Cricut, Inc. Class A Common Stock Goldman Sachs Communacopia + Technology Conference 2026

Thank you, Kat. We are excited to be here.

There's four things that I'll highlight. First is consistent platform growth. We have grown every single quarter, I think, since 2021. We expect to grow every quarter this year, and so we're very pleased with our platform business. It's worth highlighting that it represents 80% of our profitability, and it's the part of the flywheel that lets us monetize the users that we bring into our ecosystem. Second, really, is the green shoots of improvement we see in engagement. Engagement's been a bit of a headwind for us for the last couple of years. This last quarter, we saw active users, which are users who have engaged in the last 365 days, increase on a year-over-year basis. That's the first time in a while.

We also have a shorter-term engagement metric for 90-day engaged users, so that's someone who's made a project in the last quarter. We held that. While that's been under pressure, we saw that hold flat. Really kind of green shoots in the engagement area. We've had a number of new product launches this year. We just last week announced the launch of our new Maker 5, which is our flagship cutting machine. We launched two machines earlier in the year with Joy 2 and Explore 5 in Q1. We've also introduced a number of heat press products. Really, the refresh of the product portfolio that we continue to execute on. Even despite some of the headwinds we've seen in the platform side of the business, the sustained profitability that we've been able to drive in the business.

Really kind of those four things.

So, on the platform side of the business, we've been very consistent in being able to drive incremental growth. There's an element of price levers that we're able to pull at this point that we've been experimenting with. Let me kind of, I can break some of those down now and go into detail in a minute. But we're having price increases, not across the board, but capturing more area under the curve. A couple examples I'll break down. So a portion of our subscriptions come through the iOS App Store. As we were able to introduce a Cricut Pay option within the App Store, we saw a number of, probably the majority of people, go towards that because it kept the same legacy pricing. But we also made available continue with Apple Pay, but you paid a marginally higher price.

And we see a number of people just choosing the convenience of the Apple Pay. The good news is we haven't seen any drop-off of subscriptions in that channel as we've introduced a new higher price with Apple Pay. So that told us there's some room for pricing actions. The second thing that we've introduced this year is a new premium monthly plan. So our standard pricing plan is $9.99 a month, $99 on an annual basis. We introduced a premium plan that is $14.99 a month, and we're seeing a significant portion of our subscribers choose that better plan. The key differentiator there is the number of AI credits and some shop benefits, but it's a couple of examples where we're seeing an opportunity to pull the pricing lever where consumers are willing to pay for that.

So, a couple of things I want to highlight. One, again, 80% of our profitability comes from our subscriptions business. The flywheel starts for us when someone buys a connected machine, and that gives us the opportunity to monetize them through subscriptions and accessories and materials. And so when we talk about our cutting machines, it's really about having the balanced portfolio. So, we have an entry price point of $99 for our smallest machine, and we've introduced the newest incarnation of that in Q1. That's Joy 2. We have kind of a mid-price point with our Joy Xtra. That was a couple of years old, and we haven't refreshed that one yet. But then we also have our Explore 5 and then our Maker 5.

We have price points based on what consumers want to do. The other thing that is new this year is our bundle-only strategy. In history, you would buy a bare machine, and then the consumer would have to figure out what bundle of materials and tools I need to buy in addition to be able to go make projects. As we have launched our next generation of machines, we only sell them packaged with bundles, and we have 5 different configuration bundles for each machine type. That lets us have a compelling opening price point, as well as high value in the box for the larger bundles. It depends on what the consumer is looking for, how much they have to spend, and what they are looking for. It is really about having that balanced portfolio and letting consumers select.

Once they are inside the wall, we have the opportunity then to monetize them through accessories and materials.