Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 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 $0.001 per share | |
Trading Symbol | CRCT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001828962 | |
Current Fiscal Year End Date | --12-31 | |
Common Class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 51,394,617 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 165,319,847 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 178,992 | $ 142,187 |
Marketable securities | 102,703 | 102,952 |
Accounts receivable, net | 77,597 | 111,247 |
Inventories | 225,367 | 244,469 |
Prepaid expenses and other current assets | 11,198 | 19,114 |
Total current assets | 595,857 | 619,969 |
Property and equipment, net | 44,616 | 47,614 |
Operating lease right-of-use asset | 11,076 | 12,353 |
Deferred tax assets | 39,058 | 34,823 |
Other assets | 33,104 | 35,363 |
Total assets | 723,711 | 750,122 |
Current liabilities: | ||
Accounts payable | 45,206 | 76,860 |
Accrued expenses and other current liabilities | 58,071 | 71,933 |
Deferred revenue, current portion | 43,912 | 40,304 |
Operating lease liabilities, current portion | 4,955 | 5,230 |
Dividends payable, current portion | 809 | 2,137 |
Total current liabilities | 152,953 | 196,464 |
Operating lease liabilities, net of current portion | 7,792 | 8,938 |
Deferred revenue, net of current portion | 2,721 | 2,931 |
Other non-current liabilities | 7,673 | 6,916 |
Total liabilities | 171,139 | 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 March 31, 2024 and December 31, 2023. | 0 | 0 |
Common stock, par value $0.001 per share, 1,250,000,000 shares authorized as of March 31, 2024, 216,702,784 shares issued and outstanding as of March 31, 2024; 1,250,000,000 shares authorized as of December 31, 2023, 217,915,713 shares issued and outstanding as of December 31, 2023. | 217 | 218 |
Additional paid-in capital | 504,293 | 505,864 |
Retained earnings | 48,161 | 28,514 |
Accumulated other comprehensive income (loss) | (99) | 277 |
Total stockholders’ equity | 552,572 | 534,873 |
Total liabilities and stockholders’ equity | $ 723,711 | $ 750,122 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 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) | 216,702,784 | 217,915,713 |
Common stock, shares outstanding (in shares) | 216,702,784 | 217,915,713 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue: | ||
Total revenue | $ 167,392 | $ 181,227 |
Cost of revenue: | ||
Total cost of revenue | 75,798 | 104,561 |
Gross profit | 91,594 | 76,666 |
Operating expenses: | ||
Research and development | 14,853 | 17,801 |
Sales and marketing | 33,030 | 29,616 |
General and administrative | 18,506 | 18,720 |
Total operating expenses | 66,389 | 66,137 |
Income from operations | 25,205 | 10,529 |
Other income (expense): | ||
Interest income | 2,418 | 1,753 |
Interest expense | (81) | (79) |
Other income | 748 | 641 |
Total other income, net | 3,085 | 2,315 |
Income before provision for income taxes | 28,290 | 12,844 |
Provision for income taxes | 8,643 | 3,745 |
Net income | 19,647 | 9,099 |
Other comprehensive income (loss): | ||
Change in net unrealized gains (losses) on marketable securities, net of tax | (288) | 188 |
Change in foreign currency translation adjustment, net of tax | (88) | 18 |
Comprehensive income | $ 19,271 | $ 9,305 |
Earnings per share, basic (in dollars per share) | $ 0.09 | $ 0.04 |
Earnings per share, diluted (in dollars per share) | $ 0.09 | $ 0.04 |
Weighted-average common shares outstanding, basic (in shares) | 215,549,467 | 215,587,699 |
Weighted-average common shares outstanding, diluted (in shares) | 216,865,052 | 218,749,255 |
Platform | ||
Revenue: | ||
Total revenue | $ 78,286 | $ 76,241 |
Cost of revenue: | ||
Total cost of revenue | 8,759 | 7,761 |
Products | ||
Revenue: | ||
Total revenue | 89,106 | 104,986 |
Cost of revenue: | ||
Total cost of revenue | $ 67,039 | $ 96,800 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
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 | 275 | ||||
Forfeiture of unvested common stock (in shares) | (103,906) | ||||
Forfeiture of unvested common stock and dividend equivalents | 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, 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) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 19,647 | $ 9,099 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ||
Depreciation and amortization (including amortization of debt issuance costs) | 7,496 | 6,888 |
Bad debt expense | 992 | 1,107 |
Impairments | 0 | 441 |
Stock-based compensation | 10,757 | 10,421 |
Deferred income tax | (4,140) | (3,311) |
Non-cash lease expense | 1,272 | 1,238 |
Unrealized foreign currency loss | 605 | 636 |
Provision for inventory obsolescence | 563 | 8,477 |
Other | (739) | (634) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 32,011 | 44,416 |
Inventories | 20,849 | 48,506 |
Prepaid expenses and other current assets | 8,497 | 8,351 |
Other assets | 259 | (466) |
Accounts payable | (31,096) | (24,192) |
Accrued expenses and other current liabilities and other non-current liabilities | (12,280) | (17,573) |
Operating lease liabilities | (1,403) | (1,353) |
Deferred revenue | 3,398 | 3,118 |
Net cash and cash equivalents provided by operating activities | 56,688 | 95,169 |
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 | (5,117) | (7,741) |
Net cash and cash equivalents used in investing activities | (5,119) | (7,741) |
Cash flows from financing activities: | ||
Repurchases of common stock | (10,795) | (3,244) |
Proceeds from exercise of stock options | 0 | 55 |
Employee tax withholding payments on stock-based awards | (2,408) | (1,358) |
Cash dividend | (1,439) | (75,531) |
Net cash and cash equivalents used in financing activities | (14,642) | (80,078) |
Effect of exchange rate on changes on cash and cash equivalents | (122) | 28 |
Net increase in cash and cash equivalents | 36,805 | 7,378 |
Cash and cash equivalents at beginning of period | 142,187 | 224,943 |
Cash and cash equivalents at end of period | 178,992 | 232,321 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 0 | 0 |
Cash paid during the period for income taxes | 151 | 115 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Property and equipment included in accounts payable and accrued expenses and other current liabilities | 1,786 | 2,027 |
Tax withholdings on stock-based awards included in accrued expenses and other current liabilities | 367 | 190 |
Stock-based compensation capitalized for software development costs | 330 | 430 |
Dividends declared but unpaid | $ 831 | $ 0 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 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 months ended March 31, 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 November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 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. In December, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 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 (“SSP”) 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 ongoing pandemic and 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 March 31, 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. |
Revenue and Deferred Revenue
Revenue and Deferred Revenue | 3 Months Ended |
Mar. 31, 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 March 31, 2024 and December 31, 2023. The following table summarizes the changes in the deferred revenue balance for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 (in thousands) Deferred revenue, beginning of period $ 43,235 $ 38,658 Recognition of revenue included in beginning of period deferred revenue (23,479) (21,076) Revenue deferred, net of revenue recognized on contracts in the respective period 26,877 24,194 Deferred revenue, end of period $ 46,633 $ 41,776 As of March 31, 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 March 31, 2024: Year Ended December 31, 2024 (remainder of year) 2025 2026 2027 Total (in thousands) Revenue expected to be recognized $ 41,228 $ 4,411 $ 976 $ 18 $ 46,633 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 months ended March 31, 2024 related to performance obligations satisfied or partially satisfied was $2.6 million. The following table presents the total revenue by geography based on the ship-to address for the periods indicated: Three Months Ended March 31, 2024 2023 (in thousands) North America* $ 134,835 $ 147,755 International 32,557 33,472 Total revenue $ 167,392 $ 181,227 *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 March 31, 2024 2023 (in thousands) Platform $ 78,286 $ 76,241 Connected machines 36,948 34,131 Accessories and materials 52,158 70,855 Total revenue $ 167,392 $ 181,227 |
Cash, Cash Equivalents, and Fin
Cash, Cash Equivalents, and Financial Instruments | 3 Months Ended |
Mar. 31, 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 March 31, 2024 and December 31, 2023: As of March 31, 2024 Adjusted Cost Allowance for Credit Losses Total Unrealized Gains Total Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities (in thousands) Cash $ 134,285 $ — $ — $ — $ 134,285 $ 134,285 $ — Level 1: Money market funds 44,707 — — — 44,707 44,707 — Subtotal 44,707 — — — 44,707 44,707 — Level 2: U.S. treasury securities 102,544 — 159 — 102,703 — 102,703 Subtotal 102,544 — 159 — 102,703 — 102,703 Total $ 281,536 $ — $ 159 $ — $ 281,695 $ 178,992 $ 102,703 As of December 31, 2023 Adjusted Cost Allowance for Credit Losses Total Unrealized Gains Total Unrealized Losses 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 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are comprised of the following: As of March 31, As of December 31, (in thousands) Raw materials $ 44,224 $ 44,935 Finished goods 267,285 286,988 Total inventories $ 311,509 $ 331,923 Less: reserves $ (55,021) $ (54,416) Total inventories, net $ 256,488 $ 277,507 Inventories current $ 225,367 $ 244,469 Inventories non-current (included in other assets) $ 31,121 $ 33,038 The Company’s recorded inventory reserves as of March 31, 2024 consisted of $5.1 million related to excess connected machine inventory, $46.4 million related to excess accessories and materials inventory, and $3.5 million related to raw material components. Amounts charged to the reserve account are recorded primarily in cost of revenues. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 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 March 31, As of December 31, (in thousands) Sales incentives $ 21,116 $ 30,479 Other accrued liabilities and other current liabilities 36,955 41,454 Total accrued expenses $ 58,071 $ 71,933 |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Mar. 31, 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 March 31, 2024, and December 31, 2023 total unamortized debt issuance costs were $1.1 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 March 31, 2024. As of March 31, 2024 and December 31, 2023, no amounts were outstanding under the Credit Agreement and available borrowings were $300.0 million. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 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 30.6% and 29.2% for the three months ended March 31, 2024, and 2023, respectively. The Company’s provision for income taxes was $8.6 million and $3.7 million, for the three months ended March 31, 2024, and 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. |
Capital Structure
Capital Structure | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Capital Structure | Capital Structure As of March 31, 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 March 31, 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 51,292,929 shares of Class A common stock and 165,409,855 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 three months ended March 31, 2024 and 2023, 1,027,258 and 7,772,294 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 common stock repurchase program under which the Company may repurchase shares of its outstanding Class A common stock up to an aggregate transactional value of $50 million, 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 three months ended March 31, 2024, the Company repurchased and retired 1,697,272 shares of our Class A common stock for $10.8 million, effectively finishing the stock repurchase program authorized in August 2022. Dividends 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 months ended March 31, 2024, an aggregate of $1.4 million was paid in cash. During three months ended March 31, 2023, $75.5 million was paid in cash and $4.4 million was satisfied in the form of dividend equivalents to RSU or PRSU holders. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 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 March 31, 2024 2023 (in thousands) Equity classified awards Restricted stock units $ 9,798 $ 8,379 Stock options 437 626 Class B common stock 1,238 1,889 Liability classified awards 7 12 Total stock-based compensation $ 11,480 $ 10,906 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 March 31, 2024 2023 (in thousands) Cost of revenue Platform $ 237 $ 115 Products 186 458 Total cost of revenue 423 573 Research and development 3,713 3,906 Sales and marketing 2,936 3,205 General and administrative 3,685 2,737 Total stock-based compensation expense $ 10,757 $ 10,421 Capitalized for software development costs 330 430 Capitalized to inventories 393 55 Total stock-based compensation $ 11,480 $ 10,906 As of March 31, 2024, there was $78.3 million of unrecognized stock-based compensation cost related to service-based awards which is expected to be recognized over a weighted-average period of 2.1 years. The total unrecognized compensation expense related to unvested PRSUs was $152.6 million as of March 31, 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 nonstatutory 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 March 31, 2024, 51,770,242 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 247,500 $ 4.91 Vested (991,402) $ 11.33 Forfeited / cancelled (406,288) $ 12.93 Outstanding at March 31, 2024 7,743,641 $ 14.54 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 (223,116) $ 23.37 Outstanding at March 31, 2024 6,542,885 $ 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 March 31, 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 three months ended March 31, 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- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2023 2,999,085 $ 18.65 3.5 $ — Forfeited / cancelled (4,065) $ 18.65 Outstanding at March 31, 2024 2,995,020 $ 18.65 3.1 $ — Vested and exercisable at March 31, 2024 2,680,069 $ 18.65 3.0 $ — During the three months ended March 31, 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 March 31, 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 three months ended March 31, 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 (988,133) $ 20.00 Forfeited / cancelled (64,001) $ 20.00 Outstanding at March 31, 2024 604,545 $ 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- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2023 259,425 $ 7.69 1.9 $ — Exercised — — Forfeited / cancelled (6,000) $ 7.69 Outstanding at March 31, 2024 253,425 $ 7.69 1.5 $ — Vested and exercisable at March 31, 2024 253,425 $ 7.69 1.5 $ — During the three months ended March 31, 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 March 31, 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. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space with lease terms ranging from one 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 $1.4 million for the three months ended March 31, 2024 and 2023, respectively. The Company also incurred variable lease costs of $0.2 million and $0.1 million, for the three months ended March 31, 2024 and 2023, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $1.5 million for both the three months ended March 31, 2024 and 2023, respectively. These amounts were included in net cash provided by operating activities in the Company's consolidated statements of cash flows. As of March 31, 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) $ 4,047 2025 4,350 2026 3,899 2027 967 Total lease payments $ 13,263 Less: imputed interest $ (516) Present value of operating lease liabilities $ 12,747 Operating lease liabilities, current $ 4,955 Operating lease liabilities, non-current $ 7,792 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 March 31, 2024 As of December 31, 2023 Weighted-average remaining lease term of operating leases 2.7 years 2.9 years Weighted-average discount rate of operating leases 2.5 % 2.5 % |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 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. During the three months ended March 31, 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. In the three months ended March 31, 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. |
Employee Benefit Plan
Employee Benefit Plan | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 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 March 31, 2024 2023 (in thousands, except share and per share amounts) Basic earnings per share: Net income $ 19,647 $ 9,099 Shares used in computation: Weighted-average common shares outstanding, basic 215,549,467 215,587,699 Earnings per share, basic $ 0.09 $ 0.04 Diluted earnings per share: Net income $ 19,647 $ 9,099 Shares used in computation: Weighted-average common shares outstanding, basic 215,549,467 215,587,699 Weighted-average effect of potentially dilutive securities: Unvested common stock subject to forfeiture 794,502 2,813,251 Employee stock options — 18,851 Restricted stock units 521,083 329,454 Diluted weighted-average common shares outstanding 216,865,052 218,749,255 Diluted net income per share $ 0.09 $ 0.04 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 March 31, 2024 2023 Employee stock options 3,248,445 3,109,412 Restricted stock units 7,396,613 8,940,648 Unvested common stock subject to forfeiture 246,083 657,228 As of March 31, 2024, 6,542,885 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. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 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 March 31, 2024, long-lived assets located outside the United States, primarily located in Malaysia and China, were $7.3 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 three months ended March 31, 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 March 31, 2024 2023 (in thousands) Platform: Revenue $ 78,286 $ 76,241 Cost of revenue 8,759 7,761 Gross profit $ 69,527 $ 68,480 Products: Revenue $ 89,106 $ 104,986 Cost of revenue 67,039 96,800 Gross profit $ 22,067 $ 8,186 Consolidated: Revenue $ 167,392 $ 181,227 Cost of revenue 75,798 104,561 Gross profit $ 91,594 $ 76,666 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 6, 2024, the Board of Directors approved 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. In addition, the Board of Directors also approved a share repurchase program authorizing the Company to purchase up to an aggregate of $50 million of the Company’s Class A common stock. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 19,647 | $ 9,099 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 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”) |
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. |
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 November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 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. In December, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
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 (“SSP”) 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 ongoing pandemic and 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. |
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. |
Revenue and Deferred Revenue (T
Revenue and Deferred Revenue (Tables) | 3 Months Ended |
Mar. 31, 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 three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 (in thousands) Deferred revenue, beginning of period $ 43,235 $ 38,658 Recognition of revenue included in beginning of period deferred revenue (23,479) (21,076) Revenue deferred, net of revenue recognized on contracts in the respective period 26,877 24,194 Deferred revenue, end of period $ 46,633 $ 41,776 |
Schedule of Recognition of Deferred Revenue | The Company expects the following recognition of deferred revenue as of March 31, 2024: Year Ended December 31, 2024 (remainder of year) 2025 2026 2027 Total (in thousands) Revenue expected to be recognized $ 41,228 $ 4,411 $ 976 $ 18 $ 46,633 |
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 March 31, 2024 2023 (in thousands) North America* $ 134,835 $ 147,755 International 32,557 33,472 Total revenue $ 167,392 $ 181,227 *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 March 31, 2024 2023 (in thousands) Platform $ 78,286 $ 76,241 Connected machines 36,948 34,131 Accessories and materials 52,158 70,855 Total revenue $ 167,392 $ 181,227 |
Cash, Cash Equivalents, and F_2
Cash, Cash Equivalents, and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2024 and December 31, 2023: As of March 31, 2024 Adjusted Cost Allowance for Credit Losses Total Unrealized Gains Total Unrealized Losses Fair Value Cash and Cash Equivalents Marketable Securities (in thousands) Cash $ 134,285 $ — $ — $ — $ 134,285 $ 134,285 $ — Level 1: Money market funds 44,707 — — — 44,707 44,707 — Subtotal 44,707 — — — 44,707 44,707 — Level 2: U.S. treasury securities 102,544 — 159 — 102,703 — 102,703 Subtotal 102,544 — 159 — 102,703 — 102,703 Total $ 281,536 $ — $ 159 $ — $ 281,695 $ 178,992 $ 102,703 As of December 31, 2023 Adjusted Cost Allowance for Credit Losses Total Unrealized Gains Total Unrealized Losses 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 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | Inventories are comprised of the following: As of March 31, As of December 31, (in thousands) Raw materials $ 44,224 $ 44,935 Finished goods 267,285 286,988 Total inventories $ 311,509 $ 331,923 Less: reserves $ (55,021) $ (54,416) Total inventories, net $ 256,488 $ 277,507 Inventories current $ 225,367 $ 244,469 Inventories non-current (included in other assets) $ 31,121 $ 33,038 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, As of December 31, (in thousands) Sales incentives $ 21,116 $ 30,479 Other accrued liabilities and other current liabilities 36,955 41,454 Total accrued expenses $ 58,071 $ 71,933 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2024 2023 (in thousands) Equity classified awards Restricted stock units $ 9,798 $ 8,379 Stock options 437 626 Class B common stock 1,238 1,889 Liability classified awards 7 12 Total stock-based compensation $ 11,480 $ 10,906 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 March 31, 2024 2023 (in thousands) Cost of revenue Platform $ 237 $ 115 Products 186 458 Total cost of revenue 423 573 Research and development 3,713 3,906 Sales and marketing 2,936 3,205 General and administrative 3,685 2,737 Total stock-based compensation expense $ 10,757 $ 10,421 Capitalized for software development costs 330 430 Capitalized to inventories 393 55 Total stock-based compensation $ 11,480 $ 10,906 |
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 247,500 $ 4.91 Vested (991,402) $ 11.33 Forfeited / cancelled (406,288) $ 12.93 Outstanding at March 31, 2024 7,743,641 $ 14.54 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 (223,116) $ 23.37 Outstanding at March 31, 2024 6,542,885 $ 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- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2023 2,999,085 $ 18.65 3.5 $ — Forfeited / cancelled (4,065) $ 18.65 Outstanding at March 31, 2024 2,995,020 $ 18.65 3.1 $ — Vested and exercisable at March 31, 2024 2,680,069 $ 18.65 3.0 $ — 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- Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2023 259,425 $ 7.69 1.9 $ — Exercised — — Forfeited / cancelled (6,000) $ 7.69 Outstanding at March 31, 2024 253,425 $ 7.69 1.5 $ — Vested and exercisable at March 31, 2024 253,425 $ 7.69 1.5 $ — |
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 three months ended March 31, 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 (988,133) $ 20.00 Forfeited / cancelled (64,001) $ 20.00 Outstanding at March 31, 2024 604,545 $ 20.00 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Lease Liability Maturity | As of March 31, 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) $ 4,047 2025 4,350 2026 3,899 2027 967 Total lease payments $ 13,263 Less: imputed interest $ (516) Present value of operating lease liabilities $ 12,747 Operating lease liabilities, current $ 4,955 Operating lease liabilities, non-current $ 7,792 |
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 March 31, 2024 As of December 31, 2023 Weighted-average remaining lease term of operating leases 2.7 years 2.9 years Weighted-average discount rate of operating leases 2.5 % 2.5 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2024 2023 (in thousands, except share and per share amounts) Basic earnings per share: Net income $ 19,647 $ 9,099 Shares used in computation: Weighted-average common shares outstanding, basic 215,549,467 215,587,699 Earnings per share, basic $ 0.09 $ 0.04 Diluted earnings per share: Net income $ 19,647 $ 9,099 Shares used in computation: Weighted-average common shares outstanding, basic 215,549,467 215,587,699 Weighted-average effect of potentially dilutive securities: Unvested common stock subject to forfeiture 794,502 2,813,251 Employee stock options — 18,851 Restricted stock units 521,083 329,454 Diluted weighted-average common shares outstanding 216,865,052 218,749,255 Diluted net income per share $ 0.09 $ 0.04 |
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 March 31, 2024 2023 Employee stock options 3,248,445 3,109,412 Restricted stock units 7,396,613 8,940,648 Unvested common stock subject to forfeiture 246,083 657,228 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2024 2023 (in thousands) Platform: Revenue $ 78,286 $ 76,241 Cost of revenue 8,759 7,761 Gross profit $ 69,527 $ 68,480 Products: Revenue $ 89,106 $ 104,986 Cost of revenue 67,039 96,800 Gross profit $ 22,067 $ 8,186 Consolidated: Revenue $ 167,392 $ 181,227 Cost of revenue 75,798 104,561 Gross profit $ 91,594 $ 76,666 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 2 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | |||
Accounts receivable | $ 77,597 | $ 111,247 | $ 136,500 |
Allowances against accounts receivable | $ 2,900 | $ 2,000 |
Revenue and Deferred Revenue -
Revenue and Deferred Revenue - Schedule of Changes in the Deferred Revenue Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 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 | (23,479) | (21,076) |
Revenue deferred, net of revenue recognized on contracts in the respective period | 26,877 | 24,194 |
Deferred revenue, end of period | $ 46,633 | $ 41,776 |
Revenue and Deferred Revenue _2
Revenue and Deferred Revenue - Schedule of Recognition of Deferred Revenue (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 46,633 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 41,228 |
Revenue, expected timing of satisfaction, period | 9 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 | $ 4,411 |
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 | $ 976 |
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 | $ 18 |
Revenue, expected timing of satisfaction, period | 1 year |
Revenue and Deferred Revenue _3
Revenue and Deferred Revenue - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized related to performance obligations satisfied or partially satisfied in prior periods | $ 2.6 |
Revenue and Deferred Revenue _4
Revenue and Deferred Revenue - Schedule of Total Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 167,392 | $ 181,227 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 134,835 | 147,755 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 32,557 | $ 33,472 |
Revenue and Deferred Revenue _5
Revenue and Deferred Revenue - Schedule of Total Revenue by Source (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 167,392 | $ 181,227 |
Platform | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 78,286 | 76,241 |
Connected machines | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 36,948 | 34,131 |
Accessories and materials | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 52,158 | $ 70,855 |
Cash, Cash Equivalents, and F_3
Cash, Cash Equivalents, and Financial Instruments - Schedule of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Cash and Cash Equivalents [Line Items] | ||
Cash, Adjusted Cost | $ 178,992 | $ 142,187 |
Debt Securities, Available-for-Sale [Abstract] | ||
Allowance for Credit Losses | 0 | 0 |
Total Unrealized Gains | 159 | 541 |
Total Unrealized Losses | 0 | 0 |
Assets, Adjusted Cost | 281,536 | 244,598 |
Assets, Fair Value | $ 281,695 | 245,139 |
Marketable securities, maturity | 24 months | |
Cash | ||
Cash and Cash Equivalents [Line Items] | ||
Cash, Adjusted Cost | $ 134,285 | 44,809 |
Cash, Fair Value | 134,285 | 44,809 |
Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-Sale [Abstract] | ||
Adjusted Cost | 44,707 | 97,378 |
Allowance for Credit Losses | 0 | 0 |
Total Unrealized Gains | 0 | 0 |
Total Unrealized Losses | 0 | 0 |
Fair Value | 44,707 | 97,378 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Debt Securities, Available-for-Sale [Abstract] | ||
Adjusted Cost | 44,707 | 97,378 |
Allowance for Credit Losses | 0 | 0 |
Total Unrealized Gains | 0 | 0 |
Total Unrealized Losses | 0 | 0 |
Fair Value | 44,707 | 97,378 |
Fair Value, Inputs, Level 2 | ||
Debt Securities, Available-for-Sale [Abstract] | ||
Adjusted Cost | 102,544 | 102,411 |
Allowance for Credit Losses | 0 | 0 |
Total Unrealized Gains | 159 | 541 |
Total Unrealized Losses | 0 | 0 |
Fair Value | 102,703 | 102,952 |
Fair Value, Inputs, Level 2 | U.S. treasury securities | ||
Debt Securities, Available-for-Sale [Abstract] | ||
Adjusted Cost | 102,544 | 102,411 |
Allowance for Credit Losses | 0 | 0 |
Total Unrealized Gains | 159 | 541 |
Total Unrealized Losses | 0 | 0 |
Fair Value | 102,703 | 102,952 |
Cash | ||
Cash and Cash Equivalents [Line Items] | ||
Cash, Fair Value | 134,285 | 44,809 |
Debt Securities, Available-for-Sale [Abstract] | ||
Assets, Fair Value | 178,992 | 142,187 |
Cash | Fair Value, Inputs, Level 1 | ||
Debt Securities, Available-for-Sale [Abstract] | ||
Fair Value | 44,707 | 97,378 |
Cash | Fair Value, Inputs, Level 1 | Money Market Funds | ||
Debt Securities, Available-for-Sale [Abstract] | ||
Fair Value | 44,707 | 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 | 102,703 | 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 | 102,703 | 102,952 |
Marketable Securities | Fair Value, Inputs, Level 2 | U.S. treasury securities | ||
Debt Securities, Available-for-Sale [Abstract] | ||
Fair Value | $ 102,703 | $ 102,952 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 44,224 | $ 44,935 |
Finished goods | 267,285 | 286,988 |
Total inventories | 311,509 | 331,923 |
Less: reserves | (55,021) | (54,416) |
Total inventories, net | 256,488 | 277,507 |
Inventories current | 225,367 | 244,469 |
Inventories non-current (included in other assets) | 31,121 | 33,038 |
Inventory [Line Items] | ||
Inventory Valuation Reserves | 55,021 | $ 54,416 |
Machine Inventory | ||
Inventory Disclosure [Abstract] | ||
Less: reserves | (5,100) | |
Inventory [Line Items] | ||
Inventory Valuation Reserves | 5,100 | |
Accessories and Materials Inventory | ||
Inventory Disclosure [Abstract] | ||
Less: reserves | (46,400) | |
Inventory [Line Items] | ||
Inventory Valuation Reserves | 46,400 | |
Raw Materials | ||
Inventory Disclosure [Abstract] | ||
Less: reserves | (3,500) | |
Inventory [Line Items] | ||
Inventory Valuation Reserves | $ 3,500 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Sales incentives | $ 21,116 | $ 30,479 |
Other accrued liabilities and other current liabilities | 36,955 | 41,454 |
Total accrued expenses | $ 58,071 | $ 71,933 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) - Revolving Credit Facility - Credit Agreement | 3 Months Ended | ||
Aug. 04, 2022 USD ($) | Mar. 31, 2024 USD ($) | 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 | $ 1,100,000 | $ 1,200,000 | |
Leverage ratio | 3 | ||
Amounts outstanding | $ 0 | $ 0 | |
Remaining borrowing capacity | $ 300,000,000 | ||
Basis spread on variable rate (percentage) | 2% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate (percentage) | 30.60% | 29.20% |
Provision for income taxes | $ 8,643 | $ 3,745 |
Capital Structure (Details)
Capital Structure (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
May 18, 2023 USD ($) $ / shares | Dec. 21, 2022 USD ($) $ / shares | Mar. 31, 2024 USD ($) vote $ / shares shares | Mar. 31, 2023 USD ($) shares | Dec. 31, 2023 $ / shares shares | Jul. 19, 2022 USD ($) | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 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 | ||||
Common stock, shares issued (in shares) | 216,702,784 | 217,915,713 | ||||
Common stock, shares outstanding (in shares) | 216,702,784 | 217,915,713 | ||||
Dividends payable (in dollars per share) | $ / shares | $ 1 | $ 0.35 | ||||
Dividends declared but unpaid | $ | $ 234,600 | $ 81,400 | $ 831 | $ 0 | ||
Dividends payable, current portion | $ | 219,800 | 76,900 | ||||
Dividends, paid-in-kind | $ | $ 14,800 | $ 4,500 | ||||
Dividends, paid in cash | $ | $ 1,400 | 75,500 | ||||
Dividends, satisfied in form of dividend equivalents to RSU or PRSU holders | $ | $ 4,400 | |||||
Common Class A | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 1,000,000,000 | |||||
Common stock, shares issued (in shares) | 51,292,929 | |||||
Common stock, shares outstanding (in shares) | 51,292,929 | |||||
Number of votes per share | vote | 1 | |||||
Number of shares issuable upon conversion (in shares) | 1 | |||||
Stock repurchase program, authorized amount | $ | $ 50,000 | |||||
Stock repurchased and retired (in shares) | 1,697,272 | |||||
Stock repurchased and retired, value | $ | $ 10,800 | |||||
Common Class A | Existing Stockholders | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Sale of stock, shares issued in transaction | 1,027,258 | 7,772,294 | ||||
Class B common stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 250,000,000 | |||||
Common stock, shares issued (in shares) | 165,409,855 | |||||
Common stock, shares outstanding (in shares) | 165,409,855 | |||||
Number of votes per share | vote | 5 |
Stock-Based Compensation - Cost
Stock-Based Compensation - Cost By Award Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 11,480 | $ 10,906 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 9,798 | 8,379 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 437 | 626 |
Class B common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 1,238 | 1,889 |
Liability classified awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 7 | $ 12 |
Stock-Based Compensation - Co_2
Stock-Based Compensation - Cost Related to Company's Stock-Based Compensation Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 10,757 | $ 10,421 |
Total stock-based compensation | 11,480 | 10,906 |
Software Development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense, amount capitalized | 330 | 430 |
Inventories | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense, amount capitalized | 393 | 55 |
Total cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 423 | 573 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 3,713 | 3,906 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 2,936 | 3,205 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 3,685 | 2,737 |
Platform | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 237 | 115 |
Products | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 186 | $ 458 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 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 | 51,770,242 |
Equity classified awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation cost | $ | $ 78.3 |
Unrecognized stock-based compensation cost, period for recognition | 2 years 1 month 6 days |
Performance Restricted Stock Units (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation cost | $ | $ 152.6 |
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% |
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% |
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 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Activity Under Company's Stock Plans (Details) - Restricted stock units - 2021 Equity Incentive Plan | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Unvested Shares | |
Beginning balance (in shares) | shares | 8,893,831 |
Granted (in shares) | shares | 247,500 |
Vested (in shares) | shares | (991,402) |
Forfeited / cancelled (in shares) | shares | (406,288) |
Ending balance (in shares) | shares | 7,743,641 |
Weighted- Average Grant Date Fair Value (per share) | |
Beginning balance (in dollars per share) | $ / shares | $ 14.38 |
Granted (in dollars per share) | $ / shares | 4.91 |
Vested (in dollars per share) | $ / shares | 11.33 |
Forfeited / cancelled (in dollars per share) | $ / shares | 12.93 |
Ending balance (in dollars per share) | $ / shares | $ 14.54 |
Stock-Based Compensation - PRSU
Stock-Based Compensation - PRSU Activity (Details) - Performance Restricted Stock Units (PRSUs) - 2021 Equity Incentive Plan | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Unvested Shares | |
Beginning balance (in shares) | shares | 6,766,001 |
Forfeited / cancelled (in shares) | shares | (223,116) |
Ending balance (in shares) | shares | 6,542,885 |
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 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - 2021 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Number of Options | ||
Beginning balance (in shares) | 2,999,085 | |
Forfeited / cancelled (in shares) | (4,065) | |
Ending balance (in shares) | 2,995,020 | 2,999,085 |
Vested and exercisable (in shares) | 2,680,069 | |
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) | 3 years 1 month 6 days | 3 years 6 months |
Weighted average remaining terms, vested and exercisable (years) | 3 years | |
Aggregate Intrinsic Value | ||
Beginning aggregate intrinsic value | $ 0 | |
Ending aggregate intrinsic value | 0 | $ 0 |
Vested and exercisable aggregate intrinsic value | $ 0 |
Stock-Based Compensation - Unve
Stock-Based Compensation - Unvested Class B Common Stock Activity (Details) - Class B common stock | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Unvested Shares | |
Beginning balance (in shares) | shares | 1,656,679 |
Vested (in shares) | shares | (988,133) |
Forfeited / cancelled (in shares) | shares | (64,001) |
Ending balance (in shares) | shares | 604,545 |
Weighted- Average Grant Date Fair Value (per share) | |
Beginning balance (in dollars per share) | $ / shares | $ 20 |
Vested (in dollars per share) | $ / shares | 20 |
Forfeited / cancelled (in dollars per share) | $ / shares | 20 |
Ending balance (in dollars per share) | $ / shares | $ 20 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Options to Purchase Class B Common Stock (Details) - Class B common stock - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Number of Options | ||
Beginning balance (in shares) | 259,425 | |
Exercised (in shares) | 0 | |
Forfeited / cancelled (in shares) | (6,000) | |
Ending balance (in shares) | 253,425 | 259,425 |
Vested (in shares) | 253,425 | |
Weighted- Average Exercise Price | ||
Beginning weighted average exercise price (in dollars per share) | $ 7.69 | |
Exercised (in dollars per share) | 0 | |
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 6 months | 1 year 10 months 24 days |
Weighted average remaining terms, vested and exercisable (years) | 1 year 6 months | |
Aggregate Intrinsic Value | ||
Beginning aggregate intrinsic value | $ 0 | |
Ending aggregate intrinsic value | 0 | $ 0 |
Vested aggregate intrinsic value | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 1.3 | $ 1.4 |
Variable lease cost | 0.2 | $ 0.1 |
Cash paid for amounts included in the measurement of operating lease liabilities, included in net cash used in operating activities | $ 1.5 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 6 years |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
2024 (remainder of the year) | $ 4,047 | |
2025 | 4,350 | |
2026 | 3,899 | |
2027 | 967 | |
Total lease payments | 13,263 | |
Less: imputed interest | (516) | |
Present value of operating lease liabilities | 12,747 | |
Operating lease liabilities, current | 4,955 | $ 5,230 |
Operating lease liabilities, non-current | $ 7,792 | $ 8,938 |
Leases - Additional Lease Infor
Leases - Additional Lease Information (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Leases [Abstract] | ||
Weighted-average remaining lease term of operating leases | 2 years 8 months 12 days | 2 years 10 months 24 days |
Weighted-average discount rate of operating leases | 2.50% | 2.50% |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 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 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Employer matching contribution (percentage) | 50% | |
Employer matching contribution as a percent of employees' gross pay (percentage) | 12% | |
Employer contribution amount | $ 0.7 | $ 0.7 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basic earnings per share: | ||
Net income | $ 19,647 | $ 9,099 |
Shares used in computation: | ||
Weighted-average common shares outstanding, basic (in shares) | 215,549,467 | 215,587,699 |
Earnings per share, basic (in dollars per share) | $ 0.09 | $ 0.04 |
Diluted earnings per share: | ||
Net income | $ 19,647 | $ 9,099 |
Shares used in computation: | ||
Weighted-average common shares outstanding, basic (in shares) | 215,549,467 | 215,587,699 |
Weighted-average effect of potentially dilutive securities: | ||
Unvested common stock subject to forfeiture (in shares) | 794,502 | 2,813,251 |
Diluted weighted-average common shares outstanding (in shares) | 216,865,052 | 218,749,255 |
Diluted net income per share (in dollars per share) | $ 0.09 | $ 0.04 |
Employee stock options | ||
Weighted-average effect of potentially dilutive securities: | ||
Employee stock options / Restricted stock units (in shares) | 0 | 18,851 |
Restricted stock units | ||
Weighted-average effect of potentially dilutive securities: | ||
Employee stock options / Restricted stock units (in shares) | 521,083 | 329,454 |
Net Income Per Share - Schedu_2
Net Income Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 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 | 6,542,885 | 6,766,001 | |
Employee stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 3,248,445 | 3,109,412 | |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 7,396,613 | 8,940,648 | |
Unvested common stock subject to forfeiture | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 246,083 | 657,228 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) segment | |
Segment Reporting, Asset Reconciling Item [Line Items] | |
Number of reportable segments | segment | 2 |
Percentage Of Revenue Subject To Point In Time Recognition | 1% |
Non-US | |
Segment Reporting, Asset Reconciling Item [Line Items] | |
Long-lived assets | $ | $ 7.3 |
Segment Information - Schedule
Segment Information - Schedule of Key Financial Performance Measures of the Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Revenue | $ 167,392 | $ 181,227 |
Cost of revenue | 75,798 | 104,561 |
Gross profit | 91,594 | 76,666 |
Platform | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Revenue | 78,286 | 76,241 |
Cost of revenue | 8,759 | 7,761 |
Gross profit | 69,527 | 68,480 |
Products | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Revenue | 89,106 | 104,986 |
Cost of revenue | 67,039 | 96,800 |
Gross profit | $ 22,067 | $ 8,186 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
May 18, 2023 | Dec. 21, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | May 06, 2024 | Jul. 19, 2022 | |
Subsequent Event [Line Items] | ||||||
Dividends payable (in dollars per share) | $ 1 | $ 0.35 | ||||
Dividends declared but unpaid | $ 234,600 | $ 81,400 | $ 831 | $ 0 | ||
Common Class A | ||||||
Subsequent Event [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 50,000 | |||||
Subsequent Event | Special Dividend, Class A and Class B Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends payable (in dollars per share) | $ 0.40 | |||||
Subsequent Event | Semi-Annual Dividend, Class A and Class B Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends payable (in dollars per share) | $ 0.10 | |||||
Subsequent Event | Common Class A | ||||||
Subsequent Event [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 50,000 |