Cricut Inc (CRCT) 2024 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Cricut Q2 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Cricut 2024 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your first speaker today, Jim Suva, Senior Vice President of Finance and Treasurer. Please go ahead.

現在我想將會議交給今天的第一位發言者，財務高級副總裁兼財務主管吉姆·蘇瓦 (Jim Suva)。請繼續。

Thank you, operator, and good afternoon, everyone. Thank you for joining us on Cricut's second 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.

謝謝接線員，大家下午好。感謝您參加 Cricut 的 2024 年第二季財報電話會議。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。

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.cricut.com.

今天的電話會議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資料表已發佈到公司網站 Investor.cricut.com 的投資者關係部分。

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

今天與我一起參加電話會議的是執行長阿什什·阿羅拉 (Ashish Arora)；和財務長 Kimball Shill。今天準備好的演講已錄製完畢，之後 Ashish 和 Kimbell 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、業務費用和經營業績的陳述，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 Cricut’s most recently filed Form 10-K or Form 10-Q that we have filed with the Securities and Exchange Commission.

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，包括我們向證券公司提交的 Cricut 最近提交的表格 10-K 或表格 10-Q 的風險因素部分中確定的風險和不確定性和交易委員會。

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, August 6, 2024. Cricut assumes no obligation to update any forward-looking projection that may be made in today's release or call.

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 8 月 6 日）準確。Cricut 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。

I will now turn the call over to Ashish.

我現在將把電話轉給阿什什。

Thank you, Jim, and welcome everyone. We are pleased with strong Q2 profitability and early signs that our acquisition and marketing strategies with retailers and consumers are starting to bear fruit. Connected machines revenue grew for the second consecutive quarter from increased sell into retailers, while sellout to consumers was about flat in the quarter compared to a decline in Q1.

謝謝吉姆，歡迎大家。我們對第二季強勁的獲利能力感到高興，早期跡象顯示我們與零售商和消費者的收購和行銷策略已開始取得成果。由於對零售商的銷售量增加，連網機器收入連續第二季成長，而與第一季的下降相比，本季對消費者的銷售量基本上持平。

Remember, our flywheel begins with the purchase of a connected machine, which then presents the opportunity to monetize our customers through subscriptions and accessories and materials. Operating margin dollars grew significantly up 37% or $7 million driven by higher platform revenue as a percentage of total revenue and benefits from inventory impairment related items, despite a 6% year-on-year drop in overall sales.

請記住，我們的飛輪始於購買連網機器，然後為我們的客戶提供透過訂閱、配件和材料獲利的機會。儘管整體銷售額年減 6%，但由於平台收入佔總收入的百分比以及庫存減損相關項目的收益增加，營業利潤率大幅增加 37% 或 700 萬美元。

International sales grew 3% year on year. In Q2 platform revenues increased slightly on paid subscriber growth. Products revenues declined 10% as connected machines units and revenue growth were more than offset by a decline in accessories and materials. Paid subscribers grew 3% to over 2.8 million. We ended the quarter with over 5.9 million active users who cut in the past year slightly up from a year ago.

國際銷售額較去年同期成長3%。第二季度，由於付費用戶的成長，平台收入略有成長。產品收入下降 10%，因為互聯機器單位和收入成長被配件和材料的下降所抵消。付費用戶成長 3%，達到 280 萬以上。本季結束時，我們的活躍用戶數量超過 590 萬，去年的活躍用戶數量比去年同期略有下降。

Our 90-day engaged users declined 3% year on year, and I would like to give you some examples of our effort to improve this important KPI.

我們的 90 天活躍用戶年減了 3%，我想給大家舉一些例子來說明我們為改善這項重要 KPI 所做的努力。

Engagement is a key focus for our company, both in terms of onboarding as well as stimulating ongoing engagement for all users. Onboarders are a particular focus because the more they interact with our platform early, the more likely they are to interact with our platform over time.

參與度是我們公司的重點關注點，無論是在入職還是刺激所有用戶的持續參與方面。入職者是一個特別的焦點，因為他們越早與我們的平台互動越多，隨著時間的推移，他們與我們平台互動的可能性就越大。

We made progress in delivering a simpler, more delightful experience to our onboarders. We introduced several improvements during the quarter. Starting with the out-of-box experience, we made it simpler to connect your machine and work through guided steps to connect with the platform.

我們在為入職者提供更簡單、更愉快的體驗方面取得了進展。我們在本季推出了多項改善。從開箱即用的體驗開始，我們讓您的機器連接變得更加簡單，並透過指導步驟與平台連接。

Along with other improvements, this led to a year-on-year increase in the share of members who complete a project during the first day and who complete several projects in their first week. These are leading indicators for longer term engagement.

與其他改進一起，這導致在第一天完成一個專案以及在第一周完成多個專案的成員比例比去年同期增加。這些都是長期參與的領先指標。

In Q2, we further expanded our content library, which has now surpassed 1 million high-quality makeable images within Cricut Access. We continued with our increased investment in marketing.

在第二季度，我們進一步擴大了內容庫，目前 Cricut Access 中的高品質可製作影像已超過 100 萬張。我們繼續加大對行銷的投資。

Some highlights include a partnership with the Jennifer Hudson show to support Teacher Appreciation week. A featured story on the evening edition of CBS News on Mother's Day. Additional broadcast segments focused on seasonal themes throughout the quarter and expansion of our digital marketing campaigns to reach consumers on streaming television, and a continued focus on the expansion of influencer marketing partnerships.

其中一些亮點包括與詹妮弗·哈德森節目合作支持教師答謝週。母親節晚間哥倫比亞廣播公司新聞的專題報導。其他廣播部分則著重於整個季度的季節性主題，以及擴大我們的數位行銷活動以透過串流電視吸引消費者，並繼續專注於擴大有影響力的行銷合作夥伴關係。

Initial results are promising measured by driving traffic to cricut.com, which plays a central role in pulling consumers through the funnel regardless of where they purchase the machine. Our deeper promotional strategy that we started in late 2023 is working.

透過增加 cricut.com 的流量來衡量，初步結果是有希望的，無論消費者在哪裡購買機器，該網站都在吸引消費者透過管道方面發揮核心作用。我們在 2023 年底啟動的更深層促銷策略正在發揮作用。

In Q2, we saw growth in connected machines selling to retailers, as well as improving trends in sell out to end consumers. This is a healthy positive indicator, and this is despite retailers holding below optimal inventory levels, which resulted in missed sales opportunities.

在第二季度，我們看到向零售商銷售的連網機器的成長，以及向最終消費者銷售的趨勢的改善。這是一個健康的積極指標，儘管零售商的庫存水平低於最佳水平，導致錯失了銷售機會。

Our discussions with retailers regarding our plan deeper promotion and their on-hand inventory levels are constructive, with the goal of returning to total sales growth.

我們與零售商就更深層的促銷計劃及其現有庫存水準進行的討論是建設性的，目標是恢復總銷售成長。

Accessories and materials declined 27% year on year. Our materials are engineered to work seamlessly with our machines to create the best user experience. We launched a Cricut Value line of materials in late Q1, which we designed to compete in online marketplaces, and we are optimistic about this product, but it's still early at a small portion of our portfolio.

配件和材料較去年同期下降27%。我們的材料經過精心設計，可與我們的機器無縫配合，創造最佳的用戶體驗。我們在第一季末推出了 Cricut Value 系列材料，旨在在線上市場上競爭，我們對該產品持樂觀態度，但僅占我們產品組合的一小部分還處於早期階段。

We have additional innovation products and cost reductions coming in the quarters ahead. 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 reinject enthusiasm among our users.

我們將在未來幾季推出更多創新產品並降低成本。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下降的趨勢，並重新註入用戶的熱情。

We need to be more effective competitors in accessories and materials. 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.

我們需要在配件和材料方面成為更有效的競爭對手。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 is our fundamental belief that when we give people more reasons and inspiration to make things that are appealing to them and we make it easier to make things affordably, we will see a lift to materials consumption. We are driven to continue to innovate while exhibiting both longer 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，並且讓人們更容易以實惠的價格製造產品時，我們將看到材料消耗的提升。我們致力於持續創新，同時展現長期關注和當前紀律。

I will now turn the call over to Kimball.

我現在將把電話轉給金博爾。

Thank you, Ashish. In the second quarter, we delivered revenue of $167.9 million, a 6% decline compared to the prior year and in line with our expectations. We generated $19.8 million in net income, a 23% year-over-year increase in our 22nd consecutive quarter of positive net income as we continue to invest in our key priorities.

謝謝你，阿什什。第二季度，我們實現營收 1.679 億美元，比上年下降 6%，符合我們的預期。隨著我們繼續投資於我們的關鍵優先事項，我們實現了 1,980 萬美元的淨利潤，連續 22 個季度實現正淨利潤，同比增長 23%。

Breaking revenue down further, Q2 2024 revenue from platform was $77.6 million, slightly up year over year. While paid subscribers increased 3%, platform revenue was up less as the mix shifted more to annual versus monthly subscriptions and the geographic mix shifted more international compared to a year ago. Both shifts are targeted efforts. Platform ARPU increased 5% to $52.61.

進一步細分收入，2024 年第二季平台收入為 7,760 萬美元，較去年同期略有成長。雖然付費訂閱用戶成長了3%，但平台收入增幅較小，因為與一年前相比，訂閱組合更多地轉向按年訂閱而非按月訂閱，而且地域組合與一年前相比更加國際化。這兩個轉變都是有針對性的努力。平台 ARPU 成長 5% 至 52.61 美元。

Revenue from products was $90.3 million, down 10% over Q2 2023. Connected machines increased 18% driven by higher units sold and positive makeshift, while accessories and materials decreased at 27%. Some retailers started to restock inventory levels on connected machines partially in Q2 unlike in 2023, when they were destocking more broadly.

產品收入為 9,030 萬美元，比 2023 年第二季下降 10%。由於銷量增加和積極的臨時措施的推動，連網機器增長了 18%，而配件和材料則下降了 27%。一些零售商在第二季度開始部分補充連網機器的庫存水平，這與 2023 年更廣泛地去庫存不同。

However, during key sales events, we found retailer shelves light on inventory to capture the opportunity fully. In terms of geographic breakdown, international revenue was $33.5 million, or up 3% compared to $32.6 million in Q2 2023. As a percentage of total revenue, international was 20% in Q2 2024 compared with 18% of total revenue in Q2 2023.

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。從地理分佈來看，國際營收為 3,350 萬美元，較 2023 年第二季的 3,260 萬美元成長 3%。2024 年第二季度，國際業務佔總營收的比例為 20%，而 2023 年第二季則佔總營收的 18%。

Turning to active users and engagement, we ended the quarter with over 5.9 million active users, a slight increase from a year ago. We ended the quarter with over 3.5 million 90-day engaged users, which was a 3% decline from Q2 last year.

談到活躍用戶和參與度，本季末我們的活躍用戶數量超過 590 萬，比去年同期略有增加。本季末，我們的 90 天活躍用戶數量超過 350 萬，比去年第二季下降了 3%。

As Ashish mentioned, we are encouraged by improvement in leading indicator metrics for onboarders, but have more work to do to improve engagement. We ended the quarter with over 2.8 million paid subscribers, up 3% from Q2 2023 and up marginally sequentially. As discussed in earlier calls, there is some natural subscriber attrition, so subscriber growth will be muted until we increase the pace of machine sales and new user acquisition.

正如 Ashish 所提到的，我們對入職者領先指標指標的改善感到鼓舞，但在提高參與度方面還有更多工作要做。截至本季末，我們的付費訂閱用戶數量超過 280 萬，較 2023 年第二季成長 3%，較上季略有成長。正如先前的電話會議中所討論的，存在一些自然的用戶流失，因此在我們加快機器銷售和新用戶獲取的步伐之前，用戶增長將會緩慢。

Moving to gross margin. Total gross margin in the second quarter was 53.5%, an improvement compared to the 49.3% in Q2 2023. The improvement reflects higher platform revenue as a percentage of total revenue and benefits from excess and obsolete and other inventory impairment related items compared to prior year.

轉向毛利率。第二季的總毛利率為 53.5%，較 2023 年第二季的 49.3% 有所改善。這項改善反映了與前一年相比，平台收入佔總收入的比例更高，以及來自過剩和過時以及其他庫存減損相關項目的收益。

Breaking gross margin down further, gross margins from platform were 88.6% compared to 89.7% 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 88.6%，去年同期為 89.7%。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 23.3% compared to 18.2% in Q2 a year ago. The increase in gross margins was primarily due to positive impacts from excess and obsolete and other inventory impairment related items compared to prior year.

產品毛利率為 23.3%，去年第二季為 18.2%。毛利率的成長主要是由於與前一年相比，過剩和過時以及其他庫存減損相關項目的正面影響。

Total operating expenses for the quarter were $63.4 million and included $10.2 million in stock-based compensation. Total operating expenses decreased 7% from $68.4 million in Q2 2023, driven primarily by less reserves this year versus last year.

該季度的總營運費用為 6,340 萬美元，其中包括 1,020 萬美元的股票薪酬。總營運費用比 2023 年第二季的 6,840 萬美元下降了 7%，這主要是由於今年的準備金比去年減少。

The timing of some expenses that will be larger in Q3, and the unwinding of some prior reserves, which will not recur next quarter. As we mentioned last quarter, we increased our marketing plans for 2024, and you will see this in our higher sales and marketing spend.

第三季一些支出規模較大的時間安排，以及一些先前準備金的解除，這些支出在下個季度不會再出現。正如我們上季度所提到的，我們增加了 2024 年的行銷計劃，您將在我們更高的銷售和行銷支出中看到這一點。

Operating income for the quarter was $26.4 million, or 15.7% of revenue, compared to $19.3 million or 10.8% of revenue in Q2 last year. This was a 37% increase in operating income, despite the decline in sales for the reasons discussed previously.

本季營業收入為 2,640 萬美元，佔營收的 15.7%，而去年第二季營業收入為 1,930 萬美元，佔營收的 10.8%。儘管銷售額因前面討論的原因而下降，但營業收入仍成長了 37%。

Our tax rate of 33.6% increased from 30.2% a year ago, primarily due to the tax impact of stock vesting at a lower price. Net income was $19.8 million or $0.09 per diluted share, compared to $16 million or $0.07 per diluted share in Q2 2023.

我們的稅率從一年前的 30.2% 上升到 33.6%，這主要是由於股票歸屬價格較低的稅收影響。淨利潤為 1,980 萬美元，即稀釋後每股 0.09 美元，而 2023 年第二季為 1,600 萬美元，即稀釋後每股 0.07 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 Q2, we generated $35 million in cash from operations, compared to $64 million a year ago.

現在轉向資產負債表和現金流。我們每年持續產生健康的現金流，為長期成長的庫存需求和投資提供資金。第二季度，我們從營運中產生了 3500 萬美元的現金，而一年前為 6,400 萬美元。

We ended Q2 with a cash and cash equivalence balance of $299 million. We remained debt-free. Inventory decreased by $102 million from a year ago to $192 million at the end of Q2 2024. During Q2, we used $9.3 million of cash to repurchase 1.5 million shares of our stock, resulting in $41.2 million remaining on our $50 million authorized stock repurchase program.

第二季結束時，我們的現金和現金等價物餘額為 2.99 億美元。我們仍然沒有債務。截至 2024 年第二季末，庫存較上年同期減少 1.02 億美元，至 1.92 億美元。第二季度，我們使用 930 萬美元現金回購了 150 萬股股票，導致我們的 5,000 萬美元授權股票回購計畫中剩餘 4,120 萬美元。

In July, we paid approximately $108 million in dividends for the special one-time dividend of $0.40 per share, plus our first recurring semiannual dividend of $0.10 per share. These capital allocations are possible due to past profitability and our confidence in the sustainability of our future profitable operations.

7 月份，我們支付了約 1.08 億美元的股息，其中特別一次性股息為每股 0.40 美元，加上我們的第一次經常性半年度股息為每股 0.10 美元。由於過去的獲利能力以及我們對未來獲利業務的可持續性的信心，這些資本配置是可能的。

We want Cricut to always have ample liquidity to sustain and grow our business, but not to hold excess cash. We do not anticipate the need for any debt or utilization of our credit line in the near term.

我們希望 Cricut 始終擁有充足的流動性來維持和發展我們的業務，但不要持有過多的現金。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 our outlook. Recall, we do not give detailed quarterly or annual guidance, but we do want to offer some updated color on our outlook for 2024. Given our first half performance, you can expect some incremental improvement in operating margins, while the remaining outlook remains generally unchanged.

現在談談我們的展望。回想一下，我們沒有提供詳細的季度或年度指導，但我們確實希望對 2024 年的前景提供一些更新的資訊。鑑於我們上半年的業績，您可以預期營業利潤率會有所改善，而其餘前景總體保持不變。

We expect continued sales pressure on our product segment, especially in accessories and materials, and accordingly, total company revenue may be down Q3 year over year. We will continue to accelerate marketing to generate consumer excitement but given ongoing retailer conservatism and pressure in our accessories and materials segment, as well as year-to-date performance, it is too soon to call an inflection point; hence, we may even see a decline for full year company revenue.

我們預計我們的產品部門（尤其是配件和材料）將面臨持續的銷售壓力，因此，第三季公司總收入可能會比去年同期下降。我們將繼續加速行銷，以引起消費者的興奮，但考慮到零售商持續的保守態度以及我們配件和材料領域的壓力，以及今年迄今為止的表現，現在稱拐點還為時過早；因此，我們甚至可能會看到公司全年收入下降。

We expect paid subscriber count and subscriptions revenues to grow slightly and may 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, while Q2 paid subscribers grew, it was modest compared to Q1.

我們預計付費用戶數量和訂閱收入將略有增長，並可能占公司全年總銷售額和利潤的更大比例。新用戶成長率較低將對我們的用戶成長帶來壓力，其模式與 2023 年類似，雖然第二季付費用戶有所成長，但與第一季相比較為溫和。

Like last year, Q3 may see negative growth in paid subscribers in the quarter, but not enough to change our full year view. We continue to expect growth in platform revenue and paid subscriber count for the full year.

與去年一樣，第三季付費用戶可能會出現負成長，但這不足以改變我們對全年的看法。我們繼續預期全年平台收入和付費用戶數量將會成長。

In 2024, our operating expenses will increase modestly as we increase our marketing spend to reinvigorate excitement in the category. Given first half performance, we expect some incremental improvement in operating margins in 2024 compared to 2023. Remember, we typically sell more machines in the second half of the year and especially in Q4, and this increase in machine sales, naturally precious margins.

2024 年，隨著我們增加行銷支出以重振該類別的熱情，我們的營運費用將小幅增加。鑑於上半年的業績，我們預計 2024 年營業利潤率將較 2023 年有所改善。請記住，我們通常會在下半年尤其是第四季度銷售更多機器，而機器銷售的增加自然帶來寶貴的利潤。

We also benefited in the first half from the unwinding of some reserves, which will not continue in the second half of the year. Hence, the operating profits in the first half of the year will not fully carry to the second half of the year. We expect to be profitable each quarter and generate significant cash flow during 2024. We paid approximately $108 million in cash in July for the dividends after Q2 closed.

上半年我們也受惠於一些準備金的解除，但這種情況在下半年不會持續。因此，上半年的營業利潤將無法全部結轉至下半年。我們預計每季都會獲利，並在 2024 年產生大量現金流。7 月份，我們在第二季結束後支付了約 1.08 億美元的現金股利。

So we remind you that our cash balance and associated interest income should be adjusted accordingly. Our long-term financial model remains unchanged with operating margin targets of 15% to 19%. Our proven model has demonstrated that when we operate at scale, which we define as revenue above $1 billion and drive topline growth, these margins are achievable.

因此我們提醒您，我們的現金餘額和相關利息收入應相應調整。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，當我們大規模營運時（我們將其定義為收入超過 10 億美元並推動營收成長），這些利潤率是可以實現的。

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

這樣，我會將電話轉給接線生詢問問題。

(Operator Instructions) Eric Woodring, Morgan Stanley.

（操作員指示）Eric Woodring，摩根士丹利。

Eric, if you're asking a question, we can't hear you.

艾瑞克，如果你問問題，我們聽不到你的聲音。

Can you hear me now?

現在你能聽到我說話嗎？

Yes.

是的。

Sorry about that. I was just handling multiple calls. I apologize guys. Ashish, you spent a fair amount of time as we go back a few quarters, talking about stabilizing and improving customer engagement. And I know you do have a long-term vision, but the reality is, engagement remains a challenge in the near term.

對此感到抱歉。我剛剛處理多個電話。我向大家道歉。Ashish，當我們回顧幾個季度時，您花了相當多的時間談論穩定和提高客戶參與度。我知道您確實有長期願景，但現實是，參與度在短期內仍然是一個挑戰。

And I guess, it's a question whether investors are willing to be patient to get to that point of stabilization or inflection. So, can you maybe just help us understand why, but then also when, you believe your efforts to drive engagement will begin to materialize? And then I have a follow-up. Thanks so much.

我想，投資人是否願意耐心等待達到穩定或轉折點是一個問題。那麼，您能否幫助我們理解原因，以及您認為推動參與度的努力何時開始實現？然後我有一個後續行動。非常感謝。

Well, thanks, Eric, for the question. So I think as you pointed out, we've talked about this for several quarters now. Engagement continues to be a big priority for us. So let me -- and we've seen some really good improving signals, and we talked about that in a little bit of the earnings call but let me kind of embellish those as well.

嗯，謝謝艾瑞克提出的問題。所以我認為正如您所指出的，我們已經討論這個問題幾個季度了。參與仍然是我們的首要任務。我們已經看到了一些非常好的改善訊號，我們在財報電話會議上對此進行了一些討論，但也讓我對這些訊號進行一些修飾。

So the cohorts that we acquired in 2020 and 2021, and we acquired a large number of users, as they graduate, in the natural graduation curves, that's putting a lot of pressure on engagement, specifically given the fact that we are acquiring lesser users compared to those timeframes.

因此，我們在2020 年和2021 年獲得的群體，當他們畢業時，我們在自然畢業曲線中獲得了大量用戶，這給參與度帶來了很大的壓力，特別是考慮到我們獲得的用戶數量較少。

Now, we've broken this into two buckets. So I'll speak to each of them. The first is just looking at onboarders, because we want to make sure that the people that we are acquiring in 2024 have a better graduation curve over the course of time. So they continue to stay engaged and the curve flattens out.

現在，我們將其分為兩部分。所以我會和他們每個人談談。第一個只是專注於入職人員，因為我們希望確保我們在 2024 年招募的人員隨著時間的推移擁有更好的畢業曲線。因此，他們繼續保持參與，曲線趨於平緩。

Related to that, we've seen some really important and improving metrics that I think, bodes well for the business overall, which is that we are getting those users connected to the platform on Bluetooth, getting to their first test card, and having them make a few projects in the first few days or first couple of weeks.

與此相關的是，我們已經看到了一些非常重要且不斷改進的指標，我認為這對整體業務來說是個好兆頭，即我們正在讓這些用戶透過藍牙連接到平台，獲得他們的第一張測試卡，並讓他們在最初幾天或最初幾週內製作一些項目。

Why that's important is that we know from our data that when users come onto the platform and they engage in the first few weeks, they tend to stay more engaged over time, right? So I think that's a leading indicator that as we get these newer cohorts, if we can improve their engagement, that lends itself well to that business as those accumulate over time.

為什麼這很重要，因為我們從數據中知道，當用戶進入平台並在前幾週參與時，他們往往會隨著時間的推移保持更多參與，對吧？因此，我認為這是一個領先指標，表明當我們獲得這些新群體時，如果我們能夠提高他們的參與度，那麼隨著時間的推移，這將非常適合該業務。

Now, when it comes to the install base, right? The people that are already on our platform, they're very set in their ways. We have a lot of initiatives and in making sure that we are doing a better job inspiring them, getting them back to the platform to make some things, making it easier for them to search things and ultimately manifest those projects.

現在，說到安裝基礎，對吧？已經在我們平台上的人，他們非常固定自己的方式。我們有很多舉措，並確保我們做得更好，激勵他們，讓他們回到平台去做一些事情，讓他們更容易搜尋東西並最終體現這些項目。

I think those are going to take a little bit more time. It's hard to call as to when that inflection point will happen, but I'm really confident in the initiatives that we've identified and the projects that the team is undertaking.

我認為這些將需要更多時間。很難預測這個拐點何時會發生，但我對我們已經確定的舉措和團隊正在進行的專案非常有信心。

But, again, once again, I'll highlight that if you look at the leading indicator, it's making sure if we can do a better job of the new users that we are bringing on board, how do we make sure that they stay engaged, they graduate on a more flatter curve.

但是，我要再次強調，如果你看一下領先指標，它會確保我們是否能夠更好地吸引新用戶，我們如何確保他們保持參與度，他們以更平坦的曲線畢業。

That coupled with acquisition, and as we improve our acquisition efforts, we think we'll help turn the tide. It'd be hard to comment on a specific timeline, but I feel very confident that we are working on the right things.

再加上收購，隨著我們改善收購工作，我們認為我們將有助於扭轉局勢。很難對具體的時間表發表評論，但我非常有信心我們正在做正確的事情。

Okay. No, that detail is really helpful. Maybe the second question for Kimball, I have to commend you guys to consecutive quarters within your operating margin model. We did see what seemed to be maybe a little bit of cost rationalization this quarter and positive makeshift towards platform versus product.

好的。不，這個細節確實很有幫助。也許是金博爾的第二個問題，我必須讚揚你們在營業利潤率模型中連續幾季的表現。我們確實看到本季似乎有一點成本合理化，以及平台與產品的積極權宜之計。

I realize you will ramp costs a bit in the second half, but does this type of leverage in the model imply that when you return to growth, we should expect to see even more operating leverage in the model, and maybe margins move to the higher end of your 15% to 19% range?

我意識到你會在下半年增加成本，但是模型中的這種槓桿是否意味著當你恢復成長時，我們應該期望在模型中看到更多的營運槓桿，也許利潤率會變得更高15%到19% 的範圍結束了嗎？

Or maybe just what's the right way to think about the relationship between growth and operating margins as we look forward, just given some of the performance you have amid the declining revenue base? And that's it for me. Thanks so much.

或者，考慮到您在收入基礎不斷下降的情況下取得的一些業績，也許我們展望未來，思考成長與營業利潤率之間關係的正確方法是什麼？對我來說就是這樣。非常感謝。

Okay. Eric, thanks for the question. First of all, it's important to acknowledge the impact of scale. Today, we're operating below a billion dollars, and so you see us leading into marketing investments to reinvigorate enthusiasm in the category both among consumers and retailers. And you can expect that level of investment to continue as we are successful in getting back to a billion plus in revenue, you'll see that that percent of revenue come take it be a smaller percentage of revenue.

好的。艾瑞克，謝謝你的提問。首先，重要的是要承認規模的影響。如今，我們的營運成本低於 10 億美元，因此您會看到我們進行行銷投資，以重振消費者和零售商對該類別的熱情。當我們成功恢復超過 10 億美元的收入時，您可以預期這種投資水準將繼續下去，您會發現該收入百分比將在收入中佔較小的百分比。

I also kind of want to comment as to the incremental improvement in margins that we talk about in the prepared comments, because we expect to see about a point of goodness, as we move through the year and not everything moves to the second half and let me kind of break that down. We sell more machines in the second half than we do in the first half, and machines have naturally more margin pressure.

我還想對我們在準備好的評論中談到的利潤率的逐步改善發表評論，因為我們期望看到一個好的點，隨著我們度過這一年，並不是所有事情都轉移到下半年，讓我有點分解它。下半年我們賣的機器比上半年多，機器的利潤壓力自然更大。

And especially as we lean into our deeper promotional strategy, particularly in Q4 with the holidays, we expect to see more margin pressure in the second half than we experienced in the first half. There are also some one time and periodic things that occurred in the first half that don't carry on in the second half.

特別是當我們傾向於更深入的促銷策略時，特別是在第四季度的假期中，我們預計下半年的利潤率壓力將比上半年更大。還有一些上半場發生的一次性、週期性的事情在下半場不再發生。

So for example, a year ago we were accruing bad debt reserves and this quarter we were able to unwind some of those reserves. And so, that was about a $7.2 million impact to the quarter on a year-over-year basis.

例如，一年前我們累積了壞帳準備金，本季我們能夠解除其中一些準備金。因此，與去年同期相比，該季度的影響約為 720 萬美元。

Asiya Merchant, Citigroup.

花旗集團 Asiya Merchant。

This is Mike Gaddis for Asiya at Citi. So my one question is on international. Congratulations that it was up 3% after a couple of quarters of decline. I'd like to get a little bit of more color on that, trying to see if it was broad based or maybe country specific. I only ask because, we want to calibrate it going forward and to see if maybe there's any upside to that as your initiatives gain more traction.

我是花旗銀行 Asiya 的 Mike Gaddis。我的一個問題是關於國際的。恭喜它在經歷了幾個季度的下跌之後上漲了 3%。我想對此有更多的了解，試圖看看它是否具有廣泛的基礎，或者可能是針對特定國家的。我問這個問題只是因為，我們希望在未來對其進行校準，並看看隨著您的舉措獲得更多關注，是否有任何好處。

Mike, thanks for the question. And we're really excited that we were able to return to growth in the international business. As we've talked, talked over the last couple quarters, there's markets where we have seen pressure. We continue to see that pressure similar to North America, but we're active in over 50 countries.

麥克，謝謝你的提問。我們非常高興能夠恢復國際業務的成長。正如我們在過去幾個季度所討論的那樣，我們在某些​​市場上看到了壓力。我們仍然面臨著與北美類似的壓力，但我們在 50 多個國家/地區都很活躍。

And so, in the quarter there was enough goodness in some of the newer markets so that it overcame the headwinds that we continue to experience in Western Europe and UK and Australia like we talked about last quarter. But from an overall perspective, international we think continues to be a huge opportunity and a very important vector of growth for us, but like I say, we're pleased this quarter to get back to growth.

因此，本季一些新市場表現良好，克服了我們在西歐、英國和澳洲繼續經歷的不利因素，就像我們上個季度談到的那樣。但從整體角度來看，我們認為國際業務對我們來說仍然是一個巨大的機會和一個非常重要的成長載體，但正如我所說，我們很高興本季恢復成長。

And let me just kind of add to that, one is that the acquisition efforts that we are talking about in the US we've basically, we are using that model across the world and it definitely, it seems to be working. As a CEO, I get to travel in a lot of these markets every quarter. Like in Q1, I was in Europe in some of the larger markets. Earlier this month, I was in Latin America. In early Q4, late Q3, I'll be in Asia.

讓我補充一點，其中之一是我們在美國談論的收購工作基本上，我們正​​在世界各地使用這種模式，而且它似乎確實有效。身為首席執行官，我每季都會去很多這樣的市場出差。與第一季一樣，我在歐洲的一些較大市場。本月早些時候，我在拉丁美洲。第四季初、第三季末，我將前往亞洲。

And what's always fascinating for me as we get to these markets, as I talk to users, as I see our influencers and the passion for the brand, the passion for creativity and for the Cricut brand, and some markets are more mature than others or at least, I don't believe any of our markets are mature, but we've been in some markets for a longer time than others.

當我們進入這些市場時，當我與用戶交談時，當我看到我們的影響者和對品牌的熱情、對創造力和Cricut 品牌的熱情時，總是讓我著迷的是，有些市場比其他市場更成熟，或者至少，我不認為我們的任何市場都已經成熟，但我們在某些​​市場上的時間比其他市場更長。

What's fascinating is, the same level of passion, the same level of the trends on personalization, the trends on wanting to make things for your family or for yourself and capturing those moments, it's so consistent worldwide. So I -- we strongly believe that we are in the very, very early days of the company, and all parts of the world and many of these 50 markets that Kimball talked about represent a really big opportunity for us over time.

令人著迷的是，相同水平的熱情，相同水平的個性化趨勢，相同水平的想要為家人或自己製作東西並捕捉這些時刻的趨勢，這在全球範圍內都是一致的。所以我——我們堅信，我們正處於公司非常非常早期的階段，隨著時間的推移，世界各地以及金博爾談到的這50 個市場中的許多市場對我們來說都是一個非常大的機會。

Adrienne Yih, Barclays.

艾德麗安‧易 (Adrienne Yih)，巴克萊銀行。

Hi, this is Angus Kelleher here on for Adrienne Yih. Thanks for taking our question. How did the Cricut value materials offering do during its first full quarter? I understood it's still very early days, but perhaps you could speak to where you see that going in the future, the amount of material categories that could eventually touch, and the channels you see that in. And then I have a follow-up. Thank you.

大家好，我是安格斯‧凱萊赫 (Angus Kelleher)，為艾德麗安‧易 (Adrienne Yih) 代言。感謝您提出我們的問題。Cricut 價值材料產品在第一個完整季度的表現如何？我知道現在還處於早期階段，但也許你可以談談你認為未來會發生什麼，最終可能接觸到的材料類別的數量，以及你看到的管道。然後我有一個後續行動。謝謝。

Okay. Angus, thanks for the question. As I mentioned in the prior remarks, we designed Cricut value materials specifically to compete well in online marketplaces, where we have to get the right value proposition and price point to make it effective to also be able to ship direct to consumers. And we saw that play out very well, even though, again, very early days, but it's performing as we expected, and we think we're very optimistic as we look forward.

好的。安格斯，謝謝你的提問。正如我在先前的評論中提到的，我們專門設計了Cricut 價值材料，以便在線上市場上保持良好的競爭，我們必須獲得正確的價值主張和價格點，以使其有效，並且能夠直接向消費員工發貨。我們看到效果非常好，儘管還是在很早的時候，但它的表現正如我們預期的那樣，我們認為我們對未來非常樂觀。

And I think, Angus, I'll add to that, which is that, as we talked about, we've kind of launched a set of materials. They're still a small part of our portfolio. We're going to continue to expand categories, price points, value propositions, et cetera. So, we're, again, in the early days of that product line. But the signal so far, as Kimball said, has been very positive, and we're very excited about it.

我想，安格斯，我要補充一點，正如我們所說，我們已經推出了一套材料。它們仍然只是我們產品組合的一小部分。我們將繼續擴大品類、價位、價值主張等等。因此，我們再次處於該產品線的早期階段。但正如金博爾所說，到目前為止的訊號非常積極，我們對此感到非常興奮。

Got you. Thank you. My second question is, how do you feel about inventory levels at the retail partners? Sounds like you spoke to restocking being underway slowly but surely as we approach holiday, how do you see the order books shaping up?

明白你了。謝謝。我的第二個問題是，您對零售合作夥伴的庫存水準有何看法？聽起來您好像說過，隨著假期的臨近，補貨工作正在緩慢但肯定地進行，您如何看待訂單簿的情況？

So if I can contrast the last quarter versus last year, last year we saw destocking more generally across channels. This quarter, we saw partially restocking related to connected machines, and as we've seen the growth in machine revenue. We still saw inventory light on shelves to fully capture the opportunity. So when we had some larger promotions in the first half, we saw missed opportunity because there wasn't enough inventory to fully activate those opportunities.

因此，如果我可以將上個季度與去年進行對比，去年我們會看到跨渠道更普遍的去庫存。本季度，我們看到了與連網機器相關的部分補貨，並且我們看到了機器收入的成長。我們仍然看到貨架上的庫存較少，以充分抓住機會。因此，當我們在上半年進行一些較大的促銷活動時，我們錯失了機會，因為沒有足夠的庫存來充分啟動這些機會。

And I think, let me just kind of talk some of the fundamentals, right? We see an increase and then I'll kind of lead into your question again. With our marketing, and I believe that our marketing is working, we are seeing a positive increase in traffic and seeing those trends improve pretty significantly from Q1 to Q2.

我想，讓我談談一些基本原理，對嗎？我們看到了成長，然後我會再次回答你的問題。透過我們的行銷，我相信我們的行銷正在發揮作用，我們看到流量出現積極增長，並且這些趨勢從第一季到第二季度顯著改善。

We don't generally report on sell through, but we've made some comments in our script, which is that our sell through and our registrations, while they were down in Q1, were largely flat year-on-year in Q2. And that was a very positive and improving sign. And that's despite the fact that many of our retailers didn't have enough inventory on the shelf. So the consumers either switched to online or they just kind of deferred that purchase to a later date.

我們通常不會報告銷售情況，但我們在腳本中做了一些評論，即我們的銷售情況和註冊量雖然在第一季度有所下降，但在第二季度與去年同期基本持平。這是一個非常積極且正在改善的跡象。儘管事實上我們的許多零售商貨架上沒有足夠的庫存。因此，消費者要么轉向線上購買，要么只是將購買推遲到以後的日期。

I think our second half we're going to see, again, we are going to continue to ramp our marketing, we're going to continue to drive traffic, we are going to be deeper in promotions. We have a very solid plan for the end of the year. And we have, as we talked, as Kimball said, we are working with those, we are working with retailers to make sure that they're adequately stocked up.

我認為下半年我們將再次看到，我們將繼續加大行銷力度，我們將繼續增加流量，我們將更深入地進行促銷活動。我們對年底有一個非常紮實的計劃。正如我們所說，正如金博爾所說，我們正在與這些人合作，我們正在與零售商合作，以確保他們有充足的庫存。

Again, like I said, we saw some of that being, some of that missed volume by retailers be leveraged by online channels. But we think that, we definitely missed some sales. And again, our partnerships with retailers are very positive. They're very productive.

正如我所說，我們再次看到零售商錯過的一些銷售被線上管道利用。但我們認為，我們肯定錯過了一些銷售。再說一遍，我們與零售商的合作關係非常積極。他們非常有效率。

We've been showing the data in terms of the enhanced marketing, increased traffic, and we hope that they get as excited and committed to the category, which we think they will. And hopefully, they'll be able to capture some of these missed sales that they saw in the first half.

我們一直在展示加強行銷、增加流量方面的數據，我們希望他們能夠對此感到興奮並致力於該類別，我們認為他們會的。希望他們能夠抓住上半年錯過的一些銷售機會。

(Operator Instructions) Eric Sheridan, Goldman Sachs.

（操作員指示）Eric Sheridan，高盛。

This is Lynn on for Eric. Thanks for taking the question. So if we look at the sales and marketing line, it's been [upper] double digits year over year, but we've continued to see revenue decline. So I was just hoping you could provide us with an update around your marketing plan that you've introduced, and any initial learning so far. And I guess just looking ahead, how should we be thinking about the levels of investments based on the returns and the payback periods that you're currently seeing?

這是林恩（Lynn）為埃里克（Eric）發言。感謝您提出問題。因此，如果我們看看銷售和行銷線，它同比增長了兩位數，但我們仍然看到收入下降。因此，我只是希望您能為我們提供有關您所介紹的營銷計劃的最新信息，以及迄今為止的任何初步了解。我想展望未來，我們應該如何根據您目前看到的回報和投資回收期來考慮投資水準？

So Lynn, as you pointed out, we're spending 20% of revenue in our sales and marketing line. And it's, it's been the last couple of quarters that we've been leaning into marketing spend specifically. I think you can expect us to continue investing at these levels.

Lynn，正如您所指出的，我們將 20% 的收入用於銷售和行銷業務。過去幾季我們一直在專門關注行銷支出。我認為您可以期望我們繼續在這些水平上進行投資。

And as Ashish mentioned, that the leading indicators that we're watching in terms of reach, clicks, views, and especially traffic to cricut.com are showing positive signs. And so, we're continuing to shift the balance as we learn on where we distribute that across different media. But traffic to cricut.com is an important waypoint in the acquisition journey.

正如 Ashish 所提到的，我們在覆蓋範圍、點擊次數、觀看次數，尤其是 cricut.com 流量方面關注的領先指標都顯示出積極的跡象。因此，當我們了解在不同媒體上的分佈時，我們將繼續改變平衡。但 cricut.com 的流量是收購過程中的重要途徑。

Regardless of which channel someone purchases in, they come to our website to research and understand the brand and which connected machine is right for them. And so, while we're starting to see trends of goodness, and Ashish just mentioned the increase in sell out to consumers going from down in Q1 to about flat in Q2, we attribute that to some of our marketing spend and expect us to continue this level of investment.

無論人們透過哪個管道購買，他們都會造訪我們的網站來研究和了解品牌以及哪種連網機器適合他們。因此，雖然我們開始看到良好的趨勢，阿什什剛剛提到消費者的銷售量從第一季的下降到第二季度的持平，但我們將其歸因於我們的一些行銷支出，並希望我們能夠繼續這種投資水準。

As I mentioned earlier, there's an element of scale here that as we're successful growing this business and getting back to a billion dollar plus revenue, you'll see that investment represent a smaller percentage of revenue over time.

正如我之前提到的，這裡有一個規模因素，隨著我們成功發展這項業務並恢復超過10 億美元的收入，隨著時間的推移，您會發現投資在收入中所佔的比例越來越小。

And I think the way we approach it Lynn is that we definitely focus on the medium to long term. We strongly believe our point of view on the market hasn't changed. We believe there's a market opportunity and we are the category leader.

我認為林恩的處理方式是我們絕對關注中長期。我們堅信我們對市場的看法沒有改變。我們相信存在市場機會，而且我們是該類別的領導者。

So our job is to make sure that we're building all parts of the funnel. There's some level of reticence from the consumer, which we honestly don't even like worry about that. Yes. there's some reticence on, them buying discretionary products.

所以我們的工作是確保我們正在建立漏斗的所有部分。消費者有一定程度的沉默寡言，老實說，我們甚至不喜歡擔心這一點。是的。他們對購買可自由支配的產品有所保留。

Our job and what the being category leader is to build all parts of the funnel, drive excitement for the category. And we've seen the improvements in traffic on cricut.com. We're seeing -- I'm actually very proud of our marketing team.

我們的工作以及品類領導者的職責是建構漏斗的所有部分，推動品類的興奮。我們已經看到 cricut.com 上的流量有所改善。我們看到——我實際上為我們的行銷團隊感到非常自豪。

As we have continued to optimize our marketing mix, we understand better where to spend that money, how to spend that money. And we saw a ton of coverage whether it was Valentine's Day or Mother's Day or now going to back to school or holidays, we see success in social media channels and SMTs and television. We are testing a lot of OTT ads.

隨著我們不斷優化行銷組合，我們更了解該把錢花在哪裡、如何花。我們看到了大量的報道，無論是情人節、母親節，還是現在回到學校或假期，我們都看到了社交媒體管道、SMT 和電視的成功。我們正在測試大量 OTT 廣告。

So I genuinely, I think our marketing team is really starting to ramp up. And what we did in the past is what we don't want to do now, which is we kind of put a pause in marketing. And what I think we are going to continue to maintain the level of marketing that we've been doing in the last couple of quarters. And we believe that it will pay off going into Q4, but also as we prepare heading into 2025 and 2026.

所以我真的認為我們的行銷團隊真的開始壯大了。我們過去所做的就是我們現在不想做的，那就是我們在行銷方面暫停了。我認為我們將繼續保持過去幾季的行銷水平。我們相信，這將在第四季度帶來回報，而且在我們為 2025 年和 2026 年做準備時也是如此。

At this time, I'm showing no further questions. I would now like to turn it back to Jim Suva, Senior Vice President and Finance and Treasurer.

目前，我沒有再提出任何問題。現在我想把它轉回給高級副總裁兼財務兼財務主管吉姆·蘇瓦 (Jim Suva)。

Thank you, Elizabeth, 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 Cricut platform continues to not only strengthen, but also provide increased value to our users. We will continue to manage our business for sustainable, profitable growth and generate healthy cash flows.

謝謝伊莉莎白，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。Cricut 平台不僅不斷增強，而且還為我們的用戶提供更高的價值。我們將繼續管理我們的業務，以實現可持續的獲利成長，並產生健康的現金流。

I'm excited about the opportunities ahead of us. We will be presenting with investors at the following events, the Citigroup Global TMT Conference in New York the first week of September and the Goldman Sachs Global Communacopia and Technology Conference in San Francisco, the second week of September. And we hope to see you there.

我對我們面前的機會感到興奮。我們將在以下活動中向投資者展示：9 月第一週在紐約舉行的花旗集團全球 TMT 會議以及 9 月第二週在舊金山舉行的高盛全球通訊與技術會議。我們希望在那裡見到您。

If you have additional questions, please e-mail me at jsuva@cricut.com. This now concludes this earnings call, and you may now disconnect. Thank you.

如果您還有其他問題，請發送電子郵件至 jsuva@cricut.com。本次財報電話會議到此結束，您現在可以斷開連線了。謝謝。