CRCT - Earnings call 3 2023

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Operator

Good day, and thank you for standing by. Welcome to the Cricut Quarter 3 Earnings Conference Call. [Operator Instructions]Please be advised that today's conference is being recorded.I would now like to hand the conference over to your speaker today, Jim Suva, Senior Vice President of Finance. Jim, please go ahead.

Jim Suva

Thank you, Operator, and good afternoon, everyone. of us today's Third and call the Relations joining Call.Please XXXX recorded for Investor that website. note is section you on Quarter Cricut's Earnings on Thank company's the being webcast are company's replay the to your accompanying Arora, with the Shill, section call.For Ashish a Investor the following call, sheet, call data the on reference, will be Financial Relations slides also Chief A Officer; available website, of Executive have on today's and supplemental today's today used investor.cricut.com.Joining me along webcast Chief been of posted Kimball Officer. make been in after prepared forward-looking live our like response regarding statements have operations, remarks prepared business, statements, will we remind Kimball to Ashish remarks host contain Today's and including we would additional begin, results strategies, recorded, of may our to which forward-looking that and expenses questions. statements everyone your Q&A.Before management and and placed reliance statements future undue should do therefore, be performance, not them. guarantee not These upon based most of those identified current are including Risk section Factors These expectations the filed uncertainties, management Cricut's Form of the and inherent XX-Q. and in statements on recently involve risks company's or events results materially. could Actual differ XXXX. date This time-sensitive as the is November information of X, this accurate call of broadcast, only that contains also assumes made Cricut that Ashish. the turn to or forward-looking call.I now may any in projection obligation no update be will release to today's call over

Ashish Arora

decline. perspective, a Thank sales operating income with you, XX% from up despite Jim. profitability was X% QX year-over-year a strong

the these XXXX, help we through We investments return business before, investments focused view in our time. and to growth meaningful remain sales us long-term we As over in lens, will a in to profitability value future. mentioned are on and generate disciplined our

dollars we retailers being [ open-to-buy focused to and leader, on with higher-ticket things category spend, items.As taking with discretionary are can view we control. a conservative see on especially consumers the that continue the careful We ]

our to some for platform and into and purchase updates QX new key cards, We're to going ahead.Before makers popular create our a about and the innovation.First, product We of Xtra Cricut into Targeted printer-friendly space.Second, market QX. grow I Cricut new category, launches acquisition. the was launched customer X. help Venture. on interest excited highlight format, will most want much the primarily stickers in more, exciting Xtra ultimately commitment fit to continue in as drive our to available yet at future opportunities on any custom Xtra. especially creative in innovate our Joy starting to We Joy is is September demonstrate projects, which and that as well compact broadening It compatible full-color Cricut Joy users designed the T-shirts with enough priorities,

Cricut on On is fourth machine machines all-new and architecture very Cricut earnings on launched reviewers of users largest the connected which July independent became call, platform we represents the last Venture, on Venture purchase has in Cricut feedback our the both XX. from and I with with briefly user our I our for been our history.The acquisition, cutting platform connected fastest and items priorities. an available engagement, innovations.New mentioned new machines and acquisition. we line some have materials. the user on in and to Recall priorities: new on user on positive.Now commentary review users, ended that provide subscriptions our detailed million will update expectations. We accessories X and total approximately quarter these X.X the

who healthy our decisions. funnel their member user have the ultimately in grow an is consumers acquisition new engaging on which our flywheel.We see holiday have our pausing previously we base shared to focus opportunity our through pull platform, that purchase our continue and in monetization We drives on funnel been to

value. a deal recent appear confirm consumers the right to that [ our looking results act Amazon research We that Prime are ] for encouraged for by year will

awareness a about sales media. Cricut social quarter, know last our part and a revenue.Turning we to are holiday talking the plan across key to Cricut holiday holiday and by enter or getting bridge international awareness friends making We campaigns plan the buy on executing with side business. the discussed QX, we driving of to key these people driving with and category and makers excitement We deeper of season, continue Cricut to our we of across family of for to that from focus Cricut is consumers.As globe. promotions shorter-lived position that convert for for marketing season as gift to continuing supporting promotions more during our As by

see year-over-year XX.X% representing QX to revenue up to users, XX% a in compared excited XX.X% in XXXX. We X.XX to company ago. and year-on-year, are quarter the to a quarter, revenue engaged of million compared total international growth, with ended sequential year million X.XX return We with the

platform, share and who where discover, a one users core we as help quarter.Engagement count least As reminder, a make we a their engaged cuts embodies the user an project our once of projects. at

see others for to from our make platform. their the Our journey members' is drive expand share on the several to on engagement positive then discover engagement executing for in platform the our our help ultimately inspired.Although days them. strategy, projects goal content be breadth and early want makeable still content easy We them of it efforts signs are we to inspires our of on design throughout to and that we users resulting to and make

machines. strong we we of is engagement the Let number key of working on member look of metric what long-term cut platform. is at me indicator a share onboarding This their a few within the of their our days on.A XX leading first new a members registering metric days are examples after

focused breadth platform. learning experience.In initiatives delivering share a plays year images. engage an plans have who onboarding on been as as Content depth on Cricut key of educational We've mentioned and as in key well Over improvements role our ago assisted content. members saw our the and this the a our year, to the of classes, Learn such in increase past metric we we out-of-box compared other in QX,

to year We to have our possible content also on discoverability Cricut images personalized has platform. been artist members of QX, members. crossed the now we Design can their launched past strides Space our homepage, based Access over of of that XXX,XXX the our past thanks the contributing content In our relevant growth great program.We're find making each increasingly gets them. is content The success the on available activities in so to on our library recommendations where member

in content. users all the exactly each saw Before, country same

QX, platforms, but projects a unique content.In of platform Projects, is then as Design invest with actual other which of that found from of and makeable along better Unlike recreated Cricut. improvements on by project blank to can Space made our also they can in with discover of Projects. rates are in We not continue are members, to platform full-project provide to not created our them other is. to content.We needs growing pleased projects differentiator members will our members our or shared visibility With just are just canvas, make to projects, search this our personalization, Cricut the library inspiration community be images.A made visual personalized a inspiration click-through new customize with ideas we our members by that algorithms on

turn see a a significant we context, as the which our community will the visibility inspiration in a from of growth As facilitate in effects to network project.By our content saw inspires library on also others share source we for of of a improvements number a and creations more make diverse based and to accelerate of deciding our way and makable increasingly members community, platform. community our amount key the projects.While make of Community project of projects are be makeable for increase sharing. projects result, area their making content, subscribers fresh we to discover, project as to stimulate providing

opportunity to we community looking successful library As that in. are we users others a for opportunity, moat are that this talked become in they are is the growth be will investing competitive already broaden about projects, will will for I've projects create to content massive replicate.As the and important unlocking our we hard our images of find technologies personalization and able it for. are a

search improving actively Machine launched are search. are we focused semantic and QX also semantic early addition, and powers learning it. In on optimizing in testing search. We

to second users fulfillment are in our engagement communicated in discover have QX, to further pressure X.X the on compared terms year.While seeing a level flat XXX,XXX in outlook they could help Recall, gains conversion that multi-word search and the to significant already subscriber efforts their the machine-specific is increased machine across of rates line approximately for were common the to the creations.Paid and we subscribers and sharing growth and our training expectation subscribers. learning cutting but year-over-year, second find expectations prior results.The in matches million can and we subscribers ending half adds that XX,XXX positive and are throughout down the sequentially availability their actively them years user queries time of improve thread We be rate lower half paid with skill Cricut- puts our and paid with on of on year. model making content so inspires attach decreased subscriptions, our new all

is be today, month subscriber October November As clear, subscriber our account I'm in the thus in to pleased paid our of paid positive.To say been plan. and far growth that of has positive

increase the of for We strategies value previously. a suite road ever-growing design have continually subscribers, described proposition along premium map to an tools, with content rich including

goal up to leverage services. and compelling incredibly to make our subscriber a it software Our as is sign to

and declined XX% we fruit, subscriptions.Accessories bear efforts to boost engagement our sales see year-on-year. materials to a As expect

the optimizing a with competitive are our this X-year competitors, to with compete As for category price a can so and lower business. we've our in comments, for our our with the we range price remain journey platform. machines have will we share.We margins while on prior to promotional differentiated creating seamlessly this consumers. when better we in offering of are our we still in highlighted products cadence We we continue focus get improved Consistent market before, on that strong works transform costs that see fair a

and a consumer for with a overall ecosystem.I along work Cricut produce our iron-on example, the our create we felt actual with layer.We launch print-and-cut innovative on both sticker jet on we Cricut technology with retailers are in sheets, Xtra, so platform. seamlessly and the to shelf about printers to usage For new focused cut that Joy excited motivated great those released us experience and experience, printable have work that then of and projects like never waterproof intensely several help standard single full-color leverage materials, of the ink vinyl, encouraged the are and

in profitable. while are early remaining the We this days transformation of

to focus while both continue innovate to driven exhibiting discipline. are long-term We current and

platform our continue of to ahead and the QX I make I'm did to I users previously will we As turn what into innovations products tell look it that help that, excited and will beyond, over share.With about future discover, Kimball. and beyond

Kimball Shill

as and everyone.In $XXX.X net We positive Ashish, to of our you, quarter was revenue we generated million, down consecutive a of delivered key revenue year. XXth net our year-over-year income, and $XX.X a in income, revenue X% connected machines the priorities.Breaking to third quarter, down XX% we prior XXXX. X% further, Thank decline continue from invest increase welcome, million in QX compared $XX.X million, over

quarter to primarily in project and million, experience for over a consumer in and XXXX, XX% was down from the of materials in $XX.X the accessories driven decrease softness commitments.Revenue retailer and materials. by continue inventory discretionary We effects QX spending caution was

breakdown, more QX work was we several last Ashish Cricut million $XX.X XXXX, quarter million, here.Subscriptions increase $XX.X in for made compared was XX%, over over As QX Access to the targeted have XX% do international the terms improvements investments expansive quarters.In reflecting the to an revenue geographic revenue in referenced, up million, of XXXX. and $XX.X

and a users, the As XXXX.Turning to share revenue XX.X% was I the to growth which from pleased over XXXX total with the quarter total QX essentially with XX% but XX.X%, QX users am international in engagement. revenue, XX,XXX we or increase over of was over QX million QX users, sequentially. a approximately million and a million X.X sequentially.We ended X.X last ended subscribers, compared up of X.X year percentage to ended paid total quarter XX% X% down flat XXXX. from with engaged quarter We

year. in subscription rate to declined last attach XXXX and XX% Our XX% from QX

natural there As attrition. discussed in some calls, is earlier subscriber

percentage to the margin of due subscriber gross further, reflects our less pace a mix compared growth the increase smaller in represent quarter from promotional to X.X% was connected and new activity we gross Total end-of-life muted percentage XX.X%, QX year. was acquisition.Moving of machine XX.X%, for QX to XX.X%, product a a revenue was a sales.Subscriptions machine as machine maker The in be of a of to favorable higher the subscription to down of margin. decline continues machines So primarily amount was in primarily impairments. the user quarter gross revenue margin of XX.X% compared as gross XXXX, as compared to driven gross gross in XX.X% XXXX, and margins and for total This XX%. was approximately last been QX The sales percentage compares revenue.Breaking will QX in margin XX.X%.Third have and XXXX improvement impairments, XX.X%. compared to inventory of increase accessories quarter until gross third an to would XXXX. by margin in Without QX was materials the margin margin margin

reduction due million or QX normal, date.We the XXXX.Turning to since income consecutive in and versus or included than materials, diluted $XX.X quarter.Total higher that for income connected pressures unchanged.Looking $XX.X machines flow. in $XX.X to other to last allowance.Operating per expenses grant typically revenue, QX in the $X.X operating compared of expense accelerate diluted and will which million into expense naturally million represent remain $XX.X with our and $XX.X year margins XX%, machines The products lower levels. capitalized pressure in operations for will nearly full quarter. the was decrease difference year.Our vesting stock $XX.X $X.XX than reduce and Machine rate margin million XXXX. quarter the positive last stock-based stock upon million, compensation. Also, sales warehousing our million, of Our of XX.X% inventory delivered in a carry QX at the $XX.X QX was decrease is accessories margins for million, of an of operating million, expense price margins in stock-based as in are in percentage down margin and lowest higher was Net cash or increase Total million total to holidays, per the debt $X.X to XXth or share, operating included gross for in revenue, higher revenue for bad expectations was from in to compensation QX, gross compared income. sheet seasonally now quarter and price A&M both quarter X.X% we compared balance will XX.X% year, net tax share, a $X.XX was due XX.X% QX

generated special continue investments cash generate which year remain cash we ago, We to to we healthy of annual cash $XXX.X an balance $XXX.X work upon dividend, million growth. shareholder inventory generating Accordingly, used to and cash more higher quarter.In of repurchase flow compared was stock. of basis, million we we from a long-term the for year July, remainder quarter, on with the line inventory the funds to million. which of million cash in inventory to shares ago with have of levels and end operations, $XXX,XXX prepandemic QX, norms. with shares.During decreased of Year-to-date, $XXX by million a announced $XXX,XXX in bring paid a from $XXX.X $XXX.X restricted at equivalents $XXX.X debt-free.Recall, to ending in our a the be we vesting are million We distributed cash of XX,XXX as needs

highlight as to QX. shares we through program of program remaining the our as a prior want items. million and XXX,XXX $X.X the in communicated November in of the what in of I remains After the have few calls, used cash end quarter our do repurchase in with X.Much We $XX.X of outlook I to stock, but million of XX, our $XX remaining repurchase have earnings the additional end consistent which million of of repurchase October results

a During QX paid year. lower lower July, second of and dividend, in interest and balance we which in special income specifically the in the cash will result half the

conservative to with no softening and year we to We did continue and to commentary in expect in flow quarter, operations to in to debt.Consistent cash Retailers with taking levels last QX. historical inventory cash normal category end and not from a generating spend consumer approach continue healthy restock retailers our commitments. our the see substantial

prioritized in combined planning we to execute analytics, our promotions address As comprehensive reluctance plan taking are marketing plans, consumer second in concerns QX cautious XX% we ahead.Leveraging and affordability as these result, seasonality about is consumer for approach with and our we We a because how difficult to consumer will retailers remain revenue to a it deeper look respond prudent machines, is spend. predict and half. consumers the to initiatives.Typical to

softer half fewer QX expect a we as new add sequential of current last of a second and growth XXXX still revenues be terms full Given lower expect in norms.In the compared environment, in revenue than expect historical to year. users we macro new rate to user we percentage year growth, to did

We to have subscribers in had than more expect QX. and we subscriptions a positive outlook with end paid on QX

As growth rates we observed to could pattern in be XXXX.Gross pressure we subscriber rates, will and however, on to put seasonal may result our subscriber user margins attach continue in similar pressured look multiple reasons. for growth new XXXX, which as a

pronounced also of the on promotional expense weighted carry revenue capitalized which revenue to more percentage machines, competitive. QX inventory of materials margins.Second, in operations levels will decrease.Third, physical price fixed as and a products, in and lower warehousing cadence in costs gross a accessories mix have QX will is toward be remain higher as more First,

areas materials expect to be QX focused flow committed we the with XXXX margins long-term to will will and managing as continue We year As expect just XX%. from margins. be highest margin.We cash margins continue accessories in XXXX's profitability a remain full remain operations on similar in needed, make to our and similar while expect generating to we result, operating operating as to demonstrated to full worsen, XXXX.We year adjustments impact. investing targets we XX% our of Should margin to healthy macro conditions gross

model questions. top has that are that, demonstrated line over when I'll for achievable.With proven Our operator to the call and turn at drive we growth, these scale operate margins the

Operator

first question comes from at Our Instructions] Stanley. Woodring, [Operator Morgan Erik

Maya Neuman

This is Maya on for Eric.

as a question, engagement how a Where it users, you that percentage think about look XQ? And XX% uptick. have we to follow-up. we it's the I And new usually in know engaged of obviously a at First do should think the bottoms? low I quarter. seasonal dropped of in metric just then

Ashish Arora

This thanks. is Maya, Ashish.

the take of Clearly, is priorities as early engagement, top before, that, some and for company. we've to victory. and declare thanks the Let have question. results we highlighted for but seen me promising too promising things, one the definitely And

of percentages we larger kind and have color highlight year-on-year number when more, number about of the are number engaged the XX,XXX.Now question engagement, of they we said, hopefully the up of the well.So users, or driven a kind been fact not and give by for me that, -- number you have we XX who mostly but users of were dug as a let things. we engaged on So up on that but ask ask when you answer this, last your some platform were it'll as XX,XXX, days users the users for down into of by

over XX% on Cricut more. to actually first is the The thing highlight They that platform. want like of engage it. want with to be They Cricut they them

birthday for didn't the I that?" one even I to "Life "Well, reason, many, them, and the saying, focusing to it to that platform among of couldn't had year. finally, And And busy. you in last example in a so things too top you that that they on is it's they follow are content I you but it right want it.So basically project on what to just reasons asked a a we a friend reason so birthday have do lot the them, we platform; have for them the "A we of a send we something. takes opportunity to a me to innovations, give kind project." something." we our series didn't make triggers find got of example, like, on let I then the "Hey, And that made if an is, give make the made that our to time. highlighted think back couldn't them at can to inspiration time, them that engagement script. identify for I on things are right platform It's think the of make you less and come make easier would a capitalize innovate make time Or, reminding So why reasons, to doing, just easily."So

So continue content.So engagement which on be interested a interests this variety that in. to ribbon again, with personalization users' initiatives. based work significant things introduced going on we identifies they saw that we're would we pretty And a of to

on inspired, these -- to these on see they platform some I improve be promising to back come are to will but that up and conviction some that at to overall like belief overall. the to they have have results to to often be content, to up still of we showing we want we many is promising again, more thing All highlight make.So people initiatives, add the impact metric good point, likely all more add the signs. that how they is obviously, to, publicly.One discover micro said, the our metric that of But more the report the do

Maya Neuman

talked Great. how about XQ. a And cautious bit retailers continued to you then in be little

significantly? to look Or November-to-date, behavior? cautious of October is As kind then same into and it you retailers more you that are see restock starting kind of retailer

Kimball Shill

the this Thanks for Maya, Kimball. is question.

to We we QX. be are continue even cautious move as seeing into retailers

of these spend We front consumers' have us, opportunity a notwithstanding headwinds. pressure.That a to see short-lived with we discretionary said, under in also huge SAM of kind large continue

shows early we're promotions have some going a those where Our have We talked a we shorter-lived QX And healthy. Day for deeper, it's funnel saw us the promotional were that. through out us accelerate consumers the works But to deal a saving to some in buy is that or strategy Prime to we've for the of us waiting for to performance. how encouraged tell that funnel that little consumer research holiday about a still that are recent Cricut.We demand. they're say they by money

So that watching purchases carefully. we're suboptimized have holiday. retailers we But for some believe in instances, very inventory

Ashish Arora

things made for add a the and the some strategy of And majority on let seeing of of of that is that we to middle mentioned, me to the deliberate Kimball reinforce just funnel which the year top of we kind the that headwinds were build the and funnel. based

else these will or on some money about we consumers again, be the been buy We and actually we're it. go money the worried deal. was either of Prime much holidays we results some by special through QX as driven a pull button, funnel, understand which promotions. and money. highlight that clearly something for right products.But before online reasons table Day. or to the to basically on into elasticity let's We to will actually working saving of go is, the definitely different of data let's left I'm the promotions, people as we of that there convert, the concerns. few We some pretty I'm that So think on they as respond kind our have our some think consumers retailers purchase why continue about they promote saw hit basically excited based said, the expenses."So to purchase those a strategy, highlight haven't looking with these "I'm the Kimball very they

Operator

Adrienne Our from comes next Barclays. Yih, at question

Paul Kearney

this -- on and on there for you wanted XX%. the reserve materials of on was inventory more down drill versus the performance. in do part excess fixed we of what's down This accessories Hoping razor I different larger much gross picture decline is where just gross the gross how accessories on give higher back accessories to know It's and I just can working, part anything to year-over-year contribution margin. on Adrienne. kind point deleverage how materials do materials, that and driving to Paul us some on costs?And margin point? kind color see was of of the are things a get margin story? blade on back the becomes the When the then story, of bigger materials, accessories to you getting and a Kearney

Kimball Shill

the Thanks question. is this Kimball. for Paul,

First, on to question your gross margins.

accessories the broadest And is for some And gross products So GAAP and we margins well, see do and but a do a category, some would as look-backs, materials quarter been competition. where our at you XX%, velocity look write-down. category as have the in do don't requires lot we the A&M launch it's well.And excess write and we category, periodic inventory. that of in and that down most

As we of this in has velocity kind sales gone had last somewhat look-backs. and through declining years as the that these exacerbated couple have do of that category, factor we

price quarter.On fair And competitors, do down really weighed of we the side we margins to share. the win here. what this so our that's revenue our [indiscernible] equation, But see closer mentioned, with competition in the the as Ashish when are we

there's revenues are our maintain they're I demand.And approach space.Engagement that on in continues be business. that this pressure that conservative this headwind. in we inventory a months currently.We're play on a weighing have we X-year puts the journey their to an want we a win about also share remake when consumers are on fewer Because have to highlight to to how retailer strong using a materials, to is in conviction and and X space. right less, we restocking focused of to that so element just again, And this cutting then

and price over next the And retailers cost coming We win quarters, making with platform. margins also right rebuild with right design as structure our platform, business have sure have we're the can the also. we materials so this we with we products seamless our we work an on and to at that focused help integrated their our the right

Ashish Arora

continue need make And I'll drive lifts that engagement, just all to that as variable sure boats. to I that And do we think time. most structural add we that then the we over that's just

Kimball Shill

I call out would just improvements aren't And that light be a these like switch. going to

incremental see improvement over You'll time.

Operator

question Mark Our Altschwager, at Baird. from comes next

Amy Teske

Mark. on This for is Amy

XXXX. in growth rates prepared You remarks that noted subscriber in could and pressure attach under your remain

point, at on for more this us your can So initial XXXX? any color expectations you provide

Kimball Shill

So first. I'll piece to the talk subscriber

new could flat maybe seeing those QX, that down called talked adding out.In see on us extent to potentially pressure current little be of QX that year, early we exactly about to to headwinds year. out. the think how user current user our in in the year, new same We've we the about outlook, terms acquisitions expect XXXX last for we'd it's users play quarter, call currently we're talked We've that flat decline new we'd than in to and is resonates out as new that that's then promotions have we the I a rate consumers QX of expecting this inform and XXXX. that planned, means those -- we in promotions. this depending we we're seasonal with As and at saw QX to on rate new are adds acquisition at of half that we we and to and talked growth next and users, fewer be we to go what closely that to think us moderate, adding that which see especially, watching of those through going did first as this slight about, And the subscribers. in we rates And add user we And subscribers to elasticity really what the see QX.

Ashish Arora

materials, the look a we coming. we subscriptions engagement have you And acquisition, that furthest feel we where It's our that and all along map. road we ton have, subscriptions, again, innovation I at in think X are of priorities if

focusing services, are search, We driving content. on improving

members acquire our is addition confidence high.As more So the as have acquisition, and it in does in level of penetrate our as new that, we look more the we it at acquire, SAM, part generally, our to the that we portfolio base. said, of -- subscriber Kimball helps

long to we how high ability retain subscriptions succeed have term, going some in think, ability on acquiring the is road a at a on our going impact positive we new So and spending acquisition I degree those the to and positive how shape is But to talk to in it's again, to will the is about economy on again, strategy. map to of as in terms have impact out our of happen. subscriptions have efforts medium customers.Our look directly to going of confidence consumer our a hard engagement subscribers.So

Amy Teske

then new Joy areas capabilities machines. any then you platform introducing you you of the to of and see could And innovation with opportunity benefit And speak sell-in year Xtra also in subscription continue Great. expand the in to related Venture any there Xtra particular your pipeline? launch? Joy to while Was capabilities cutting that quarter this the the

Kimball Shill

out some in still separately. So placed the there retailers. quarter, not it that enough sell-in distribution in benefit in It's splitting we're being but and was

where So it's locations fully set not to we expect in all see it.

Ashish Arora

existing kind actually feedback rolling It was our did from great add obviously launched late see in consumers We We've very out. to And any reviews, had quarter we when just question. Joy Venture, not sell-in we're of and just new really again, our to Xtra. the really, strong your benefit. for

distributed online. only for say, pull-in there's I because it's of Venture no So revenue, artificial would

the would of innovation So sell-through helps kind I strategy biggest ultimately to and match and make that materials. effect. the going drives the ultimately and projects again, think innovation pretty our working that to on the on are for to revenues so it share reinforce on is engagement approachability affordability cross we it that's network all drive be and efforts to platform easy to people to make machines, going But benefit continue well.I is and drive us to chasm their discover,

is of but core that a other. coming, how -- innovations that's I of think play off backbone kind there's of each innovations the lot all

Operator

from Citigroup. Our next question at Merchant, Asiya comes

Asiya Merchant

growth the December international I about quarter perhaps as So front? And small been about the then domestically Or how particularly in expenses remarks talked just follow-up. off should as us prepared sales drive in base? some that And of Maybe as think driving have the your on to can maybe continue you even factors highlighted initiatives? you about, is and a talk growth your or a the it you to we and marketing the international you've various well. what's strong, international that you see was

Kimball Shill

America internationally. said, This expansion.That quarter, question. about benefited countries retailer excited excited Asiya, online different ago.International revenue in Kimball. North our up the in performance. from up also almost about and thanks a XX% for and from which XX% is international as represents expansion year is both we it We're as well SAM, within of the year-over-year, our are We're

in we some spend have influencers. And think in adding those create quarter, able about your international relatively We we being of have of buzz huge we a we opportunity and part in promotions of us. last QX, promotion talked around us opportunity as a as to business question ahead to the of while number of front still benefited the well.Turning a marketing in strategy on huge our in domestic deeper

had to think influencers we our that almost in added at and shared of product. execute I we promotions us We've advertise broader the quarter. continue XXX XXX help this on strategy additional targeting marketing number our the to point, and

Asiya Merchant

on than quarters. Are generation, shares like, the Okay. quarters. should the given like about to quarter lower very buyback? a It And have of then still talk obviously, continue, in just bit modeling more share little the you this cash the a on for remaining here. we of flow Can repurchase return one, we what of expecting healthy guys cash was outer prior us your to balance be you this seems this

Kimball Shill

that quarters with this cash And about line business would inventories historical generates have goods we more pandemic of So a norms. in finished last we're in the we we've level of than down that talked bring year we cash. normally couple as generating

year highlighted million year. quarter-to-date so of versus almost generated the prior And $XXX-something this cash worth we $XXX thousand

a buyback reflected versus sheet.And our with a of our So balance within open producing in we of we active have we paid cash.And continue lot at for we of are outside -- more program. we're kind within rightsizing which the windows, volume, active less trading QX price dividend more safe We provisions but our million harbor buy $XXX we're also targets trading active. that

we that's buyback, XXX,XXX additional so but million the into time we highlighted, strategy have of we an time. shares.So adjust month will purchases.But we the $X.X that to also to a played spent pricing purchase part as QX in October what in we from of And be active

Operator

remarks. turn closing Thank now would to like for back you. I Suva to Jim it

Jim Suva

and this for everyone, afternoon. Amber, us you, joining thank Thank you,

long future. will new believe value to initiatives user the position drive The growth We us the the continues we our well strengthen increased engagement. in to over only have platform a not provide Cricut to are and now users. term We large deploying opportunity increased also but

and We be healthy Annual Deer the disconnect. seeing Utah, XX you at ahead for MKM XXth in and the of to I'm will then.If call, at us.We Investor the continue sustainable, you. Valley e-mail about me on Thank Conference please Deer Valley, business December to profitable growth excited this flows. jsuva@cricut.com.This cash have forward will earnings Roth look everyone opportunities may you concludes and questions, manage additional generate now

Cricut (CRCT) 7 Nov 232023 Q3 Earnings call transcript