CRICUT INC Reports Positive Q4 Earnings for FY2022, Ending December 31 2022

Earnings Overview

On March 7 2023, Cricut Inc ($NASDAQ:CRCT) released their fourth quarter earnings results for the fiscal year ending December 31 2022. Total revenue was reported as USD 10.9 million, a decrease of 8.6% compared to the same period in the prior year. Net income also declined 27.6% year-over-year to USD 280.8 million.

Transcripts Simplified

I’d like to start by thanking our customers and our team members for their commitment and dedication throughout this challenging period. On the product front, we are in a very strong position, having launched five new products during the quarter, including the highly anticipated Cricut Joy digital cutting machine. This product has been well-received by our customers and is off to a great start. We are also very excited about the potential of Cricut Access Plus, our new subscription offering, which provides customers with a range of benefits and rewards. We are also investing heavily in our digital capabilities, which will drive future growth. We have some exciting initiatives in the works that will provide more opportunities for our customers to engage with Cricut in both physical and digital ways. As we look to the future, we remain focused on our three core pillars of growth – product innovation, digital transformation, and strategic partnerships.

We believe that by continuing to focus on these areas of our business, we will be well-positioned to drive long-term growth and value creation for our shareholders. Before I turn it over to our CFO, John Woodbury, I wanted to thank everyone for their support during this unprecedented time. We are incredibly proud of what our team has achieved and we are excited about the opportunities that lie ahead. John Woodbury, Chief Financial Officer Thank you, Roger. In conclusion, Cricut made tremendous progress in the first quarter and we remain confident in our ability to drive long-term value for our shareholders.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Cricut Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Cricut Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Cricut Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Cricut Inc are shown below. More…

Market Price

On Tuesday, CRICUT INC reported positive Q4 earnings for fiscal year 2022, ending December 31 2022. As a result, the stock opened at $8.4 and closed at $9.0, a rise of 7.8% from the previous closing price of 8.4. The company has seen significant success over the past year, with total sales exceeding projections and profits on the rise since the beginning of fiscal year 2022. The positive earnings report for Q4 has pushed CRICUT INC stock to new heights and is likely to further increase investor confidence in the company. CRICUT INC’s strong performance is largely attributed to its focus on product innovation and customer service. The company recently unveiled its new suite of automated cutting machines, which have been well received by consumers.

Additionally, its presence on social media and commitment to customer service have earned them many loyal customers, which contributes to their impressive financial results. Overall, CRICUT INC has had a successful year, ending Q4 with positive earnings and a stock price increase of nearly 8%. This bodes well for the future of the company, as investors become increasingly confident in their ability to continue generating profits and expanding their business operations. Live Quote…

Analysis

At GoodWhale, we analyzed CRICUT INC‘s financials and based on our Star Chart, the company is strong in asset and growth, medium in profitability, and weak in dividend. With regard to its debt and cashflows, CRICUT INC has achieved a health score of 8/10, meaning it is capable of safely riding out any crisis without the risk of bankruptcy. We have classified CRICUT INC as a ‘rhino’ – a type of company that has achieved moderate revenue or earnings growth. Given the steady growth and sound financials, investors who are looking for a safe and reliable investment option may be interested in CRICUT INC. Its low dividend payouts may be attractive to those who want to earn steady returns from the stock market, while its moderate revenue and earnings growth may appeal to investors who are looking for long-term capital appreciation. Moreover, its high health score implies that it is low-risk for investors who are wary of investing in companies with a high debt-to-cash ratio. More…

Peers

They are one of the top competitors in the market, with Shenzhen FRD Science & Technology Co Ltd, Arisawa Mfg Co Ltd, and Advance Materials Corp also vying for market share. Each of these companies offers unique products and services to customers, allowing them to choose the best option for their needs.

– Shenzhen FRD Science & Techonology Co Ltd ($SZSE:300602)

Shenzhen FRD Science & Techonology Co Ltd is a Chinese technology company that specializes in providing software, hardware, and systems engineering services. The company has a market capitalization of 8.41 billion dollars as of 2023 and boasts a Return on Equity (ROE) of -2.24%. The market cap and ROE of Shenzhen FRD Science & Techonology Co Ltd indicate that the company is well-positioned for growth and profitability. Despite the relatively low ROE, Shenzhen FRD Science & Techonology Co Ltd has managed to generate significant revenue and profits for its shareholders. As the company continues to focus on innovation and developing new products, its market cap and ROE are expected to continue to increase in the coming years.

– Arisawa Mfg Co Ltd ($TSE:5208)

Arisawa Mfg Co Ltd is a Japanese company that manufactures and distributes engineering products and machined components. The company has a market capitalization of 45.62B as of 2023 and a Return on Equity of 6.74%. This suggests that the company is in a healthy financial position and is able to generate positive returns on its equity investments. The company has a strong presence in the Japanese market, but has extended its reach to other countries as well. Arisawa Mfg Co is well positioned to capitalize on the global engineering industry’s growth.

– Advance Materials Corp ($TPEX:3585)

Advance Materials Corp is a large international producer of high-performance ceramic materials, composites, and metal-matrix composites. As of 2023, the company has a market cap of 900.12M. The Return on Equity (ROE) for Advance Materials Corp is -7.65%, which is below the industry average, indicating that the company has been unable to generate an adequate return for its investors. The company is likely trying to improve its ROE through cost cutting and increasing efficiency, as well as focusing on higher margin products.

Summary

CRICUT INC reported their Q4 earnings on March 7, 2023, with total revenue at USD 10.9 million, an 8.6% decrease year-on-year and net income dropping 27.6% to USD 280.8 million. Investors responded positively to this news, with the stock price increasing steadily the same day. Financial analysts are monitoring the company’s progress as they look to gauge its potential for investment.

While there is optimism, some caution is advised as the company may face challenges due to the continuing economic uncertainty. Investors should review the company’s financial statement and assess their own risk tolerance before making any decisions regarding their investments in CRICUT INC.