CRCT Earnings Prediction
The chart below shows how CRCT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CRCT sees a +5.83% change in stock price 10 days leading up to the earnings, and a -1.01% change 10 days following the report. On the earnings day itself, the stock moves by +1.10%. This data can give you a slight idea of what to expect for the next quarter's release.
CRCT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
209.31M
-9.49%
24.67%
Gross Margin
44.91%
7.03%
-2.54%
Operating Margin
6.87%
-40.00%
8.87%
Net Margin
5.70%
16.80%
-16.67%
EPS
0.06
20.00%
20.00%
No Data Available
CRCT Earnings Analysis
Cricut Inc Corporation (CRCT.O) Earnings Conference Call
Positive
Earnings Per Share Beat: Cricut, Inc. reported an EPS of $0.06, beating expectations of $0.04.
Net Income Increase: The company achieved $62.8 million in net income for 2024, a 17% increase from 2023, marking the eighth consecutive year of positive net income.
Subscriber Growth Increase: Paid subscribers increased by 7% in 2024, reaching 2.96 million, with a notable increase of 189,000 year on year.
Cricut Machine Launch Success: The launch of the Cricut Explore 4 and Cricut Maker 4 machines, which are up to 2x faster than previous models, received positive initial feedback from retailers and users.
Gross Margin Improvement: Total gross margin improved to 44.9% in Q4 2024, up from 42% in Q4 2023, and full-year gross margin increased to 49.5%.
Operating Income Increase: Operating income for the full year increased to $76.1 million, up 9% compared to 2023, with an operating margin of 10.7%.
International Revenue Growth: International revenue increased by 3% in Q4 2024, contributing to 25% of total revenue, indicating growth in global markets.
Strong Cash Position: The company generated $265 million in cash from operations in 2024, maintaining a strong cash position with $337 million in cash and cash equivalents, remaining debt-free.
Negative
Sales Decline Trend: 7% decline in total company sales in 2024 compared to the previous year, indicating a downward trend in revenue generation.
User Engagement Decline: Engagement metrics showed continued softness, with a 0.7% decrease in active users year on year and a 3.1% decline in 90-day engaged users, suggesting challenges in user retention and engagement.
Accessories Sales Decline: Accessories and materials sales decreased by 20% for the full year, highlighting significant loss in this product category and pressure from private label brands.
Operating Income Decline Forecast: Operating income is expected to decline year on year in 2025 due to increased investments and marketing spending, which may not yield immediate returns.
Subscriber Growth Challenges: Despite a 7% increase in paid subscribers, there is a noted challenge in attracting new users and reversing weakening engagement trends, which could impact future growth.
Sales Decline Anticipation: The company anticipates total sales to decline year on year in the first half of 2025, indicating ongoing struggles in the market.
Gross Margin Decline: Gross margin from the platform decreased from 88.8% to 87.9% year on year, reflecting higher software development costs and hosting fees, which could impact profitability.
Margin Pressure Challenges: The company is facing margin pressure due to increased promotional activity and efforts to remain price competitive, which may affect overall profitability in the short term.
CRCT FAQs
How does CRCT typically perform around its earnings report dates?
Is Cricut Inc (CRCT) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
CRCT Earning Call Sentiment
Cricut, Inc. (NASDAQ:CRCT) Q4 2024 Earnings Call Transcript
CRCT.O
3.46%Positive
The earnings call presents a mixed sentiment. Financial performance shows some positives like increased net income and gross margins, but revenue declines and margin pressure are concerning. The Q&A highlights uncertainties in engagement and international growth, with unclear guidance on key inflection points. The stock repurchase program and dividend provide some support. Given the market cap of $1.28 billion, the overall reaction is expected to be neutral, with potential for slight fluctuations as investors weigh the positives against the concerns.
