Cricut Inc (CRCT) 2024 Q1 法說會逐字稿

Welcome to the cricket Q1 2024 earnings conference call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session to ask a question. During the session, you will need to press star one one on your telephone. You will then hear an automated message. Advising your hand is raised to withdraw your question, please press star one one. Again, please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Jim Suva, Senior Vice President of Finance, Treasurer and Investor Relations services. Please go ahead.

歡迎參加 2024 年第一季板球收益電話會議。此時，所有參與者都處於只聽模式。演講者演講結束後，將進行問答環節。在會議期間，您需要在電話上一一按星號。然後您將聽到一條自動訊息。建議舉手撤回問題，請按星號一一。再次請注意，今天的會議正在錄製中。現在，我想將會議交給今天的第一位發言者，財務、財務主管和投資者關係服務高級副總裁吉姆·蘇瓦 (Jim Suva)。請繼續。

Thank you, operator, and good afternoon, everyone. Thank you for joining us on crickets First Quarter 2024 earnings call. Please note that today's call is being webcast and recorded on the Investor Relations section of the company's website. A replay of the webcast will also be available following today's call for your reference, accompanying slides used on today's call, along with the supplemental data sheet, have been posted to the Investor Relations section of the company's website, investor dot Cricut.com.

謝謝接線員，大家下午好。感謝您參加我們的 2024 年第一季蟋蟀財報電話會議。請注意，今天的電話會議正在網路直播並記錄在公司網站的投資者關係部分。今天的電話會議之後還將提供網路廣播的重播供您參考，今天電話會議中使用的隨附幻燈片以及補充數據表已發佈到公司網站投資者關係部分，投資者點 Cricut.com。

Joining me on the call today are Ashish Arora, Chief Executive Officer, and Campbell Shell, Chief Financial Officer. Today's prepared remarks have been recorded after which assist and Kimbell will host a live Q&A.

今天與我一起參加電話會議的還有執行長 Ashish Arora 和財務長坎貝爾殼牌 (Campbell Shell)。今天準備好的發言已經錄製完畢，之後助攻和金貝爾將主持現場問答。

Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements and management may make additional forward looking statements, including statements regarding our strategies, business expenses and results of operations in response to your questions. These statements do not guarantee future performance and therefore, undue reliance should not be placed upon them.

在開始之前，我們想提醒大家，我們準備的言論包含前瞻性陳述，管理層可能會做出額外的前瞻性陳述，包括有關我們的策略、業務費用和營運結果的陳述，以回答您的問題。這些聲明不保證未來的表現，因此，不應過度依賴它們。

These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factors section of crickets most recently filed Form 10 K Our Form 10 Q that we have filed with the Securities and Exchange Commission. Actual events or results could differ materially. This call also contains time sensitive information that is accurate only as of the date of this broadcast, May 7, 2024. Cricket assumes no obligation to update any forward-looking projection that may be made in today's release or call. I will now turn the call over to Ashish.

這些聲明是基於公司管理層目前的預期，涉及固有風險和不確定性，包括我們最近向美國證券交易委員會提交的 10 K 表和 10 Q 表的風險因素部分中確定的風險和不確定性。實際事件或結果可能有重大差異。此通話還包含時間敏感訊息，僅截至本次廣播之日（2024 年 5 月 7 日）準確。Cricket 不承擔更新今天發布或電話會議中可能做出的任何前瞻性預測的義務。我現在將把電話轉給阿什什。

Thank you, Jim, and welcome, everyone. Q1 played out largely as expected, operating margin dollars grew significantly by 139% or $15 million, driven by lower inventory write-offs, more paid subscribers and higher sales of connected machines despite an 8% year-on-year drop in overall sales. Given the confidence in the sustainability of our profitable operations. The Board of Directors approved three capital allocation items, a special dividend of $0.4 per share, our recurring semi-annual dividend of $0.1 per share and another $50 million stock repurchase program. Kevin will go over these three capital allocation items in detail in a few minutes.

謝謝吉姆，歡迎大家。第一季的表現基本上符合預期，儘管整體銷售額年減 8%，但受庫存沖銷減少、付費用戶增加和連網機器銷售額增加的推動，營業利潤率大幅成長 139%，即 1,500 萬美元。鑑於我們對獲利業務的可持續性充滿信心。董事會批准了三個資本分配項目：每股 0.4 美元的特別股息、每股 0.1 美元的經常性半年度股息以及另外 5,000 萬美元的股票回購計劃。凱文將在幾分鐘內詳細討論這三個資本配置項目。

In Q1, platform revenues increased 3% on paid subscriber growth, products revenues declined 15% as the positive growth in connected machines from higher units was more than offset by a decline in accessories and materials.

第一季度，由於付費用戶成長，平台收入成長了 3%，而產品收入下降了 15%，因為較高單位的連網機器的正成長被配件和材料的下降所抵消。

The areas where we could do better are straightforward. We need to attract more new users to buy our connected machines. We need to reverse weakening engagement trends and re-inject enthusiasm among our users. We need to be more effective competitors in accessories and materials. Remember, we have four priorities, new user acquisition, user engagement, subscriptions and accessories and materials. I will briefly review these items and provide some detailed commentary on our new platform innovations.

我們可以做得更好的領域很簡單。我們需要吸引更多新用戶購買我們的連網機器。我們需要扭轉參與度減弱的趨勢，並重新註入用戶的熱情。我們需要在配件和材料方面成為更有效的競爭對手。請記住，我們有四個優先事項：新用戶獲取、用戶參與、訂閱以及配件和材料。我將簡要回顧這些項目，並對我們的新平台創新提供一些詳細的評論。

As mentioned in our press release going forward, we will talk about active users who have used their connected machines in the past year, and Kimbell will go into more details and metrics and KPIs. We ended the quarter with over 5.95 million active users who had in the past year, slightly up from 5.94 million a year ago. And in line with our expectations. We continue to focus on new user acquisition and engagement growth on our platform, which ultimately drive our monetization flywheel.

正如我們在未來的新聞稿中提到的，我們將討論過去一年中使用過聯網機器的活躍用戶，Kimbell 將介紹更多細節、指標和 KPI。截至本季末，我們去年的活躍用戶數量超過 595 萬，略高於一年前的 594 萬。並且符合我們的預期。我們繼續專注於我們平台上的新用戶獲取和參與度成長，這最終推動我們的貨幣化飛輪。

During Q1, we accelerated our investment in marketing spend and double down on our PR via live broadcast gift guides, product reviews and lifestyle coverage as we move people down the funnel. Our research shows consumers consider the cost of the machine plus the ongoing cost of using it and how much they will use it to address these concerns.

在第一季度，我們加快了對行銷支出的投資，並透過直播禮物指南、產品評論和生活方式報道加倍加大公關力度，讓人們沿著管道走下去。我們的研究表明，消費者會考慮機器的成本加上使用機器的持續成本，以及他們將使用機器多少來解決這些問題。

We wanted to show them that they could save money while experiencing the joy of creating and personalizing things. Recognizing this appeal, we recently launched a campaign called make versus buy, which highlights specific examples of savings or making projects versus buying similar finished products. For example, personalized or match costs really $10 to make compared to up to $150 to buy. Another example is fashionable personalized tote bags, which cost only $3.08 to me compared to $30 to buy. You can see these and many more examples on our website.

我們想向他們展示，他們可以省錢，同時體驗創造和個性化事物的樂趣。我們意識到這種吸引力，最近發起了一項名為「自製與購買」的活動，重點介紹了節省費用或製作項目與購買類似成品的具體例子。例如，個人化或匹配的製作成本實際上為 10 美元，而購買成本高達 150 美元。另一個例子是時尚的個人化手提袋，我只花了 3.08 美元，而購買價格卻是 30 美元。您可以在我們的網站上看到這些以及更多範例。

During Q1, we leaned into programs that show our tire consumers different making occasions. We executed integrated programs for key seasonal moments, including Valentine's Day national craft month finance History Month and Easter, we saw a trend towards fertilizing apparel and party Deco for the NFL playoffs, including a broadcast hit on Fox News, talk show Fox and Friends.

在第一季度，我們傾向於向輪胎消費者展示不同製造場合的計劃。我們在重要的季節性時刻執行了綜合計劃，包括情人節、國家工藝月、金融歷史月和復活節，我們看到了為NFL 季後賽增加服裝和派對裝飾的趨勢，包括福克斯新聞、脫口秀《福斯與朋友》的廣播熱門。

Each of these programs are supported by an integrated marketing plan, leveraging vehicles, including digital marketing, influencer posts, organic, social social, Brad partnerships and live broadcast, fewer highlighted recently in USA Today with stated and I quote, crickets newest cutting machine is a perfect size for casual crafters. The cricket Joy extra is an ideal choice for Harvey crafters who want all the cutting power of a full-size cricket without having to sort of bulky machine.

這些計劃中的每一個都得到了綜合行銷計劃的支持，利用工具，包括數位行銷、有影響力的貼文、有機、社交、布拉德合作夥伴關係和現場直播，最近在《今日美國》中很少強調，我引用說，蟋蟀最新的切割機是尺寸非常適合休閒手工藝者。對於想要擁有全尺寸板球的所有切割能力而無需使用笨重機器的 Harvey 工匠來說，Cricket Joy extra 是一個理想的選擇。

As a follow-up to the cricket, make that a Valentine's event, we launched our meet one day sales event on April 28. The two week sales event is supported by retailer programs and content marketing strategies incorporating influencers, social editorial and deals coverage. We ended the quarter with over 5.95 million active users who cut in the past year, and we had 3.5 million, 90 day engaged users who cut during the quarter down from 3.7 million in Q1 2023. We continue to experience engagement erosion from our large user cohorts from 2020 and 21 and from prior years who age on their engagement curve and are not off separate as many new users in recent quarters.

作為板球比賽的後續活動，將其作為情人節活動，我們於 4 月 28 日推出了一日見面銷售活動。為期兩週的銷售活動得到了零售商計劃和內容行銷策略的支持，其中包括影響者、社交社論和交易報告。截至本季末，我們有超過 595 萬活躍用戶在過去一年中減少，且本季有 350 萬 90 天活躍用戶減少，比 2023 年第一季的 370 萬有所減少。從2020 年到21 年以及前幾年，我們的大型用戶群繼續經歷參與度下降，這些用戶群在參與度曲線上逐漸變老，並且沒有像最近幾個季度的許多新用戶那樣分開。

Our focus remains to maximize engagement of our most impactful cohorts, which are new users onboarding onto the platform or on borders and paid subscribers. Recently, we developed more data instrumentation that increase our understanding of the challenges on borders can run into during their initial journey within our platform. This has helped us focus our efforts to improve this experience.

我們的重點仍然是最大限度地提高最具影響力的群體的參與度，這些群體是平台上或邊界上的新用戶和付費訂閱者。最近，我們開發了更多的數據工具，以加深我們對邊境在我們平台的初始旅程中可能遇到的挑戰的理解。這幫助我們集中精力改善這種體驗。

In Q1, we saw an improvement in the percentage of new users who successfully start and complete their out-of-box experience. Our efforts will continue across the journey for new users. Comcast got an first project through first week and 1st month on our platform. In the first quarter, we adjusted how we present our educational video content which we now show directly in design space. In addition to a larger content library, we have also made improvements to our search and personalization algorithm. We now provide personalized recommendations for images and projects on the Inspire page and design space, mobile apps.

在第一季度，我們看到成功開始並完成開箱即用體驗的新用戶百分比有所提高。我們將在新用戶的整個旅程中繼續努力。康卡斯特在我們平台上的第一周和第一個月就獲得了第一個專案。在第一季度，我們調整了展示教育影片內容的方式，現在我們直接在設計空間中展示這些內容。除了更大的內容庫之外，我們還改進了搜尋和個人化演算法。我們現在在 Inspire 頁面和設計空間、行動應用程式上提供圖像和項目的個人化推薦。

We will continue to make progress on search personalization over time. We have also enhanced our machine learning personalization model to consider additional inputs from user behavior on our platform. We are also prioritizing projects in images that have a higher chance of success.

隨著時間的推移，我們將繼續在搜尋個人化方面取得進展。我們還增強了機器學習個人化模型，以考慮平台上使用者行為的額外輸入。我們也會優先考慮成功機會較高的圖像中的項目。

In Q1, our team improve the project's recommendation system and created an in-house system that is more flexible, adaptable and designed to capture different aspects of user preferences. For example, we use AI deep learning to suggest projects that users might like based on user behavior to recommend similar projects and help find popular projects that are time sensitive. We tested this new system at a debt better than our old models and increase the number of customized projects made on our platform. We also applied a eye exam and label images to suggest suitable tax for images uploaded to our database and help produce better search results for our users.

在第一季度，我們的團隊改進了專案的推薦系統，並創建了一個更靈活、適應性更強的內部系統，旨在捕捉使用者偏好的不同面向。例如，我們利用AI深度學習，根據使用者行為推薦使用者可能喜歡的項目，以推薦相似的項目，幫助找到時間敏感的熱門項目。我們以比舊模型更好的債務測試了這個新系統，並增加了在我們平台上製作的客製化項目的數量。我們還應用了眼科檢查和標籤圖像，為上傳到我們資料庫的圖像提供適當的稅務建議，並幫助為我們的用戶提供更好的搜尋結果。

We also intend to use this algorithm to refine existing tags in our database, which should improve search retrieval. We have several more improvements planned for search enhancements in future quarters. Paid subscribers were in line with our expectations and increased 82,000 year on year and increased 27,000 sequentially in Q1, ending with just over 2.8 million paid subscribers as subscriptions efforts continue to bear fruit in terms of converting purchasers of new machines into subscribers.

我們還打算使用該演算法來優化資料庫中的現有標籤，這將改善搜尋檢索。我們計劃在未來幾季對搜尋功能進行更多改進。付費訂戶數量符合我們的預期，第一季同比增加 82,000 人，環比增加 27,000 人，最終付費訂戶數量略高於 280 萬，因為訂閱努力在將新機器購買者轉變為訂戶方面繼續取得成果。

At the other end, our subscription attrition curves have remained steady despite declines in engagement, lower new user adds compared to prior years, put pressure on our subscriber growth rates and created some quarterly fluctuations in 2023 that will likely repeat in 2024.

另一方面，儘管參與度下降，新用戶數量較往年減少，但我們的訂閱流失曲線仍保持穩定，這給我們的訂閱者成長率帶來了壓力，並在2023 年造成了一些季度波動，這些波動可能在2024 年重複。

We have a rich road map to continually increase the value proposition for subscribers, including an ever-growing suite of premium design tools, along with the content strategies described above. In January, we launched create sticker, which dramatically simplifies the process of turning a raw image into a finished sticker in a few easy steps.

我們擁有豐富的路線圖來不斷增加訂閱者的價值主張，包括不斷增長的優質設計工具套件以及上述內容策略。一月份，我們推出了創建貼紙，它極大地簡化了透過幾個簡單的步驟將原始圖像轉換為成品貼紙的過程。

We've also made significant improvements to the bag removal tool, which is one of the most used subscription features by our members by leveraging and testing multiple variants of machine learning and AI based models to increase the accuracy of removing diagrams from images uploaded by our users. Our goal is to make it incredibly compelling to sign-up as a subscriber to leverage our software and services. As our engagement efforts bear fruit, we expect to see a boost to subscription.

我們還對袋子刪除工具進行了重大改進，這是我們的會員最常用的訂閱功能之一，透過利用和測試機器學習和基於人工智慧的模型的多種變體，以提高從我們上傳的圖像中刪除圖表的準確性。我們的目標是讓註冊成為訂閱者以利用我們的軟體和服務變得非常有吸引力。隨著我們的參與努力取得成果，我們預計訂閱量將會增加。

Accessories and materials. Sales declined 26% year on year in Q1. Clearly, we still have a long way to go to establish our expected competitive position. Here, we recognize the role affordability plays in our materials business and are working on several solutions. The aim is to stimulate purchasing activity and boost engagement. In addition, we faced stiff competition in this part of the business with lower barriers to entry than cutting machines at our digital platform. I'm excited to give you a tangible update on some positive progress in this area.

配件和材料。第一季銷售額較去年同期下降 26%。顯然，要建立我們預期的競爭地位，我們還有很長的路要走。在這裡，我們認識到負擔能力在我們的材料業務中發揮的作用，並正在研究多種解決方案。目的是刺激購買活動並提高參與度。此外，我們在這部分業務中面臨激烈的競爭，其進入障礙比我們數位平台上的切割機要低。我很高興向您提供有關該領域一些積極進展的具體最新資訊。

Towards the end of Q1, we launched the cricket value materials online designed to deliver maximum performance at a great price. This new offering was able to compete effectively with online marketplaces, which are more price competitive and acquire hitting the right price points with shipping economics to compete more effectively this is accomplished through reengineered product, re-engineered packaging and improving supply chain efficiencies.

在第一季末，我們在線上推出了板球價值材料，旨在以優惠的價格提供最佳的性能。這款新產品能夠與線上市場進行有效競爭，線上市場更具價格競爭力，並透過運輸經濟達到正確的價格點，從而更有效地競爭，這是透過重新設計的產品、重新設計的包裝和提高供應鏈效率來實現的。

It will take us some time to work through current inventory as we roll new products and but we expect to achieve margin improvements in this business over time, while still creating a differentiated offering that works seamlessly with our machines and platform feedback thus far has been encouraging, and I look forward to sharing more with you in the quarters ahead.

隨著我們推出新產品，我們將需要一些時間來處理當前庫存，但我們預計隨著時間的推移，這項業務的利潤率會提高，同時仍創造出與我們的機器和平台無縫配合的差異化產品，迄今為止的回饋令人鼓舞，我期待在未來幾季與您分享更多內容。

Growth in that segment should emerge as we are successful in driving new customer acquisition at a higher rate and our engagement efforts begin to bear fruit. Consistent with prior comments, we will continue our promotional cadence in this category to remain price competitive for consumers. With the focus on winning share, we see that when we are in the price range of our competitors, we get our fair share. We are intensely focused on the overall customer experience, and we are motivated to work with those retailers that help us create a great experience both on shelf and for actual use of our ecosystem.

隨著我們成功地以更高的速度吸引新客戶並且我們的參與努力開始取得成果，該細分市場的成長應該會出現。與先前的評論一致，我們將繼續在該類別中的促銷節奏，以保持對消費者的價格競爭力。透過專注於贏得市場份額，我們發現，當我們處於競爭對手的價格範圍內時，我們就能獲得公平的市場份額。我們非常關注整體客戶體驗，並且我們有動力與那些幫助我們在貨架上和生態系統的實際使用中創造良好體驗的零售商合作。

It's our fundamental belief that when we give people more reasons and inspiration to make things that are appealing to them and they make it easier to make things affordably. We will see a lift in materials consumption. We are driven to continue to innovate while exhibiting both long-term focus and current discipline.

我們的基本信念是，當我們為人們提供更多理由和靈感來製造對他們有吸引力的產品時，他們就會更容易以實惠的價格製造產品。我們將看到材料消耗的增加。我們不斷創新，同時展現長期關注和當前紀律。

I will now turn the call over to Kim.

我現在將把電話轉給金。

Thank you, Ashish. I would like to provide more details on the capital allocation items, the Board of Directors approved a special one-time dividend of $0.4 per share and a recurring semi-annual dividend of $0.1 per share. Both dividends are payable on July 19th, for shareholders of record on July second, the recurring semiannual dividend of $0.1 is anticipated again in about six months, which would be in the January timeframe, but is subject to Board approval. The Board of Directors also approved a new $50 million stock repurchase program. As mentioned in our last earnings call, we effectively completed our previously authorized stock repurchase program announced in August 2022.

謝謝你，阿什什。我想提供更多關於資本分配項目的細節，董事會批准了每股0.4美元的一次性特別股息和每股0.1美元的經常性半年度股息。兩次股息均於7 月19 日支付，對於7 月2 日登記在冊的股東，預計將在大約六個月內再次派發0.1 美元的經常性半年股息，這將在1 月份的時間範圍內進行，但須經董事會批准。董事會也批准了一項新的 5,000 萬美元股票回購計畫。正如我們在上次財報電話會議中提到的，我們有效完成了先前於 2022 年 8 月宣布的授權股票回購計畫。

The Board of Directors use this level of capital allocation, both stock repurchases and dividends as appropriate, given the Company's operating and financial plans. And we'll continue to evaluate capital allocation on a regular basis. These capital allocation decisions are possible due to past profitability and our confidence in the sustainability of our profitable operations. We want cricket to always have ample liquidity to sustain and grow our business, but not hold excess cash for no reason. We do not anticipate the need for any debt or utilization of our credit line in the near term.

董事會根據公司的營運和財務計劃，酌情使用此水準的資本分配、股票回購和股利。我們將繼續定期評估資本配置。由於過去的獲利能力以及我們對獲利業務可持續性的信心，這些資本配置決策是可能的。我們希望板球始終擁有充足的流動性來維持和發展我們的業務，但不要無緣無故持有過多的現金。我們預期短期內不需要任何債務或使用我們的信用額度。

Now onto financials of Q1 and our outlook last quarter, I mentioned that we would adjust our reporting segments and KPI. Recall cricket has been a public company for approximately three years during 2020. In preparing to go public, we developed a package of quarterly information to provide meaningful transparency for investors, including our reporting segments and KPI. After three years of business evolution, we have redesigned some aspects of our quarterly information package. We increasingly view cricket as a platform business with physical products.

現在談談第一季的財務狀況和上季的展望，我提到我們將調整我們的報告部門和 KPI。2020 年，Recall Cricket 成為上市公司已有大約三年時間。在準備上市時，我們開發了一系列季度信息，為投資者提供有意義的透明度，包括我們的報告部門和 KPI。經過三年的業務發展，我們重新設計了季度資訊包的某些方面。我們越來越將板球視為具有實體產品的平台業務。

My commentary will be consistent with our new segments of platform and products. We also updated our public KPIs to focus on the most meaningful indicators for our current and future operations. You will notice we now provide active users rather than total users, which more accurately reflects our business for definitional purposes. An active user is a unique user who has used their connected machine to make a project in the last 12 months.

我的評論將與我們的新平台和產品部分保持一致。我們也更新了公共 KPI，重點放在對我們目前和未來營運最有意義的指標。您會注意到，我們現在提供活躍用戶而不是總用戶，這更準確地反映了我們的業務定義目的。活躍用戶是在過去 12 個月內使用其連接的電腦製作專案的唯一用戶。

We will also continue to share our shorter term engagement metric of 90 day engaged users, which represent a unique user who has used their connected machine to make a project in the last 90 days on our Investor Relations website, we have provided historical information on our new segments and KPI.

我們還將繼續分享我們的 90 天參與用戶的短期參與指標，該指標代表過去 90 天內使用其連接的機器在我們的投資者關係網站上創建項目的唯一用戶，我們提供了有關我們的歷史信息新細分市場和KPI。

In the first quarter, we delivered revenue of $167.4 million, an 8% decline compared to the prior year. And in line with our expectations, we generated $19.6 million in net income, a 116% year-over-year increase at our 21st consecutive quarter of positive net income as we continued to invest in our key priorities.

第一季度，我們實現營收 1.674 億美元，比去年同期下降 8%。與我們的預期一致，隨著我們繼續投資於我們的關鍵優先事項，我們實現了 1,960 萬美元的淨利潤，連續 21 個季度實現正淨利潤，同比增長 116%。

Breaking revenue down further, Q1 2024 revenue from platform was $78 million, up 3% year over year. Revenue from products was $89 million, down 15% over Q1 2023, connected machines increased 8%, driven by higher units sold, while accessories and materials decreased to 26%. Some retailers started to restock inventory levels, partially in Q1 unlike in 2023 when they were destocking. However, during key sales events, we found retailer shelves light on inventory to fully capture the opportunity.

進一步細分收入，2024 年第一季平台收入為 7,800 萬美元，較去年同期成長 3%。產品收入為 8,900 萬美元，比 2023 年第一季下降 15%，在銷量增加的推動下，連網機器成長了 8%，而配件和材料則下降至 26%。一些零售商開始補充庫存水平，部分是在第一季度，這與 2023 年去庫存不同。然而，在關鍵銷售活動期間，我們發現零售商貨架上庫存不足，無法充分抓住機會。

In terms of geographic breakdown, international revenue was $32.6 million or down 3% compared to $33.5 million in Q1 2023. The year-over-year decline in Q1 was primarily driven by UK and EU central regions. As a percentage of total revenue, international was 19% in Q1 2024 compared with 18% of total revenue in Q1 2023.

從地理分佈來看，國際營收為 3,260 萬美元，較 2023 年第一季的 3,350 萬美元下降了 3%。第一季的年減主要是由英國和歐盟中部地區推動的。2024 年第一季度，國際業務佔總營收的比例為 19%，而 2023 年第一季則佔總營收的 18%。

Turning to active users and engagement, we ended the quarter with over 5.95 million active users, a slight increase from 5.94 million a year ago, we ended the quarter with over 3.5 million 90 day engaged users, which was a 5% decline from Q1 last year. As Ashish mentioned, we have more work to do to improve engagement.

談到活躍用戶和參與度，本季末我們的活躍用戶數超過595 萬，比一年前的594 萬略有增加，本季末我們的90 天活躍用戶數超過350 萬，比上一季下降5%年。正如 Ashish 所提到的，我們還有更多工作要做來提高參與度。

We ended the quarter with nearly 2.8 million paid subscribers, up 3% from Q1 2023 and up 27,000 sequentially. As discussed in earlier calls, there are some natural subscriber attrition. So subscriber growth will be muted until we increase the pace of machine sales and new user acquisition.

截至本季末，我們的付費訂閱用戶數量接近 280 萬，比 2023 年第一季成長 3%，比上一季增加 27,000 名。如同先前電話會議所討論的，訂閱者會自然流失。因此，在我們加快機器銷售和新用戶獲取速度之前，用戶成長將會放緩。

Moving to gross margin total gross margin in the first quarter was 54.7%, an improvement compared to the 42.3% in Q1 2023. The improvement reflects a higher amount of platform revenue as a percentage of total revenue and less impairments than last year.

轉向毛利率，第一季的總毛利率為 54.7%，較 2023 年第一季的 42.3% 有所改善。這項改善反映出平台收入佔總收入的比例高於去年，減損損失也較去年減少。

Breaking gross margin down further, gross margins from platform were 88.8% compared to 89.8% a year ago. The slight decline in Platform gross margins was primarily related to higher amortization of capitalized software costs, which we expect to continue.

毛利率進一步下降，平台毛利率為 88.8%，去年同期為 89.8%。平台毛利率的小幅下降主要與資本化軟體成本攤提增加有關，我們預期這種情況將持續下去。

Gross margin from products was 24.8% compared to 7.8% in Q1 a year ago. The increase in gross margins was primarily due to less impairments in materials than a year ago. Total operating expenses for the quarter were $66.4 million and included $10.3 million in stock-based compensation. Total operating expenses were up less than 1% from $66.1 million in Q1 2023.

產品毛利率為 24.8%，而去年第一季為 7.8%。毛利率的增加主要是由於材料減損比一年前減少。該季度的總營運費用為 6,640 萬美元，其中包括 1,030 萬美元的股票薪酬。總營運支出較 2023 年第一季的 6,610 萬美元成長不到 1%。

As we mentioned last quarter, we increased our 2024 plans for increased marketing, which drove the sales and marketing costs of $3.4 million were up 12%, but this was largely offset by a $2.9 million decrease in R&D operating income for the quarter was $25.2 million or 15.1% of revenue compared to $10.5 million or 5.8% of revenue in Q1 last year. This was a 139% increase in operating income, which we are encouraged with despite the decline in sales, the increase in operating income is primarily due to higher paid subscriptions, coupled with less impairments in our materials business.

正如我們上季度提到的，我們增加了2024 年的行銷計劃，這使得銷售和行銷成本增加了12%，達到340 萬美元，但這在很大程度上被本季研發營業收入減少290 萬美元所抵消，為2,520 萬美元佔營收的 15.1%，而去年第一季為 1,050 萬美元，佔營收的 5.8%。營業收入成長了 139%，儘管銷售額下降，但我們對此感到鼓舞，但營業收入的成長主要是由於付費訂閱的增加，以及我們材料業務減損的減少。

Our tax rate of 30.6% increased from 29.2% a year ago, primarily due to the tax impact of stock vesting at a lower price. We delivered our 21st consecutive quarter of positive net income. Net income was $19.6 million or $0.09 per diluted share compared to $9.1 million or $0.04 per diluted share in Q1 2023.

我們的稅率從一年前的 29.2% 上升到 30.6%，這主要是由於股票歸屬價格較低的稅收影響。我們連續 21 個季度實現正淨利。淨利潤為 1,960 萬美元，即稀釋後每股收益 0.09 美元，而 2023 年第一季淨利潤為 910 萬美元，即稀釋後每股收益 0.04 美元。

Turning now to balance sheet and cash flow, we continue to generate healthy cash flow on an annual basis, which funds inventory needs and investments for long-term growth. In Q1, we generated $57 million in cash from operations compared to $95 million a year ago. We ended Q1 with a cash and cash equivalents balance of $282 million. We remain debt-free. Inventory decreased by $68 million from a year ago to $225 million at the end of Q1 2024.

現在轉向資產負債表和現金流，我們繼續每年產生健康的現金流，為長期成長的庫存需求和投資提供資金。第一季度，我們從營運中產生了 5,700 萬美元的現金，而去年同期為 9,500 萬美元。第一季結束時，我們的現金和現金等價物餘額為 2.82 億美元。我們仍然沒有債務。截至 2024 年第一季末，庫存較上年同期減少 6,800 萬美元，至 2.25 億美元。

During Q1, we used $10.8 million of cash to repurchase 1.7 million shares of our stock, which effectively completed our $50 million stock repurchase program that was authorized in August 2022. As discussed previously, the Board of Directors authorized a new $50 million stock buyback program, which will commence in Q2.

第一季度，我們使用 1,080 萬美元現金回購了 170 萬股股票，有效完成了 2022 年 8 月授權的 5,000 萬美元股票回購計畫。如前所述，董事會批准了一項新的 5,000 萬美元股票回購計劃，該計劃將於第二季開始。

Recall, we do not give detailed quarterly or annual guidance, but we do want to offer some color on our outlook for 2024, we are focused on bringing excitement to our category. We are doing this through an increased focus on marketing and continuing our strategy of deeper promotions on cutting machines and a continued cadence on accessories and materials to drive affordability.

回想一下，我們不會提供詳細的季度或年度指導，但我們確實希望為 2024 年的前景提供一些色彩，我們專注於為我們的類別帶來興奮。為此，我們更加重視行銷，繼續實施對切割機進行更深層促銷的策略，並持續加大配件和材料的推廣力度，以提高人們的可負擔性。

We expect continued sales pressure on our product segment, especially in accessories and materials. And accordingly, we do not expect positive Q2 revenue growth year over year. We will continue to accelerate marketing to generate consumer excitement, but given ongoing retailer conservatism and only two major sales events under our belt It is too soon to call an inflection point.

我們預計我們的產品部門將面臨持續的銷售壓力，尤其是配件和材料方面。因此，我們預計第二季營收將年比不會出現正成長。我們將繼續加速行銷，以激發消費者的興奮，但考慮到零售商持續的保守態度以及我們只舉辦的兩次重大銷售活動，現在稱拐點還為時過早。

Hence, we may even see a decline for the full year. We expect paid subscriber count and subscriptions revenue to grow slightly and become a larger portion of total company sales and profits for the full year, lower new user growth rates will put pressure on our subscriber growth following a similar pattern to 2023 and could result in a seasonal pattern of paid subscriber growth in Q1 and Q4, but flat to declining in Q2 and Q3.

因此，我們甚至可能會看到全年的下降。我們預計付費用戶數量和訂閱收入將小幅增長，並在全年公司總銷售額和利潤中佔據更大比例，較低的新用戶增長率將給我們的用戶增長帶來壓力，遵循與2023年類似的模式，並可能導致第一季和第四季付費用戶成長呈現季節性格局，但第二季和第三季持平甚至下降。

Typical revenue seasonality is 40% in the first half and 60% in the second half of the year. However, we anticipate 2024 seasonality will look a lot like 2023 where revenues were distributed 47% in the first half and 53% in the second half in 2024. Our operating expenses will increase modestly as we increase our marketing spend to reinvigorate excitement in the category.

典型的收入季節性為上半年 40%，下半年 60%。然而，我們預計 2024 年的季節性將與 2023 年非常相似，2024 年上半年收入分配為 47%，下半年分配為 53%。隨著我們增加行銷支出以重振該類別的熱情，我們的營運費用將略有增加。

We expect total year operating margins to be about flat year over year. We expect to be profitable each quarter and generate significant positive cash flow during 2024. Our long-term financial model remains unchanged with operating margin targets of 15% to 19%. Our proven model has demonstrated that when we operated scale, which we define as revenue above $1 billion and drive top line growth. These margins are achievable.

我們預計全年總營業利潤率將與去年同期持平。我們預計每季都會獲利，並在 2024 年產生大量正現金流。我們的長期財務模型維持不變，營業利益率目標為 15% 至 19%。我們經過驗證的模型已經證明，當我們經營規模時，我們將其定義為收入超過 10 億美元並推動營收成長。這些利潤是可以實現的。

With that, I'll turn the call over to the operator for questions in queue.

這樣，我會將電話轉給接線員詢問隊列中的問題。

(Operator Instructions) Erik Woodring of Morgan Stanley. Your line is now open and Thank you.

（操作員指示）摩根士丹利的埃里克·伍德林（Erik Woodring）。您的線路現已開通，謝謝。

This is my honor. Total number of engaged users fell both sequentially and year over year. Can you maybe just give us a little bit of details and color on some of the initiatives you've talked about in prior quarters to increase engagement. And kind of is that when do you expect to see that materialize? And when do you think engagement, bottoms, and then I have a follow up. Thank you.

這是我的榮幸。參與用戶總數較上月及年比均有所下降。您能否向我們提供一些您在前幾個季度談到的一些旨在提高參與度的舉措的細節和色彩。您預計什麼時候會看到這一點？你認為訂婚什麼時候觸底，然後我會跟進。謝謝。

Thanks, Maia. This is Ashish. Thanks for the question. Sweet. As we've kind of mentioned before, engagement is a really important initiative for the Company, and we have a team that's focused on it. As you pointed out, engagement did decrease year on year. So let me give you and will you have. One of the main reasons for that was when you look at the 2020 and 2021 cohort, which is roughly where we acquired about 4 billion users as they go through graduation curve, there's a natural attrition that happens and that's what's putting a lot of pressure and creating a headwind for the Company now that would typically be offset by new acquired newly acquired users that are more engaged. And we obviously are not acquiring enough of them to offset the 2020 and 2021 headwind in terms of initiatives. We have a number of initiatives that is that we have that are focused on driving engagement. One of the main focus areas is as we look at onboarding users, we want to make sure that they have a great positive out-of-box experience and not only that they actually to make enough projects in the first seven to 30 days. So we have seen some positive results as we talked about in our in our prepared remarks. In addition to that, we have initiatives around education, helping people find inspiration so they can actually find the project and ultimately cut it. So I think there's a number of initiatives. You have us pretty strong conviction that some of these initiatives will pay off. One of the initiatives that I want to kind of highlight as search and personalization. And we again, like I said, we believe that and ultimately this trend will reverse itself. And we just need to stay focused and continue to execute on it.

謝謝，瑪雅。這是阿希什。謝謝你的提問。甜的。正如我們之前提到的，參與對公司來說是一項非常重要的舉措，我們有一個專注於此的團隊。正如您所指出的，參與度確實逐年下降。所以讓我給你，你願意嗎？造成這種情況的主要原因之一是，當你看看2020 年和2021 年的隊列時，我們大致在他們經歷畢業曲線時獲得了約40 億用戶，會發生自然流失，這就是造成很大壓力的原因，現在為公司帶來了不利因素，這種不利因素通常會被新獲得的參與度更高的用戶所抵消。顯然，我們沒有獲得足夠的資金來抵消 2020 年和 2021 年舉措的逆風。我們有許多旨在提高參與度的措施。主要關注領域之一是，當我們關注新用戶時，我們希望確保他們擁有良好的積極的開箱即用體驗，而不僅僅是他們實際上在前 7 到 30 天內製作了足夠的項目。因此，正如我們在準備好的發言中談到的那樣，我們看到了一些積極的成果。除此之外，我們還圍繞著教育開展舉措，幫助人們找到靈感，以便他們能夠真正找到項目並最終削減它。所以我認為有很多舉措。我們非常堅信其中一些措施將會獲得回報。我想強調的舉措之一是搜尋和個人化。正如我所說，我們再次相信，這種趨勢最終將會逆轉。我們只需要保持專注並繼續執行。

And thank you, Jim and Dan, as you guys mentioned, international revenue declined for the second consecutive quarter and you called out specifically UK and the year. Could you maybe speak to a little bit about some of the underlying, whether it's macro trends there and how that compares to North America? And then if the engagement differs it region as well?

謝謝你們，吉姆和丹，正如你們所提到的，國際收入連續第二季下降，你們特別提到了英國和今年。您能否談談一些潛在的問題，是否是那裡的宏觀趨勢以及與北美相比如何？那麼，如果參與的地區也不同呢？

Well, thanks for the question. This is Kimo. So as you pointed out, two regions really kind of overwhelmed some of the goodness it's happening in many of the other countries where we are in our international business, largely, we're seeing the same kind of consumer pressure there from kind of macroeconomic headwinds that we see in North America and even more pronounced in the UK, of which which weighs on the business.

嗯，謝謝你的提問。這是基莫。因此，正如您所指出的，兩個地區確實壓倒了我們從事國際業務的許多其他國家所發生的一些好事，很大程度上，我們在宏觀經濟逆風中看到了同樣的消費者壓力我們在北美看到這種情況，在英國更為明顯，這給業務帶來了壓力。

I would I would hasten to add that we continue to see international as a huge vector of growth for us in the future. And we're barely and we think we've barely tapped the opportunity there. But but the headwinds today kind of overwhelmed some of the goodness we have in some of the many countries around we're in over 50 countries around the world.

我想趕緊補充一點，我們繼續將國際業務視為我們未來成長的巨大載體。我們幾乎沒有抓住這個機會。但是，今天的逆風有點壓倒了我們在全球 50 多個國家/地區中的一些國家/地區所擁有的一些優點。

And just one other a sub-question, you asked my I was about engagement. It's hard to kind of generalize because there's so many different countries in different stages of their maturity. So I think that more or less, I would say about to aggregate and answer the engagement as well, you know, similar to what we see in the U.S.

還有一個子問題，你問我是關於訂婚的。很難一概而論，因為有許多不同的國家處於不同的成熟階段。所以我認為，或多或少，我也會說要總結並回答參與情況，你知道，類似於我們在美國看到的情況。

And given again, you know, I just want to qualify that if we are in a country, we see early adopters. So the engagement could be higher than some of the more mature countries that's going through a similar graduation curve and we're creating additional users that may not be as engaged but I would say overall, the trends that we see over time that we saw in the US are similar to what we are seeing in different parts of the world. Just so happens too to be where they are in terms of their launch process.

再次重申，你知道，我只是想證明，如果我們在一個國家，我們會看到早期採用者。因此，參與度可能高於一些正在經歷類似畢業曲線的更成熟的國家，我們正在創建更多的用戶，這些用戶可能沒有那麼參與，但我想說的是，總的來說，隨著時間的推移，我們看到的趨勢是美國的情況與我們在世界不同地區看到的情況相似。他們的啟動過程也恰好如此。

Thank you.

謝謝。

Thank you. And one moment for our next question. Our next question comes from Adrienne Yih of Barclays. Your line is now open.

謝謝。請稍等一下我們的下一個問題。我們的下一個問題來自巴克萊銀行的 Adrienne Yih。您的線路現已開通。

Hi, this is Angus Keller on for AG&E. So there's been a lot of noise in the hard goods product segment on gross margin with these stock-outs last quarter and connected machines, some clearance reserves last year in M. and now with the reporting style shift, do you think you could share some thoughts on what type of margin profile you see out of that segment going forward over both the short term and the long term?

大家好，我是 AG&E 的 Angus Keller。因此，由於上個季度的缺貨和連網機器的缺貨，耐用品產品領域的毛利率出現了很多噪音，去年M 的一些清倉儲備，現在隨著報告風格的轉變，您認為您可以分享一些嗎？

And then I have a follow-up, I guess thanks for the question. First And Ted, I'd call out that in our prepared remarks, we talked about expectations for full year operating margins being similar to last year and that if you look at our our platform margins. They are very stable over time and consistently are at 88.8% for the quarter, down down slightly from last quarter as we have more amortized software costs that flow through from COGS for our platform margin. And so if you take those two points, that should help you set expectations for what and product margins will be higher for the year going forward.

然後我有一個後續行動，我想謝謝你的提問。首先，特德，我想指出，在我們準備好的發言中，我們談到了對全年營業利潤率的預期與去年相似，如果你看看我們的平台利潤率。隨著時間的推移，它們非常穩定，本季一直保持在 88.8%，比上季度略有下降，因為我們有更多的攤銷軟體成本從 COGS 流向我們的平台利潤。因此，如果您考慮這兩點，這應該可以幫助您設定對未來一年更高的產品利潤的期望。

Okay, thank you. My second question is, could you talk about some of the retailer trends around sell-in and sell-out specifically? Has there been any restocking effort? And if so, how has the consumer response been at the retailers once they receive that fresh product?

好的謝謝。我的第二個問題是，您能具體談談有關銷售和銷售的一些零售商趨勢嗎？有沒有進行補貨工作？如果是這樣，消費者收到新鮮產品後對零售商的反應如何？

So thanks for that, and thanks for the follow-up. So at a macro level this quarter, sell-out continued to outpace sell-in, but at a much more reduced rate that we saw last year. And if you noticed, we called out that machine sales were actually up 8% year over year as some retailers partially restocked in general, we still saw Tom channel lighter than we would like to see it. And we did see that effect so the opportunity in during the promotions in the quarter.

所以謝謝你，也謝謝你的跟進。因此，從本季的宏觀層面來看，售出量繼續超過售入量，但速度比我們去年看到的要低得多。如果你注意到的話，我們指出，由於一些零售商總體上部分補貨，機器銷量實際上同比增長了 8%，但我們仍然看到 Tom 渠道比我們希望看到的要輕。我們確實看到了這種影響，因此在本季度的促銷期間有機會。

So let me let me just go to reinforce some things of its capability set, right watches. We see sell-through higher than sell-in by cable just so we don't sell (multiple speakers) outright. So as we see sell into retail as greater than that outside, we see sell out to get that out and realize greater than sell-in to retailers. The second as in as we've gone through a few sales events, we see that read some of the retailers have largely or somewhat missed the opportunity because halfway through the sale event, they're out of stock.

因此，讓我來強化其功能集的一些內容，即正確的手錶。我們看到銷售量高於有線銷售量，因此我們不會直接銷售（多個揚聲器）。因此，當我們看到零售業的銷售量大於外部銷售量時，我們就會看到銷售量的增加，從而實現比零售商的銷售量更大的目標。第二個是當我們經歷了一些銷售活動時，我們看到一些零售商在很大程度上或在某種程度上錯過了這個機會，因為銷售活動進行到一半時，他們已經缺貨了。

Now. They have started stocking some more than what they had done previous day, but we certainly think of it as a huge opportunity as we really drive and accelerate marketing. So we think that we know our team is doing a good job creating the funnel now with our promotional strategy, executing and converting the funnel. We just need to make sure that our channels are well stocked and leverage the opportunity to. So basically you'd sell more machines to consumers.

現在。他們已經開始儲備比前一天更多的庫存，但我們當然認為這是一個巨大的機會，因為我們確實推動和加速了行銷。因此，我們認為我們的團隊現在透過我們的促銷策略、執行和轉換漏斗，在創建漏斗方面做得很好。我們只需要確保我們的通路庫存充足並利用這個機會。所以基本上你會向消費者出售更多機器。

Okay. Thank you.

好的。謝謝。

Assia Mircette of Citi. Your line is now open.

花旗銀行的阿西亞‧米爾塞特 (Assia Mircette)。您的線路現已開通。

Great. Thank you for taking my question and one quick Kimber. One for Ashish here, accessories and materials, they continue to be fairly weak. I know you mentioned there was a lot of competitive intensity there and maybe you can help us understand you know how we should think about the trajectory of this business? Should we continue to expect the decline to be at this level going forward? Or is there something that could change the trajectory of this business.

偉大的。感謝您提出我的問題，並請金伯快速回答。其中之一是 Ashish，配件和材料仍然相當薄弱。我知道您提到那裡競爭激烈，也許您可以幫助我們了解您知道我們應該如何考慮這項業務的發展軌跡？我們是否應該繼續預期未來跌幅將維持在這個水平？或者是否有什麼事情可以改變這個產業的發展軌跡。

The one that I had to Kimbell was on operating margin plan, I think you reiterated and unless I'm mistaken, about 9% operating margins kind of flattish on set for 2023. You guys obviously just posted very strong operating margin and why why is such a big decline but the remainder of the year? Thank you.

我向 Kimbell 提出的問題是關於營業利潤率計劃，我想您重申了這一點，除非我弄錯了，否則 2023 年的營業利潤率約為 9%，與設定持平。顯然你們剛剛發布了非常強勁的營業利潤率，為什麼今年剩餘時間卻出現如此大的下降？謝謝。

Sophia is capable of answering those questions are the tissues can can add commentary from after?

索菲亞有能力回答這些問題，紙巾可以在事後加上評論嗎？

So I'll answer your last question first. So on the operating margins at first, I'd call out that Q1 was in line with our expectations. So far, we're very pleased with the increase of $15 million in profitability and up 139% if that was still in line with what we expected for the quarter. And as we look to the rest of the year and we continue to lean into our increased sales and marketing spend, which was 20% of revenue for the quarter, which is a high watermark for us. And we continue our promotional, deeper promotions, our machines and our promotional cadence and accessories materials hum that that will affect margins as we move through the year. And so we still expect full year margins to be around flattish compared to last year, which was 9.1%.

所以我先回答你的最後一個問題。因此，首先就營業利潤率而言，我會指出第一季符合我們的預期。到目前為止，我們對盈利能力增加 1500 萬美元感到非常滿意，如果這仍然符合我們對本季度的預期的話，盈利能力將增長 139%。展望今年剩餘時間，我們將繼續依靠增加的銷售和行銷支出，佔本季收入的 20%，這對我們來說是一個高水位線。我們繼續進行促銷、更深入的促銷，我們的機器、促銷節奏和配件材料嗡嗡作響，這將影響我們全年的利潤率。因此，我們仍然預計全年利潤率將與去年 9.1% 持平。

As to your question on accessories materials, it is a segment where we continue to see pressure from part of it is lower engagement and she's highlighted in some of his comments. And so when we when people are cutting fewer projects, they're consuming less materials and that clearly affects us. We do continue to see competition both from white label retailer brands for our brick and mortar retailers, as well as as more entrants into the online marketplaces.

至於你關於配件材料的問題，我們繼續看到這個部分的壓力來自於參與度較低，她在他的一些評論中強調了這一點。因此，當人們減少項目時，他們消耗的材料就會減少，這顯然會影響我們。我們確實繼續看到來自白標零售商品牌對我們的實體零售商的競爭，以及更多進入者進入線上市場。

So we do continue to see competition in that space. I would like to call out that we are very proud to launch our Cricket value vinyl in the quarter, and then we're still in the very early days of that. But it's an example of things we're doing to reinvent that business where it's reengineered product, regional packaging configurations designed specifically to compete well on online marketplaces. And so that's one example that we've had in the works for a while. There's others that will come in the future quarters, but we're taking steps to help us address this business. But in part, we'll need to see our engagement efforts start to bear fruit. Tom, to help turn that business around.

因此，我們確實繼續看到該領域的競爭。我想指出的是，我們非常自豪能夠在本季度推出我們的板球價值乙烯基，但我們仍處於早期階段。但這是我們正在做的重塑業務的一個例子，我們重新設計了產品和區域包裝配置，專門為線上市場上的競爭而設計。這就是我們已經研究了一段時間的一個例子。未來幾季還會出現其他業務，但我們正在採取措施幫助我們解決這項業務。但在某種程度上，我們需要看到我們的參與努力開始取得成果。湯姆，幫助扭轉業務。

And I'll just add one other comment to the accessories and materials we've talked about in the past we didn't necessarily address at this time. We continue to be equally. We know that when we are within a certain range of competition, we hold our share really well. And so we know increasingly we have not only reduced the cost of materials, but we will be making sure that we win our fair share and provide a great customer experience. So we are a that's the evidence you'll see us execute on mode.

我只是對我們過去討論過的配件和材料添加另一條評論，但這次我們不一定要解決。我們繼續平等。我們知道，當我們處於一定的競爭範圍內時，我們就能很好地保持自己的份額。因此，我們越來越清楚，我們不僅降低了材料成本，而且將確保贏得公平的份額並提供良好的客戶體驗。所以我們就是一個證據，你會看到我們在模式下執行。

Great. And if I may, another one, you guys have obviously amazing free cash flow generation here. You're announcing some big shareholder return program of why not news and whether it's is it more marketing or any other inorganic growth on that could maybe reverse the Reverset declines in the business? Thank you.

偉大的。如果可以的話，我再說一遍，你們這裡顯然擁有驚人的自由現金流。您正在宣布一些大股東回報計劃，為什麼不是新聞？謝謝。

The asset? This is Kimo, Tom? Yes, thanks for the question. We have a strong conviction that we're a growth company and we have a huge opportunity in front of us come we also have a core ethos to grow profitably. And so as we as we look at our investment in marketing today, press very highlighted, it was 20% of revenue in sales marketing, and that is that is a high watermark for us?

資產？這是基莫，湯姆？是的，謝謝你的提問。我們堅信我們是一家成長型公司，我們面前有巨大的機會，我們也有實現獲利成長的核心精神。因此，當我們今天審視我們在行銷方面的投資時，媒體非常強調，銷售行銷收入佔收入的 20%，這對我們來說是一個高水位嗎？

No, we haven't seen it translate into year-over-year POS yet, but we're encouraged by the leading indicators that we're tracking in terms of reach and clicks and views and increased traffic to cricket.com. And we are confident that we're spending on the right things, and we're comfortable that we're spending at the right levels. And as we get more data and yes, learn, we will lean into that spend, but we want to make sure that we are doing it responsibly in a way that that helps us manage our business for the long term with a view on profitability.

不，我們還沒有看到它轉化為同比 POS，但我們對我們在覆蓋率、點擊量、瀏覽量以及 cricket.com 流量增加方面追蹤的領先指標感到鼓舞。我們相信我們的支出是正確的，而且我們對支出水準正確感到滿意。隨著我們獲得更多數據，是的，我們將傾向於投入這些支出，但我們希望確保我們以負責任的方式這樣做，以幫助我們從獲利角度長期管理我們的業務。

Great. Thank you.

偉大的。謝謝。

Thank you. I'm showing no further questions at this time. I would now like to turn the call back over to Jim Suva for closing remarks.

謝謝。我目前沒有提出任何進一步的問題。現在我想將電話轉回給吉姆·蘇瓦（Jim Suva），讓其致閉幕詞。

Thank you, Brianna, and thank you, everyone, for joining us this afternoon. We have a large opportunity over the long term to drive new user growth and increased engagement. The cricket platform continues to not only strengthen, but also provide increased value to our users. We continue to manage the business for sustainable, profitable growth and generate healthy cash flows. I'm excited about the opportunities ahead of us. If you have additional questions, please e-mail me at Jay Suva at cricket.com. This now concludes this earnings call and you may disconnect. Thank you.

謝謝你，布萊恩娜，也謝謝大家今天下午加入我們。從長遠來看，我們有很大的機會來推動新用戶成長和提高參與度。板球平台不僅不斷增強，而且還為我們的用戶提供更高的價值。我們繼續管理業務以實現可持續的盈利增長並產生健康的現金流。我對我們面前的機會感到興奮。如果您還有其他問題，請給我發送電子郵件至 cricket.com 上的 Jay Suva。本次財報電話會議到此結束，您可以斷開連線了。謝謝。

Thank you for your participation in today's conference. You may now disconnect.

感謝您參加今天的會議。您現在可以斷開連線。