Dylan [for Erik Woodring]'s questions to Cricut Inc (CRCT) leadership • Q4 2024
Question
Dylan, on behalf of Erik Woodring, questioned the persistent decline in user engagement metrics, asking for details on why past efforts have not yielded better results and what provides confidence in a second-half 2025 inflection point.
Answer
CEO Ashish Arora attributed engagement pressure to the aging of large 2020-21 user cohorts and lower activity from newer users. He emphasized that while the strategy is correct, execution must accelerate through faster software development, improved onboarding, and a new personalized marketing platform. CFO Kimball Shill added that confidence in a second-half inflection is based on expected platform growth, positive data from marketing spend, new machine launches, and aggressive promotions in accessories and materials.