Cricut, Inc. (NASDAQ:CRCT) Q2 2022 Earnings Conference Call August 9, 2022 5:00 PM ET

Company Participants

Stacie Clements - Investor Relations, The Blueshirt Group

Ashish Arora - President and Chief Executive Officer

Kimball Shill - Chief Financial Officer

Conference Call Participants

Mark Altschwager - Baird

Erik Woodring - Morgan Stanley

Rod Hall - Goldman Sachs

Jim Suva - Citi

Operator

Good day, and thank you for standing by. Welcome to the Cricut Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to Stacie Clements, Investor Relations of The Blueshirt Group. Please go ahead.

Stacie Clements

Thank you, operator, and good afternoon, everyone. Thank you for joining us on Cricut second quarter 2020 earnings. Please note that today's call is being webcast on the Investor Relations section of the company's website. A replay of the webcast will also be available following today's call. For your reference, accompanying slides used on today's call, along with a supplemental data sheet, have been posted to the Investor Relations section of the company's website, investor.cricut.com.

Joining me on the call today are Ashish Arora, Chief Executive Officer, and Kimball Shill, Chief Financial Officer.

Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements, and management may make additional forward-looking statements, including statements regarding our strategy, business expenses and results of operations in response to your questions. These statements do not guarantee future performance or undue reliance should not be placed upon them. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of most recently filed Form 10-Q.

Actual events or results could differ materially. This call also contains time-sensitive information that is accurate only as of this broadcast, August 9, 2022. Cricut assumes no obligation to update any forward-looking projections that may be made in today's release or call.

And with that, I will now turn the call over to Ashish.

Ashish Arora

Thank you, Stacie, and welcome everyone.

Revenue in the second quarter was $183.8 million, below our internal expectations. We have three business segments, our connected machines, accessories and materials and subscriptions. Let me first discuss subscriptions. Given the huge growth in new users, we had a deep focus on converting users to subscribers coming into 2022. This is the area where we have made significant progress and also have a sound strategy going forward. We had feared that the number of subscribers could decline sequentially in Q2 due to the decline in connected machine sales this year. All our subscriptions-related initiatives resulted in us adding nearly 60,000 subscribers in Q2. We have a strong roadmap and strategy that we are executing on. However, we think it is prudent to stay conservative on our subscriptions outlook in the short-term.