Company: CRCT
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001828962-25-000039
Chunk: 134

Company: Cricut, Inc.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 7
Chunk 134
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9 million and 5.9 million Active Users, respectively, representing 12%, 2% and (1)% year-over-year growth, respectively. See the section titled “Key Business Metrics” for the definition of Active Users. We believe we are in the early stages of our growth and that we have a significant untapped opportunity in the United States and Canada, as well as globally.

We have been able to efficiently acquire new users and drive sales of our products because of the powerful network effects of our community. To date, word-of-mouth referrals, as well as effective use of low-cost marketing channels like social media, have driven our success. In 2024, 39% of new users first heard about Cricut through friends and family. Sales and marketing expenses represented 15%, 16% and 20% of revenue in 2022, 2023 and 2024, respectively.

Once we acquire a user, we see strong engagement with them over time. We drive engagement through a highly interactive and fulfilling product experience and the strength of our community. We continuously innovate and improve our connected machines, design apps and accessories and materials, giving our users more to create. Once they have purchased connected machines, users inspire one another to create and use more of our digital content, subscriptions and accessories and materials. In turn, we learn from our users’ creativity, and launch new products to help expand their creative horizons. We measure engagement by the number of Active Users and 90-Day Engaged Users interacting with our Platform. See the section titled “Key Business Metrics” for the definitions of Active Users and 90-Day Engaged Users and for information regarding those metrics over the last three years. 

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The table below shows the number of Active Users and 90-Day Engaged Users for the periods indicated.

202220232024Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Active Users (in Thousands)5,4985,5935,6735,8345,9435,9125,9295,9355,9525,9185,8945,89290-Day Engaged Users (in Thousands)3,7033,6703,5644,0503,7103,6523,6413,9323,5273,5413,5323,812

Growing With Users Over Time 

Many of our users choose to pay for our subscription offerings which include a subscription to images, fonts and