Cricut, Inc. (NASDAQ:CRCT) Q1 2022 Earnings Conference Call May 10, 2022 5:00 PM ET

Company Participants

Stacie Clements - Investor Relations

Ashish Arora - Chief Executive Officer

Kimball Shill - Chief Financial Officer

Jason Dea - Vice President, Finance

Conference Call Participants

Erik Woodring - Morgan Stanley

Jim Suva - Citigroup

Paul Kearney - Barclays

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Cricut Q1 2022 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, Ms. Stacie Clements with Blueshirt Group. Please go ahead, ma’am.

Stacie Clements

Thank you, operator and good afternoon everyone. Thank you for joining us on Cricut’s first quarter 2022 earnings call. 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 the supplemental data sheet, have been posted to the Investor Relations section of the company’s website at investor.cricut.com.

Joining me on the call today are Ashish Arora, Chief Executive Officer; Kimball Shill, Chief Financial Officer; and Jason Dea, VP of Finance.

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 strategies, business, expenses and results of operations in response to your questions. These statements do not guarantee future performance and therefore 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 Cricut’s most recently filed Form 10-K. Actual events or results could differ materially. This call also contains time-sensitive information that is accurate only as of the date of this broadcast, May 10, 2022. Cricut assumes no obligation to update any forward-looking projection that maybe made in today’s release or call.

I will now turn the call over to Ashish.

Ashish Arora

Thank you, Stacie and welcome everyone. Revenue in the first quarter was $244.8 million, a significant year-over-year decline, reflecting a tough comp from an exceptionally strong Q1 last year, which benefited from the pandemic. As anticipated, January and February followed a reversion to more typical pre-pandemic seasonal trends.

Starting in March, we began to see additional impacts of slowing consumer demand. Our sound business model and our ability to execute operationally continued, delivering our 13th consecutive quarter of profitability. As we enter Q2 and look ahead to the remainder of the year, we anticipate these pressures persisting in the near term and are highly focused on executing with a balanced and disciplined approach.