#1do NASDAQ: CRCT Financial Results Q4 2021 & FY 2021 March 8, 2022 cricut t Ć 12:49 (MH) || Home Categories Q Search Canvas New Project Cricut Happy Holidays Foil Card Share ngage Tag Cricut#2Safe Harbor Statement cricut This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "anticipates", "believes", "estimates", "expects", "intends", "plans", "projects", "may" or similarterminology, and include our business opportunity, strategies, future financial results and long-term target model. These statements are based on and reflect our current expectations, estimates, assumptions and/or projections as well as our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections, including with respect to the future earnings and performance of Cricut Inc., will prove to be correct or that any of our expectations, estimates or projections will be achieved. Numerous factors could cause our actual results and events to differ materially from those expressed or implied by forward-looking statements including, but not limited to, risks and uncertainties associated with: our ability to attract and engage with our users; competitive risks; supply chain, manufacturing, distribution and fulfillment risks; international risks, including regulation and tariffs that have materially increased our costs and the potential for further trade barriers or disruptions; sales and marketing risks, including our dependence on sales to brick-and-mortar and online retail partners and our need to continue to grow online sales; risks relating to the complexity of our business, which includes connected machines, custom tools, hundreds of materials, design apps, e-commerce software, subscriptions, content, international production, direct sales, and retail distribution; risks related to product quality, safety and warranty claims and returns; risks related to the fluctuation of our quarterly results of operations and other operating metrics; risks related to intellectual property, cybersecurity and potential data breaches; risks related to our dependence on our Chief Executive Officer; risks related to our status as a "controlled company"; and the impact of economic and geopolitical events, natural disasters and actual or threatened public health emergencies, such as the ongoing Coronavirus pandemic. These risks and uncertainties are described in greater detail under the heading "Risk Factors" in the most recent form 10-Q that we have filed with the Securities and Exchange Commission ("SEC"). In addition, certain risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. The forward-looking statements included in these materials are only made as of the date indicated on the relevant materials and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. 04 and Full Year 2021 Financial Results 2#3cricut NASDAQ: CRCT B Welcome! Q4 and Full Year 2021 Financial Results 54 3#4cricut FY 2021 highlights Revenue $1.3B +36% YOY Increase EBITDA1¹ $211.6M 16.2% EBITDA Margin Total Users Added ~2.1M 1.8M Users added in 2020 International revenues grew approximately 110% compared to last year and made up 11% of total revenues 1. Net income adjusted to exclude: interest expense, net; income taxes and depreciation and amortization expense. See reconciliation in the Appendix. FY 2021 EBITDA includes $38.1 million of stock-based compensation expense. 04 and Full Year 2021 Financial Results 4#5cricut User acquisition and engagement Total Users 6.4M+ 48% YoY Growth cricut 29 Engaged Users 3.8M+ 36% YoY Growth Did you know? Since end of 2019, we've added nearly 4M new users to the platform Engagement 60% 4% Increase from Q3 04 and Full Year 2021 Financial Results Users Drive Marketing Sharing Acquisition segu K 5#6Cricut's flywheel cricut Connected Machines Did you know? Over 40% of new customers come from word of mouth 71 Sharing Acquisition *cousses 10⁰⁰g 04 and Full Year 2021 Financial Results Subscriptions Accessories & Materials 6#7cricut Creativity is universal International Revenue 110% Growth in Q4 2021 YoY Retailer Categories Beyond Craft Specialty Retailers Mass Market Consumer Electronics 16 New markets added since end of 2020 Home Improvement Office Supplies 45+ Countries where Cricut products are available Did you know? In FY 2021, 11% of total revenue was generated internationally 04 and Full Year 2021 Financial Results PUSH PINS MAGNETS PENCILS AND PENS PAPER CL BEST FRIEND IN THE UNIVERSE 7#8cricut Our powerful social community 5.7M 3.3B 3x YouTube & Pinterest views YoY growth Social Media Followers Views of #Cricut on TikTok up from 2B Q4 2020 3M+ #cricut posts on Instagram Did you know? Our global communities have grown with hundreds of active influencers outside of the US, with a combined reach in the tens of millions ^ 11:34 I'm cold 00000 04 and Full Year 2021 Financial Results cricut THE FOR PARLE cricut trg 36 M Follow Thank You FOR SUPPORTING A MALL BUSES 0% 11:34 < # wenclas PART 2 #cricut 3.28 views Add to Favorites ELLO, In A INNER Pisces Painting!! Join this hashtag 8#9cricut 3:05 4 cricut learn Beginner's Guide What do you want to learn? Quick Start Guide to Crafting Learn the basics of crafting from our Cricut guide, Alex. She'll teach you about crafting terms, devices, apps, materials, and tools you'll need to get started. 10 minutes Improving the user experience 1 Tutorial Videos 2 "How-To" Guides 80K+ Participants since launch 3 Inspirational Ideas 4 Live Classes 04 and Full Year 2021 Financial Results learn.cricut.com Did you know? Cricut Learn participants are significantly more engaged in the first 30 days than non-participant users 9#10cricut Growth in Cricut Access 2M+ Paid Subscribers 56% increase YoY / 32% of total user base O 200k new images, 700 fonts, and thousands of ready-to-make projects O Adding new genres, use cases, and international content O Introducing Contributing Artist Program will enable new, authentic, and diverse content from designers Did you know? User feedback and requests are a primary driver of how we determine new features and functions to of al Q4 and Full Year 2021 Financial Results cricut BORN e TO Sparkle Day LOVE WHO YOU ARE Featured Contributing Artists BLOCK GIRL M&GIC Log In/igre aloha 10#11cricut g DUNWICH 10 04 and Full Year 2021 Financial Results Expanding our product ecosystem Cricut EasyPress 3 Cricut Hat Press ● Bluetooth technology First-of-its-kind heat press app to monitor settings Gift-buying category expansion Personalized, high-quality Cricut Autopress ● Prosumer focus High-volume projects Cricut Bright 360 Adjustable color temperature Desktop and standing floor models for every space 11#12Holiday Card Making Thankful FOR YOU Thankful Images cricut Turkey AUDIED Wilcome, an ¡Salud! CA Holiday Ideas GoBBLe Carver QUB The Cand BUENA SUERTE NOCES JE SUIS DE BONNE HUMEUR! ETC 40m ENCORE -UN- LUNDY nav שלום Due: HIP HIP Day Q4 and Full Year 2021 Financial Results Extending the Cricut platform User Experience We continue to scale Cricut Access, Design Space, and products apps with seamless updates and enhancements Continue to add new languages to Design Space Curated destination pages New functionality within mobile apps 12#13cricut SK Focused on long-term growth Grow international Drive onboarding and engagement Drive Cricut Access + Accessories and Materials monetization Innovate and expand platform Q4 and Full Year 2021 Financial Results 13#14cricut Financial Results Q4 and Full Year 2021 Financial Results TERVI BENV 14#15Full year 2021 financial highlights cricut Revenue $1.3B +36% YOY Increase *** *** Net Income $140.5M 10.8% Of Total Revenue cricut Did you know? 2021 was our 5th consecutive year of GAAP profitability Q4 and Full Year 2021 Financial Results EBITDA¹ 1. Net income adjusted to exclude: interest expense, net; income taxes and depreciation and amortization expense. See reconciliation in the Appendix. FY 2021 EBITDA includes $38.1 million of stock-based compensation expense. $211.6M 16.2% EBITDA Margin 15#16Revenue breakdown cricut Connected Machine revenue in Q4 declined (7%) YoY and grew nearly 32% on a full year basis O Subscription revenue in Q4 grew 51% YoY and 85% on a full year basis Accessories & Materials revenue in Q4 grew nearly 7% YoY and 28% on a full year basis International revenue in Q4 grew nearly 53% YoY and approximately 110% on a full year basis $ in millions $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 YOY Growth Rates $173.6M Q4 2019 30% 123% 2 yr. basis FQ $371.0M Q4 2020 Connected Machines 114% $387.8M 04 and Full Year 2021 Financial Results Q4 2021 Subscriptions 5% $486.6M FY 2019 168% 2 yr. basis FY 43% $959.0M FY 2020 Accessories & Materials 97% $1.3B FY 2021 36% 16#17cricut Growing user base 2.5M Q4 2019 Users 154% 2 yr. basis 4.3M Q4 2020 6.4M Q4 2021 1.6M 64% Q4 2019 Engaged Users¹ 136% 2 yr. basis 2.8M 65% Did you know? As of the end of 2021, 5.2M of our total 6.4M users have used their connected machine within the prior 365 days Q4 2020 3.8M 60% Q4 2021 04 and Full Year 2021 Financial Results 999 0.6M 24% Q4 2019 Paid Subscribers² 237% 2 yr. basis 1.3M 30% Q4 2020 2.0M 32% Q4 2021 1. Number and percentage of users creating on their connected machines in the trailing 90 days as of each quarter end. 2. Paid subscriber attach rate= percentage of total users that were paid subscribers to Cricut Access or Cricut Access Premium as of the end of each quarter end. 17#18cricut User monetization $6.58 Q4 19 Subscriptions ARPU 1 $9.23 $9.18 Q4 20 Q4 21 1. ARPU = Average Revenue Per User $25.57 FY 19 $32.52 FY 20 $38.37 FY 21 $32.90 Q4 19 04 and Full Year 2021 Financial Results Accessories & Materials ARPU 1 $40.76 Q4 20 $28.66 Q4 21 $111.44 FY 19 $125.88 FY 20 $102.91 FY 21 18#19Gross margin Contributing Factors Q4 2020 Connected machine and accessories and materials gross margins were unusually high due to lower-than-normal promotions as a result of depleted inventory levels Q4 2021 O One-time items impacting connected machine gross margin: O Higher retail channel promotional support than planned O Reserves for pricing changes for end-of-life products Inflationary pressures cricut Full Year 2021 Benefited from improved revenue mix Offset by higher costs and level of promotions Gross Margin % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% 23.1% Q4 19 33.6% 27.0% 29.3% 34.7% 04 and Full Year 2021 Financial Results Q4 20 I Connected Machines Q4 21 1 FY 19 Subscriptions FY 20 35.0% FY21 Accessories & Materials 19#20Increased investments to drive growth Efficient Sales & Marketing Spend New users acquired through word-of-mouth and other low-cost channels Catching up deferred pandemic spend Investments for future growth in... O International Expansion cricut New Product Development Software Subscriptions $28.6M $45.2M 16% 5% 7% 4% Q4 19 12% 3% 6% 3% $ Operating Expense Q4 20 R&D Q4 and Full Year 2021 Financial Results $79.0M $88.8M $131.9M $265.0M 20% 20% 3% 11% 6% Q4 21 I S&M 18% 5% G&A 8% 5% FY 19 14% 3% 7% 4% FY 20 % = % of total revenue 4% 10% 6% FY 21 20#21Operating Income and Net Income $11.5 Q4 19 6.6% cricut 124% 2 yr. basis FQ $79.6 Q4 20 $ Operating 21.5% Operating Income $25.8 Q4 21 6.7% Operating Margins $53.6 FY 19 11.0% 259% 2 yr. basis FY $200.5 1 FY 20 20.9% $192.4 FY 21 14.7% $7.8 Q4 19 4.5% 04 and Full Year 2021 Financial Results 53% 2 yr. basis FQ $61.4 Q4 20 16.6% $ Net Income $11.9 Q4 21 3.1% Net Income Margins $39.2 FY 19 8.1% 258% 2 yr. basis FY $154.6 FY 20 16.1% $140.5 FY 21 10.8% 21#22EBITDA¹ Q4 2021 vs. Q4 2020 O Lower gross margin-driven by lower connected machine gross margin Increased investments and stock-based compensation O Going forward, management will focus profitability measures and managing the long-term business on operating income and EPS $14.3 Q4 19 8.2% 122% 2 yr. basis FQ $83.5 Q4 20 22.5% $31.8 Q4 and Full Year 2021 Financial Results Q4 21 8.2% EBITDA Margins $62.7 FY 19 12.9% 238% 2 yr. basis FY $214.4 FY 20 22.4% $211.6 FY 21 16.2% 1. Net income adjusted to exclude: interest expense, net; income taxes; and depreciation and amortization expense. See reconciliation in the Appendix. Q4 2021 and FY 2021 EBITDA included $10.1 million and $38.1 million stock-based compensation expense, respectively. Stock-based compensation expense for prior periods include: $4.5 million for Q4 2020, $9.5 million for FY2020, $0.6 million for Q4 2019, $1.8 million for FY 2019. cricut 22#23Balance Sheet and Cash Flow highlights Strong balance sheet positions us well to mitigate supply chain risk and continue to invest in future growth cricut Cash & Cash Equivalents as of 12/31/21 $241.6M Cash & cash equivalents $150M Credit line remains untapped 04 and Full Year 2021 Financial Results Cash Flow Used in Operations during FY 12/31/21 $104.9M Rebuilt depleted inventory o Inventory to mitigate supply chain risk 23#24cricut NASDAQ: CRCT Forward commentary Q4 and Full Year 2021 Financial Results WELCOME BENVENUTA ようこそ RECEBER VÄLKOMMEN 어서 오십시오 WELKOM TERVETULOA WITAMY 24#252022 dynamics Pre-pandemic¹: 1H typically~ 40% of annual revenues and 2H typically ~ 60% of annual revenues cricut 2021: 1H = 50% of annual revenues, 2H = 50% of annual revenues Channel inventory positions create headwind for first half O We expect to end 2022 with at least 8 million total users 1. Pre-pandemic-historical average pre-pandemic seasonality is calculated using quarterly revenues for the years 2016 through 2019 $323.8 Applying Historical Seasonality to 2021 Revenue $257.8 Q1 21 25% 20% 2021 - As Reported 04 and Full Year 2021 Financial Results $334.5 $239.6 Q2 21 25% 18% % of annual revenue $301.2 $260.1 Q3 21 20% 23% $507.6 $387.8 Q4 21 30% 39% 2021 - Assuming Historical Average Pre-Pandemic Seasonality 25#26cricut Strong durable model supports growth and investment $207.3M 8.4% 2017 $339.8M 11.2% 2018 Revenue $486.6M 11.0% 2019 $959.0M 20.9% 2020 Operating Margin % $1.3B 14.7% 2021 Key Focus Areas O Grow international O Drive onboarding and engagement O Drive Cricut Access + Accessories and Materials monetization O Innovate and expand platform 04 and Full Year 2021 Financial Results 26#27cricut 3 Let's make cricut Q4 and Full Year 2021 Financial Results 27#28cricut Appendix SI Q4 and Full Year 2021 Financial Results 28#29cricut As % of Revenue Gross Margin R&D Expense S&M Expense Cricul G&A Expense Operating Margin¹ Long-term target model ricur FY19 29% 5% 8% 5% 11% FY20 35% 4% 7% 3% 21% FY21 04 and Full Year 2021 Financial Results 35% 6% 10% 4% 15% Long-Term Targets 37 - 38% 7-8% 8 - 10% 3-4% 15 - 19% 1. Starting 2022, the company will be focused on managing the business to long-term operating margins as the primary metric to measure profitability and will no longer include EBITDA as part of the long-term target model. Previously, the company's long-term EBITDA target range was 17% -20% 29#30[Reconciliation of Net Income to EBITDA - FY 2019 - FY 2021 (in thousands) Net Income Net Income Margin Adjusted to exclude the following: Depreciation and Amortization Expense Interest Expense, Net Corporate Income Tax Expense EBITDA* EBITDA Margin cricut THREE MONTHS ENDED THREE MONTHS ENDED 12/31/21 12/31/20 $11,924 3.1% $5,956 $26 $13,876 $31,782 8.2% $61,448 16.6% $3,906 $74 $18,060 $83,488 22.5% THREE MONTHS ENDED 12/31/19 $7,789 04 and Full Year 2021 Financial Results 4.5% $2,787 $1,229 $2,502 $14,307 8.2% YEAR ENDED 12/31/21 $140,473 10.8% $19,109 $159 $51,900 $211,641 16.2% YEAR ENDED 12/31/20 $154,578 16.1% $14,003 $1,155 $44,615 $214,351 22.4% YEAR ENDED 12/31/19 $39,211 8.1% $9,108 $3,291 $11,057 $62,667 *EBITDA includes stock-based compensation expense of $10.1 million for the three months ended December 31, 2021, $4.5 million for the three months ended December 31, 2020, $0.6 million for the three months ended December 31, 2019. EBITDA includes stock-based compensation expense of $38.1 million for the year ended December 31, 2021, $9.5 million for the year ended December 31, 2020, and $1.8 million for the year ended December 31, 2019. EBITDA includes $29.9 million in recurring stock-based compensation expense and $8.2 million in one-time expenses related to the corporate reorganization associated with the IPO in the year ended December 31, 2021. 13.0% 30