Thank year to X you the just XXXX. by XXXX and of QX XXXX new platform, year in much our year, reflect. of expected welcome a shy the acknowledge connected months to the first strong the users with more That year the be of to we million connected two of XXXX, expectations the want better on front users initial boosted ending Entering sales I in the users, nearly that X.X accessories X.X Cricut Cricut and in we machine beginning up total at million million and part discuss expected than we results we today Stacie, machines materials. said, sell for everyone. and added
extremely Despite over grow all and for notwithstanding accomplished proud we and financial also my grateful the I’m performance, the products. past headwinds Subscriptions in the for focus our continued team’s XXXX disappointment physical our to year.
million paid ended business. XXXX. over subscribers, explain X.X year grew up our the We with significantly Let subscriptions XX% why. We me
noteworthy features the suggests existing rates increase are into in who just drove increased particularly not of users. in that platform highlight as reclaiming and with a but QX, typical users number expected year, on seasonality. holiday The functionality we users attach engaged also Access new cut New sequentially an Cricut over the converting
We out projects user also multiple increase the saw a in like and interactions and significant touchpoints enhancements. user after platform bookmarks rolling new shared Cricut across
Earlier Machines our partners adjust with diligently coming our which and high-growth worked new on channel those better off second the targets in We to XXXX, pressure revenue. period, the targets, to over half retail a and inventory retailers year. levels Connected managed inventory pandemic additional reset of Accessories put Materials down and their
in much a healthier a we As result, started position. XXXX
Xth profitability. We expenses, tightened our income also moved quickly investments and delivering initiatives year towards net operating of impact to higher re-focus consecutive
We company will fiscally to operate continue in the a disciplined way.
The and opportunity been stronger. international has expansion for never growth
we As intensify our and around subscriptions will order platform drive and monetization. increased engagement, acquisition in focus expansion new user enter to XXXX, we
also to two-year Accessories in Materials. path are growth We and focused a re-accelerate on
become Canada, we acquire believe two brand. years market of markets, X% X% UK, only top the We global as buys when these. recognized more new addressable the Australia. from We walk a our ago, up of me Let six including users connected have a This serviceable our U.S., penetrated has are of each days Germany machine. that and development from is through widely someone market early France, and in Cricut
countries with and now new of we in XX XXXX, partner launched a in over distributors network countries. In five
America. our playbook in business that North Our has international we growth deploy priority in same remains a as XXXX grown key the
platform market. approach, on us in our in investments markets. focus We design the industrial be can and connected our monetization positions with and integration across leveraged acquisition, new the user believe well along make our addition, machines, connected and materials our In we space, all today design, between engagement content, innovation,
have Over we numerous studies the consumers and past purchase their year, research our conducted to journey. understand
a drive path top-of-funnel to healthy consumer progress today from significant we Our shorten research to initiatives are research the to today help and opportunity simplify with interest shows purchase. strategic to several to discovery the that journey have in There purchase.
And, with shows of XX% new experienced beginner users double rate a we are crafters, more are XXXX almost even as purchase crafters, also similarly likely reaching high-end ultimately engage research and Our less machines we and reach more experienced users to our of nearly identifying that broader new users. new diverse users. the these as to as demographic,
we are We Millennials. as Z and Gen more also attract broadening our reach
to social multiple prior forward, Pinterest, and interact channels, with YouTube, we’ll Cricut new providing touchpoint appeal a key Going still are play for broader touch TikTok, and tools the as and and advanced our design majority users to actively to Word-of-mouth continue Instagram Facebook, nearly the role user. the the points cases initial marketing friends to audience, of users. A and introduced while our for right family more use a of through new researching plan resources and at XX% brand.
Earlier the year, content Cricut.com. refreshed launched in new on improved assets we creative targeting, audience our and
have TikTok partnerships platforms increase YouTube. influencer engagement social like focus We to presence greater and with to impact ability around brand that continue the expand and video across our microinfluencers
developing touchpoint, simple on information Beyond for more machine is relevant assets quickly which right help roll and streamlined creative to new, month are bring all decide to that the channels. consumers several out continue consumers them. we product improved more across to quiz focused launched more are charts a Last simpler comparison a simpler – on as tools and journey new also we we initial purchase a
and brand retail accelerate funnel we the be consumers. We We are Many for across this digital these investing our for typical believe help rolled now, users strategy marketing through will to path more for well website markets. as to when of pull in Cricut funnel and bring decision returns. changes By purchasing initiatives into as growth the purchase and making consumer position the spend out conversion. the global our the shorten will execution channels these will updates users to
focused on also the moment a which engagement, starts we user. We’re user acquire increasing
shows few often experience data QX, we first that a onboarding is Our In new a of user’s introduced time. process. indicative engagement new weeks the over their of
have and testing results. a plans We the X small and initial Maker been series pleased of of a lesson users, with with for X our Explore population are
continue users XX% a scale cut expand XXXX. cut in platform user to frequency on our initiatives machines of We base onboarded, learnings, our of engagement. plan in focus refine over turns our to our half our project more Once approach. Over and these of QX, and to
of is a for with We senior a machines help and on that, of to excited that our have engagement. entirely number leaders. to user have initiatives role new increase dedicated appointed to was portfolio embarked user our connected one In we seasoned I’m most to responsible one engagement. previously leaders our line of She announce
Subscriptions functional years ultimately Two engagement approach tandem, of rights results revenue ago, several for we and took plans these rates. across decision resulted groups and roadmaps for with expanded business, strategic similar leaders attach which responsible delivering higher and and subscriptions. to Both our a growth are will cross drive to in work in
drives engagement. Inspiration
gives project directly in creative help investments media. and users the platform that and play traffic believe get cutting. this process, Our in us thousands Design role opportunity of in XX% a experiences ideas inspire enhancements to mobile their of accelerate offering other We users will crucial our all other sooner and increase Space that from significant from XX% research inspiration This studies to show social strategy.
XXX fourth the We later easier for we when with increase they over quarter, back. In significant of QX. saw in increase an ideas bookmarks use come a total users save million nearly making XX million over bookmarks, the to sequentially, year ended for it
experience. XX% is most the million value to Subscribers ended result investments direct increase to year as drive and better are platform non-subscribers. made valuable communicate XX proposition XX members the places the engagement their subscribers, versus activities paid Cricut year-over-year. This growth we over of throughout users past increased X.X months our more the the we’ve with on in We a
the process in to messaging Access. we benefits example, used of the QX For optimize Cricut onboarding around
We latter sign more advertise subscription also to versus giving showing promising annual improvement the added us annual more the attach impacting This already of ups, journey, plans without monthly plan touchpoints is within mix engagement merchandising effort effectively. the ability to rate.
users Access many also Cricut to new exclusive editable converting features, to background We requested important automatic in subscribers. remover, these an become cases, images, content In monogram maker, including highly more. features and continued expand collections part and robust, expanded
engagement bring relevant new, also diverse accelerated efforts from content Cricut Access. Contributing our to our has which increased seeing Program, to Artist and We’re
to curation Cricut include use projects images, These of for subscribers comes from instructions, ensure community process important list projects. suggestions of authenticity a pass-through makeability. materials source create Cricut’s content design increasingly users on These to sometimes projects which with layout. Another of and are content and community
project a adding community they When it from. of value benefit the them, community example is subscribers make that of it scratch. an personalize saving to starting that time the as our them find from design platform is, or subscribers can inspires This instantly
for of increase is and goal even their easier projects, the Our community it projects to users make Cricut hence, the proposition significantly number value increase and subscribers. for to share
where are to our have to win. focus play we on the we finally, increasing and believe right materials And and accessories we
software. hardware that We high-quality, are our connected uniquely products positioned to our build innovative, integrate with and
has a experienced a Our sensitivity, at since materials including great less smart of price headwinds increasing a exiting result machine segment once, the consumer engagement. sales this. and of frequent as This few are dynamics converging pandemic example slower
situation price sensitivity economic First, seen users, the we increased particularly continues. current as have from
quality sensitive, are cost, where more seen marketplaces, to bricks-and-mortar materials third-party price habits As lower shifting emergence become retail lower have materials. an of consumers online, from shopping for we increasingly
or to to started their product and customers, partners the response, In by promotional have meet develop our differentiated configurations whether strategies online. channel we with in-store retail needs work to of
gain to and to and drive and simplify supply-chain share across regain competing margins, Our is healthier goal while greater channels. driving SKUs, efficiencies repackage reengineer all materials,
In focus to Some of we on analytical being maximize approach cost more to and the of market. existing share take margins our the while capturing time for while will this through execute promotional move meantime, inventory. a deliberate and we consumers strategies to competitive take will
way machine and new deliver quickly to affected users our start effective of is our Second, Materials journey business new the to the which of Cricut. to segment. Materials sale is the pressure sales their A portion materials we’ve has through generated experienced an need they with in machines Accessories bundles, also
is build efforts of since a with should Materials are combined to will and new product engagement partners more intensity and segment Accessories drive all influenced things Materials. growth together, Accessories The a reignite pandemic. work segment – our business. and subscriptions journey by be cut. parallel channel users with our user retail and these in much lighter of believe in will we our to the online how engagement strategies and of building been the – has The robust Third, with two-year engagement, pricing together structures bundles, to this our cost increased We re-accelerate exiting
we and subscriptions, the engagement within priorities: summary, organization success. users globally, creating long-term and business structuring and acquiring our new In Materials increased for greater key are Accessories to driving alignment drive our
We opportunities have identified to base long increase grow and of term. multiple have knowledge in-depth our the user and over monetization
Our of focus of more a long-term that platform growth with recurring characteristic every defensible enable the sustainable on strengthening our enhance business. monetization and will facet opportunities moat, platform further help are
returns. impact overall spend macro will the initiatives when deploying term, current us short for well in will now the environment the position are consumer we Although growth
the turn the now call Kimball for I’ll to over financials.