Company: CRCT
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001828962-25-000075
Chunk: 49

Company: Cricut, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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,243,796 7,396,613 Unvested Class B common stock subject to forfeiture16,408 246,083 

15.Segment Information 

The Company organizes its business into the following two reportable segments: Platform and Products. The chief operating decision makers (“CODM”) review revenue and gross profit for each of the reportable segments. The CODM consists of the Company’s chief executive officer and chief financial officer. Gross profit is defined as revenue less cost of revenue incurred by the segment. The Company considered the provisions of ASC 280-10-50 as it relates to the information provided to and used by the CODM for evaluating performance and allocating resources to operating segments. 

19

The Platform segment derives revenue primarily from monthly and annual subscription fees, purchases of digital content, and a minimal amount of the revenue allocated to unspecified future upgrades and enhancements related to the essential software and access to the Company’s cloud-based services. For the three months ended March 31, 2025, upfront digital content revenue comprised 1% of Platform revenue. The remaining Platform revenue consists of ratably recognized subscription revenue and revenue related to unspecified future upgrades and enhancements related to the essential software and access to the Company’s cloud-based services, which are recognized over the determined service period. The Products segment derives revenue primarily from the sale of its connected machine hardware, and sale of craft, DIY, home décor products and extensions. There are no internal revenue transactions between the Company’s segments.The Company does not allocate assets at the reportable segment level as these are managed on an entity wide group basis. As of March 31, 2025, long-lived assets located outside the United States, primarily located in Malaysia and China, were $4.8 million. Key financial performance measures of the segments including revenue, cost of revenue and gross profit are as follows:Three Months Ended March 31,20252024(in thousands)Platform:Revenue$79,986 $78,286 Cost of revenue8,668 8,759 Gross profit$71,318 $69,527 Products:Revenue$82,648 $89,106 Cost of revenue55,618 67,039 Gross profit$27,030 $22,067 Consolidated:Revenue$162,634 $167,392 Cost of revenue64,286 75,798 Gross profit$98,348 $91,594 

A reconciliation of our total segment and