)		10,280
Other	(1,040)		(1,290)
Changes in operating assets and liabilities:
Accounts receivable	27,320		40,665
Inventories	56,928		50,356
Prepaid expenses and other current assets	(16,492)		5,286
Other assets	(122)		(523)
Accounts payable	(42,060)		4,277
Accrued expenses and other current liabilities and other non-current liabilities	(25)		(16,457)
Operating lease liabilities	(2,799)		(2,702)
Deferred revenue	3,890		3,760
Net cash and cash equivalents provided by operating activities	91,648		159,612
Cash flows from investing activities:
Purchases of marketable securities	(25,442)		—
Proceeds from maturities of marketable securities	25,440		—
Purchases of property and equipment, including capitalized software development costs	(9,963)		(12,825)
Net cash and cash equivalents used in investing activities	(9,965)		(12,825)
Cash flows from financing activities:
Repurchases of common stock	(20,103)		(4,210)
Proceeds from exercise of stock options	—		208
Employee tax withholding payments on stock-based awards	(6,541)		(5,799)
Cash dividend	(1,547)		(75,808)
Net cash and cash equivalents used in financing activities	(28,191)		(85,609)
Effect of exchange rate on changes on cash and cash equivalents	(127)		—
Net increase in cash and cash equivalents	53,365		61,178
Cash and cash equivalents at beginning of period	142,187		224,943
Cash and cash equivalents at end of period	$	195,552	$	286,121
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	—	$	—
Cash paid during the period for income taxes	$	30,389	$	12,086
Supplemental disclosures of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	477	$	—
Property and equipment included in accounts payable and accrued expenses and other current liabilities	$	1,545	$	2,447
Tax withholdings on stock-based awards included in accrued expenses and other current liabilities	$	659	$	483
Stock-based compensation capitalized for software development costs	$	695	$	975
Dividends declared but unpaid	$	122,332	$	234,625

See accompanying notes to these unaudited condensed consolidated financial statements.

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Cricut, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

1.Description of Business and Basis of Presentation

Nature of Business

Cricut, Inc. (“Cricut” or the “Company”) is a designer and marketer of a creativity platform that enables users to turn ideas into professional-looking handmade goods. Using the Company’s platform, versatile connected machines, and accessories and materials, users create everything from personalized birthday cards, mugs and T-shirts to large-scale interior decorations. The Company’s subscription services, connected machines and related accessories and materials are primarily marketed under the Cricut brand in the United States, as well as Europe and other countries around the world. Headquartered in South Jordan, Utah, the Company is an innovator in its industry, focused on bringing innovative technology (automation and consumerization of industrial tools) to the craft, DIY, and home décor categories. The Company’s condensed consolidated financial statements include the operations of its wholly owned subsidiaries, which are located throughout Europe and in the Asia-Pacific region.

The Company designs, markets, and distributes the Cricut family of products, including the platform, connected machines, and accessories and materials. In addition, Cricut sells a broad line of images, fonts, and projects for purchase à la carte.

During the year ended December 31, 2023 and prior periods, we had three reportable segments: Connected Machines, Subscriptions, and Accessories and Materials. As of January 2024, we realigned our operating segment structure and now have two reportable segments: Platform and Products. The change in operating segments is based on how the Company’s chief operating decision maker (“CODM”) makes operating decisions and assesses business performance. Prior period segment information has been recast retrospectively to reflect the realignment. See Note 16, Segment Information, for further discussion of the Company’s segment reporting structure.

Basis of Presentation and Consolidation

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the annual report on Form 10-K for the fiscal year ended December 31, 2023 (the “Annual Report”). However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading.

The condensed consolidated financial statements include the accounts of Cricut, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain notes required by GAAP on an annual reporting basis.

In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, cash flows and the changes in equity for the interim periods. The results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending December 31, 2024, or any other period.

Recently Issued Accounting Pronouncements

In March 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) Compensation-Stock Compensation (Topic 718). The ASU clarifies how an entity determines whether a profits interest or similar award is (1) within the scope of ASC 718 or (2) not a share-based payment arrangement and therefore within the scope of other guidance. The guidance in ASU 2024-01 applies to all entities that issue profits interest awards as compensation to employees or non-employees in exchange for goods or services. Public

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business entities must apply the ASU’s guidance to annual periods beginning after December 15, 2025. The Company is currently evaluating the impact of this standard on the consolidated financial statements.

In December, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. Under the new guidance, entities must consistently categorize and provide greater disaggregation of information in the rate reconciliation. They must also further disaggregate income taxes paid. Public business entities must apply the ASU’s guidance to annual periods beginning after December 15, 2024 (2025 for calendar-year-end Public business entities). The Company is currently evaluating the impact of this standard on the consolidated financial statements.

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses, and is effective for fiscal years beginning after December 15, 2023 on a retrospective basis. The Company is currently evaluating the impact of this standard on the consolidated financial statements.

2.Summary of Significant Accounting Policies

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. For revenue recognition, examples of estimates and judgments include: determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, and estimating variable consideration such as sales incentives and product returns. Other estimates include the warranty reserve, allowance for credit losses, inventory reserve, intangible assets and other long-lived assets valuation, legal contingencies, stock-based compensation, income taxes, deferred tax assets valuation and developed software, among others. These estimates and assumptions are based on the Company’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including any effects of the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from these estimates.

Fair Value Measurement

The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

Money market funds and certain marketable securities are highly liquid investments and are actively traded. The pricing information for these assets is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. Other marketable securities such as U.S. Treasury securities are valued using observable inputs from similar assets, or from observable data in markets that are not active; these assets are classified as Level 2 of the fair value hierarchy. There were no transfers between Levels 1, 2 or 3 for any of the periods presented. There were no liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023.

Earnings Per Share

Earnings per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of profits are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net income per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Stock-based awards subject to conditions other than service conditions are considered contingently issuable shares and

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are included in basic EPS based on the number of awards that would be issuable if the reporting date were the end of the contingency period.

Accounts Receivable

Accounts receivable are recorded at original invoice amounts less estimates for credit losses. Management determines the allowance for credit losses by specifically identifying troubled accounts and by using historical write off experience, adjusted for current market conditions and reasonable supportable forecasts of future economic conditions, applied to an aging of all other accounts. If a retailer fails to follow the policies and guidelines in our sales agreements, we may choose to temporarily or permanently stop shipping product to that retailer.

As of June 30, 2024, December 31, 2023, and January 1, 2023, the Company had net accounts receivable balances of $83.8 million, $111.2 million and $136.5 million, respectively. As of June 30, 2024, and December 31, 2023, the Company had an allowance for credit losses against accounts receivable of $1.1 million and $2.0 million, respectively.

3.Revenue and Deferred Revenue

Deferred revenue relates to performance obligations for which payments have been received from the customer prior to revenue recognition. Deferred revenue primarily consists of deferred subscription-based services. Deferred revenue also includes amounts allocated from the sale of a connected machine to the unspecified upgrades and enhancements and the Company’s cloud-based services. The Company has recognized no contract assets as of June 30, 2024, December 31, 2023 and January 1, 2023.

The following table summarizes the changes in the deferred revenue balance for the six months ended June 30, 2024 and 2023:

	Six Months Ended June 30,
	2024		2023
(in thousands)
Deferred revenue, beginning of period	$	43,235	$	38,658
Recognition of revenue included in beginning of period deferred revenue	(31,834)		(27,416)
Revenue deferred, net of revenue recognized on contracts in the respective period	35,724		31,175
Deferred revenue, end of period	$	47,125	$	42,417

As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was equal to the deferred revenue balance.

The Company expects the following recognition of deferred revenue as of June 30, 2024:

	Year Ended December 31,
	2024 (remainder of year)		2025		2026		2027		Total
(in thousands)
Revenue expected to be recognized	$	35,777	$	9,940	$	1,274	$	134	$	47,125

The Company’s revenue from contracts with customers disaggregated by major product lines, excluding sales-based taxes, are included in Note 16 under the heading “Segment Information.”

Revenue recognized during the three and six months ended June 30, 2024 related to performance obligations satisfied or partially satisfied was $0.3 million and $2.9 million, respectively.

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The following table presents the total revenue by geography based on the ship-to address for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
North America*	$	134,415	$	145,124	$	269,250	$	292,880
International	33,532		32,641		66,089		66,112
Total revenue	$	167,947	$	177,765	$	335,339	$	358,992
*North America revenue consists of revenues from the United States and Canada.

The following table presents the total revenue by source for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Platform	$	77,649	$	77,386	$	155,935	$	153,627
Connected machines	43,970		37,284		80,918		71,415
Accessories and materials	46,328		63,095		98,486		133,950
Total revenue	$	167,947	$	177,765	$	335,339	$	358,992

4.Cash, Cash Equivalents, and Financial Instruments

The following table shows the Company’s cash, cash equivalents, and marketable securities by significant investment category as of June 30, 2024 and December 31, 2023:

	As of June 30, 2024
	Adjusted Cost		Total Unrealized Gains		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	139,840	$	—	$	139,840	$	139,840	$	—
Level 1:
Money market funds	55,712		—		55,712		55,712		—
Subtotal	55,712		—		55,712		55,712		—
Level 2:
U.S. treasury securities	103,427		480		103,907		—		103,907
Subtotal	103,427		480		103,907		—		103,907
Total	$	298,979	$	480	$	299,459	$	195,552	$	103,907

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	As of December 31, 2023
	Adjusted Cost		Total Unrealized Gains		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	44,809	$	—	$	44,809	$	44,809	$	—
Level 1:
Money market funds	97,378		—		97,378		97,378		—
Subtotal	97,378		—		97,378		97,378		—
Level 2:
U.S. treasury securities	102,411		541		102,952		—		102,952
Subtotal	102,411		541		102,952		—		102,952
Total	$	244,598	$	541	$	245,139	$	142,187	$	102,952

Marketable securities held as of June 30, 2024 generally mature over the next twenty-four months. As of June 30, 2024 and December 31, 2023 all balances were in a gain position, therefore there are no allowances for credit losses recorded for the periods presented.

5.Inventories

Inventories are comprised of the following:

	As of June 30, 2024		As of December 31, 2023
(in thousands)
Raw materials	$	43,406	$	44,935
Finished goods	232,315		286,988
Total inventories	$	275,721	$	331,923
Less: reserves	(51,388)		(54,416)
Total inventories, net	224,333		277,507
Inventories current	$	192,340	$	244,469
Inventories non-current (included in other assets)	$	31,993	$	33,038

The Company’s recorded inventory reserves as of June 30, 2024 consisted of $2.9 million related to excess connected machine inventory, $45.3 million related to excess accessories and materials inventory, and $3.2 million related to raw material components. Amounts charged to the reserve account are recorded primarily in cost of revenues.

6.     Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

	As of June 30, 2024		As of December 31, 2023
(in thousands)
Sales incentives	$	23,668	$	30,479
Other accrued liabilities and other current liabilities	46,824		41,454
Total accrued expenses	$	70,492	$	71,933

7.    Revolving Credit Facility

On August 4, 2022, the Company entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A, Citigroup N.A., PNC Bank, N.A., KeyBank, N.A., and other parties. The Credit Agreement replaced the Company’s prior asset-based Credit Agreement with JPMorgan Chase Bank, N.A., Citigroup N.A., and Origin Bank. The Credit Agreement provides for a five-year revolving credit facility (the “Credit Facility”) of up to $300.0 million, maturing on August 4, 2027. In addition, during the term of the Credit Agreement, the Company may

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increase the aggregate amount of the Credit Facility by up to an additional $150.0 million, (for maximum aggregate lender commitments of up to $450.0 million), subject to customary conditions under the Credit Agreement, including obtaining a consent from participating lenders (or another lender, if applicable) to such increase. The Credit Facility may be used to issue letters of credit and for other business purposes, including working capital needs. The current unused fee rate is 0.175% on per annum basis.

As of June 30, 2024, and December 31, 2023 total unamortized debt issuance costs were $1.0 million and $1.2 million, respectively.

The Credit Agreement is collateralized by substantially all of the Company’s assets and contains affirmative and negative covenants, representations and warranties, events of default and other terms customary for loans of this nature. In particular, the Credit Agreement will not permit the leverage ratio to be greater than 3.0 to 1.0, measured on the last day of any fiscal quarter. In addition, the Credit Agreement will not permit the interest coverage ratio to be less than 3.0 to 1.0, for any period of four consecutive quarters, measured on the last day of any fiscal quarter. Management has determined that the Company was in compliance with all financial and non-financial debt covenants as of June 30, 2024. As of June 30, 2024 and December 31, 2023, no amounts were outstanding under the Credit Agreement and available borrowings were $300.0 million.

Generally, borrowings under the Credit Agreement bear interest at a rate based on an alternative base rate (“ABR”), plus, in each case, an applicable margin. The applicable margin will range from (a) borrowings bearing interest at the ABR plus 2.00%, and (b) borrowings bearing interest at the Adjusted Term Secured Overnight Financing Rate, the Adjusted Australian Dollar Rate, the Adjusted Canadian Dollar Offered Rate or the Adjusted New Zealand Dollar Rate, as applicable for the interest period in effect for such borrowing plus the applicable rate.

8.Income Taxes

The Company computes interim period income taxes by applying an estimated annual effective tax rate to our year-to-date income from operations before income taxes, except for significant unusual or infrequently occurring items. The estimated effective tax rate is adjusted each quarter.

The estimated effective tax rate was 33.6% and 32.1% for the three and six months ended June 30, 2024, respectively, and 30.2% and 29.8% for the three and six months ended June 30, 2023, respectively. The Company’s provision for income taxes was $10.0 million and $18.7 million for the three and six months ended June 30, 2024, respectively, and $6.9 million and $10.7 million for the three and six months ended June 30, 2023, respectively. The provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate for the periods presented primarily due to an increase for permanent adjustments from Section 83(b) elections and stock-based compensation differences resulting from the decrease in stock price upon vesting versus the stock price at the grant date.

The Company reviews its deferred tax assets for realization based upon historical taxable income, prudent and feasible tax planning strategies, the expected timing of the reversals of existing temporary differences and expected future taxable income. The Company has concluded that it is more likely than not that the net deferred tax assets will be realized. Accordingly, the Company has not recorded a valuation allowance against net deferred tax assets for any of the periods presented.

9.Capital Structure

As of June 30, 2024, the Company had authorized 100,000,000 shares of preferred stock, par value $0.001 per share, and 1,250,000,000 shares of common stock, par value $0.001 per share, which was divided between two series: Class A common stock and Class B common stock. As of June 30, 2024, the Company had 1,000,000,000 shares of Class A common stock and 250,000,000 shares of Class B common stock authorized and 53,214,366 shares of Class A common stock and 162,871,647 shares of Class B common stock issued and outstanding. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to five votes per share and is convertible at any time into one share of Class A common stock. During the six months ended June 30, 2024 and 2023, 3,540,837 and 8,573,915 shares of Class B common stock were converted to Class A common stock, respectively.

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Stock Repurchase Program

On July 19, 2022, the Company’s Board of Directors approved a share repurchase program to purchase shares of our outstanding Class A common stock up to an aggregate transactional value of $50 million which was recently completed. On May 6, 2024, the Company’s Board of Directors approved an additional $50 million for the share repurchase program to purchase shares of its outstanding Class A common stock depending on the Company’s continuing analysis of market, financial, and other factors. The share repurchase program may be suspended or discontinued at any time and does not have a predetermined expiration date.

During the six months ended June 30, 2024, the Company repurchased and retired 3,170,333 shares of our Class A common stock for $20.0 million.

Dividends

On May 6, 2024, the Company declared a special dividend of $0.40 per share and a recurring semi-annual dividend of $0.10 per share on its Class A and Class B common stock, payable on July 19, 2024 to shareholders of record as of July 2, 2024. As part of the dividends, and pursuant to the underlying award agreements, holders of restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”) received a dividend equivalent of $0.40 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $121.7 million was to be satisfied in cash of $108.2 million payable to holders of Class A and Class B common stock with the remaining $13.5 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

On May 18, 2023, the Company declared a special dividend of $1.00 per share on its Class A and Class B common stock, payable on July 17, 2023 to shareholders of record as of July 3, 2023. As part of the dividend, and pursuant to the underlying award agreements, holders of restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”) received a dividend equivalent of $1.00 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $234.6 million was to be satisfied in cash of $219.8 million payable to holders of Class A and Class B common stock with the remaining $14.8 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

On December 21, 2022, the Company declared a special dividend of $0.35 per share on its Class A and Class B common stock, payable on February 15, 2023 to shareholders of record as of February 1, 2023. As part of the dividend, and pursuant to the underlying award agreements, holders of RSUs and PRSUs received a dividend equivalent of $0.35 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $81.4 million was to be satisfied in cash of $76.9 million payable to holders of Class A and Class B common stock with the remaining $4.5 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

During the three and six months ended June 30, 2024, an aggregate of $0.1 million and $1.5 million, respectively, was paid in cash. During three and six months ended June 30, 2023, $0.3 million and $75.8 million was paid in cash, and during the six months ended June 30, 2023, $4.4 million was satisfied in the form of dividend equivalents to RSU or PRSU holders.

Dividends payable includes dividends declared but not yet paid and prior dividends on unvested shares of Class B common stock payable upon future vesting.

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10.Stock-Based Compensation

Stock-Based Compensation Cost

The following table shows the stock-based compensation cost by award type for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Equity classified awards
Restricted stock units	$	10,027	$	10,640	$	19,824	$	19,019
Stock options	244		520		680		1,146
Class B common stock	1,034		1,383		2,273		3,272
Liability classified awards	12		14		20		26
Total stock-based compensation	$	11,317	$	12,557	$	22,797	$	23,463

The following table sets forth the total stock-based compensation cost included in the Company’s condensed consolidated statements of operations and comprehensive income or capitalized to assets for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Cost of revenue
Platform	$	255	$	214	$	492	$	329
Products	210		440		396		898
Total cost of revenue	465		654		888		1,227
Research and development	3,540		4,717		7,253		8,623
Sales and marketing	2,988		3,001		5,924		6,206
General and administrative	3,626		3,514		7,311		6,251
Total stock-based compensation expense	$	10,619	$	11,886	$	21,376	$	22,307
Capitalized for software development costs	365		545		695		975
Capitalized to inventories	333		126		726		181
Total stock-based compensation	$	11,317	$	12,557	$	22,797	$	23,463

As of June 30, 2024, there was $92.5 million of unrecognized stock-based compensation cost related to service-based awards which is expected to be recognized over a weighted-average period of 2.5 years. The total unrecognized compensation expense related to unvested PRSUs was $150.4 million as of June 30, 2024.

2021 Equity Incentive Plan

In March 2021, the Company’s 2021 Equity Incentive Plan became effective. The 2021 Equity Incentive Plan provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to our employees, directors and consultants and our parent and subsidiary corporations’ employees and consultants. As of June 30, 2024, 50,889,323 shares of Class A common stock were reserved for issuance under this plan including shares reserved for previously granted awards discussed below as well as shares reserved for issuance of future awards under the plan.

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A summary of the Company’s service-based restricted stock unit (“RSU”) activity under the 2021 Equity Incentive Plan is as follows:

	Number of RSUs	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2023	8,893,831	$	14.38
Granted	4,784,410	$	5.86
Vested	(2,467,161)	$	15.56
Forfeited / cancelled	(505,028)	$	13.21
Outstanding at June 30, 2024	10,706,052	$	10.35

In 2022, the Company granted PRSUs under the 2021 Equity Incentive Plan to certain employees that represent shares potentially issuable in the future. The PRSUs vest in two equal tranches subject to the Company achieving cumulative adjusted earnings per share over eight quarters of $4.93 per share and $6.16 per share, respectively, at any point during the 5-year performance period, subject to employees remaining with the Company through the vesting date. Adjusted earnings per share means GAAP net income adjusted to exclude income tax expenses, as well as stock-based compensation expense and payroll tax expense specifically related to the PRSU awards.

A summary of the Company’s PRSU activity under the 2021 Equity Incentive Plan is as follows:

	Number of PRSUs (a)	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2023	6,766,001	$	23.32
Forfeited / cancelled	(317,939)	$	23.37
Outstanding at June 30, 2024	6,448,062	$	23.32

a.Represents the maximum number of PRSUs assuming all performance targets are achieved.

The expense recognized each period for these PRSUs is primarily dependent upon the Company’s estimate of the probability of achieving the performance targets. At June 30, 2024, the Company determined it was not probable any performance conditions would be achieved so no stock-based compensation was recorded for these PRSUs during the six months ended June 30, 2024.

Options under the 2021 Equity Incentive Plan have a contractual term of 10 years. The exercise price of an incentive stock option and non-qualified stock option shall not be less than 100% of the fair market value of the shares on the date of grant.

A summary of the Company’s stock option activity under the 2021 Equity Incentive Plan is as follows:

	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	2,999,085	$	18.65	3.5	$	—
Forfeited / cancelled	(94,737)	$	18.65
Outstanding at June 30, 2024	2,904,348	$	18.65	2.7	$	—
Vested and exercisable at June 30, 2024	2,610,038	$	18.65	2.7	$	—

During the six months ended June 30, 2024 and 2023, no options were granted.

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Certain employees received restricted stock unit equivalents (“RSU equivalents”) which upon vesting are settled for a cash payment equal to the difference between the Company’s stock price on the vesting date less the base price specified at the time of the grant. As of June 30, 2024, the total recognized liability for these awards was immaterial.

Unvested Class B Common Stock

The Company’s unvested Class B common stock resulted from the Corporate Reorganization and is not part of the 2021 Equity Incentive Plan. Activity related to Class B common stock subject to future vesting for the six months ended June 30, 2024 is as follows:

	Number of Unvested Shares	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2023	1,656,679	$	20.00
Vested	(1,067,925)	$	20.00
Forfeited / cancelled	(88,630)	$	20.00
Outstanding at June 30, 2024	500,124	$	20.00

Options to Purchase Class B Common Stock

The Company’s options to purchase Class B common stock resulted from the Corporate Reorganization and are not part of the 2021 Equity Incentive Plan. A summary of the Company stock option activity for the options to purchase shares of Class B common stock is as follows:

	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	259,425	$	7.69	1.9	$	—
Forfeited / cancelled	(28,000)	$	7.69
Outstanding at June 30, 2024	231,425	$	7.69	1.3	$	—
Vested and exercisable at June 30, 2024	231,425	$	7.69	1.3	$	—

During the six months ended June 30, 2024 and 2023, the total intrinsic value of options exercised was immaterial.

2021 Employee Stock Purchase Plan

In March 2021, the Company’s 2021 Employee Stock Purchase Plan (“2021 ESPP”) became effective. Subject to any limitations contained therein, the 2021 ESPP allows eligible employees to contribute, through payroll deductions, up to 15% of their eligible compensation to purchase the Company’s Class A common stock at a discounted price per share. As of June 30, 2024, 10,602,602 shares of our Class A common stock were available for sale under the 2021 ESPP.

No offerings have been authorized to date by the administrator under the 2021 ESPP. If the administrator authorizes an offering period under the 2021 ESPP, the administrator will establish the duration of offering periods and purchase periods, including the starting and ending dates of offering periods and purchase periods, provided that no offering period may have a duration exceeding 27 months.

11.Commitments and Contingencies

Litigation

The Company is subject to certain outside claims and litigation arising in the ordinary course of business. Management is not aware of any contingencies which it believes will have a material effect on its financial position, results of operations or liquidity.

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12.Leases

The Company leases office space with lease terms ranging from one to six years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease.

The Company has determined its leases should be classified as operating leases. Variable lease costs are comprised primarily of the Company's proportionate share of operating expenses, property taxes, and insurance and are classified as lease cost due to the Company's election to not separate lease and non-lease components. The Company incurred operating lease costs of $1.3 million and $2.7 million for the three and six months ended June 30, 2024, respectively, and $1.3 million and $2.7 million, respectively for the three and six months ended June 30, 2023. The Company also incurred variable lease costs of $0.1 million and $0.2 million for the three and six months ended June 30, 2024, respectively, and $0.1 million and $0.2 million, for the three and six months ended June 30, 2023, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $1.5 million for both the three months ended June 30, 2024 and 2023, and $3.0 million for both the six months ended June 30, 2024 and 2023. These amounts were included in net cash provided by operating activities in the Company's consolidated statements of cash flows.

As of June 30, 2024, the maturities of the Company's operating lease liabilities were as follows: 

Year Ended December 31,	Operating Leases
	(in thousands)
2024 (remainder of the year)	$	2,711
2025	4,596
2026	3,991
2027	967
Total lease payments	$	12,265
Less: imputed interest	$	(439)
Present value of operating lease liabilities	$	11,826
Operating lease liabilities, current	$	4,964
Operating lease liabilities, non-current	$	6,862

The weighted average remaining operating lease term and the weighted average discount rate used to determine the operating lease liability were as follows:

	As of June 30, 2024		As of December 31, 2023
Weighted-average remaining lease term of operating leases	2.5 years		2.9 years
Weighted-average discount rate of operating leases	3.0	%	2.5	%

13.Restructuring

During the three months ended March 31, 2024, and March 31, 2023, the Company undertook restructuring plans to improve efficiency and streamline operations. Costs for each plan were primarily settled within the first fiscal quarter of 2023 and 2024, respectively. During the six months ended June 30, 2024, the Company recognized severance costs of $0.9 million, of which $0.4 million, $0.4 million and $0.1 million were recorded within research and development, selling and marketing, and general and administrative expense, respectively. During the six months ended June 30, 2023, the Company recognized severance costs of $1.2 million, of which $0.7 million, $0.3 million, $0.2 million were recorded within research and development, selling and marketing, and general and administrative expense, respectively.

14.Employee Benefit Plan

The Company sponsors a 401(k) plan for the benefit of its employees who have attained at least 18 years of age. The Company matches 50% of the first 12% of an employee’s salary contributed to the plan on the first day of the month following their hire date. The Company contributed $0.6 million and $0.7 million for the three months

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ended June 30, 2024 and 2023, respectively, and $1.3 million and $1.4 million for the six months ended June 30, 2024 and 2023, respectively.

15.Net Income Per Share

The computation of net income per share is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands, except share and per share amounts)
Basic earnings per share:
Net income	$	19,769	$	16,024	$	39,416	$	25,123
Shares used in computation:
Weighted-average common shares outstanding, basic	216,422,513		216,963,697		215,986,713		216,236,887
Earnings per share, basic	$	0.09	$	0.07	$	0.18	$	0.12
Diluted earnings per share:
Net income	$	19,769	$	16,024	$	39,416	$	25,123
Shares used in computation:
Weighted-average common shares outstanding, basic	216,422,513		216,963,697		215,986,713		216,236,887
Weighted-average effect of potentially dilutive securities:
Unvested common stock subject to forfeiture	279,481		1,740,938		535,850		2,283,285
Employee stock options	—		32,133		—		14,971
Restricted stock units	799,652		1,179,071		868,328		1,062,834
Diluted weighted-average common shares outstanding	217,501,646		219,915,839		217,390,891		219,597,977
Diluted net income per share	$	0.09	$	0.07	$	0.18	$	0.11

The following potentially dilutive shares were excluded from the computation of diluted earnings per share for the periods presented because including them would have had an anti-dilutive effect:

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Employee stock options	3,135,773	3,050,351	3,135,773	3,050,351
Restricted stock units	5,924,084	4,728,505	10,484,929	8,068,678
Unvested common stock subject to forfeiture	227,864	367,133	245,442	552,113

As of June 30, 2024, 6,448,062 PRSUs were not assessed for inclusion in diluted earnings per share, and any potential antidilutive shares were excluded from the table above because they are subject to performance conditions that were not achieved as of such date.

16.Segment Information

In January 2024, the Company reevaluated its operating segments in order to better align with how the CODM evaluates performance and allocates resources. The key factor evaluated by the Company resulted from the growth and expansion of Design Space, the Company’s digital platform. Since its initial public offering, the Company’s digital platform has evolved and grown considerably. Key enhancements to the platform include the size of its images, fonts, and projects library, the introduction of advanced design tools, the software support for several new cutting machines, and the creation of enhanced subscriptions offerings. The change in operating segments reflects the Company’s strategy to focus on continuing to expand revenue and margin generated from its digital

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platform and Paid Subscribers. At the same time, a number of product related factors also contributed to this decision, including the relative importance of physical products to the platform, including bundles (comprised of several combinations of machines, accessories, and materials), and changes in our Accessories and Materials business. Based on these changes, the Company has determined that it was appropriate to reduce its reportable segments from three to two, combining its Subscriptions and digital content businesses into one Platform segment, and its Connected Machines and Accessories and Materials businesses into one Product segment. Prior period segment results have been retrospectively recast to reflect the new reportable segments.

The CODM reviews revenue and gross profit for each of the reportable segments. Gross profit is defined as revenue less cost of revenue incurred by the segment. The Company considered the provisions of ASC 280-10-50 as it relates to the information provided to and used by the CODM for evaluating performance and allocating resources to operating segments.

The Company does not allocate assets at the reportable segment level as these are managed on an entity wide group basis. As of June 30, 2024, long-lived assets located outside the United States, primarily located in Malaysia and China, were $6.0 million.

The Platform segment derives revenue primarily from monthly and annual subscription fees, digital content, and a portion of the revenue allocated to unspecified future upgrades and enhancements related to the essential software and access to the Company’s cloud-based services. For the six months ended June 30, 2024, upfront digital content revenue comprised 1% of Platform revenue. The remaining Platform revenue consists of ratably recognized subscription revenue. The Products segment derives revenue primarily from the sale of its connected machine hardware, and sale of craft, DIY, home décor products and extensions. There are no internal revenue transactions between the Company’s segments.

Key financial performance measures of the segments including revenue, cost of revenue and gross profit are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Platform:
Revenue	$	77,649	$	77,386	$	155,935	$	153,627
Cost of revenue	8,888		8,008		17,647		15,769
Gross profit	$	68,761	$	69,378	$	138,288	$	137,858
Products:
Revenue	$	90,298	$	100,379	$	179,404	$	205,365
Cost of revenue	69,219		82,102		136,258		178,902
Gross profit	$	21,079	$	18,277	$	43,146	$	26,463
Consolidated:
Revenue	$	167,947	$	177,765	$	335,339	$	358,992
Cost of revenue	78,107		90,110		153,905		194,671
Gross profit	$	89,840	$	87,655	$	181,434	$	164,321

17.Subsequent Events

On July 1, 2024, the Company granted 9,808,000 RSUs to employees and directors of the Company under the 2021 Equity Incentive Plan which vest 30% and 70% for the first and second tranches, subject to the Company achieving operating income over four consecutive quarters of $149 million and $240 million, respectively.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read together with our interim condensed consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements included in our Annual Report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results could differ materially from these forward-looking statements as a result of many factors, including those discussed, or incorporated by reference, in the sections titled “Risk Factors” and “Note Regarding Forward-Looking Statements.”

Overview of Our Business and History

At Cricut, our mission is to help people lead creative lives. We have designed and built a creativity platform that enables our engaged and loyal community of 5.9 million Active Users to turn ideas into professional-looking handmade goods. We define “Active User” as a registered user of at least one registered connected machine who has utilized their connected machine to create a project in the last 365 days. With our highly versatile Design Space Platform and our products, including our connected machines and accessories and materials, our users create everything from personalized birthday cards, mugs and T-shirts, to large-scale interior decorations.

Our users’ journeys typically begin with the purchase of a connected machine. We currently sell a portfolio of connected machines that cut, write, score and create other decorative effects using a wide variety of materials including paper, vinyl, iron-on vinyl, pens, and more. Our connected machines are designed for a wide range of uses and are available at a variety of price points (MSRP by machine family as of June 30, 2024):

•Cricut Joy family for personalization, organization, and customization, $149.00 - $199.00 MSRP

•Cricut Explore family for cutting, writing and scoring, $249.00 - $319.00 MSRP

•Cricut Maker family for cutting, writing, scoring and adding decorative effects to a wider range of materials, $399.00 - $429.00 MSRP

•Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds, $999.00 MSRP

Our platform integrates our design apps and connected machines, allowing our users to create and share seamlessly. Our software is cloud-based, meaning that users can access and work on their projects anywhere, at any time, across desktops or mobile devices. We enable our users to be inspired, to create and share projects with the Cricut community and to follow others doing the same. On our platform, users can find inspiration, purchase or upload content like fonts and images, design a project from scratch or find a vast array of ready-to-make projects.

Users can leverage the full power of our platform by using our connected machines together with our free design apps, in-app purchases and subscription offerings to design and complete projects. All users can access a select number of free images, fonts and projects from our design apps or upload their own. In addition, we offer a wider selection of images, fonts and projects for purchase à la carte, including licensed content from partners with well-known brands and characters, like major motion picture studio[s. We also have two subscription offerings:

•Cricut Access: Provides a subscription to images, fonts and projects as well as other member benefits, including exclusive software features and functionality, discounts, and priority Cricut Member Care. Cricut Access is billed monthly for $9.99 per month or annually for $95.88 per year.

•Cricut Access Premium: Includes all of the benefits of Cricut Access as well as additional discounts and preferred shipping and is billed annually for $119.88 per year.

As of June 30, 2024, we had 2.8 million Paid Subscribers to Cricut Access and Cricut Access Premium.

We sell a broad range of accessories and materials that bring our users’ designs to life, from advanced tools like heat presses to Cricut-branded rulers, scoring tools, pens, paper and iron-on vinyl, all designed to work seamlessly with our connected machines. Designing and completing projects drives repeat purchases of Cricut-branded accessories and materials.

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We design and develop our software and hardware products, and we work with third-party contract manufacturers to source components and finished goods and with third-party logistics companies to warehouse and distribute our products.

We sell our connected machines and accessories and materials through our brick-and-mortar and online retail partners, as well as through our website at cricut.com. Our partners include Amazon, Hobby Lobby, HSN, Jo-Ann, Michaels, Target, Walmart and many others. We also sell our products and subscriptions to Cricut Access and Cricut Access Premium on cricut.com.

Historically, we have experienced the highest revenue levels in the fourth quarter of the year, coinciding with the holiday shopping season in the United States. For example, in 2021, 2022 and 2023, our fourth quarter represented 30%, 32% and 30% of total revenue for the year, respectively. Our promotional discounting activity is higher in the fourth quarter as well, which negatively impacts gross margin during this period. For example, gross margin in the fourth quarter of 2023 was 42%, compared to gross margin of 45% for all of 2023. Additionally, sales of accessories and materials typically rise and fall with seasonal holiday crafting periods. The yearly seasonality patterns experienced in 2021, 2022, and 2023 are not representative of our typical historical patterns due to the unique aspects of the pandemic and condition of the global economy. For example, we experienced unusually high demand in the first and second quarters of 2021, which is inconsistent with normal seasonality patterns. In 2022, we experienced a deceleration of sales post-Q1 due to the global economic slowdown which drove a deviation from our typically expected seasonality. As the impact of the pandemic and global economic challenges on behaviors abate, we expect to return to a more normal seasonality pattern. As we continue to grow internationally, we expect we may experience seasonality in additional markets, which may differ from the seasonality experienced in the United States.

In January 2024, the Company reevaluated its operating segments in order to better align with how the CODM evaluates performance and allocates resources. The key factor evaluated by the Company resulted from the growth and expansion of Design Space, the Company’s digital platform. Since its initial public offering, the Company’s digital platform has evolved and grown considerably. Key enhancements to the platform include the size of its images, fonts, and projects library, the introduction of advanced design tools, the software support for several new cutting machines, and the creation of enhanced subscriptions offerings. In 2020, revenue and gross profit generated from the platform represented 12% and 31% of total, respectively. In 2023, revenue and gross profit generated from the platform represented 40% and 80% of total, respectively. Over this same time period, Paid Subscribers on the platform grew 115% from 1.3 million to nearly 2.8 million. The change in operating segments reflects the Company’s strategy to focus on continuing to expand revenue and margin generated from its digital platform and Paid Subscribers. At the same time, a number of product related factors also contributed to this decision, including the relative importance of physical products to the platform, including bundles (comprised of several combinations of machines, accessories, and materials), and changes in our Accessories and Materials business. Based on these changes, the Company has determined that it was appropriate to reduce its reportable segments from three to two, combining its Subscriptions and digital content businesses into one Platform segment, and its Connected Machines and Accessories and Materials businesses into one Product segment. Prior period segment results have been retrospectively recast to reflect the new reportable segments.

For more information regarding our business model, factors affecting our performance, and seasonality, please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report, which is incorporated herein by reference.

Key Business Metrics

In addition to the measures presented in our interim condensed consolidated financial statements, we use the following key metrics to evaluate our business, measure our performance, identify trends and make strategic decisions.

	As of June 30,
	2024	2023
Active Users (in thousands)	5,918	5,912
90-Day Engaged Users (in thousands)	3,541	3,652
Paid Subscribers (in thousands)	2,813	2,722

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	Three Months Ended June 30,
	2024		2023
Platform ARPU	$	52.61	$	50.13

Active Users

We define Active Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 365 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total Active Users and the prior owner is removed from the total Active Users if the prior owner does not own any other registered connected machines. Active Users is a key indicator of the health of our business, because changes in the number of Active Users excludes non-users to better represent opportunities for us to drive additional platform and accessories and materials revenue.

90-Day Engaged Users

We define 90-Day Engaged Users as registered users of at least one registered connected machine who have utilized their connected machine to create a project in the last 90 days. One user may own multiple registered connected machines but is only counted once if that user registers those connected machines by using the same email address. If possession of a connected machine is transferred to a new owner and registered by that new owner, the new owner is added to the total 90-Day Engaged Users and the prior owner is removed from the total 90-Day Engaged Users if the prior owner does not own any other registered connected machines. 90-Day Engaged Users excludes non-users to better represent opportunities for us to drive additional platform and accessories and materials revenue.

Paid Subscribers

We define Paid Subscribers as the number of users with a subscription to Cricut Access or Cricut Access Premium, excluding cancelled, unpaid or free trial subscriptions, as of the end of a period. Paid Subscribers is a key metric to track growth in our Platform revenue and potential leverage in our gross margin.

Platform ARPU

We define Platform ARPU as Platform revenue in a 12-month period divided by Active Users. Platform ARPU allows us to forecast Platform revenue over time and is an indicator of our ability to expand with users and of user engagement with our subscription offerings.

Components of our Results of Operations

We operate and manage our business in two reportable segments: Platform and Products. We identify our reportable segments based on the information used by management to monitor performance and make operating decisions. See Note 16 to our unaudited consolidated financial statements included elsewhere in this filing for additional information regarding our reportable segments.

Revenue

Platform

We generate Platform revenue primarily from sales of subscriptions to Cricut Access and Cricut Access Premium, digital content, and a minimal amount of revenue allocated to the unspecified future upgrades and enhancements related to the essential software and access to our cloud-based services. For a monthly or annual subscription fee, Cricut Access includes a subscription to images, fonts and projects as well as other member benefits, including exclusive software features and functionality, discounts, and priority Cricut Member Care. For our annual subscription fee, Cricut Access Premium includes all the benefits of Cricut Access as well as additional discounts and preferred shipping. Digital content includes à la carte digital content purchases, including fonts, images and projects. Platform revenue is recognized on a ratable basis over time, during the subscription term for subscriptions, and at the point in time when control is transferred for à la carte digital content.

24

Products

We generate Products revenue from sales of connected machines and ancillary products, net of sales discounts, incentives and returns, and includes amounts allocated to the material right for discounts on materials and accessories available only to Paid Subscribers. Our connected machines portfolio consists of machines in four product families: Cricut Maker, which includes Maker and Maker 3; Cricut Explore, which includes Explore Air 2 and Explore 3; Cricut Joy, which includes Joy and Joy Xtra; and Cricut Venture. Our ancillary products include Cricut EasyPress, Cricut MugPress, hand tools, machine replacement tools and blades, and project materials such as vinyl and iron-on. Products revenue is recognized at the point in time when control is transferred, which is either upon shipment or delivery to the customer in accordance with the terms of each customer contract.

Cost of Revenue

Platform

Cost of revenue related to Platform consists primarily of hosting fees, digital content costs, amortization of capitalized software development costs and software maintenance costs. We expect our cost of revenue related to Platform as a percentage of revenue to fluctuate in the near term as we expand our content offerings, including localized content for international target markets, and decrease over time as we drive greater scale and efficiency in our business.

Products

Cost of revenue related to Products consists of product costs, including costs of components, cost of contract manufacturers for production, inspecting and packaging, shipping, receiving, handling, warehousing and fulfillment, duties and other applicable importing costs, warranty replacement, excess and obsolete inventory write-downs, tooling and equipment depreciation and royalties. We expect our cost of revenue related to Products as a percentage of revenue to fluctuate in the near term as we continue selling through end of life machines, address global supply chain challenges and continue to invest in the growth of our business and decrease over the long term as we drive greater scale and efficiency in our business.

Operating Expenses

Research and Development

Research and development expenses consist primarily of costs associated with the development of our platform and products, including personnel-related expenses for engineering, product development and quality assurance, as well as prototype costs, service fees incurred by contracting with vendors and allocated overhead. We expect our research and development expenses to fluctuate in the near term as we refine our product roadmaps. We expect to produce gross savings of approximately $3.2 million during 2024 as a result of the Q1 2024 restructuring plan.

Sales and Marketing

Sales and marketing expenses consist primarily of the advertising and marketing of our products, third-party payment processing fees, personnel-related expenses, including salaries and bonuses, benefits and stock-based compensation expense, as well as sales incentives, professional services, promotional items, and allocated overhead costs. We expect our sales and marketing expenses as a percentage of revenue to fluctuate in the near term. We expect to produce gross savings of approximately $2.5 million during 2024 as a result of the Q1 2024 restructuring plan.

General and Administrative

General and administrative expenses consist of personnel-related expenses for our finance, legal, human resources and administrative personnel, including salaries and bonuses, benefits and stock-based compensation expense, as well as the costs of professional services, any allocated overhead, information technology, impairment charges of unused equipment, and other administrative expenses. We expect our general and administrative expenses as a percentage of revenue to increase in the near term as we expand our operations, invest in systems enhancements, and incur expenses required of a public company. We expect to produce gross savings of approximately $0.6 million during 2024 as a result of the Q1 2024 restructuring plan.

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Other Income, Net

Other income, net consists primarily of interest income from our investments in marketable securities, offset by interest expense associated with our debt financing arrangements and amortization of debt issuance costs.

Provision for Income Taxes

Provision for income taxes consists of income taxes in the United States and certain state and foreign jurisdictions in which we conduct business. We have not recorded a valuation allowance against our deferred tax assets as we have concluded that it is more likely than not that the deferred tax assets will be realized.

Results of Operations

The following tables set forth the components of our interim condensed consolidated statements of operations for each of the periods presented and as a percentage of our revenue for those periods. The period-to-period comparison of results of operations is not necessarily indicative of results of future periods.

The following table is presented in thousands:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Revenue:
Platform	$	77,649	$	77,386	$	155,935	$	153,627
Products	90,298		100,379		179,404		205,365
Total revenue	167,947		177,765		335,339		358,992
Cost of revenue:
Platform(1)	8,888		8,008		17,647		15,769
Products(1)	69,219		82,102		136,258		178,902
Total cost of revenue	78,107		90,110		153,905		194,671
Gross profit	89,840		87,655		181,434		164,321
Operating expenses:
Research and development(1)	14,315		16,346		29,168		34,147
Sales and marketing(1)	33,354		29,407		66,384		59,023
General and administrative(1)	15,739		22,652		34,245		41,372
Total operating expenses	63,408		68,405		129,797		134,542
Income from operations	26,432		19,250		51,637		29,779
Other income, net	3,360		3,691		6,445		6,006
Income before provision for income taxes	29,792		22,941		58,082		35,785
Provision for income taxes	10,023		6,917		18,666		10,662
Net income	$	19,769	$	16,024	$	39,416	$	25,123

(1)    Includes stock-based compensation expense as follows:

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	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Cost of revenue
Platform	$	255	$	214	$	492	$	329
Products	210		440		396		898
Total cost of revenue	465		654		888		1,227
Research and development	3,540		4,717		7,253		8,623
Sales and marketing	2,988		3,001		5,924		6,206
General and administrative	3,626		3,514		7,311		6,251
Total stock-based compensation expense	$	10,619	$	11,886	$	21,376	$	22,307

Comparison of the Three and Six Months Ended June 30, 2024 and 2023

Revenue

	Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
	2024		2023		$		%		2024		2023		$		%
(dollars in thousands)
Revenue:
Platform	$	77,649	$	77,386	$	263	—	%	$	155,935	$	153,627	$	2,308	2	%
Products	90,298		100,379		(10,081)		(10)	%	179,404		205,365		(25,961)		(13)	%
Total revenue	$	167,947	$	177,765	$	(9,818)	(6)	%	$	335,339	$	358,992	$	(23,653)	(7)	%

Three Months Ended June 30, 2024 and 2023

Platform revenue increased by $0.3 million, or 0%, to $77.6 million for the three months ended June 30, 2024 from $77.4 million for the three months ended June 30, 2023. The increase was driven by an increase in the number of paid subscribers which increased from 2.7 million as of June 30, 2023 to 2.8 million as of June 30, 2024.

Products revenue decreased by $10.1 million, or 10%, to $90.3 million for the three months ended June 30, 2024 from $100.4 million for the three months ended June 30, 2023. The decrease was primarily driven by fewer units of Accessories & Materials sold during the period, partially offset by an increase in Connected Machine units sold during the period.

Six Months Ended June 30, 2024 and 2023

Platform revenue increased by $2.3 million, or 2%, to $155.9 million for the six months ended June 30, 2024 from $153.6 million for the six months ended June 30, 2023. The increase was driven by an increase in the number of paid subscribers which increased from 2.7 million as of June 30, 2023 to 2.8 million as of June 30, 2024.

Products revenue decreased by $26.0 million, or 13%, to $179.4 million for the six months ended June 30, 2024 from $205.4 million for the six months ended June 30, 2023. The decrease was primarily driven by fewer units of Accessories & Materials sold during the period, partially offset by an increase in Connected Machine units sold during the period.

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Cost of Revenue, Gross Profit and Gross Margin

	Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
	2024			2023			$		%		2024			2023			$		%
(dollars in thousands)
Cost of Revenue:
Platform	$	8,888		$	8,008		$	880	11	%	$	17,647		$	15,769		$	1,878	12	%
Products	69,219			82,102			(12,883)		(16)	%	136,258			178,902			(42,644)		(24)	%
Total cost revenue	$	78,107		$	90,110		$	(12,003)	(13)	%	$	153,905		$	194,671		$	(40,766)	(21)	%
Gross Profit:
Platform	68,761			69,378			(617)		(1)	%	138,288			137,858			430		0	%
Products	21,079			18,277			2,802		15	%	43,146			26,463			16,683		63	%
Total gross profit	$	89,840		$	87,655		$	2,185	2	%	$	181,434		$	164,321		$	17,113	10	%
Gross Margin
Platform	89		%	90		%					89		%	90		%
Products	23		%	18		%					24		%	13		%

Three Months Ended June 30, 2024 and 2023

Platform cost of revenue increased by $0.9 million, or 11%, to $8.9 million for the three months ended June 30, 2024 from $8.0 million for the three months ended June 30, 2023. The increase was primarily driven by an increase in the amortization of capitalized software costs.

Gross margin for Platform was 89% for the three months ended June 30, 2024 and 90% for the three months ended June 30, 2023. The decrease was primarily driven by an increase in the amortization of capitalized software costs.

Products cost of revenue decreased by $12.9 million, or 16%, to $69.2 million for the three months ended June 30, 2024 from $82.1 million for the three months ended June 30, 2023. The decrease was primarily driven by a reduction in inventory impairment charges compared to prior year and fewer unit sales of Accessories & Materials.

Gross margin for Products was 23% for the three months ended June 30, 2024 and 18% for the three months ended June 30, 2023. The increase was primarily driven by a reduction in inventory impairment charges partially offset by higher inventory procurement costs and more promotional activity.

Six Months Ended June 30, 2024 and 2023

Platform cost of revenue increased by $1.9 million, or 12%, to $17.6 million for the six months ended June 30, 2024 from $15.8 million for the six months ended June 30, 2023. The increase was primarily driven by an increase in the amortization of capitalized software costs.

Gross margin for Platform was 89% for the six months ended June 30, 2024 and 90% for the six months ended June 30, 2023. The decrease was primarily driven by an increase in the amortization of capitalized software costs.

Products cost of revenue decreased by $42.6 million, or 24%, to $136.3 million for the six months ended June 30, 2024 from $178.9 million for the six months ended June 30, 2023. The decrease was primarily driven by a reduction in inventory impairment charges compared to prior year and fewer units of Accessories & Materials sold during the period.

Gross margin for Products was 24% for the six months ended June 30, 2024 and 13% for the six months ended June 30, 2023. The increase was primarily driven a reduction in inventory impairment charges compared to prior year.

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Operating Expenses

Research and Development

	Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
	2024			2023			$		%		2024			2023			$		%
(dollars in thousands)
Research and development	$	14,315		$	16,346		$	(2,031)	(12)	%	$	29,168		$	34,147		$	(4,979)	(15)	%
As a percentage of total revenue	9		%	9		%					9		%	10		%

Research and development expenses decreased by $2.0 million, or 12%, to $14.3 million for the three months ended June 30, 2024 from $16.3 million for the three months ended June 30, 2023. The decrease was primarily due to a $2.0 million decrease in personnel-related expense.

Research and development expenses decreased by $5.0 million, or 15%, to $29.2 million for the six months ended June 30, 2024 from $34.1 million for the six months ended June 30, 2023. The decrease was primarily due to a $3.3 million decrease in personnel-related expense, a $1.4 million decrease in product development expenses for future products, and a $0.4 million decrease in professional services.

Sales and Marketing

	Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
	2024			2023			$		%		2024			2023			$		%
(dollars in thousands)
Sales and marketing	$	33,354		$	29,407		$	3,947	13	%	$	66,384		$	59,023		$	7,361	12	%
As a percentage of total revenue	20		%	17		%					20		%	16		%

Sales and marketing expenses increased by $3.9 million, or 13%, to $33.4 million for the three months ended June 30, 2024 from $29.4 million for the three months ended June 30, 2023. The increase was primarily due to a $3.0 million increase in advertising and other marketing costs and a $1.1 million increase in personnel-related expense.

Sales and marketing expenses increased by $7.4 million, or 12%, to $66.4 million for the six months ended June 30, 2024 from $59.0 million for the six months ended June 30, 2023. The increase was primarily due to a $5.6 million increase in advertising and other marketing costs and a $1.9 million increase in personnel-related expense.

General and Administrative

	Three Months Ended June 30,						Change				Six Months Ended June 30,						Change
	2024			2023			$		%		2024			2023			$		%
(dollars in thousands)
General and administrative	$	15,739		$	22,652		$	(6,913)	(31)	%	$	34,245		$	41,372		$	(7,127)	(17)	%
As a percentage of total revenue	9		%	13		%					10		%	12		%

General and administrative expenses decreased by $6.9 million, or 31%, to $15.7 million for the three months ended June 30, 2024 from $22.7 million for the three months ended June 30, 2023. The decrease was primarily due to a $7.2 million decrease in bad debt expense.

General and administrative expenses decreased by $7.1 million, or 17%, to $34.2 million for the six months ended June 30, 2024 from $41.4 million for the six months ended June 30, 2023. The decrease was primarily due to a $7.3 million decrease in bad debt expense.

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Other Income, Net

	Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
	2024		2023		$		%		2024		2023		$		%
(dollars in thousands)
Other income, net	$	3,360	$	3,691	$	(331)	(9)	%	$	6,445	$	6,006	$	439	7	%

Other income, net decreased by $0.3 million or 9% to $3.4 million for the three months ended June 30, 2024 from $3.7 million for the three months ended June 30, 2023. The decrease was due to a decrease in interest income.

Other income, net increased by $0.4 million or 7% to $6.4 million for the six months ended June 30, 2024 from $6.0 million for the six months ended June 30, 2023. The increase was due to an increase in interest income.

Income Tax Expense

	Three Months Ended June 30,				Change				Six Months Ended June 30,				Change
	2024		2023		$		%		2024		2023		$		%
(dollars in thousands)
Provision for income taxes	$	10,023	$	6,917	$	3,106	45	%	$	18,666	$	10,662	$	8,004	75	%

Provision for income taxes increased by $3.1 million, or 45%, to $10.0 million for the three months ended June 30, 2024 from $6.9 million for the three months ended June 30, 2023. The increase was primarily due to an increase in stock-based compensation difference due to the decrease in stock price upon vesting versus the stock price at the grant date, and a decrease to the Research and Development credit. This resulted in an effective tax rate of 33.6% and 30.2% for the three months ended June 30, 2024 and 2023, respectively.

Provision for income taxes increased by $8.0 million, or 75%, to $18.7 million for the six months ended June 30, 2024 from $10.7 million for the six months ended June 30, 2023. The increase was primarily due to a decrease in the foreign derived intangible income deduction, an increase in stock-based compensation difference due to the decrease in stock price upon vesting versus the stock price at the grant date, and a decrease to the Research and Development credit. This resulted in an effective tax rate of 32.1% and 29.8% for the six months ended June 30, 2024 and 2023, respectively.

Liquidity and Capital Resources

Our operations during the periods presented have been financed primarily through cash flow from operating activities. We believe our balances of cash and cash equivalents and marketable securities, which totaled $195.6 million and $103.9 million, respectively, as of June 30, 2024, along with forecasted cash expected to be generated by ongoing operations and $300.0 million in available borrowings and the option to increase the aggregate amount of our credit facility by up to an additional $150.0 million (see Note 7) will be sufficient to satisfy our cash requirements over the next 12 months and beyond. Except for the recently announced special and semi-annual dividends and the new share repurchase program, our cash requirements have not changed materially since our Annual Report.

During the six months ended June 30, 2023, we paid a dividend of $75.8 million to holders of Class A and Class B common stock. After June 30, 2024, we paid a dividend of $107.9 million to holders of Class A and Class B common stock.

Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our rate of revenue growth, the timing and extent of spending on research and development efforts and other growth initiatives, the expansion of sales and marketing activities, the timing of new product introductions, market acceptance of our products and overall economic conditions. To the extent that current and anticipated future sources of liquidity are insufficient to fund our future business activities and requirements, we may be required to seek additional equity or debt financing. The sale of additional equity would result in additional dilution to our stockholders. The incurrence of debt financing would result in debt service obligations, and the instruments governing such debt could provide for operating and financing covenants that would restrict our

30

operations. There can be no assurances that we will be able to raise additional capital. The inability to raise capital would adversely affect our ability to achieve our business objectives.

Cash Flows

	Six Months Ended June 30,
	2024		2023
(in thousands)
Net cash flows provided by operating activities	$	91,648	$	159,612
Net cash flows used in investing activities	(9,965)		(12,825)
Net cash flows used in financing activities	(28,191)		(85,609)

Operating Activities

The change in net cash flows from operating activities for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 is primarily due to a decrease in accounts payable due to higher payments to inventory vendors in 2024 and a reduction in cash received from accounts receivable in 2024 compared to 2023. In addition, extension tax payments had a negative impact on cash.

Investing Activities

The change in net cash flows from investing activities for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 was due to lower purchases of property and equipment in 2024.

Financing Activities

The change in net cash flows from financing activities for the six months ended June 30, 2024 compared to six months ended June 30, 2023 was primarily due to dividend payments of $75.8 million in 2023 offset by an increase in the repurchase of common stock in 2024.

Critical Accounting Estimates

Our management’s discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with United States generally accepted accounting principles (“GAAP”). The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The critical accounting policies that reflect our more significant judgments and estimates used in the preparation of our condensed consolidated financial statements include those described in Note 2 of the notes to our condensed consolidated financial statements in the section titled “Summary of Significant Accounting Policies” in Part I, Item 1 of this Quarterly Report on Form 10-Q and in our Annual Report.

ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

For a discussion of the Company’s market risk, please refer to Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report. There have been no material changes to the Company’s market risk during the three and six months ended June 30, 2024.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) under the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures were effective to provide reasonable assurance that information

31

required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and to provide reasonable assurance that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our Chief Executive Officer and Chief Financial Officer, do not expect that our disclosure controls or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been or would be detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are not presently a party to any material pending legal proceedings. We are, from time to time, subject to legal proceedings and claims arising from the normal course of business activities, and an unfavorable resolution of any of these matters could materially affect our business, results of operations, financial condition or cash flows.

Litigation may be necessary, among other things, to defend ourselves or our users by determining the scope, enforceability and validity of third-party proprietary rights, to establish our proprietary rights, or to address royalty payments we make. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

In September 2020, we joined NXN LLC and dozens of other plaintiffs in a complaint against the U.S. federal government in the United States Court of International Trade alleging unlawful actions by the federal government on the imposition of the third and fourth round of tariffs on products covered in the United States Trade Representative’s Section 301 Action Concerning China’s Act’s, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. The complaint seeks declaratory judgment that the United States Trade Representative’s actions were beyond its delegated authority under the Trade Act of 1974 and in violation of the Administrative Procedure Act and the United States Constitution.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in “Part II. Item 1A — Risk Factors” in our quarterly report on Form 10-Q for the period ended March 31, 2024, filed on May 7, 2024, which are hereby incorporated by reference. The risks and uncertainties described in such risk factors and elsewhere in this report have the potential to materially affect our business, financial condition, results of operations, cash flows, projected results and future prospects. We do not believe that there have been any material changes to the risk factors previously disclosed in our recent SEC filings, including our most recently filed Form 10-Q, as referenced above.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Sales of Unregistered Securities

None.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

The following table provides information regarding share repurchases made by Cricut during the three months ended June 30, 2024:

Period	Total Number of Shares Purchased(1)	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Program	Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
				(in thousands)
April 1, 2024 through April 30, 2024	—	$—	—	$451
May 1, 2024 through May 31, 2024	200,000	$6.25	200,000	$49,201
June 1, 2024 through June 30, 2024	1,273,061	$6.30	1,273,061	$41,183
Total	1,473,061	$6.29	1,473,061	$41,183

(1) On August 9, 2022, we announced that our Board of Directors approved a common stock repurchase program to purchase shares of our outstanding Class A common stock up to an aggregate transactional value of $50 million. On May 6, 2024, the Board of Directors approved an additional $50 million for the share repurchase program, to purchase shares of our outstanding Class A common stock depending on our continuing analysis of market, financial, and other factors. The share repurchase program may be suspended or discontinued at any time and does not have a predetermined expiration date.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Securities Trading Plans of Directors and Executive Officers

During our last fiscal quarter, no director or officer, as defined in Rule 16a-1(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Regulation S-K Item 408.

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ITEM 6. EXHIBITS

The documents listed below are incorporated by reference or are filed with this Quarterly Report on Form 10-Q, in each case as indicated therein (numbered in accordance with Item 601 of Regulation S-K).

EXHIBIT INDEX

Exhibit Number	Description
10.1*+	Amended and Restated Outside Director Compensation Policy
31.1*	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*†	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
32.2*†	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*	Cover Page Interactive Data File - the cover page interactive data is embedded within the Inline XBRL document or included within the Exhibit 101 attachments

* Filed herewith

+ Indicates management contract or compensatory plan.

† The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed "filed" for purposes of Section 18 or the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:	August 6, 2024	By:		/s/ Ashish Arora
			Name:	Ashish Arora
			Title:	Chief Executive Officer
				(Principal Executive Officer)
Date:	August 6, 2024	By:		/s/ Kimball Shill
			Name:	Kimball Shill
			Title:	Chief Financial Officer
				(Principal Financial Officer)
Date:	August 6, 2024	By:		/s/ Ryan Harmer
			Name:	Ryan Harmer
			Title:	VP of Accounting, Corporate Controller
				(Principal Accounting Officer)

36

EX-10.1

CRICUT, INC.

AMENDED AND RESTATED OUTSIDE DIRECTOR COMPENSATION POLICY

Effective as of May 15, 2024 (the “Effective Date”)

Cricut, Inc. (the “Company”) believes that providing cash and equity compensation to members of its Board of Directors (the “Board,” and members of the Board, the “Directors”) represents an effective tool to attract, retain and reward Directors who are not employees of the Company (the “Outside Directors”). This Amended and Restated Outside Director Compensation Policy (the “Policy”) is intended to formalize the Company’s policy regarding the compensation to its Outside Directors. Unless defined in this Policy, capitalized terms used in this Policy will have the meaning given to such terms in the Company’s 2021 Equity Incentive Plan (the “Plan”), or if the Plan is no longer in place, the meaning given to such terms or any similar terms in the equity plan then in place. Each Outside Director will be solely responsible for any tax obligations incurred by such Outside Director as a result of the equity and cash payments such Outside Director receives under this Policy.

Subject to Section 8 of this Policy, this Policy will be effective as of the effective date of the Effective Date.

1.Cash Compensation.

Committee Annual Cash Retainer

Effective as of the Effective Date, each Outside Director who serves as the chair or a member of a committee of the Board listed below will be eligible to earn annual cash retainers as follows:

Chair of Audit Committee:            $50,000

Member of Audit Committee:            $20,000

Chair of Compensation Committee:        $20,000

Member of Compensation Committee:        $10,000

For clarity, each Outside Director who serves as the chair of a committee will receive only the annual cash retainer as the chair of the committee, and not the annual cash retainer as a member of the committee.

Payment

Each annual cash retainer under this Policy will be paid quarterly in arrears on a prorated basis to each Outside Director who has served in the relevant capacity at any point during the fiscal quarter, and such payment will be made on the last business day of such fiscal quarter (or as soon thereafter as practical, but in no event later than 30 days following the end of such fiscal quarter). For purposes of clarification, an Outside Director who has served as a member of an applicable committee (or chair thereof) during only a portion of the relevant Company fiscal quarter will receive a pro-rated payment of the quarterly payment of the

applicable annual cash retainer(s), calculated based on the number of days during such fiscal quarter such Outside Director has served in the relevant capacities.

2.Equity Compensation.

Outside Directors will be eligible to receive all types of Awards (except Incentive Stock Options) under the Plan (or the applicable equity plan in place at the time of grant), including discretionary Awards not covered under this Policy. All grants of Awards to Outside Directors pursuant to Section 2 of this Policy will be automatic and nondiscretionary, except as otherwise provided herein, and will be made in accordance with the following provisions:

(a)    No Discretion. No person will have any discretion to select which Outside Directors will be granted any Awards under this Policy or to determine the number of Shares to be covered by such Awards.

(b)    Initial Award. Each individual who first becomes an Outside Director following the Effective Date will be granted an award of restricted stock units (an “Initial Award”) covering a number of Shares having a grant date fair value (determined in accordance with U.S. generally accepted accounting principles) (the “Grant Value”) equal to $450,000, rounded to the nearest whole Share. The Initial Award will be made on the first trading date on or after the date on which such individual first becomes an Outside Director, whether through election by the stockholders of the Company or appointment by the Board to fill a vacancy. If an individual was a member of the Board and also an employee, becoming an Outside Director due to termination of employment will not entitle the Outside Director to an Initial Award.

Subject to Section 3 of this Policy, each Initial Award will vest as to 1/5th of the Shares subject to the Initial Award on each of the first five anniversaries of the date the applicable Outside Director’s service as an Outside Director commenced, subject to the Outside Director continuing to be a Service Provider through the applicable vesting date.

(c)    Annual Award. On the date of each annual meeting of the Company’s stockholders following the Effective Date (each, an “Annual Meeting”), each Outside Director will be automatically granted an award of restricted stock units (an “Annual Award”) covering a number of Shares having a Grant Value of $125,000, rounded to the nearest whole Share.

Subject to Section 3 of this Policy, each Annual Award will vest on each of the first four Quarterly Vesting Dates occurring after the date the Annual Award is granted, except that the fourth quarterly vesting date of each Annual Award shall occur no later than the day prior to the date of the Annual Meeting next following the date the Annual Award was granted, in each case, subject to the Outside Director continuing to be a Service Provider through the applicable vesting date. For the avoidance of doubt, in all events each Annual Award granted in accordance with this Policy will vest upon the earlier to occur of (i) the fourth Quarterly Vesting Date occurring after the date that the Annual Award was granted or (ii) the day prior to the date of the Annual Meeting next following the date the Annual Award was granted. “Quarterly Vesting Date” means February 15, May 15, August 15, and November 15 of each year.

3.Change in Control.

Immediately prior to a Change in Control, each Outside Director will fully vest in and have the right to exercise Options and/or Stock Appreciation Rights as to all of the Shares

-2-

underlying such Award, including those Shares which would not be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at 100% of target levels and all other terms and conditions met, unless specifically provided otherwise under the applicable Award Agreement or other written agreement between the Outside Director and the Company or any of its Subsidiaries or Parents, as applicable.

4.Annual Compensation Limit.

No Outside Director may be paid, issued or granted, in any Fiscal Year, cash compensation and equity compensation (including any Awards) with an aggregate value greater than $600,000 for an Outside Director’s first year of service or $850,000 in any subsequent year. The value of each equity compensation award will be based on its Grant Value for purposes of the limitation under this Section 4). Any cash compensation paid or equity compensation award (including any Awards) granted to an individual for his or her services as an Employee, or for his or her services as a Consultant (other than as an Outside Director), will not count for purposes of the limitation under this Section 4.

5.Travel and Business Expenses.

Each Outside Director’s reasonable, customary and documented travel expenses to Board or Board committee meetings or travel or other business expenses related to his or her Board service will be reimbursed by the Company.

6.Equity Ownership.

Each Outside Director’s is expected to comply with the minimum equity ownership guidelines as set forth on Exhibit A.

7.Additional Provisions.

    All provisions of the Plan not inconsistent with this Policy will apply to Awards granted to Outside Directors.

8.Section 409A.

In no event will cash compensation or expense reimbursement payments under this Policy be paid after the later of (i) 15th day of the 3rd month following the end of the Fiscal Year in which the compensation is earned or expenses are incurred, as applicable, or (ii) 15th day of the 3rd month following the end of the calendar year in which the compensation is earned or expenses are incurred, as applicable, in compliance with the “short-term deferral” exception under Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations and guidance thereunder, as may be amended from time to time (together, “Section 409A”). It is the intent of this Policy that this Policy and all payments hereunder be exempt from or otherwise comply with the requirements of Section 409A so that none of the compensation to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms herein will be interpreted to be so exempt or comply. In no event will the Company have any liability or obligation to reimburse, indemnify, or hold harmless an Outside Director (or any other person) for any taxes or costs that

-3-

may be imposed on or incurred by an Outside Director (or any other person) as a result of Section 409A.

9.Stockholder Approval.

The initial adoption of the Policy will be subject to approval by the Company’s stockholders prior to the Effective Date. Unless otherwise required by applicable law, following such approval, the Policy will not be subject to approval by the Company’s stockholders, including, for the avoidance of doubt, as a result of or in connection with an action taken with respect to this Policy as contemplated in Section 10 hereof.

10.Revisions.

The Board may amend, alter, suspend or terminate this Policy at any time and for any reason. No amendment, alteration, suspension or termination of this Policy will materially impair the rights of an Outside Director with respect to compensation that already has been paid or awarded, unless otherwise mutually agreed between the Outside Director and the Company. Termination of this Policy will not affect the Board’s or the Compensation Committee’s ability to exercise the powers granted to it under the Plan with respect to Awards granted under the Plan pursuant to this Policy prior to the date of such termination.

11.Compensation Waiver.

Notwithstanding anything in this Policy to the contrary, an Outside Director may, in his or her discretion, waive any cash compensation he or she would otherwise be entitled to receive under this Policy for service as a Director during any Fiscal Year and/or waive the grant of any Initial Award or Annual Award in any Fiscal Year. Any waiver must be provided in writing to the Company’s General Counsel.

Each Director that is employed by Petrus or any of its Affiliates has agreed to waive his or her right to receive any cash or equity compensation for services as a Director for the 2021 Fiscal Year.

-4-

Exhibit A

Equity Ownership Guidelines (the “Guidelines”)

Each Outside Director (a “Covered Person”) must comply with the following minimum ownership guidelines:

Minimum Ownership Level	Timing of Compliance
Equity Interests (as defined below) of at least 50,000 Shares, as adjusted pursuant to Section 13(a) of the Plan.	By the second anniversary of the later of (i) the Effective Date or (ii) the date such individual becomes an Outside Director, and thereafter at all times during which the individual remains an Outside Directors.

“Equity Interests” means Shares: (1) directly owned by a Covered Person or his or her immediate family members residing in the same household; (2) beneficially owned by a Covered Person, but held in trust, limited partnerships, or similar entities for the sole benefit of the Outside Directors or his or her immediate family members residing in the same household; and (3) held in retirement or deferred compensation accounts for the benefit of a Covered Person or his or her immediate family members residing in the same household. For clarity, “Equity Interests” includes unvested or restricted Shares and unvested or unsettled Company equity awards (other than Company options) but excludes any Company options (whether vested or unvested) covering Shares.

Exceptions: The Compensation Committee may waive, at its discretion, these Guidelines for Directors joining the Board from government, academia, or similar professions. The Compensation Committee may also temporarily suspend, at its discretion, these Guidelines for one or more Outside Directors if compliance would create severe hardship or prevent such Outside Director from complying with a court order.

Amendments: The Board may amend these Guidelines from time to time.

-5-

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR 15d-14a OF

THE SECURITIES EXCHANGE ACT OF 1934

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES OXLEY ACT OF 2002

I, Ashish Arora, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Cricut, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

	CRICUT, INC.
Date: August 6, 2024	/s/ Ashish Arora
	Ashish Arora
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR 15d-14a OF

THE SECURITIES EXCHANGE ACT OF 1934

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES OXLEY ACT OF 2002

I, Kimball Shill, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Cricut, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

	CRICUT, INC.
Date: August 6, 2024	/s/ Kimball Shill
	Kimball Shill Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, Ashish Arora, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Cricut, Inc. for the fiscal quarter ended June 30, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Cricut, Inc.

	CRICUT, INC.
Date: August 6, 2024	/s/ Ashish Arora
	Ashish Arora Chief Executive Officer (Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, Kimball Shill, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Cricut, Inc. for the fiscal quarter ended June 30, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Cricut, Inc.

	CRICUT, INC.
Date: August 6, 2024	/s/ Kimball Shill
	Kimball Shill Chief Financial Officer (Principal Financial Officer)

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2024	Aug. 01, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-40257
Entity Registrant Name	Cricut, Inc.
Entity Incorporation, State or Country Code	DE
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
Title of 12(b) Security	Class A Common Stock, par value $0.001 per share
Trading Symbol	CRCT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Smaller Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001828962
Current Fiscal Year End Date	--12-31
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		53,522,018
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		162,845,967

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 195,552	$ 142,187
Marketable securities	103,907	102,952
Accounts receivable, net	83,752	111,247
Inventories	192,340	244,469
Prepaid expenses and other current assets	35,600	19,114
Total current assets	611,151	619,969
Property and equipment, net	42,074	47,614
Operating lease right-of-use asset	10,286	12,353
Deferred tax assets	44,322	34,823
Other assets	34,278	35,363
Total assets	742,111	750,122
Current liabilities:
Accounts payable	33,974	76,860
Accrued expenses and other current liabilities	70,492	71,933
Deferred revenue, current portion	44,530	40,304
Operating lease liabilities, current portion	4,964	5,230
Dividends payable, current portion	122,302	2,137
Total current liabilities	276,262	196,464
Operating lease liabilities, net of current portion	6,862	8,938
Deferred revenue, net of current portion	2,595	2,931
Other non-current liabilities	7,848	6,916
Total liabilities	293,567	215,249
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 June 30, 2024 and December 31, 2023.	0	0
Common stock, par value $0.001 per share, 1,250,000,000 shares authorized as of June 30, 2024, 216,086,013 shares issued and outstanding as of June 30, 2024; 1,250,000,000 shares authorized as of December 31, 2023, 217,915,713 shares issued and outstanding as of December 31, 2023.	216	218
Additional paid-in capital	448,186	505,864
Retained earnings	0	28,514
Accumulated other comprehensive income	142	277
Total stockholders’ equity	448,544	534,873
Total liabilities and stockholders’ equity	$ 742,111	$ 750,122

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,250,000,000	1,250,000,000
Common stock, shares issued (in shares)	216,086,013	217,915,713
Common stock, shares outstanding (in shares)	216,086,013	217,915,713

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Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue:
Total revenue	$ 167,947	$ 177,765	$ 335,339	$ 358,992
Cost of revenue:
Total cost of revenue	78,107	90,110	153,905	194,671
Gross profit	89,840	87,655	181,434	164,321
Operating expenses:
Research and development	14,315	16,346	29,168	34,147
Sales and marketing	33,354	29,407	66,384	59,023
General and administrative	15,739	22,652	34,245	41,372
Total operating expenses	63,408	68,405	129,797	134,542
Income from operations	26,432	19,250	51,637	29,779
Other income (expense):
Interest income	3,053	3,118	5,471	4,871
Interest expense	(80)	(80)	(161)	(159)
Other income	387	653	1,135	1,294
Total other income, net	3,360	3,691	6,445	6,006
Income before provision for income taxes	29,792	22,941	58,082	35,785
Provision for income taxes	10,023	6,917	18,666	10,662
Net income	19,769	16,024	39,416	25,123
Other comprehensive income (loss):
Change in net unrealized gains (losses) on marketable securities, net of tax	242	(318)	(46)	(130)
Change in foreign currency translation adjustment, net of tax	(1)	(50)	(89)	(32)
Comprehensive income	$ 20,010	$ 15,656	$ 39,281	$ 24,961
Earnings per share, basic (in dollars per share)	$ 0.09	$ 0.07	$ 0.18	$ 0.12
Earnings per share, diluted (in dollars per share)	$ 0.09	$ 0.07	$ 0.18	$ 0.11
Weighted-average common shares outstanding, basic (in shares)	216,422,513	216,963,697	215,986,713	216,236,887
Weighted-average common shares outstanding, diluted (in shares)	217,501,646	219,915,839	217,390,891	219,597,977
Platform
Revenue:
Total revenue	$ 77,649	$ 77,386	$ 155,935	$ 153,627
Cost of revenue:
Total cost of revenue	8,888	8,008	17,647	15,769
Products
Revenue:
Total revenue	90,298	100,379	179,404	205,365
Cost of revenue:
Total cost of revenue	$ 69,219	$ 82,102	$ 136,258	$ 178,902

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Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income
Common stock, balance at beginning of period (in shares) at Dec. 31, 2022		219,656,587
Balance at beginning of period at Dec. 31, 2022	$ 672,735	$ 220	$ 672,990	$ 0	$ (475)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,099			9,099
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax (in shares)		43,671
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	(169)		(169)
Forfeiture of unvested common stock and dividend equivalents (in shares)		(103,906)
Forfeiture of unvested common stock and dividend equivalents	275		275
Repurchase of common stock (in shares)		(346,699)
Repurchase of common stock	(3,244)	$ (1)	(3,243)
Dividend equivalents issued	4,366		4,366
Stock-based compensation	10,895		10,895
Other comprehensive income (loss)	206				206
Common stock, balance at end of period (in shares) at Mar. 31, 2023		219,249,653
Balance at end of period at Mar. 31, 2023	694,163	$ 219	685,114	9,099	(269)
Common stock, balance at beginning of period (in shares) at Dec. 31, 2022		219,656,587
Balance at beginning of period at Dec. 31, 2022	672,735	$ 220	672,990	0	(475)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,123
Common stock, balance at end of period (in shares) at Jun. 30, 2023		219,830,304
Balance at end of period at Jun. 30, 2023	482,307	$ 220	482,724	0	(637)
Common stock, balance at beginning of period (in shares) at Mar. 31, 2023		219,249,653
Balance at beginning of period at Mar. 31, 2023	694,163	$ 219	685,114	9,099	(269)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	16,024			16,024
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax (in shares)		884,619
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	(4,582)	$ 1	(4,583)
Forfeiture of unvested common stock and dividend equivalents (in shares)		(199,898)
Forfeiture of unvested common stock and dividend equivalents	120		120
Repurchase of common stock (in shares)		(104,070)
Repurchase of common stock	(967)		(967)
Dividends declared	(234,625)		(209,502)	(25,123)
Stock-based compensation	12,542		12,542
Other comprehensive income (loss)	(368)				(368)
Common stock, balance at end of period (in shares) at Jun. 30, 2023		219,830,304
Balance at end of period at Jun. 30, 2023	482,307	$ 220	482,724	0	(637)
Common stock, balance at beginning of period (in shares) at Dec. 31, 2023		217,915,713
Balance at beginning of period at Dec. 31, 2023	534,873	$ 218	505,864	28,514	277
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,647			19,647
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax (in shares)		548,344
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	(2,323)	$ 1	(2,324)
Forfeiture of unvested common stock and dividend equivalents (in shares)		(64,001)
Forfeiture of unvested common stock and dividend equivalents	73		73
Repurchase of common stock (in shares)		(1,697,272)
Repurchase of common stock	(10,795)	$ (2)	(10,793)
Stock-based compensation	11,473		11,473
Other comprehensive income (loss)	(376)				(376)
Common stock, balance at end of period (in shares) at Mar. 31, 2024		216,702,784
Balance at end of period at Mar. 31, 2024	552,572	$ 217	504,293	48,161	(99)
Common stock, balance at beginning of period (in shares) at Dec. 31, 2023		217,915,713
Balance at beginning of period at Dec. 31, 2023	534,873	$ 218	505,864	28,514	277
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	39,416
Common stock, balance at end of period (in shares) at Jun. 30, 2024		216,086,013
Balance at end of period at Jun. 30, 2024	448,544	$ 216	448,186	0	142
Common stock, balance at beginning of period (in shares) at Mar. 31, 2024		216,702,784
Balance at beginning of period at Mar. 31, 2024	552,572	$ 217	504,293	48,161	(99)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,769			19,769
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax (in shares)		880,919
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	(4,425)	$ 1	(4,426)
Forfeiture of unvested common stock and dividend equivalents (in shares)		(24,629)
Forfeiture of unvested common stock and dividend equivalents	48		48
Repurchase of common stock (in shares)		(1,473,061)
Repurchase of common stock	(9,308)	$ (2)	(9,306)
Dividends declared	(121,657)		(53,727)	(67,930)
Stock-based compensation	11,304		11,304
Other comprehensive income (loss)	241				241
Common stock, balance at end of period (in shares) at Jun. 30, 2024		216,086,013
Balance at end of period at Jun. 30, 2024	$ 448,544	$ 216	$ 448,186	$ 0	$ 142

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income	$ 39,416	$ 25,123
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization (including amortization of debt issuance costs)	15,094	14,378
Bad debt expense (benefit)	(454)	6,563
Impairments	0	1,959
Stock-based compensation	21,376	22,307
Deferred income tax	(9,484)	(7,447)
Non-cash lease expense	2,539	2,478
Unrealized foreign currency (gain) loss	589	599
Provision for inventory obsolescence	(3,028)	10,280
Other	(1,040)	(1,290)
Changes in operating assets and liabilities:
Accounts receivable	27,320	40,665
Inventories	56,928	50,356
Prepaid expenses and other current assets	(16,492)	5,286
Other assets	(122)	(523)
Accounts payable	(42,060)	4,277
Accrued expenses and other current liabilities and other non-current liabilities	(25)	(16,457)
Operating lease liabilities	(2,799)	(2,702)
Deferred revenue	3,890	3,760
Net cash and cash equivalents provided by operating activities	91,648	159,612
Cash flows from investing activities:
Purchases of marketable securities	(25,442)	0
Proceeds from maturities of marketable securities	25,440	0
Purchases of property and equipment, including capitalized software development costs	(9,963)	(12,825)
Net cash and cash equivalents used in investing activities	(9,965)	(12,825)
Cash flows from financing activities:
Repurchases of common stock	(20,103)	(4,210)
Proceeds from exercise of stock options	0	208
Employee tax withholding payments on stock-based awards	(6,541)	(5,799)
Cash dividend	(1,547)	(75,808)
Net cash and cash equivalents used in financing activities	(28,191)	(85,609)
Effect of exchange rate on changes on cash and cash equivalents	(127)	0
Net increase in cash and cash equivalents	53,365	61,178
Cash and cash equivalents at beginning of period	142,187	224,943
Cash and cash equivalents at end of period	195,552	286,121
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	0	0
Cash paid during the period for income taxes	30,389	12,086
Supplemental disclosures of non-cash investing and financing activities:
Property and equipment included in accounts payable and accrued expenses and other current liabilities	1,545	2,447
Right-of-use assets obtained in exchange for new operating lease liabilities	477	0
Tax withholdings on stock-based awards included in accrued expenses and other current liabilities	659	483
Stock-based compensation capitalized for software development costs	695	975
Dividends declared but unpaid	$ 122,332	$ 234,625

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Description of Business and Basis of Presentation

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Basis of Presentation

Description of Business and Basis of Presentation

Nature of Business

Cricut, Inc. (“Cricut” or the “Company”) is a designer and marketer of a creativity platform that enables users to turn ideas into professional-looking handmade goods. Using the Company’s platform, versatile connected machines, and accessories and materials, users create everything from personalized birthday cards, mugs and T-shirts to large-scale interior decorations. The Company’s subscription services, connected machines and related accessories and materials are primarily marketed under the Cricut brand in the United States, as well as Europe and other countries around the world. Headquartered in South Jordan, Utah, the Company is an innovator in its industry, focused on bringing innovative technology (automation and consumerization of industrial tools) to the craft, DIY, and home décor categories. The Company’s condensed consolidated financial statements include the operations of its wholly owned subsidiaries, which are located throughout Europe and in the Asia-Pacific region.

The Company designs, markets, and distributes the Cricut family of products, including the platform, connected machines, and accessories and materials. In addition, Cricut sells a broad line of images, fonts, and projects for purchase à la carte.

During the year ended December 31, 2023 and prior periods, we had three reportable segments: Connected Machines, Subscriptions, and Accessories and Materials. As of January 2024, we realigned our operating segment structure and now have two reportable segments: Platform and Products. The change in operating segments is based on how the Company’s chief operating decision maker (“CODM”) makes operating decisions and assesses business performance. Prior period segment information has been recast retrospectively to reflect the realignment. See Note 16, Segment Information, for further discussion of the Company’s segment reporting structure.

Basis of Presentation and Consolidation

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the annual report on Form 10-K for the fiscal year ended December 31, 2023 (the “Annual Report”). However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading.

The condensed consolidated financial statements include the accounts of Cricut, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain notes required by GAAP on an annual reporting basis.

In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, cash flows and the changes in equity for the interim periods. The results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending December 31, 2024, or any other period.

Recently Issued Accounting Pronouncements

In March 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) Compensation-Stock Compensation (Topic 718). The ASU clarifies how an entity determines whether a profits interest or similar award is (1) within the scope of ASC 718 or (2) not a share-based payment arrangement and therefore within the scope of other guidance. The guidance in ASU 2024-01 applies to all entities that issue profits interest awards as compensation to employees or non-employees in exchange for goods or services. Public

business entities must apply the ASU’s guidance to annual periods beginning after December 15, 2025. The Company is currently evaluating the impact of this standard on the consolidated financial statements.

In December, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. Under the new guidance, entities must consistently categorize and provide greater disaggregation of information in the rate reconciliation. They must also further disaggregate income taxes paid. Public business entities must apply the ASU’s guidance to annual periods beginning after December 15, 2024 (2025 for calendar-year-end Public business entities). The Company is currently evaluating the impact of this standard on the consolidated financial statements.

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses, and is effective for fiscal years beginning after December 15, 2023 on a retrospective basis. The Company is currently evaluating the impact of this standard on the consolidated financial statements.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. For revenue recognition, examples of estimates and judgments include: determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, and estimating variable consideration such as sales incentives and product returns. Other estimates include the warranty reserve, allowance for credit losses, inventory reserve, intangible assets and other long-lived assets valuation, legal contingencies, stock-based compensation, income taxes, deferred tax assets valuation and developed software, among others. These estimates and assumptions are based on the Company’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including any effects of the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from these estimates.

Fair Value Measurement

The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

Money market funds and certain marketable securities are highly liquid investments and are actively traded. The pricing information for these assets is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. Other marketable securities such as U.S. Treasury securities are valued using observable inputs from similar assets, or from observable data in markets that are not active; these assets are classified as Level 2 of the fair value hierarchy. There were no transfers between Levels 1, 2 or 3 for any of the periods presented. There were no liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023.

Earnings Per Share

Earnings per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of profits are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net income per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Stock-based awards subject to conditions other than service conditions are considered contingently issuable shares and

are included in basic EPS based on the number of awards that would be issuable if the reporting date were the end of the contingency period.

Accounts Receivable

Accounts receivable are recorded at original invoice amounts less estimates for credit losses. Management determines the allowance for credit losses by specifically identifying troubled accounts and by using historical write off experience, adjusted for current market conditions and reasonable supportable forecasts of future economic conditions, applied to an aging of all other accounts. If a retailer fails to follow the policies and guidelines in our sales agreements, we may choose to temporarily or permanently stop shipping product to that retailer.

As of June 30, 2024, December 31, 2023, and January 1, 2023, the Company had net accounts receivable balances of $83.8 million, $111.2 million and $136.5 million, respectively. As of June 30, 2024, and December 31, 2023, the Company had an allowance for credit losses against accounts receivable of $1.1 million and $2.0 million, respectively.

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Revenue and Deferred Revenue

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue and Deferred Revenue

Revenue and Deferred Revenue

Deferred revenue relates to performance obligations for which payments have been received from the customer prior to revenue recognition. Deferred revenue primarily consists of deferred subscription-based services. Deferred revenue also includes amounts allocated from the sale of a connected machine to the unspecified upgrades and enhancements and the Company’s cloud-based services. The Company has recognized no contract assets as of June 30, 2024, December 31, 2023 and January 1, 2023.

The following table summarizes the changes in the deferred revenue balance for the six months ended June 30, 2024 and 2023:

	Six Months Ended June 30,
	2024		2023
(in thousands)
Deferred revenue, beginning of period	$	43,235	$	38,658
Recognition of revenue included in beginning of period deferred revenue	(31,834)		(27,416)
Revenue deferred, net of revenue recognized on contracts in the respective period	35,724		31,175
Deferred revenue, end of period	$	47,125	$	42,417

As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was equal to the deferred revenue balance.

The Company expects the following recognition of deferred revenue as of June 30, 2024:

	Year Ended December 31,
	2024 (remainder of year)		2025		2026		2027		Total
(in thousands)
Revenue expected to be recognized	$	35,777	$	9,940	$	1,274	$	134	$	47,125

The Company’s revenue from contracts with customers disaggregated by major product lines, excluding sales-based taxes, are included in Note 16 under the heading “Segment Information.”

Revenue recognized during the three and six months ended June 30, 2024 related to performance obligations satisfied or partially satisfied was $0.3 million and $2.9 million, respectively.

The following table presents the total revenue by geography based on the ship-to address for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
North America*	$	134,415	$	145,124	$	269,250	$	292,880
International	33,532		32,641		66,089		66,112
Total revenue	$	167,947	$	177,765	$	335,339	$	358,992
*North America revenue consists of revenues from the United States and Canada.

The following table presents the total revenue by source for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Platform	$	77,649	$	77,386	$	155,935	$	153,627
Connected machines	43,970		37,284		80,918		71,415
Accessories and materials	46,328		63,095		98,486		133,950
Total revenue	$	167,947	$	177,765	$	335,339	$	358,992

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Cash, Cash Equivalents, and Financial Instruments

6 Months Ended

Jun. 30, 2024

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Financial Instruments

Cash, Cash Equivalents, and Financial Instruments

The following table shows the Company’s cash, cash equivalents, and marketable securities by significant investment category as of June 30, 2024 and December 31, 2023:

	As of June 30, 2024
	Adjusted Cost		Total Unrealized Gains		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	139,840	$	—	$	139,840	$	139,840	$	—
Level 1:
Money market funds	55,712		—		55,712		55,712		—
Subtotal	55,712		—		55,712		55,712		—
Level 2:
U.S. treasury securities	103,427		480		103,907		—		103,907
Subtotal	103,427		480		103,907		—		103,907
Total	$	298,979	$	480	$	299,459	$	195,552	$	103,907

	As of December 31, 2023
	Adjusted Cost		Total Unrealized Gains		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	44,809	$	—	$	44,809	$	44,809	$	—
Level 1:
Money market funds	97,378		—		97,378		97,378		—
Subtotal	97,378		—		97,378		97,378		—
Level 2:
U.S. treasury securities	102,411		541		102,952		—		102,952
Subtotal	102,411		541		102,952		—		102,952
Total	$	244,598	$	541	$	245,139	$	142,187	$	102,952

Marketable securities held as of June 30, 2024 generally mature over the next twenty-four months. As of June 30, 2024 and December 31, 2023 all balances were in a gain position, therefore there are no allowances for credit losses recorded for the periods presented

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Inventories

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are comprised of the following:

	As of June 30, 2024		As of December 31, 2023
(in thousands)
Raw materials	$	43,406	$	44,935
Finished goods	232,315		286,988
Total inventories	$	275,721	$	331,923
Less: reserves	(51,388)		(54,416)
Total inventories, net	224,333		277,507
Inventories current	$	192,340	$	244,469
Inventories non-current (included in other assets)	$	31,993	$	33,038

The Company’s recorded inventory reserves as of June 30, 2024 consisted of $2.9 million related to excess connected machine inventory, $45.3 million related to excess accessories and materials inventory, and $3.2 million related to raw material components. Amounts charged to the reserve account are recorded primarily in cost of revenues.

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Accrued Expenses and Other Current Liabilities

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

	As of June 30, 2024		As of December 31, 2023
(in thousands)
Sales incentives	$	23,668	$	30,479
Other accrued liabilities and other current liabilities	46,824		41,454
Total accrued expenses	$	70,492	$	71,933

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Revolving Credit Facility

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Revolving Credit Facility

Revolving Credit Facility

On August 4, 2022, the Company entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A, Citigroup N.A., PNC Bank, N.A., KeyBank, N.A., and other parties. The Credit Agreement replaced the Company’s prior asset-based Credit Agreement with JPMorgan Chase Bank, N.A., Citigroup N.A., and Origin Bank. The Credit Agreement provides for a five-year revolving credit facility (the “Credit Facility”) of up to $300.0 million, maturing on August 4, 2027. In addition, during the term of the Credit Agreement, the Company may

increase the aggregate amount of the Credit Facility by up to an additional $150.0 million, (for maximum aggregate lender commitments of up to $450.0 million), subject to customary conditions under the Credit Agreement, including obtaining a consent from participating lenders (or another lender, if applicable) to such increase. The Credit Facility may be used to issue letters of credit and for other business purposes, including working capital needs. The current unused fee rate is 0.175% on per annum basis.

As of June 30, 2024, and December 31, 2023 total unamortized debt issuance costs were $1.0 million and $1.2 million, respectively.

The Credit Agreement is collateralized by substantially all of the Company’s assets and contains affirmative and negative covenants, representations and warranties, events of default and other terms customary for loans of this nature. In particular, the Credit Agreement will not permit the leverage ratio to be greater than 3.0 to 1.0, measured on the last day of any fiscal quarter. In addition, the Credit Agreement will not permit the interest coverage ratio to be less than 3.0 to 1.0, for any period of four consecutive quarters, measured on the last day of any fiscal quarter. Management has determined that the Company was in compliance with all financial and non-financial debt covenants as of June 30, 2024. As of June 30, 2024 and December 31, 2023, no amounts were outstanding under the Credit Agreement and available borrowings were $300.0 million.

Generally, borrowings under the Credit Agreement bear interest at a rate based on an alternative base rate (“ABR”), plus, in each case, an applicable margin. The applicable margin will range from (a) borrowings bearing interest at the ABR plus 2.00%, and (b) borrowings bearing interest at the Adjusted Term Secured Overnight Financing Rate, the Adjusted Australian Dollar Rate, the Adjusted Canadian Dollar Offered Rate or the Adjusted New Zealand Dollar Rate, as applicable for the interest period in effect for such borrowing plus the applicable rate.

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Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company computes interim period income taxes by applying an estimated annual effective tax rate to our year-to-date income from operations before income taxes, except for significant unusual or infrequently occurring items. The estimated effective tax rate is adjusted each quarter.

The estimated effective tax rate was 33.6% and 32.1% for the three and six months ended June 30, 2024, respectively, and 30.2% and 29.8% for the three and six months ended June 30, 2023, respectively. The Company’s provision for income taxes was $10.0 million and $18.7 million for the three and six months ended June 30, 2024, respectively, and $6.9 million and $10.7 million for the three and six months ended June 30, 2023, respectively. The provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate for the periods presented primarily due to an increase for permanent adjustments from Section 83(b) elections and stock-based compensation differences resulting from the decrease in stock price upon vesting versus the stock price at the grant date.

The Company reviews its deferred tax assets for realization based upon historical taxable income, prudent and feasible tax planning strategies, the expected timing of the reversals of existing temporary differences and expected future taxable income. The Company has concluded that it is more likely than not that the net deferred tax assets will be realized. Accordingly, the Company has not recorded a valuation allowance against net deferred tax assets for any of the periods presented.

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Capital Structure

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Capital Structure

Capital Structure

As of June 30, 2024, the Company had authorized 100,000,000 shares of preferred stock, par value $0.001 per share, and 1,250,000,000 shares of common stock, par value $0.001 per share, which was divided between two series: Class A common stock and Class B common stock. As of June 30, 2024, the Company had 1,000,000,000 shares of Class A common stock and 250,000,000 shares of Class B common stock authorized and 53,214,366 shares of Class A common stock and 162,871,647 shares of Class B common stock issued and outstanding. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to five votes per share and is convertible at any time into one share of Class A common stock. During the six months ended June 30, 2024 and 2023, 3,540,837 and 8,573,915 shares of Class B common stock were converted to Class A common stock, respectively.

Stock Repurchase Program

On July 19, 2022, the Company’s Board of Directors approved a share repurchase program to purchase shares of our outstanding Class A common stock up to an aggregate transactional value of $50 million which was recently completed. On May 6, 2024, the Company’s Board of Directors approved an additional $50 million for the share repurchase program to purchase shares of its outstanding Class A common stock depending on the Company’s continuing analysis of market, financial, and other factors. The share repurchase program may be suspended or discontinued at any time and does not have a predetermined expiration date.

During the six months ended June 30, 2024, the Company repurchased and retired 3,170,333 shares of our Class A common stock for $20.0 million.

Dividends

On May 6, 2024, the Company declared a special dividend of $0.40 per share and a recurring semi-annual dividend of $0.10 per share on its Class A and Class B common stock, payable on July 19, 2024 to shareholders of record as of July 2, 2024. As part of the dividends, and pursuant to the underlying award agreements, holders of restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”) received a dividend equivalent of $0.40 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $121.7 million was to be satisfied in cash of $108.2 million payable to holders of Class A and Class B common stock with the remaining $13.5 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

On May 18, 2023, the Company declared a special dividend of $1.00 per share on its Class A and Class B common stock, payable on July 17, 2023 to shareholders of record as of July 3, 2023. As part of the dividend, and pursuant to the underlying award agreements, holders of restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”) received a dividend equivalent of $1.00 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $234.6 million was to be satisfied in cash of $219.8 million payable to holders of Class A and Class B common stock with the remaining $14.8 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

On December 21, 2022, the Company declared a special dividend of $0.35 per share on its Class A and Class B common stock, payable on February 15, 2023 to shareholders of record as of February 1, 2023. As part of the dividend, and pursuant to the underlying award agreements, holders of RSUs and PRSUs received a dividend equivalent of $0.35 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $81.4 million was to be satisfied in cash of $76.9 million payable to holders of Class A and Class B common stock with the remaining $4.5 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures.

During the three and six months ended June 30, 2024, an aggregate of $0.1 million and $1.5 million, respectively, was paid in cash. During three and six months ended June 30, 2023, $0.3 million and $75.8 million was paid in cash, and during the six months ended June 30, 2023, $4.4 million was satisfied in the form of dividend equivalents to RSU or PRSU holders.

Dividends payable includes dividends declared but not yet paid and prior dividends on unvested shares of Class B common stock payable upon future vesting.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Stock-Based Compensation Cost

The following table shows the stock-based compensation cost by award type for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Equity classified awards
Restricted stock units	$	10,027	$	10,640	$	19,824	$	19,019
Stock options	244		520		680		1,146
Class B common stock	1,034		1,383		2,273		3,272
Liability classified awards	12		14		20		26
Total stock-based compensation	$	11,317	$	12,557	$	22,797	$	23,463

The following table sets forth the total stock-based compensation cost included in the Company’s condensed consolidated statements of operations and comprehensive income or capitalized to assets for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Cost of revenue
Platform	$	255	$	214	$	492	$	329
Products	210		440		396		898
Total cost of revenue	465		654		888		1,227
Research and development	3,540		4,717		7,253		8,623
Sales and marketing	2,988		3,001		5,924		6,206
General and administrative	3,626		3,514		7,311		6,251
Total stock-based compensation expense	$	10,619	$	11,886	$	21,376	$	22,307
Capitalized for software development costs	365		545		695		975
Capitalized to inventories	333		126		726		181
Total stock-based compensation	$	11,317	$	12,557	$	22,797	$	23,463

As of June 30, 2024, there was $92.5 million of unrecognized stock-based compensation cost related to service-based awards which is expected to be recognized over a weighted-average period of 2.5 years. The total unrecognized compensation expense related to unvested PRSUs was $150.4 million as of June 30, 2024.

2021 Equity Incentive Plan

In March 2021, the Company’s 2021 Equity Incentive Plan became effective. The 2021 Equity Incentive Plan provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to our employees, directors and consultants and our parent and subsidiary corporations’ employees and consultants. As of June 30, 2024, 50,889,323 shares of Class A common stock were reserved for issuance under this plan including shares reserved for previously granted awards discussed below as well as shares reserved for issuance of future awards under the plan.

A summary of the Company’s service-based restricted stock unit (“RSU”) activity under the 2021 Equity Incentive Plan is as follows:

	Number of RSUs	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2023	8,893,831	$	14.38
Granted	4,784,410	$	5.86
Vested	(2,467,161)	$	15.56
Forfeited / cancelled	(505,028)	$	13.21
Outstanding at June 30, 2024	10,706,052	$	10.35

In 2022, the Company granted PRSUs under the 2021 Equity Incentive Plan to certain employees that represent shares potentially issuable in the future. The PRSUs vest in two equal tranches subject to the Company achieving cumulative adjusted earnings per share over eight quarters of $4.93 per share and $6.16 per share, respectively, at any point during the 5-year performance period, subject to employees remaining with the Company through the vesting date. Adjusted earnings per share means GAAP net income adjusted to exclude income tax expenses, as well as stock-based compensation expense and payroll tax expense specifically related to the PRSU awards.

A summary of the Company’s PRSU activity under the 2021 Equity Incentive Plan is as follows:

	Number of PRSUs (a)	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2023	6,766,001	$	23.32
Forfeited / cancelled	(317,939)	$	23.37
Outstanding at June 30, 2024	6,448,062	$	23.32

a.Represents the maximum number of PRSUs assuming all performance targets are achieved.

The expense recognized each period for these PRSUs is primarily dependent upon the Company’s estimate of the probability of achieving the performance targets. At June 30, 2024, the Company determined it was not probable any performance conditions would be achieved so no stock-based compensation was recorded for these PRSUs during the six months ended June 30, 2024.

Options under the 2021 Equity Incentive Plan have a contractual term of 10 years. The exercise price of an incentive stock option and non-qualified stock option shall not be less than 100% of the fair market value of the shares on the date of grant.

A summary of the Company’s stock option activity under the 2021 Equity Incentive Plan is as follows:

	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	2,999,085	$	18.65	3.5	$	—
Forfeited / cancelled	(94,737)	$	18.65
Outstanding at June 30, 2024	2,904,348	$	18.65	2.7	$	—
Vested and exercisable at June 30, 2024	2,610,038	$	18.65	2.7	$	—

During the six months ended June 30, 2024 and 2023, no options were granted.

Certain employees received restricted stock unit equivalents (“RSU equivalents”) which upon vesting are settled for a cash payment equal to the difference between the Company’s stock price on the vesting date less the base price specified at the time of the grant. As of June 30, 2024, the total recognized liability for these awards was immaterial.

Unvested Class B Common Stock

The Company’s unvested Class B common stock resulted from the Corporate Reorganization and is not part of the 2021 Equity Incentive Plan. Activity related to Class B common stock subject to future vesting for the six months ended June 30, 2024 is as follows:

	Number of Unvested Shares	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2023	1,656,679	$	20.00
Vested	(1,067,925)	$	20.00
Forfeited / cancelled	(88,630)	$	20.00
Outstanding at June 30, 2024	500,124	$	20.00

Options to Purchase Class B Common Stock

The Company’s options to purchase Class B common stock resulted from the Corporate Reorganization and are not part of the 2021 Equity Incentive Plan. A summary of the Company stock option activity for the options to purchase shares of Class B common stock is as follows:

	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	259,425	$	7.69	1.9	$	—
Forfeited / cancelled	(28,000)	$	7.69
Outstanding at June 30, 2024	231,425	$	7.69	1.3	$	—
Vested and exercisable at June 30, 2024	231,425	$	7.69	1.3	$	—

During the six months ended June 30, 2024 and 2023, the total intrinsic value of options exercised was immaterial.

2021 Employee Stock Purchase Plan

In March 2021, the Company’s 2021 Employee Stock Purchase Plan (“2021 ESPP”) became effective. Subject to any limitations contained therein, the 2021 ESPP allows eligible employees to contribute, through payroll deductions, up to 15% of their eligible compensation to purchase the Company’s Class A common stock at a discounted price per share. As of June 30, 2024, 10,602,602 shares of our Class A common stock were available for sale under the 2021 ESPP.

No offerings have been authorized to date by the administrator under the 2021 ESPP. If the administrator authorizes an offering period under the 2021 ESPP, the administrator will establish the duration of offering periods and purchase periods, including the starting and ending dates of offering periods and purchase periods, provided that no offering period may have a duration exceeding 27 months.

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Commitment and Contingencies

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Litigation

The Company is subject to certain outside claims and litigation arising in the ordinary course of business. Management is not aware of any contingencies which it believes will have a material effect on its financial position, results of operations or liquidity.

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Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

Leases

The Company leases office space with lease terms ranging from one to six years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease.

The Company has determined its leases should be classified as operating leases. Variable lease costs are comprised primarily of the Company's proportionate share of operating expenses, property taxes, and insurance and are classified as lease cost due to the Company's election to not separate lease and non-lease components. The Company incurred operating lease costs of $1.3 million and $2.7 million for the three and six months ended June 30, 2024, respectively, and $1.3 million and $2.7 million, respectively for the three and six months ended June 30, 2023. The Company also incurred variable lease costs of $0.1 million and $0.2 million for the three and six months ended June 30, 2024, respectively, and $0.1 million and $0.2 million, for the three and six months ended June 30, 2023, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $1.5 million for both the three months ended June 30, 2024 and 2023, and $3.0 million for both the six months ended June 30, 2024 and 2023. These amounts were included in net cash provided by operating activities in the Company's consolidated statements of cash flows.

As of June 30, 2024, the maturities of the Company's operating lease liabilities were as follows: 

Year Ended December 31,	Operating Leases
	(in thousands)
2024 (remainder of the year)	$	2,711
2025	4,596
2026	3,991
2027	967
Total lease payments	$	12,265
Less: imputed interest	$	(439)
Present value of operating lease liabilities	$	11,826
Operating lease liabilities, current	$	4,964
Operating lease liabilities, non-current	$	6,862

The weighted average remaining operating lease term and the weighted average discount rate used to determine the operating lease liability were as follows:

	As of June 30, 2024		As of December 31, 2023
Weighted-average remaining lease term of operating leases	2.5 years		2.9 years
Weighted-average discount rate of operating leases	3.0	%	2.5	%

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Restructuring

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

During the three months ended March 31, 2024, and March 31, 2023, the Company undertook restructuring plans to improve efficiency and streamline operations. Costs for each plan were primarily settled within the first fiscal quarter of 2023 and 2024, respectively. During the six months ended June 30, 2024, the Company recognized severance costs of $0.9 million, of which $0.4 million, $0.4 million and $0.1 million were recorded within research and development, selling and marketing, and general and administrative expense, respectively. During the six months ended June 30, 2023, the Company recognized severance costs of $1.2 million, of which $0.7 million, $0.3 million, $0.2 million were recorded within research and development, selling and marketing, and general and administrative expense, respectively.

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Employee Benefit Plan

6 Months Ended

Jun. 30, 2024

Retirement Benefits [Abstract]

Employee Benefit Plan

Employee Benefit Plan

The Company sponsors a 401(k) plan for the benefit of its employees who have attained at least 18 years of age. The Company matches 50% of the first 12% of an employee’s salary contributed to the plan on the first day of the month following their hire date. The Company contributed $0.6 million and $0.7 million for the three months

ended June 30, 2024 and 2023, respectively, and $1.3 million and $1.4 million for the six months ended June 30, 2024 and 2023, respectively.

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Net Income Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

The computation of net income per share is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands, except share and per share amounts)
Basic earnings per share:
Net income	$	19,769	$	16,024	$	39,416	$	25,123
Shares used in computation:
Weighted-average common shares outstanding, basic	216,422,513		216,963,697		215,986,713		216,236,887
Earnings per share, basic	$	0.09	$	0.07	$	0.18	$	0.12
Diluted earnings per share:
Net income	$	19,769	$	16,024	$	39,416	$	25,123
Shares used in computation:
Weighted-average common shares outstanding, basic	216,422,513		216,963,697		215,986,713		216,236,887
Weighted-average effect of potentially dilutive securities:
Unvested common stock subject to forfeiture	279,481		1,740,938		535,850		2,283,285
Employee stock options	—		32,133		—		14,971
Restricted stock units	799,652		1,179,071		868,328		1,062,834
Diluted weighted-average common shares outstanding	217,501,646		219,915,839		217,390,891		219,597,977
Diluted net income per share	$	0.09	$	0.07	$	0.18	$	0.11

The following potentially dilutive shares were excluded from the computation of diluted earnings per share for the periods presented because including them would have had an anti-dilutive effect:

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Employee stock options	3,135,773	3,050,351	3,135,773	3,050,351
Restricted stock units	5,924,084	4,728,505	10,484,929	8,068,678
Unvested common stock subject to forfeiture	227,864	367,133	245,442	552,113

As of June 30, 2024, 6,448,062 PRSUs were not assessed for inclusion in diluted earnings per share, and any potential antidilutive shares were excluded from the table above because they are subject to performance conditions that were not achieved as of such date.

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Segment Information

3 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

In January 2024, the Company reevaluated its operating segments in order to better align with how the CODM evaluates performance and allocates resources. The key factor evaluated by the Company resulted from the growth and expansion of Design Space, the Company’s digital platform. Since its initial public offering, the Company’s digital platform has evolved and grown considerably. Key enhancements to the platform include the size of its images, fonts, and projects library, the introduction of advanced design tools, the software support for several new cutting machines, and the creation of enhanced subscriptions offerings. The change in operating segments reflects the Company’s strategy to focus on continuing to expand revenue and margin generated from its digital

platform and Paid Subscribers. At the same time, a number of product related factors also contributed to this decision, including the relative importance of physical products to the platform, including bundles (comprised of several combinations of machines, accessories, and materials), and changes in our Accessories and Materials business. Based on these changes, the Company has determined that it was appropriate to reduce its reportable segments from three to two, combining its Subscriptions and digital content businesses into one Platform segment, and its Connected Machines and Accessories and Materials businesses into one Product segment. Prior period segment results have been retrospectively recast to reflect the new reportable segments.

The CODM reviews revenue and gross profit for each of the reportable segments. Gross profit is defined as revenue less cost of revenue incurred by the segment. The Company considered the provisions of ASC 280-10-50 as it relates to the information provided to and used by the CODM for evaluating performance and allocating resources to operating segments.

The Company does not allocate assets at the reportable segment level as these are managed on an entity wide group basis. As of June 30, 2024, long-lived assets located outside the United States, primarily located in Malaysia and China, were $6.0 million.

The Platform segment derives revenue primarily from monthly and annual subscription fees, digital content, and a portion of the revenue allocated to unspecified future upgrades and enhancements related to the essential software and access to the Company’s cloud-based services. For the six months ended June 30, 2024, upfront digital content revenue comprised 1% of Platform revenue. The remaining Platform revenue consists of ratably recognized subscription revenue. The Products segment derives revenue primarily from the sale of its connected machine hardware, and sale of craft, DIY, home décor products and extensions. There are no internal revenue transactions between the Company’s segments.

Key financial performance measures of the segments including revenue, cost of revenue and gross profit are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Platform:
Revenue	$	77,649	$	77,386	$	155,935	$	153,627
Cost of revenue	8,888		8,008		17,647		15,769
Gross profit	$	68,761	$	69,378	$	138,288	$	137,858
Products:
Revenue	$	90,298	$	100,379	$	179,404	$	205,365
Cost of revenue	69,219		82,102		136,258		178,902
Gross profit	$	21,079	$	18,277	$	43,146	$	26,463
Consolidated:
Revenue	$	167,947	$	177,765	$	335,339	$	358,992
Cost of revenue	78,107		90,110		153,905		194,671
Gross profit	$	89,840	$	87,655	$	181,434	$	164,321

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Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On July 1, 2024, the Company granted 9,808,000 RSUs to employees and directors of the Company under the 2021 Equity Incentive Plan which vest 30% and 70% for the first and second tranches, subject to the Company achieving operating income over four consecutive quarters of $149 million and $240 million, respectively.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 19,769	$ 19,647	$ 16,024	$ 9,099	$ 39,416	$ 25,123

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the annual report on Form 10-K for the fiscal year ended December 31, 2023 (the “Annual Report”). However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading.

Consolidation

The condensed consolidated financial statements include the accounts of Cricut, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain notes required by GAAP on an annual reporting basis.

In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, cash flows and the changes in equity for the interim periods. The results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending December 31, 2024, or any other period.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In March 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) Compensation-Stock Compensation (Topic 718). The ASU clarifies how an entity determines whether a profits interest or similar award is (1) within the scope of ASC 718 or (2) not a share-based payment arrangement and therefore within the scope of other guidance. The guidance in ASU 2024-01 applies to all entities that issue profits interest awards as compensation to employees or non-employees in exchange for goods or services. Public

business entities must apply the ASU’s guidance to annual periods beginning after December 15, 2025. The Company is currently evaluating the impact of this standard on the consolidated financial statements.

In December, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. Under the new guidance, entities must consistently categorize and provide greater disaggregation of information in the rate reconciliation. They must also further disaggregate income taxes paid. Public business entities must apply the ASU’s guidance to annual periods beginning after December 15, 2024 (2025 for calendar-year-end Public business entities). The Company is currently evaluating the impact of this standard on the consolidated financial statements.

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses, and is effective for fiscal years beginning after December 15, 2023 on a retrospective basis. The Company is currently evaluating the impact of this standard on the consolidated financial statements.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. For revenue recognition, examples of estimates and judgments include: determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, and estimating variable consideration such as sales incentives and product returns. Other estimates include the warranty reserve, allowance for credit losses, inventory reserve, intangible assets and other long-lived assets valuation, legal contingencies, stock-based compensation, income taxes, deferred tax assets valuation and developed software, among others. These estimates and assumptions are based on the Company’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including any effects of the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from these estimates.

Fair Value Measurement

Fair Value Measurement

The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

Money market funds and certain marketable securities are highly liquid investments and are actively traded. The pricing information for these assets is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. Other marketable securities such as U.S. Treasury securities are valued using observable inputs from similar assets, or from observable data in markets that are not active; these assets are classified as Level 2 of the fair value hierarchy. There were no transfers between Levels 1, 2 or 3 for any of the periods presented. There were no liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023.

Earnings Per Share

Earnings Per Share

Earnings per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of profits are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net income per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Stock-based awards subject to conditions other than service conditions are considered contingently issuable shares and

are included in basic EPS based on the number of awards that would be issuable if the reporting date were the end of the contingency period.

Accounts Receivable

Accounts Receivable

Accounts receivable are recorded at original invoice amounts less estimates for credit losses. Management determines the allowance for credit losses by specifically identifying troubled accounts and by using historical write off experience, adjusted for current market conditions and reasonable supportable forecasts of future economic conditions, applied to an aging of all other accounts. If a retailer fails to follow the policies and guidelines in our sales agreements, we may choose to temporarily or permanently stop shipping product to that retailer.

As of June 30, 2024, December 31, 2023, and January 1, 2023, the Company had net accounts receivable balances of $83.8 million, $111.2 million and $136.5 million, respectively. As of June 30, 2024, and December 31, 2023, the Company had an allowance for credit losses against accounts receivable of $1.1 million and $2.0 million, respectively.

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Revenue and Deferred Revenue (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Changes in the Deferred Revenue Balance

The following table summarizes the changes in the deferred revenue balance for the six months ended June 30, 2024 and 2023:

	Six Months Ended June 30,
	2024		2023
(in thousands)
Deferred revenue, beginning of period	$	43,235	$	38,658
Recognition of revenue included in beginning of period deferred revenue	(31,834)		(27,416)
Revenue deferred, net of revenue recognized on contracts in the respective period	35,724		31,175
Deferred revenue, end of period	$	47,125	$	42,417

Schedule of Recognition of Deferred Revenue

The Company expects the following recognition of deferred revenue as of June 30, 2024:

	Year Ended December 31,
	2024 (remainder of year)		2025		2026		2027		Total
(in thousands)
Revenue expected to be recognized	$	35,777	$	9,940	$	1,274	$	134	$	47,125

Schedule of Total Revenue by Geography

The following table presents the total revenue by geography based on the ship-to address for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
North America*	$	134,415	$	145,124	$	269,250	$	292,880
International	33,532		32,641		66,089		66,112
Total revenue	$	167,947	$	177,765	$	335,339	$	358,992
*North America revenue consists of revenues from the United States and Canada.

Schedule of Total Revenue by Source

The following table presents the total revenue by source for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Platform	$	77,649	$	77,386	$	155,935	$	153,627
Connected machines	43,970		37,284		80,918		71,415
Accessories and materials	46,328		63,095		98,486		133,950
Total revenue	$	167,947	$	177,765	$	335,339	$	358,992

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Cash, Cash Equivalents, and Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Cash and Cash Equivalents [Abstract]

Schedule of Cash, Cash Equivalents and Investments

The following table shows the Company’s cash, cash equivalents, and marketable securities by significant investment category as of June 30, 2024 and December 31, 2023:

	As of June 30, 2024
	Adjusted Cost		Total Unrealized Gains		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	139,840	$	—	$	139,840	$	139,840	$	—
Level 1:
Money market funds	55,712		—		55,712		55,712		—
Subtotal	55,712		—		55,712		55,712		—
Level 2:
U.S. treasury securities	103,427		480		103,907		—		103,907
Subtotal	103,427		480		103,907		—		103,907
Total	$	298,979	$	480	$	299,459	$	195,552	$	103,907

	As of December 31, 2023
	Adjusted Cost		Total Unrealized Gains		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	44,809	$	—	$	44,809	$	44,809	$	—
Level 1:
Money market funds	97,378		—		97,378		97,378		—
Subtotal	97,378		—		97,378		97,378		—
Level 2:
U.S. treasury securities	102,411		541		102,952		—		102,952
Subtotal	102,411		541		102,952		—		102,952
Total	$	244,598	$	541	$	245,139	$	142,187	$	102,952

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Inventories (Tables)

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Components of Inventories

Inventories are comprised of the following:

	As of June 30, 2024		As of December 31, 2023
(in thousands)
Raw materials	$	43,406	$	44,935
Finished goods	232,315		286,988
Total inventories	$	275,721	$	331,923
Less: reserves	(51,388)		(54,416)
Total inventories, net	224,333		277,507
Inventories current	$	192,340	$	244,469
Inventories non-current (included in other assets)	$	31,993	$	33,038

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Accrued Expenses and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

	As of June 30, 2024		As of December 31, 2023
(in thousands)
Sales incentives	$	23,668	$	30,479
Other accrued liabilities and other current liabilities	46,824		41,454
Total accrued expenses	$	70,492	$	71,933

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Costs

The following table shows the stock-based compensation cost by award type for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Equity classified awards
Restricted stock units	$	10,027	$	10,640	$	19,824	$	19,019
Stock options	244		520		680		1,146
Class B common stock	1,034		1,383		2,273		3,272
Liability classified awards	12		14		20		26
Total stock-based compensation	$	11,317	$	12,557	$	22,797	$	23,463

The following table sets forth the total stock-based compensation cost included in the Company’s condensed consolidated statements of operations and comprehensive income or capitalized to assets for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Cost of revenue
Platform	$	255	$	214	$	492	$	329
Products	210		440		396		898
Total cost of revenue	465		654		888		1,227
Research and development	3,540		4,717		7,253		8,623
Sales and marketing	2,988		3,001		5,924		6,206
General and administrative	3,626		3,514		7,311		6,251
Total stock-based compensation expense	$	10,619	$	11,886	$	21,376	$	22,307
Capitalized for software development costs	365		545		695		975
Capitalized to inventories	333		126		726		181
Total stock-based compensation	$	11,317	$	12,557	$	22,797	$	23,463

Schedule of Restricted Stock Unit Activity

A summary of the Company’s service-based restricted stock unit (“RSU”) activity under the 2021 Equity Incentive Plan is as follows:

	Number of RSUs	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2023	8,893,831	$	14.38
Granted	4,784,410	$	5.86
Vested	(2,467,161)	$	15.56
Forfeited / cancelled	(505,028)	$	13.21
Outstanding at June 30, 2024	10,706,052	$	10.35

A summary of the Company’s PRSU activity under the 2021 Equity Incentive Plan is as follows:

	Number of PRSUs (a)	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2023	6,766,001	$	23.32
Forfeited / cancelled	(317,939)	$	23.37
Outstanding at June 30, 2024	6,448,062	$	23.32

a.Represents the maximum number of PRSUs assuming all performance targets are achieved.

Schedule of Stock Option Activity

A summary of the Company’s stock option activity under the 2021 Equity Incentive Plan is as follows:

	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	2,999,085	$	18.65	3.5	$	—
Forfeited / cancelled	(94,737)	$	18.65
Outstanding at June 30, 2024	2,904,348	$	18.65	2.7	$	—
Vested and exercisable at June 30, 2024	2,610,038	$	18.65	2.7	$	—

The Company’s options to purchase Class B common stock resulted from the Corporate Reorganization and are not part of the 2021 Equity Incentive Plan. A summary of the Company stock option activity for the options to purchase shares of Class B common stock is as follows:

	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2023	259,425	$	7.69	1.9	$	—
Forfeited / cancelled	(28,000)	$	7.69
Outstanding at June 30, 2024	231,425	$	7.69	1.3	$	—
Vested and exercisable at June 30, 2024	231,425	$	7.69	1.3	$	—

Schedule of Nonvested Share Activity

The Company’s unvested Class B common stock resulted from the Corporate Reorganization and is not part of the 2021 Equity Incentive Plan. Activity related to Class B common stock subject to future vesting for the six months ended June 30, 2024 is as follows:

	Number of Unvested Shares	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2023	1,656,679	$	20.00
Vested	(1,067,925)	$	20.00
Forfeited / cancelled	(88,630)	$	20.00
Outstanding at June 30, 2024	500,124	$	20.00

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Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of Lease Liability Maturity

As of June 30, 2024, the maturities of the Company's operating lease liabilities were as follows: 

Year Ended December 31,	Operating Leases
	(in thousands)
2024 (remainder of the year)	$	2,711
2025	4,596
2026	3,991
2027	967
Total lease payments	$	12,265
Less: imputed interest	$	(439)
Present value of operating lease liabilities	$	11,826
Operating lease liabilities, current	$	4,964
Operating lease liabilities, non-current	$	6,862

Schedule of Weighted Average Lease Term and Discount Rate

The weighted average remaining operating lease term and the weighted average discount rate used to determine the operating lease liability were as follows:

	As of June 30, 2024		As of December 31, 2023
Weighted-average remaining lease term of operating leases	2.5 years		2.9 years
Weighted-average discount rate of operating leases	3.0	%	2.5	%

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Net Income Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The computation of net income per share is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands, except share and per share amounts)
Basic earnings per share:
Net income	$	19,769	$	16,024	$	39,416	$	25,123
Shares used in computation:
Weighted-average common shares outstanding, basic	216,422,513		216,963,697		215,986,713		216,236,887
Earnings per share, basic	$	0.09	$	0.07	$	0.18	$	0.12
Diluted earnings per share:
Net income	$	19,769	$	16,024	$	39,416	$	25,123
Shares used in computation:
Weighted-average common shares outstanding, basic	216,422,513		216,963,697		215,986,713		216,236,887
Weighted-average effect of potentially dilutive securities:
Unvested common stock subject to forfeiture	279,481		1,740,938		535,850		2,283,285
Employee stock options	—		32,133		—		14,971
Restricted stock units	799,652		1,179,071		868,328		1,062,834
Diluted weighted-average common shares outstanding	217,501,646		219,915,839		217,390,891		219,597,977
Diluted net income per share	$	0.09	$	0.07	$	0.18	$	0.11

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following potentially dilutive shares were excluded from the computation of diluted earnings per share for the periods presented because including them would have had an anti-dilutive effect:

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Employee stock options	3,135,773	3,050,351	3,135,773	3,050,351
Restricted stock units	5,924,084	4,728,505	10,484,929	8,068,678
Unvested common stock subject to forfeiture	227,864	367,133	245,442	552,113

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Key Financial Performance Measures of the Segments

Key financial performance measures of the segments including revenue, cost of revenue and gross profit are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(in thousands)
Platform:
Revenue	$	77,649	$	77,386	$	155,935	$	153,627
Cost of revenue	8,888		8,008		17,647		15,769
Gross profit	$	68,761	$	69,378	$	138,288	$	137,858
Products:
Revenue	$	90,298	$	100,379	$	179,404	$	205,365
Cost of revenue	69,219		82,102		136,258		178,902
Gross profit	$	21,079	$	18,277	$	43,146	$	26,463
Consolidated:
Revenue	$	167,947	$	177,765	$	335,339	$	358,992
Cost of revenue	78,107		90,110		153,905		194,671
Gross profit	$	89,840	$	87,655	$	181,434	$	164,321

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Description of Business and Basis of Presentation (Details) - segment	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2	2

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Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Accounts receivable	$ 83,752	$ 111,247	$ 136,500
Allowances against accounts receivable	$ 1,100	$ 2,000

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Revenue and Deferred Revenue - Schedule of Changes in the Deferred Revenue Balance (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Movement in Deferred Revenue [Roll Forward]
Deferred revenue, beginning of period	$ 43,235	$ 38,658
Recognition of revenue included in beginning of period deferred revenue	(31,834)	(27,416)
Revenue deferred, net of revenue recognized on contracts in the respective period	35,724	31,175
Deferred revenue, end of period	$ 47,125	$ 42,417

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Revenue and Deferred Revenue - Schedule of Recognition of Deferred Revenue (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 47,125
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 35,777
Revenue, expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 9,940
Revenue, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 1,274
Revenue, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 134
Revenue, expected timing of satisfaction, period	1 year

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Revenue and Deferred Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue recognized related to performance obligations satisfied or partially satisfied in prior periods	$ 0.3	$ 2.9

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Revenue and Deferred Revenue - Schedule of Total Revenue by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 167,947	$ 177,765	$ 335,339	$ 358,992
North America
Disaggregation of Revenue [Line Items]
Total revenue	134,415	145,124	269,250	292,880
International
Disaggregation of Revenue [Line Items]
Total revenue	$ 33,532	$ 32,641	$ 66,089	$ 66,112

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Revenue and Deferred Revenue - Schedule of Total Revenue by Source (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 167,947	$ 177,765	$ 335,339	$ 358,992
Platform
Disaggregation of Revenue [Line Items]
Revenue	77,649	77,386	155,935	153,627
Connected machines
Disaggregation of Revenue [Line Items]
Revenue	43,970	37,284	80,918	71,415
Accessories and materials
Disaggregation of Revenue [Line Items]
Revenue	$ 46,328	$ 63,095	$ 98,486	$ 133,950

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Cash, Cash Equivalents, and Financial Instruments - Schedule of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Cash and Cash Equivalents [Line Items]
Cash, Adjusted Cost	$ 195,552	$ 142,187
Debt Securities, Available-for-Sale [Abstract]
Total Unrealized Gains	480	541
Assets, Adjusted Cost	298,979	244,598
Assets, Fair Value	$ 299,459	245,139
Marketable securities, maturity	24 months
Cash
Cash and Cash Equivalents [Line Items]
Cash, Adjusted Cost	$ 139,840	44,809
Cash, Fair Value	139,840	44,809
Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	55,712	97,378
Total Unrealized Gains	0	0
Fair Value	55,712	97,378
Fair Value, Inputs, Level 1 | Money Market Funds
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	55,712	97,378
Total Unrealized Gains	0	0
Fair Value	55,712	97,378
Fair Value, Inputs, Level 2
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	103,427	102,411
Total Unrealized Gains	480	541
Fair Value	103,907	102,952
Fair Value, Inputs, Level 2 | U.S. treasury securities
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	103,427	102,411
Total Unrealized Gains	480	541
Fair Value	103,907	102,952
Cash
Cash and Cash Equivalents [Line Items]
Cash, Fair Value	139,840	44,809
Debt Securities, Available-for-Sale [Abstract]
Assets, Fair Value	195,552	142,187
Cash | Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Abstract]
Fair Value	55,712	97,378
Cash | Fair Value, Inputs, Level 1 | Money Market Funds
Debt Securities, Available-for-Sale [Abstract]
Fair Value	55,712	97,378
Cash | Fair Value, Inputs, Level 2
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Cash | Fair Value, Inputs, Level 2 | U.S. treasury securities
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Marketable Securities
Debt Securities, Available-for-Sale [Abstract]
Assets, Fair Value	103,907	102,952
Marketable Securities | Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Marketable Securities | Fair Value, Inputs, Level 1 | Money Market Funds
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Marketable Securities | Fair Value, Inputs, Level 2
Debt Securities, Available-for-Sale [Abstract]
Fair Value	103,907	102,952
Marketable Securities | Fair Value, Inputs, Level 2 | U.S. treasury securities
Debt Securities, Available-for-Sale [Abstract]
Fair Value	$ 103,907	$ 102,952

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Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 43,406	$ 44,935
Finished goods	232,315	286,988
Total inventories	275,721	331,923
Less: reserves	(51,388)	(54,416)
Total inventories, net	224,333	277,507
Inventories current	192,340	244,469
Inventories non-current (included in other assets)	31,993	33,038
Inventory [Line Items]
Inventory Valuation Reserves	51,388	$ 54,416
Machine Inventory
Inventory Disclosure [Abstract]
Less: reserves	(2,900)
Inventory [Line Items]
Inventory Valuation Reserves	2,900
Accessories and Materials Inventory
Inventory Disclosure [Abstract]
Less: reserves	(45,300)
Inventory [Line Items]
Inventory Valuation Reserves	45,300
Raw Materials
Inventory Disclosure [Abstract]
Less: reserves	(3,200)
Inventory [Line Items]
Inventory Valuation Reserves	$ 3,200

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Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Sales incentives	$ 23,668	$ 30,479
Other accrued liabilities and other current liabilities	46,824	41,454
Total accrued expenses	$ 70,492	$ 71,933

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Revolving Credit Facility (Details) - Revolving Credit Facility - Credit Agreement		6 Months Ended
	Aug. 04, 2022 USD ($)	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Line of Credit Facility [Line Items]
Revolving credit facility expiration period	5 years
Maximum borrowing capacity	$ 300,000,000
Additional borrowing capacity, increase limit	150,000,000
Additional borrowing capacity, higher borrowing capacity option	$ 450,000,000
Line of credit facility, unused fee (percentage)	0.175%
Unamortized debt issuance costs		$ 1,000,000	$ 1,200,000
Leverage ratio		3.0
Amounts outstanding		$ 0	$ 0
Remaining borrowing capacity		$ 300,000,000
Basis spread on variable rate (percentage)		2.00%

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Effective tax rate (percentage)	33.60%	30.20%	32.10%	29.80%
Provision for income taxes	$ 10,023	$ 6,917	$ 18,666	$ 10,662

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Capital Structure (Details) $ / shares in Units, $ in Thousands				3 Months Ended		6 Months Ended
	May 06, 2024 USD ($) $ / shares	May 18, 2023 USD ($) $ / shares	Dec. 21, 2022 USD ($) $ / shares	Jun. 30, 2024 USD ($) $ / shares shares	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) vote $ / shares shares	Jun. 30, 2023 USD ($) shares	Dec. 31, 2023 shares	Jul. 19, 2022 USD ($)
Equity, Class of Treasury Stock [Line Items]
Preferred stock, shares authorized (in shares)				100,000,000		100,000,000		100,000,000
Preferred stock, par value (in dollars per share) | $ / shares				$ 0.001		$ 0.001
Common stock, shares authorized (in shares)				1,250,000,000		1,250,000,000		1,250,000,000
Common stock, shares issued (in shares)				216,086,013		216,086,013		217,915,713
Common stock, shares outstanding (in shares)				216,086,013		216,086,013		217,915,713
Dividends payable (in dollars per share) | $ / shares		$ 1.00	$ 0.35
Dividends declared but unpaid | $	$ 121,700	$ 234,600	$ 81,400			$ 122,332	$ 234,625
Dividends payable, current portion | $	108,200	219,800	76,900
Dividends, paid-in-kind | $	$ 13,500	$ 14,800	$ 4,500
Dividends, paid in cash | $				$ 100	$ 300	$ 1,500	75,800
Dividends, satisfied in form of dividend equivalents to RSU or PRSU holders | $							$ 4,400
Special Dividend, Class A and Class B Common Stock [Member]
Equity, Class of Treasury Stock [Line Items]
Dividends payable (in dollars per share) | $ / shares	$ 0.40
Semi-Annual Dividend, Class A and Class B Common Stock [Member]
Equity, Class of Treasury Stock [Line Items]
Dividends payable (in dollars per share) | $ / shares	$ 0.10
Common Class A
Equity, Class of Treasury Stock [Line Items]
Common stock, shares authorized (in shares)				1,000,000,000		1,000,000,000
Common stock, shares issued (in shares)				53,214,366		53,214,366
Common stock, shares outstanding (in shares)				53,214,366		53,214,366
Number of votes per share | vote						1
Number of shares issuable upon conversion (in shares)						1
Stock repurchase program, authorized amount | $	$ 50,000								$ 50,000
Stock repurchased and retired (in shares)						3,170,333
Stock repurchased and retired, value | $						$ 20,000
Common Class A | Existing Stockholders
Equity, Class of Treasury Stock [Line Items]
Sale of stock, shares issued in transaction						3,540,837	8,573,915
Class B common stock
Equity, Class of Treasury Stock [Line Items]
Common stock, shares authorized (in shares)				250,000,000		250,000,000
Common stock, shares issued (in shares)				162,871,647		162,871,647
Common stock, shares outstanding (in shares)				162,871,647		162,871,647
Number of votes per share | vote						5

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Stock-Based Compensation - Cost By Award Type (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 11,317	$ 12,557	$ 22,797	$ 23,463
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	10,027	10,640	19,824	19,019
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	244	520	680	1,146
Class B common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	1,034	1,383	2,273	3,272
Liability classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 12	$ 14	$ 20	$ 26

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Stock-Based Compensation - Cost Related to Company's Stock-Based Compensation Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 10,619	$ 11,886	$ 21,376	$ 22,307
Total stock-based compensation	11,317	12,557	22,797	23,463
Software Development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense, amount capitalized	365	545	695	975
Inventories
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense, amount capitalized	333	126	726	181
Total cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	465	654	888	1,227
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,540	4,717	7,253	8,623
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	2,988	3,001	5,924	6,206
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,626	3,514	7,311	6,251
Platform
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	255	214	492	329
Products
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 210	$ 440	$ 396	$ 898

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Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($) tranche $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches | tranche	2
Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Eight quarter cumulative adjusted earnings per share (in dollars per share) | $ / shares	$ 4.93
Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Eight quarter cumulative adjusted earnings per share (in dollars per share) | $ / shares	$ 6.16
2021 Equity Incentive Plan | Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance (in shares) | shares	50,889,323
Equity classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation cost | $	$ 92.5
Unrecognized stock-based compensation cost, period for recognition	2 years 6 months
Performance Restricted Stock Units (PRSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation cost | $	$ 150.4
Performance Restricted Stock Units (PRSUs) | 2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	5 years
Stock options | 2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Minimum exercise price, percentage of fair market value of shares on date of grant	100.00%
Employee stock | 2021 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum eligible employee compensation contribution percentage	15.00%
Offering period	27 months
Employee stock | 2021 Employee Stock Purchase Plan | Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock available for sale (in shares) | shares	10,602,602

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Stock-Based Compensation - Restricted Stock Units Activity Under Company's Stock Plans (Details) - Restricted stock units - 2021 Equity Incentive Plan	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Number of Unvested Shares
Beginning balance (in shares) | shares	8,893,831
Granted (in shares) | shares	4,784,410
Vested (in shares) | shares	(2,467,161)
Forfeited / cancelled (in shares) | shares	(505,028)
Ending balance (in shares) | shares	10,706,052
Weighted- Average Grant Date Fair Value (per share)
Beginning balance (in dollars per share) | $ / shares	$ 14.38
Granted (in dollars per share) | $ / shares	5.86
Vested (in dollars per share) | $ / shares	15.56
Forfeited / cancelled (in dollars per share) | $ / shares	13.21
Ending balance (in dollars per share) | $ / shares	$ 10.35

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Stock-Based Compensation - PRSU Activity (Details) - Performance Restricted Stock Units (PRSUs) - 2021 Equity Incentive Plan	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Number of Unvested Shares
Beginning balance (in shares) | shares	6,766,001
Forfeited / cancelled (in shares) | shares	(317,939)
Ending balance (in shares) | shares	6,448,062
Weighted- Average Grant Date Fair Value (per share)
Beginning balance (in dollars per share) | $ / shares	$ 23.32
Forfeited / cancelled (in dollars per share) | $ / shares	23.37
Ending balance (in dollars per share) | $ / shares	$ 23.32

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Stock-Based Compensation - Stock Option Activity (Details) - 2021 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Number of Options
Beginning balance (in shares)	2,999,085
Forfeited / cancelled (in shares)	(94,737)
Ending balance (in shares)	2,904,348	2,999,085
Vested and exercisable (in shares)	2,610,038
Weighted- Average Exercise Price
Beginning weighted average exercise price (in dollars per share)	$ 18.65
Forfeited / Cancelled (in dollars per share)	18.65
Ending weighted average exercise price (in dollars per share)	18.65	$ 18.65
Vested and exercisable (in dollars per share)	$ 18.65
Weighted- Average Remaining Term (Years)
Weighted average remaining terms (years)	2 years 8 months 12 days	3 years 6 months
Weighted average remaining terms, vested and exercisable (years)	2 years 8 months 12 days
Aggregate Intrinsic Value
Beginning aggregate intrinsic value	$ 0
Ending aggregate intrinsic value	0	$ 0
Vested and exercisable aggregate intrinsic value	$ 0

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Stock-Based Compensation - Unvested Class B Common Stock Activity (Details) - Class B common stock	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Number of Unvested Shares
Beginning balance (in shares) | shares	1,656,679
Vested (in shares) | shares	(1,067,925)
Forfeited / cancelled (in shares) | shares	(88,630)
Ending balance (in shares) | shares	500,124
Weighted- Average Grant Date Fair Value (per share)
Beginning balance (in dollars per share) | $ / shares	$ 20.00
Vested (in dollars per share) | $ / shares	20.00
Forfeited / cancelled (in dollars per share) | $ / shares	20.00
Ending balance (in dollars per share) | $ / shares	$ 20.00

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Stock-Based Compensation - Options to Purchase Class B Common Stock (Details) - Class B common stock - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Number of Options
Beginning balance (in shares)	259,425
Forfeited / cancelled (in shares)	(28,000)
Ending balance (in shares)	231,425	259,425
Vested (in shares)	231,425
Weighted- Average Exercise Price
Beginning weighted average exercise price (in dollars per share)	$ 7.69
Forfeited / Cancelled (in dollars per share)	7.69
Ending weighted average exercise price (in dollars per share)	7.69	$ 7.69
Vested (in dollars per share)	$ 7.69
Weighted- Average Remaining Term (Years)
Weighted average remaining terms (years)	1 year 3 months 18 days	1 year 10 months 24 days
Weighted average remaining terms, vested and exercisable (years)	1 year 3 months 18 days
Aggregate Intrinsic Value
Beginning aggregate intrinsic value	$ 0
Ending aggregate intrinsic value	0	$ 0
Vested aggregate intrinsic value	$ 0

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Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 1.3	$ 1.3	$ 2.7	$ 2.7
Variable lease cost	0.1	0.1	0.2	0.2
Cash paid for amounts included in the measurement of operating lease liabilities, included in net cash used in operating activities	$ 1.5	$ 1.5	$ 3.0	$ 3.0
Minimum
Lessee, Lease, Description [Line Items]
Lease term	1 year		1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease term	6 years		6 years

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Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
2024 (remainder of the year)	$ 2,711
2025	4,596
2026	3,991
2027	967
Total lease payments	12,265
Less: imputed interest	(439)
Present value of operating lease liabilities	11,826
Operating lease liabilities, current	4,964	$ 5,230
Operating lease liabilities, non-current	$ 6,862	$ 8,938

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Leases - Additional Lease Information (Details)	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Weighted-average remaining lease term of operating leases	2 years 6 months	2 years 10 months 24 days
Weighted-average discount rate of operating leases	3.00%	2.50%

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Restructuring (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 0.9	$ 1.2
Research and development
Restructuring Cost and Reserve [Line Items]
Severance costs	0.4	0.7
Sales and marketing
Restructuring Cost and Reserve [Line Items]
Severance costs	0.4	0.3
General and administrative
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 0.1	$ 0.2

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Employee Benefit Plan (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Retirement Benefits [Abstract]
Employer matching contribution (percentage)			50.00%
Employer matching contribution as a percent of employees' gross pay (percentage)			12.00%
Employer contribution amount	$ 0.6	$ 0.7	$ 1.3	$ 1.4

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Net Income Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Basic earnings per share:
Net income	$ 19,769	$ 19,647	$ 16,024	$ 9,099	$ 39,416	$ 25,123
Shares used in computation:
Weighted-average common shares outstanding, basic (in shares)	216,422,513		216,963,697		215,986,713	216,236,887
Earnings per share, basic (in dollars per share)	$ 0.09		$ 0.07		$ 0.18	$ 0.12
Diluted earnings per share:
Net income	$ 19,769	$ 19,647	$ 16,024	$ 9,099	$ 39,416	$ 25,123
Shares used in computation:
Weighted-average common shares outstanding, basic (in shares)	216,422,513		216,963,697		215,986,713	216,236,887
Weighted-average effect of potentially dilutive securities:
Unvested common stock subject to forfeiture (in shares)	279,481		1,740,938		535,850	2,283,285
Diluted weighted-average common shares outstanding (in shares)	217,501,646		219,915,839		217,390,891	219,597,977
Diluted net income per share (in dollars per share)	$ 0.09		$ 0.07		$ 0.18	$ 0.11
Employee stock options
Weighted-average effect of potentially dilutive securities:
Employee stock options / Restricted stock units (in shares)	0		32,133		0	14,971
Restricted stock units
Weighted-average effect of potentially dilutive securities:
Employee stock options / Restricted stock units (in shares)	799,652		1,179,071		868,328	1,062,834

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Net Income Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Performance Restricted Stock Units (PRSUs) | 2021 Equity Incentive Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of awards issued	6,448,062		6,448,062		6,766,001
Employee stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	3,135,773	3,050,351	3,135,773	3,050,351
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	5,924,084	4,728,505	10,484,929	8,068,678
Unvested common stock subject to forfeiture
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	227,864	367,133	245,442	552,113

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Segment Information - Narrative (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024 USD ($) segment	Jun. 30, 2024 USD ($) segment
Segment Reporting, Asset Reconciling Item [Line Items]
Number of reportable segments | segment	2	2
Percentage Of Revenue Subject To Point In Time Recognition		1.00%
Non-US
Segment Reporting, Asset Reconciling Item [Line Items]
Long-lived assets | $	$ 6.0	$ 6.0

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Segment Information - Schedule of Key Financial Performance Measures of the Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue	$ 167,947	$ 177,765	$ 335,339	$ 358,992
Cost of revenue	78,107	90,110	153,905	194,671
Gross profit	89,840	87,655	181,434	164,321
Platform
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue	77,649	77,386	155,935	153,627
Cost of revenue	8,888	8,008	17,647	15,769
Gross profit	68,761	69,378	138,288	137,858
Products
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue	90,298	100,379	179,404	205,365
Cost of revenue	69,219	82,102	136,258	178,902
Gross profit	$ 21,079	$ 18,277	$ 43,146	$ 26,463

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Subsequent Events (Details) - Subsequent Event $ in Millions	Jul. 01, 2024 USD ($) shares
Restricted stock units
Subsequent Event [Line Items]
Granted (in shares) | shares	9,808,000
Restricted stock units and awards | Tranche One
Subsequent Event [Line Items]
Percentage of awards vesting	30.00%
ShareBasedCompensationArrangementOperatingIncomeRequiredOverFourConsecutiveQuarters	$ 149
Restricted stock units and awards | Tranche Two
Subsequent Event [Line Items]
Percentage of awards vesting	70.00%
ShareBasedCompensationArrangementOperatingIncomeRequiredOverFourConsecutiveQuarters	$ 240