Abdiel's Qualified Master fund has purchased ~600,000 shares of
$CRCT just the past week alone.
They own 38.3% of all shares outstanding as of today, acting as an activist investor. Their most recent purchase was yesterday, September 22nd.
Cricut operates in a very niche market, more specifically the "cutting machine" market for DIY enthusiasts. This isn't your average knife attached to a motor; some Cricut machines can even cut wood or leather and print stickers/labels. Cricut offers a creative platform that is used by 5.4M people globally, making their product more sticky with a community aspect.
Cricut reported Q2 revenue of $334.5M, beating estimates of $317.4M by 5.38%. Revenue grew 42.1% compared to Q2 2020.
Revenue breakdown:
43.7% - Connected business machines
41.1% - Accessories and material
15.2% - Subscriptions
Paid subscribers grew 77% YoY in Q2 to 1.77M.
Subscription revenue grew 110.9% YoY to $50.7M.
A Cricut subscription gives users access to perks like image rights, fonts, exclusive deals/discounts, and free shipping over $50. To be honest, this doesn't sound enticing at all.
Subscribers have an option between the Standard and Premium subscription. The free economy shipping over $50 option is only available for Premium subscribers. I think i'll stick with Amazon Prime. However, these packages are definitely selling, as evidenced by Cricut's paid subscribers and revenue growth.
Quick Stats:
-Market Cap: $7.12B
-IPO on March 25th, 2021 at $20. Trades at $31.90 today, up 59.50%
-Gross margin: 39%
-EV/NTM Sales: 4.9x
What do you guys think about Cricut? Just a fad, or the start of a cult-like brand, like Peleton or Tesla? With the start of re-opening and people going out more and completing less arts & crafts projects at home, Cricut would not be on my watchlist.
I own no position in
$CRCT