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.

Here are 29 products made with the help of a Cricut machine: https://www.purewow.com/home/best-cricut-projects

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