Cricut (NASDAQ:CRCT) shares jumped after Cricut reported more than 20% growth in users and paid subscribers during the fourth quarter. Cricut’s revenue was down year over year, but its gross margin expanded.
The company delivered sixth consecutive year of profitability with net income of $60.7 million, or 6.8% margin.
It also generated $117.7 million in Cash from Operations in 2022. Total users grew to nearly 7.9 million, up 23% over FY 2021
Paid subscribers increased to 2.6 million, up 28% over FY 2021
“We entered 2022 expecting to deliver much better financial results. Our results reflect the challenging macroeconomic conditions throughout the year and pressure from excess channel inventory that impacted revenue from Connected Machines and Accessories and Materials. Despite this, we ended the year with healthy growth in new users and paid subscribers,” said CEO Ashish Arora.
“Nearly three quarters of our user base cut a project in 2022, highlighting the value we bring to the Cricut community and the significant opportunity we have to drive increased engagement. We benefit from a healthy pipeline of potential users, a strong existing user base, a platform approach and strong balance sheet. We’ll continue to focus on new user acquisition and increased engagement and monetization, which will position us well for when consumer spend returns.”
CRCT shares shed 39 cents, or 4.3%, to $8.62.