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today, For the I'll spend basis. this most recap fourth annual on the additional giving will afternoon color quickly performance. I of financials call on my an our time quarter
a The of a We with for Relations levels revenue compared cost on had dollars, year of from XX% mentioned. or website year our just significantly low primarily paused As sheet XX% pandemic. expenses year, We increased with XX% Total promotional of supplemental compared segments for significantly revenue suppressed uncertainties increase to reminder, revenue In by promotions in XX% year is when we XXXX, XXXX. to given stream sales for growth. by in which to data our held enabled year's total last margin of last we levels multiple a growing but quick Ashish revenues flat top three growth have we in Investor our growth of operating of model activity had XXXX absolute initiatives, spending the the was this reference. of the mix. growth diversified posted expenses business and up our XX%. strength year from in XXXX, historical all many in operating when our invest the in a delivering $X.X in billion unusually at cost doubled revenue Driving revenue and offset higher to the Higher were us were costs. numbers costs year-over-year. prior you These of XX% on of came increased partially strong gross with freight from total
business model fifth a marked year of have consecutive profitability. durable XXXX We our and GAAP
$XX.X to XXXX quarter. million This margin compensation benefited $XXX.X GAAP XXXX, just stock-based which net shy delivered the XX.X%, expectation was we of accomplishments. promotional Overall, the the profits. mentioned nominal levels, strong continued stock-based back compensation supply into income million activity pause year, for fourth million successfully expense. and was as as many year and going to continue the growth, year XXXX. in invested saw included in business, just to well the lower navigated For chain margin in challenging from compared the $XXX.X EBITDA strong compares We a EBITDA inventory significantly spending generate our revenue which of XX.X% grew of of environment to
certain quarterly results. the into going more factors I'm to financial on numbers. Now to dive QX deeply underlying business
normalize XXX%. is holiday $XXX.X strength was in the pandemic, anticipated. up business, order financial You'll and the performance was outlook we QX revenue On and saw focus year-over-year need helpful. effects We trends, believe for a of looking on basis normalized tour two-year as the quarter the seasonality. of this a performance behind-the-scenes fourth in at to frame million, QX annual X% To health two-year which increase XXXX. in we for year-over-year. the the trajectory on understand To a basis, for to evaluate Revenue typical
QX from exceptionally year-over-year XXXX. we Keep down forward first comping million, Additionally, a basis, million QX mind from more an the aggressively were machines slated they that machines last XXXX ordering Revenue year. also defensive was from as $XX and navigated and strong in building a our roughly of concerns connected XXXX $XXX.X pulled materials. about by and chain are in on These stock benefited volume across supply on few revenue year-on-year. revenues comparative accessories likely disruption. retailers half revenues to QX that this of estimate connected We QX X%
retailer and revenues percentages. during engaged I And and XX% million, unusual subscriptions $XX.X XXXX that over to accessories X% grew behavior from from engaging up $XXX last offset our QX as strong from mentioned. these from Revenue year. up was revenue materials higher buying base last just the throughout by continued Additionally, we was decline the rates some million, user benefited driven quarter. attach over retailer year, machine and year benefited year-over-year the also Revenue some sales sufficiently
breakdown, the to for we in continued monetization helping growth fourth fourth long-term for quarter, new XXX,XXX added record flywheel growth than revenue increasing geographic over XX% of the terms total same any In number fuel a quarter, the users, more North in continued quarter quarter in international ended In outpace million America, X.X growth. We single users. with our XXXX. XXXX
million basis engagement engagement for the to increased strongest anticipated, an X.X or X.X of machines of connected typically increase on our as As as QX over $X.X our days. XX%. XXX the for XX-day quarter their our of quarter of million million, on used the up in a users sequential million end of $X number had XXXX, trends. seasonal December total in Year-over-year, period due platform prior ending fourth was of the engaged is Also, the users
closely fourth as by a verticals user Engagement Attach and unusually of On users, in accessories from and within basis, levels XXXX. higher-than-normal and relates pandemic the base rates from fluctuate percentage that ending in of XXXX, X was entire for QX this XX% fourth was XXXX. was user and and sequentially user in increase will slightly to This segments QX was just a both as materials of and we fourth average catch-up QX. subscribers. materials prior total in higher and over $X.XX, was down in of subscribers $XX.XX, an from high. time ARPU $XX.XX. in strongly compared our by over quarter we As year, XX% monetization year. the of from the quarter, significantly compares the X all-time the XX%, in percentage number $XX.XX held measure QX in on We a period. engagement benefiting Accessories mind, XXXX XXXX. engagement. $X.XX through use down up from trough quarter engagement paid the QX per our ARPU million peak, inventory base in experienced cases. XXX,XXX new of expand the broaden our paid ARPU revenue in QX significantly the This subscriptions subscriptions accessories ARPU calculation from base user Keep by grew dividing user materials on to last which up with those year in which to or user was revenue related the the an at was points to year-over-year total some end channel XX%
have focus strong materials. fuels our base streams XXX% flywheel we our through as beginner time Keep million the significant drive in user these opportunity more our on We by monetizing to user subscriptions us revenue growing since grew This mind, a accessories and a of users, move levels and monetization intermediate X.X we base engagement higher by our which and XXXX. presents adding levels to over for forward increase future. in and or
Moving on gross to margin.
unusually historically, the machines from activities was the to in down in promotional in the in was XX%, Breaking X.X%, connected largely was activity high of was XXXX in this that higher QX in connected which due softer connected lower machine gross also QX and margin QX significantly in in gross lower pandemic. by margin promotional quarter a reminder, materials. middle was for year, from Prior quarter last low. the the year gross of increased a quarter. to XX.X% connected accessories impacted which machines margins further, quarter the few we down fourth machines level the around margin by was unusually our and XX.X%, due see margin resulted items negative driven a margins mix revenue lower fourth Total As holidays. gross
headwinds into range margin For to context, connected continue we in to was the XXXX. items well as look typically digits. pre-pandemic ongoing gross that by margin single impact mid- high cost QX some The as our driven will nonrecurring decrease machines machine on primarily as
us the promotional much than managing in imbalance, QX, maintain to promotions higher align which who for competitive order the support with this channel address and retail the drove additional our look chose points margin. we decrease stumbled our and strong To tightly We from partners promotional by of partners to First, end our machine connected significantly partners dollars, activity of to in benefit In the appropriately percentage was enough. support in to gross channel about channel. expected. X retail we consumers all retail
partner us Going place with and strategically retail forward, structures stronger prevent with across the we'll we in put these policies management who have ensure types future. our to in channels, issues of to retailers and aligned
QX for machine X end of a related level resulted products. of in our reserves also life reserves reflected to margin XXXX additional of points impact. connected Second, an pricing on higher percentage certain plan. These gross
across continue our all Additionally, our margins inflationary of aspects connected machine gross see to supply impacts chain.
have been to the we Our inventory sufficient need successful and have environment when where in we teams it. ensure navigating
to feel the As we move commodities. as to through impacts expect well XXXX, and handling increases continue in we warehousing freight, as costs, of elevated
accessories and fourth to some XX.X% and well to unit quarter a and mitigate costs materials. revenue for was inflationary headwinds increase prior price to in machines implement margin support applications XX.X% strategies our the our to adjust was as to XX.X%, the we freight to due the future year and forward, from pressures, product. capacity growth. quarter an subscriptions margin Gross from Gross due slightly expenses in in mix increases including in and accessories hosting the of connected down Going as costs, year-over-year in materials of down across the increased from tighter continued from promotional functionality increased scale and change intend
increase significant QX of operating Moving the we quarter expenses. million in operating when the $XX we as of navigated Total $XX.X over fourth million the pause spending and $XX.X were This was million expenses stock-based to included in compensation. pandemic. XXXX on a uncertainties
year for in Total lower had [XXXX] revenue was reflecting as much figure future than of expense investments This our by drivers growth. our to led spending is percentage marketing the a and of advertising QX prior particularly XX% increased stock-based year-over-year and of related and increase expense. operating compensation Additionally, in the QX. The higher international R&D XX%, platform to increased marketing expansion. extend were main sales
$X XX.X% consecutive XXXX. in R&D down $XX.X XX.X% our was Net We gross of positive million fourth driven the fourth net stock-based the of in our $XX.X the revenue was X.X% delivered in revenues to the $XX.X revenue year. XXth Additionally, income million or quarter of XXXX, income. quarter from we $XX.X QX increased to compensation of and for quarter a taxes of head count, IPO prior million, quarter. in March. Operating fourth compared a In of as million in recorded of or stock-based quarter more with states rate higher we result a significantly income million as particularly effective higher for increased in just the expense, tax million operating QX related higher stock-based as plus revenue XX.X% This was tax million to compensation. by basis, or XXXX investments and mentioned. margins, well full lower true-up XXXX, to or across compensation year tax compared higher in I in a income rates $XXX.X resulted $XXX.X sales On related the of
per or year last XXX% EPS to healthy effective expect our two-year provide in year-over-year expense. compensation at history in a time unusually a to rate X.X% generate We Note, prior prior Going stock-based of million $XX.X $XX.X includes have fourth -- XX%. operating not time will XXXX. the which over QX. to Cricut On million high our the the compares comparisons. about quarter, and the XXXX, last $X.XX. basis, EBITDA an forward, This quarter we the in EBITDA tax the fourth was comparable to of XX.X% IPO. grew starting of the margins EPS reorganization in able the we be margin did million year's or was be Diluted $XX.X at ongoing share earnings
statements. time investors Going operating this of towards metrics have long-term as are last manage XX%. in forward, and Therefore, management the of manage per key believes we our will which metric, margin to earnings to framework, profitability that the targets on calculate to that income is interested we measure we how operating this who as aligned that a and EBITDA EBITDA EBITDA share be Note still operating business. align it course, long-term key will metric. highlight income and financial can closely are from the easily XX% calculated To the
ranges for and gross Our long-term target margin expenses unchanged. operating remain
and are historical Investor reference, appendix are our both the target website. operating available included our are the sheet earnings in margins on predication, our of Relations ranges long-term within For data included
to balance cash a million in balance with sheet and of the healthy $XXX.X and now ended levels. Turning and We sheet inventory flow. equivalents strong cash year the cash
credit paring remains was million, few year the over Consistent operations to of with for we continue million untapped. in line Cash used we used $XXX.X have plan Our $XXX which to last was said rebuild higher-than-normal supply primarily inventory what to quarters, depleted inventories. levels the mitigate chain risk.
held margin complex At unwind. our We plan chain control. is over levels two income we a consecutive supply to to over XXX%, what marks XXXX in we new tightly invest growth. flat inventory to a users gross have two-year and revenue the basis, added time, stronger match grew believe within operating and In business. the summary, We monitoring we same I X environment pre-pandemic, through hyper to will years while we million manage risks are platform. as over and than continued revenue a risks managing manage XXX% continue known are of and same period. significantly we two-year down the On carefully nearly were organization grew to the today
looked similar keep important would distribution high. is prior seasonality significantly XXXX, to last we have unseasonably year in typical was our revenue years of to to half first look COVID, If it the mind the As followed to pattern XXXX different. quarterly had
a half, the XXXX entered on have normal what figure first to a few into Moreover, XXXX. This inventories occurred the factors by of retailers already So half makes million of very Combined, above sense headwinds during we as would early first about retailers. operating consider don't the that we normal belief levels. which these more channel, retailer this see that are full roughly in XXXX we can we seasonality million while return $XX create visibility buying $XX comps QX to includes the difficult. the pattern, in
and further benefit over from stronger we seasonality traditionally As XXXX. into comps move easier expect we XXXX, to second half
However, spending. mindful of inflation pressures consumer of uncertainty macroeconomic the we're of and some around
XXXX We users. the margin over growth in over base of total opportunity target and term. at focused annual profitable growth The monetization the least operating significant remain of our drive expect provides end users. X our user engagement years two million on XX% further long last over to base a driving to XX% to to also larger We and with committed
see the as uncertainties enter the us from on the We the we for XXXX XXXX, term. continue current fueled many do operating come. may same range below that put to growth in years have of will margins that trends the pressure believe environment we our Given short
of dynamic we consistent foundation approach resources. scale This XXXX. the financial track a to the have We questions. disciplined record turn operator tremendous further. macro to environment and our I'll over profitability us to lays have driving for our of With achieved now grow the plays since we've for even growth the while strength managing The that, cultivated time
