Company: CRCT
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001828962-25-000039
Chunk: 40

Company: Cricut, Inc.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 1A
Chunk 40
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Since launching our first connected machine, we have built a loyal and growing community of users that has reached substantial scale. Our business and rate of growth is dependent upon our ability to attract and engage with our users. User engagement is one of many factors that affects our revenue in both of our segments, and it is difficult to isolate its effect on revenue and our other financial results in any given quarter. We cannot ensure that our efforts to attract and engage with users, which we modify from time to time, will be successful or that we will be able to maintain sales to our users. There are a number of factors that could impact our number of users and our ability to increase sales to users, including:

•a decline in the public’s interest in or discretionary time and money available for do-it-yourself, or DIY, crafting activities; 

•pricing, perceived value and ease of use of our platform and products; 

•our ability to satisfy demand for and deliver quality products and value for subscriptions; 

•sales of competitive products; 

•our failure to broaden our demographic appeal; 

•our ability to continue to improve the user experience in each aspect of our business and successfully educate our users about our products; 

•our failure to capitalize on growth opportunities;

•our inability to meet the challenges resulting from fast-paced changes in technology; 

•the failure of our connected machines to communicate or sync properly with Cricut-authorized design apps, including our Design Space apps, or other third-party applications such as Android, iOS and Windows; 

•unsatisfactory experiences with our products, including with respect to the use, purchasing or delivery of our products or with Cricut Member Care, including public disclosure of those experiences through social media or other communications from our community;

•changes to our product offerings;

•our failure to increase our international presence, including the failure to translate and localize our digital content and subscriptions, or the failure to further expand internationally;

•decreased word-of-mouth referrals from our community or failed marketing efforts; 

•increase in users joining our platform through a second-hand machine, who tend to exhibit lower engagement intensity compared to users joining through a newly purchased machine; and

•deteriorating general economic conditions, inflationary pressures affecting the pricing of our products or otherwise, or changes in consumer spending preferences or buying trends, each of which we currently are experiencing.

As a result of these factors, our rate of adding new users is declining in comparison to recent years and, in the short term, the number of Paid