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Item 1. Business

2023-03-13 compared with 2022-03-09 · 194 added, 186 removed, 259 unchanged (59% of the section changed)

At Cricut, our mission is to help people lead creative lives.

We have designed and built a creativity platform that enables our engaged and loyal community of 6.4 million users, as of December 31, 2021, to turn ideas into professional-looking handmade goods.

With our highly versatile connected machines, design apps and accessories and materials, users create everything from personalized birthday cards, mugs and T-shirts to large-scale interior decorations and more.

Our cloud-based software enables us to update the functionality and features of existing physical and digital products, and to release new products that seamlessly integrate with our platform.

Our creativity platform enables our engaged and loyal community of nearly 7.9 million users, as of December 31, 2022, to turn ideas into professional-looking handmade goods.

Using our design software together with our highly versatile ecosystem of connected machines, accessories, and materials, users can create everything from personalized birthday cards and party décor to custom apparel and home goods to large-scale interior decorations and more.

This ecosystem was designed and built for scalability and seamless integration, allowing us to both introduce new products as well as continuously update the functionality and features of existing physical and digital products.

This makes our platform broadly extensible and empowers our users to unlock ever-expanding creative potential.

Cricut often becomes a huge part of our users’ creative lives, serving as the foundation for their journey of creativity.

Our users’ journeys typically begin with the purchase of a connected machine and expand across our family of products as users harness the power of our platform.

Our users have demonstrated continued engagement with their connected machines over time, which results in purchases of subscriptions and accessories and materials long after they first purchase a connected machine.

As of December 31, 2021, 60% of our users created on their connected machines in the last 90 days and 81% created on their connected machines in the last 365 days.

We enable users to be inspired, create and share projects with the Cricut community and to follow others doing the same.

Our users join the Cricut community to share projects and inspire others, both on our platform and across social media.

Our community of users has scaled significantly over time, and our number of users grew by 50% from December 31, 2018 to December 31, 2019, 71% from December 31, 2019 to December 31, 2020, and 48% from December 31, 2020 to December 31, 2021.

Our software integrates our connected machines and design apps, allowing our users to create and share seamlessly.

Our software is cloud-based meaning that users can access and work on their projects anywhere, at any time, across desktop or mobile devices.

Our software aggregates billions of data points of our users’ contributions, giving us valuable insights into our users’ preferences and behaviors.

We use our data science capabilities to continuously improve our software and products, driving further engagement.

The Cricut platform centers around cloud-based software, which means that users can access and work on their projects anywhere, at any time, across desktop and mobile devices.

This software aggregates billions of data points of our users’ contributions, giving us valuable insights into their preferences and behaviors that enable us to continuously improve our products and drive further engagement.

As a result, our business model is characterized by strong user engagement and diversified sales across product categories.

Our portfolio of connected machines cut, write, score and create decorative effects using a wide variety of materials including paper, vinyl, leather and more.

We strive for our users’ journeys to be both inspiring and intuitive, so we take great care to design connected machines that are beautiful and easy to use.

Our connected machines are designed for a wide range of uses and available at a variety of price points:

• Cricut Joy for personalization on-the-go, $179.99 MSRP

• Cricut Explore for cutting, writing and scoring, $249.99 - $299.99 MSRP

• Cricut Maker for cutting, writing, scoring and adding decorative effects to a wider range of materials, $399.99 MSRP

We offer free design apps, in-app purchases and subscription offerings that enable our users to create and complete projects.

On our apps, users can find inspiration, purchase or upload content like fonts and images, design a project from scratch or find a vast array of ready-to-make projects on both mobile and desktop devices.

All users can access a select number of free images, fonts and projects from our design apps or upload their own.

In addition, we offer a wider selection of images, fonts and projects for purchase à la carte, including licensed content from partners with well-known brands and characters, like major motion picture studios.

We also provide two subscription offerings, Cricut Access and Cricut Access Premium.

Cricut Access provides users with a subscription to a curated and growing design library of over 200,000 images, thousands of ready-to-make projects and hundreds of fonts, as well as other member benefits, such as discounts and priority Cricut Member Care.

Cricut Access Premium includes all of the benefits of Cricut Access as well as additional discounts and preferred shipp ing.

As of December 31, 2021, we had over 2.0 million Paid Subscribers to Cricut Access and Cricut Access Premium, representing approximately 32% of our total users.

We also sell a broad range of accessories and materials that help bring designs to life, from advanced tools like heat presses to Cricut-branded scoring tools, pens, paper and iron-on vinyl.

These products are designed to work seamlessly and easily with our connected machines, which is why we see many of our users purchase Cricut-branded accessories and materials.

Creating projects often drives repeat purchases of accessories and materials for years after a user first buys a connected machine, demonstrating ongoing engagement with our platform.

Many of our users share a love of our brand, products and mission, which fosters a loyal community of users who are deeply engaged with Cricut.

Every project is an opportunity to start a conversation, both with us and with each other.

We often see our users inspire, teach and create together.

We extend the inspiring and intuitive nature of our platform to our hardware, with connected machines that are both beautiful and easy to use.

Our portfolio of connected machines cut, write, score, and create decorative effects for a wide range of use cases on an array of materials including paper, vinyl, and leather.

These machines are available at a variety of price points:

• Cricut Joy for personalization, organization, and customization, $179.00 MSRP

• Cricut Explore family for cutting, writing and scoring, $249.00 - $319.00 MSRP

• Cricut Maker family for cutting, writing, scoring and adding decorative effects to a wider range of materials, $399.00 - $429.00 MSRP

Cricut often becomes a huge part of our users’ creative lives, serving as the foundation for their journey of creativity.

These journeys typically begin with the purchase of a machine and expand across our family of products as users harness the power of our platform.

Our users demonstrate continued engagement with our platform over time, which results in purchases of subscriptions, accessories, and materials long after they first purchase a connected machine.

As of December 31, 2022, 51% of our users created on their connected machines in the last 90 days and 74% created in the last 365 days.

In our design apps, users can find inspiration, purchase or upload content like fonts and images, and design a project from scratch or find a vast array of ready-to-make projects on both mobile and desktop devices.

All users can take advantage of a select number of free images, fonts, and projects from our design apps or upload an unlimited number of their own designs.

In addition, we offer a wider selection of images, fonts, and projects for purchase à la carte, including licensed content from our partners, such as well-known characters, designs, and other trademarks from a variety of brands.

We also provide a standard and premium version of our subscription service, Cricut Access.

Cricut Access is a subscription for special design features and capabilities as well as a growing library of more than 300,000 images, thousands of ready-to-make projects, and hundreds of fonts.

Cricut Access also includes other member benefits, such as discounts and priority support.

Cricut Access Premium includes all of the benefits of the standard version of Cricut Access, as well as additional discounts and preferred shipp ing services.

As of December 31, 2022, we had 2.6 million paid subscribers, representing approximately 33% of our total users.

The broad range of accessories and materials in the Cricut ecosystem also help bring designs to life, from companion products like heat presses to handheld tools, paper, and vinyl.

These products work seamlessly and easily with our connected machines, which helps build brand loyalty among our userbase.

Creating projects often drives repeat purchases of accessories and materials for years after a user first buys a connected machine, demonstrating a growing customer lifetime value through ongoing engagement with our platform.

Many of our users share a love of our brand, products, and mission, which fosters a loyal community of users who are deeply engaged with Cricut and each other.

Every project is an opportunity to start a conversation and we often see our users inspire, teach, and create together.

Users are passionate about sharing Cricut tips, tricks, and personal stories and this engagement carries over into social media and into everyday life.

There are over five million Cricut followers and hundreds of independently-run Cricut groups across social media.

There are more than six million Cricut followers and hundreds of independently run Cricut groups across social media.

Users often self-organize, host independent events, and meet up in person across the globe.

Our community creates a reinforcing network effect.

As the number of our users grow, so does the number of projects made and shared physically or digitally.

Our internal consumer research shows us that our members crave community over competition.

Through our platform and online footprint, we help users create and inspire others in the Cricut community through shared ideas and projects.

Cricut software also puts community ideas and inspiration front and center and encourages interaction with one another through a number of sharing and social features.

As the number of our users grow, so does the number of projects made and shared physically or digitally through the reinforcing network effect.

This generates even more shared projects and word-of-mouth that in turn helps to grow our community.

This community network effect has allowed us to efficiently acquire new users and drive sales of connected machines, subscriptions and accessories and materials.

To date, our success has been driven by word-of-mouth referrals as well as effective use of low-cost marketing channels like social media, which we then complement with our targeted sales and marketing efforts.

We generate revenue from the sale of our connected machines, subscriptions and accessories and materials.

We sell our products through brick-and-mortar and online retail partners, including Hobby Lobby, HSN, Jo-Ann, Michaels, Target and Walmart, as well as through online channels such as Amazon and cricut.com.

We are a fast-growing, scaled and profitable business.

This design of our product ecosystem and marketing helped scale our community of users significantly over time.

The revenue generated from the sales of our connected machines, subscriptions, accessories, and materials comes from a robust mix of brick-and-mortar and online retail, including direct-to-consumer on cricut.com, and partners like Amazon, Michaels, Jo-Ann, Target, and Walmart.

We are a profitable business.

For the years ended December 31, 2020, 2021 and 2022, we generated:

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Cricut enables the shift in production of physical goods from factory floors to kitchen tables and provides manufacturing solutions for small scale businesses.

31% of our users make projects to sell.

Women, who represent 94% of our users as of December 2021 and are at the forefront of this trend, created businesses more than twice as fast as national average.

Approximately 25% of our users make projects to sell.

• Social Media is Enabling a New Wave of Creativity.

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We help our users turn virtual inspiration into beautiful, physical things.

We have over five million followers across social media, and our users have shared thousands of projects on our platform.

We have over six million followers across social media, and our users have shared thousands of projects on our platform.

Our Opportunity

We believe that everyone is innately creative and thus anyone can be a part of the Cricut community of users.

We believe that anyone can be creative, and thus anyone can be a part of the Cricut community of users.

This presents us with a large untapped market opportunity in addition to our current user base.

We quantify our market opportunity in terms of SAM, which includes active creatives who we address with our current products and price points, and TAM, which includes potential creatives who we believe we can reach over the long term as we make products for new uses and products that are more accessible, even easier to use and available at a broad set of price points.

We quantify our market opportunity in terms of SAM, which includes active Makers who we address with our current products and price points, and TAM, which includes potential creatives who we believe we can reach over the long term with products that address new use cases, greater accessibility, and a broader set of price points.

We commissioned a study from YouGov America in September 2020 across multiple countries.

The sample size of those surveyed in each country included over 1,000 individuals ages 18 and older.

To calculate our SAM and TAM, we extrapolate these survey results across the general population ages 18 and older in each country.

The sample size of those surveyed in each region included over 1,000 individuals ages 18 and older.

To calculate our SAM and TAM, we extrapolate these survey results across the general population ages 18 and older in each region.

Our SAM consists of the portion of individuals surveyed who said they have made at least one creative project in categories addressed by our current products in the last 12 months, whom we call “active creatives.” Our TAM includes the individuals in our SAM as well as the portion of individuals surveyed who said they like, buy, used to make or are interested in creating personalized, handmade or custom items, whom we call “potential creatives” but who have not made at least one creative project in categories addressed by our current products in the last 12 months.

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Accordingly, we estimate our total SAM is over 129 million individuals.

As of December 31, 2021, we had 6.4 million users, implying approximately 5% penetration of our SAM in all markets.

As of December 31, 2022, we had nearly 7.9 million users, implying approximately 6% penetration of our SAM in all markets.

We estimate that there are over 163 million potential creatives in the United States and Canada and over 109 million potential creatives in our primary international target markets.

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We believe our products could achieve broader adoption in a number of countries beyond our primary international target markets that also have large populations engaging in creative activities and represent a similar product-market fit.

Because our products make creativity accessible, we believe our opportunity is much larger than the estimates of the size of the traditional craft market.

We put production power into the hands of our users by allowing them to create their own professional-looking homemade goods instead of purchasing manufactured goods from a third party opening up a broad array of markets for our users that go beyond the traditional craft market.

For example, the goods that users can produce or customize using our platform fall into multiple large market categories, some of which may overlap, including cards and calendar, stationery, seasonal decor, wedding-related services, organization and custom gifts.

Because our products make creativity accessible to everyone, we believe our opportunity is much larger than the size estimates of the traditional craft market.

We put production power into the hands of our users by allowing them to create their own professional-looking homemade goods instead of purchasing manufactured goods from a third-party.

This opens up a broad array of markets for our users that go beyond the traditional craft market.

The goods that users produce or customize using our platform fall into multiple large market categories, some of which may overlap, including, but not limited to, cards, stationery, seasonal decor, wedding-related services, organization, and custom gifts.

The Cricut User Journey

Creative individuals come to Cricut and quickly become engaged users who can express themselves both individually and as part of a large and passionate community.

As of December 2021, 94% of our users were women.

Creative individuals come to Cricut and become engaged users who can express themselves both individually and as part of a large and passionate community.

As of December 31, 2022, 93% of our users identify as women.

Many users also earn income through products they create on Cricut.

According to a survey that we conducted in December 2021:

• 83% of new users want to make a broad range of products

• 31% make projects to sell

• 79% say crafting helps them with their mental well-being

• 85% say crafting inspires feelings of accomplishment

According to in-house research conducted in 2022:

• 54% of new users bought their Cricut machine specifically to make a broad range of projects

• 25% of users make projects to sell

• 83% of users say crafting with Cricut inspires feelings of accomplishment

• 86% of users made projects for other people rather than themselves

• 56% of users bought their machine to make personalized gifts

A user’s journey evolves after their first purchase.

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For example, a user may buy a connected machine and begin by making cards but later branch out to T-shirts, wall decals, and more.

As we launch new software and products, and as our community continues to grow and share on our platform and on social media, we have the opportunity to continually refresh this relationship and expand the versatility of our platform.

Our large and loyal community of users engage with Cricut and each other across our design apps and on social media.

Users can share projects they created, and other users can be inspired and access and create that same project.

These teaching and inspiration moments enhance our monetization opportunities, as projects often lead users to purchase images, fonts, accessories and materials.

There are over five million Cricut followers and many independently-run Cricut groups across social media.

Our software integrates our connected machines and design apps, allowing our users to create and share seamlessly.

Our software is cloud-based meaning that users can access and work on their projects anywhere, at any time, across desktops or mobile devices.

We enable our users to be inspired, create and share projects with the Cricut community, and follow others doing the same.

Each user’s credentials, profile, machine registration data, pressure settings for various materials and tools, uploaded images, designs, projects, community networks and more are stored in the cloud.

launch new software and products, and as our community continues to grow and share on our platform and elsewhere online, can continually refresh this relationship and expand the versatility of our platform.

Our large and loyal community of users engage with Cricut and each other both in Design Space, our design software, and through social media.

Users often share projects they created, inspiring other users to create.

Design Space provides users with the ability to share direct links to projects and designs, so that others may view and create their own items from the same design.

Users take advantage of these capabilities to show off their creations through social media platforms, video platforms, and their own websites and shops.

Many users have even taken passion for Cricut to the next level, creating their own tutorials, inspirational posts, and other influential content to share with others.

This adds a larger, broader audience to Cricut’s own social audience of more than six million followers.

The social conversation that this audience generates includes millions of posts tagging Cricut and related hashtags, billions of video views, and many third-party, independently-run Cricut-related groups across social platforms.

These teaching and inspiration moments enhance our monetization opportunities, as they lead to the creation of projects, which often lead users to purchase images, fonts, accessories, and materials.

Our cloud-based software integrates our connected machines and design apps, allowing our users to create and share seamlessly from anywhere, at any time, across desktops or mobile devices.

Our software aggregates billions of data points of our users’ contributions, giving us valuable insights into our users’ preferences and behaviors.

We use our data science capabilities to continuously improve our software and products, driving further engagement.

For example, as we monitor how users engage with a certain feature, we can continue to improve it or choose to sunset it if it is no longer useful.

We have the ability to release new connected machines with new uses that can seamlessly integrate with our software, allowing us to grow with existing users.

Data such as user credentials, profile information, machine registration data, and pressure settings for various materials and tools are stored in the cloud.

As users create with or upload images, designs, projects, community networks, and more, this information continuously syncs across their devices and within our data warehouse.

We use our data science capabilities to continuously improve our software and products, with the intent to further drive engagement.

Having direct access to this data allows us to monitor how users engage with product features, giving us the insights we need to efficiently improve and expand if needed or sunset products when no longer useful.

The integrated structure of our hardware and software products allows us to continue releasing new connected products with uses that seamlessly integrate with our existing ecosystem, allowing us to grow the lifetime value of our consumer base.

Connected Machines

Our connected machines currently include Cricut Joy, Cricut Explore and Cricut Maker.

Our portfolio of connected machines cut, write, score and create decorative effects using a wide variety of materials including paper, vinyl, leather and more.

Our connected machines are designed for various uses ranging from quick, everyday projects like handmade cards or signs to professional-level DIY projects like home décor and quilts.

Each of our connected machines provides users with different capabilities.

For example, Cricut Joy can work with over 50 different materials – from the most popular craft materials like cardstock, vinyl and iron-on to specialty materials like glittery paper and polished foils.

Cricut Maker incorporates even more material capabilities from the most delicate paper and fabric to harder materials such as matboard, leather and basswood.

Our connected machines also incorporate different tools, attachments, accessories and capabilities.

For example, Cricut Explore Air pioneered a calligraphy pen, while Cricut Maker cuts fabric and can also engrave metal.

Machine connectivity is enabled through Bluetooth and USB.

All Cricut connected machines come with Design Space, a free, easy-to-learn and easy-to-use, cloud-based design software available on Android, iOS, Mac and PC devices.

Our connected machine portfolio currently includes Cricut Joy, the Cricut Explore family, and the Cricut Maker family.

These machines cut, write, score, and create decorative effects using a wide variety of tools and materials including paper, vinyl, leather, and more.

They are designed for uses ranging from quick, everyday projects like labels, decals, and greeting cards to professional-level DIY projects like personalized apparel, signage, and home décor.

Our connected machines also use different combinations of tools, attachments, and accessories for deeper capabilities.

For example, Cricut Joy can work with over 50 different materials – from the most popular craft materials like cardstock, vinyl and iron-on to specialty materials like polished foils.

The Cricut Explore family pioneered calligraphy pens and sticker making, while the Cricut Maker family cuts softwood and engraves metal.

Bluetooth and USB options enable connectivity to Cricut Design Space, our proprietary cloud-based design software available for free on Android, iOS, Mac OS, and PC devices.

Design Apps and Subscriptions

Users can leverage the full power of our platform by using our connected machines together with our free design apps for our connected machines, including our Design Space app that works with all connected machines and our Cricut Joy-specific app.

Users download our apps, create a profile and design and share their Cricut projects from both desktop and mobile devices.

All users can access a select number of free images, fonts and projects from our design apps or upload their own.

In addition, we offer a wider selection of images, fonts and projects for purchase à la carte, including licensed content from partners like major motion picture studios.

Ready-to-make projects, from cards to holiday décor, each come with instructions and recommendations for the ideal materials to use.

Users can share their designs on our apps to teach and inspire others.

If one user shares a project that uses images from the Cricut library, another user can download and create that same project – as long as they are subscribed to Cricut Access or Cricut Access Premium or have purchased those images.

Cricut Access and Cricut Access Premium are our subscription offerings that include a large selection of images, fonts and projects as well as other member benefits, such as discounts, priority Cricut Member Care and, in the case of Cricut Access Premium, preferred shipping.

Paid Subscribers are granted access to a curated and growing design library of over 200,000 images, thousands of ready-to-make projects and hundreds of fonts.

Cricut Access is billed monthly for $9.99 per month or annually for $95.88 per year.

Cricut Access Premium, which includes all of the benefits of Cricut Access and additional discounts and preferred shipping, is billed annually for $119.88 per year.

As of December 31, 2021, we had over 2.0 million Cricut Access and Cricut Access Premium subscribers, representing approximately 32% of our total users.

Cricut Accessories and Materials

We sell a broad range of accessories and materials that help bring designs to life, such as Cricut EasyPress, Cricut Mug Press, various hand tools, machine replacement tools and blades and project materials.

These products are designed to work seamlessly with our connected machines.

This interconnectedness is important to our users, who choose to buy Cricut-branded accessories and materials because they find them easy to use and trust our brand.

Some products, like our mats and blades, attach to a connected machine.

Mats hold materials in place as they are cut by the connected machine.

Our mats are sold in different grip strengths that are appropriate for the material being used.

For example, a light-grip mat is perfect for paper, while a strong-grip mat is optimal for materials that need stronger adhesive to secure in place, such as matboard and leather.

Blades are inserted into Cricut connected machines.

For example, a Premium Fine Point Blade works well with cardstock, a Rotary Blade is perfect for fabric and a Knife Blade is optimal for leather and wood products.

We have also created a portfolio of both complex and basic accessories.

For instance, Cricut EasyPress is a portable heat press with a variety of heat transfer uses for oddly-shaped, non-uniform surfaces.

Cricut BrightPad illuminates fine lines to ensure precision for removing the unneeded pieces of a cut image.

We also sell a wide range of project materials including vinyl, iron-on vinyl, deluxe paper, Infusible Ink (sublimation), machine tools and accessories and more.

In 2021, we introduced our line of Smart Materials, including Smart Vinyl, Smart Iron-on, and Smart Paper Sticker Cardstock, all designed to feed directly into our Cricut Maker 3 and Explore 3 connected machines, allowing users to cut even faster without the need to use a cutting mat.

We offer over 3,000 total SKUs within our Cricut accessories and materials, ranging in price from a $0.99 digital image to the $239.99 EasyPress.

Users leverage our connected machines and design apps to bring their ideas to life.

After downloading our app and creating a profile, users access a select number of free images, fonts, and ready-to-make projects, or can upload their own designs to begin making.

Ready-to-make projects, ranging in complexity from cards to home décor, each come with instructions and recommendations for the ideal materials to use.

Users can save projects to their profile and share their designs with others — directly on our platform and through unique web links and social platforms.

A regularly updated home feed showcases recent and trending projects from the platform.

We also offer a wider selection of images, fonts, and projects for purchase à la carte, including licensed content from partners like major motion picture studios and global brands.

Much of the à la carte content (with exceptions for some partner content) is also included in Cricut Access, our subscription offering.

Available as a monthly or annual subscription, Cricut Access subscribers enjoy a greater and ever-growing selection of more than 300,000 images, hundreds of fonts, and thousands of ready-to-make projects in our design library, as well as other members-only special features, like Monogram Maker.

Subscribers also receive discounts to cricut.com and priority support.

Cricut Access is $9.99 billed monthly or $95.88 billed annually.

Cricut Access Premium, which includes all of the benefits of Cricut Access, includes additional discounts and

preferred shipping for an annual cost of $119.88.

As of December 31, 2022, we had 2.6 million Cricut Access subscribers, representing approximately 33% of our total users.

Cricut Extensions, Accessories, and Materials

We sell a broad range of extensions, accessories, and materials designed to work seamlessly with our connected machines.

The Cricut heat press line, including the Cricut EasyPress family, Cricut Mug Press, Cricut Hat Press, and Cricut Autopress, offers carefully calibrated companions for heat-transfer vinyl projects such as personalized apparel or sublimated goods.

This line of heat presses replaces traditional irons and heat transfer tools with products that deliver consistent, even, and precise control.

Our line of lighting products, which includes Cricut Bright in table and floor lamp options, and the popular Cricut BrightPad and BrightPad Go, illuminate surfaces and surroundings for easier crafting and creating.

Cricut materials give users peace of mind with a brand they trust for durability, selection, and compliance.

We sell a wide range of project materials including vinyl, iron-on vinyl, deluxe paper, and Infusible Ink (cuttable sublimation).

Machine and hand tools also support multiple forms of creativity, from fine point blades for vinyl and cardstock, to rotary blades for fabric, to knife blades for leather and softwood.

Handheld tools from scissors, to weeding tools, to glue, complete the Cricut ecosystem for a full-brand offering made for the discerning consumer.

We offer over 3,000 total SKUs within our Cricut extensions, accessories, and materials, ranging in price from a $0.99 a la carte image in Design Space to the $999.00 Cricut Autopress.

How We Go to Market

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We also use digital and social media marketing to attract users.

We sell our connected machines and accessories and materials through our brick-and-mortar and online retail partners, as well as through our website at cricut.com.

We sell our connected machines, accessories, and materials through our brick-and-mortar and online retail partners, as well as through our website at cricut.com.

Our partners include Amazon, Hobby Lobby, HSN, Jo-Ann, Michaels, Target, Walmart and many others.

We also sell our products, including subscriptions to Cricut Access and Cricut Access Premium, on cricut.com.

We also sell our products, including subscriptions to Cricut Access, on cricut.com.

In 2022, 41% of our revenue was generated through brick-and-mortar sales and 59% was generated through online channels.

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Our Vertically Integrated Platform Encourages Continual Engagement.

Our platform accompanies a user from an idea to a finished project, with Cricut providing the connected machines, design apps and accessories and materials to make this a seamless journey.

All of the content our users purchase and the projects they spend hours designing are stored in the cloud.

This allows our users to access their designs from their Android, iOS, Mac and PC devices seamlessly.

This content can only be accessed through Cricut’s design apps and is optimized to a proprietary Cricut format for a great experience.

Our platform accompanies a user from an idea to a finished project, with Cricut providing the connected machines, design apps, digital content, accessories, and materials to make this a seamless journey.

Users’ engagement with our platform typically begins with a project idea.

In our design apps, users can browse and search among a wide range of images, fonts, and projects published by Cricut, by artists enrolled in our Contributing Artists Program, or made and shared by other users on our platform.

Users can use that digital content to immediately design a project, or can like, bookmark, or organize it in collections for later use.

During the design and make process, Cricut provides easy-to-use software tools, upload capabilities for external content, and project-specific guidance along the way.

This supports users in making a successful finished project.

Finally, users can share their finished projects with the platform community, inspiring others and starting the process over again.

As of December 31, 2022, 51% of our users created on their connected machines in the last 90 days.

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Our mission is rooted in our passion for design, and this passion comes to life in the beautiful products we build and experiences we create.

We take great pride in marrying design and functionality for each SKU – from our connected machines to design apps to content to accessories and materials.

We take great pride in marrying design and functionality for each SKU – from our connected machines and design apps to content to accessories and materials.

Every touchpoint is an opportunity to engage the customer and exceed expectations.

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Our elegant products are backed by deep user experience, software, technology, and engineering expertise.

We Designed our Platform to be Able to Constantly Evolve so We Can Find New Ways to Delight Users.

We constantly innovate and offer new products and functionality to provide users with new capabilities for their existing connected machines.

For example, in 2021, we launched the Cricut Mug Press, which gives users the ability to design and create custom mugs.

New products are integrated seamlessly into existing connected machines with updates to our software, infrastructure and content.

We also launched our Cricut Maker 3 and Cricut Explore 3, which have more processing power, more memory, and more powerful motors than the previous connected machine models.

We aim to give our users the freedom to create without limitations while improving their experience along the way.

We Designed our Platform to Constantly Evolve so We Can Find New Ways to Delight Users.

We constantly innovate and offer new products and functionality to provide users with new capabilities for their existing connected machines.New products are integrated seamlessly into existing connected machines with updates to our software, infrastructure, and content.

We continuously improve our software to address the unique needs our users have when crafting.

For example, in 2022, we launched Monogram Maker, which is integrated into our Design

Space platform and provides an easy-to-use tool for creating well-designed monograms.

We also developed a more empowering font picker and we extended our platform to support Editable Images, which give our users the ability to easily personalize content from our image library.

In addition, we enabled the infrastructure to support content contributions from new and diverse artists as part of our Contributing Artists Program.

We Have a Strong and Loyal Community of Users.

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Each project becomes an opportunity to create a conversation – our users share, inspire and teach each other.

Our community of 6.4 million users as of December 31, 2021, creates a reinforcing network effect.

Our community of nearly 7.9 million users as of December 31, 2022, creates a reinforcing network effect.

As the number of our users grow, so does the number of projects made and shared physically or digitally.

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Our products make people feel accomplished and confident – powerful emotions that help create a relationship and love between our brand and our users.

Crafting allows people to save money by creating their own gifts or to earn income selling handmade goods.

Crafting allows people to create their own gifts or to earn income selling handmade goods.

Given the positive emotions connected with crafting, our users create to celebrate and as a respite during difficult times.

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We believe there is a significant opportunity for Cricut to grow internationally.

We began our international expansion by launching in Australia, Canada, France, Germany and the United Kingdom, and subsequently launched in all Latin America, Western Europe, and most of South East Asia.

We have also localized our design apps in several languages such as French, German, Portuguese and Spanish.

We began our international expansion by launching in Australia, Canada, France, Germany and the United Kingdom, and subsequently launched in Latin America, Western Europe, and more recently most of Asia (including India, Japan, and South Korea).

We have also localized our design apps in each of the most commonly spoken languages in the countries we have entered.

We offer country-specific content and continue to add local content for markets where we are in various stages of launch.

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Reach More Users.

As of December 31, 2021, we had 6.4 million users, representing approximately 5% of the 129 million addressable active creatives in our SAM.

As of December 31, 2022, we had nearly 7.9 million users, representing approximately 6% of the 129 million addressable active creatives in our SAM.

We have a significant opportunity to bring more users to our platform by enhancing our brand and product awareness in both the United States and Canada and in the other geographies where we currently sell our products.

We intend to pursue this opportunity in part through digital and social media marketing, retail partners and word-of-mouth referrals.

We intend to pursue this opportunity in part through digital advertising, social media and influencer marketing, retail partners, public relations, and word-of-mouth referrals.

Increase Monetization from Current Users.

We keep our users engaged by applying what we learn on our platform to launch new software and products.

We believe that by finding new ways to inspire our users with their existing connected machines, we can sell more content and accessories and materials.

We believe that by finding new ways to inspire our users to make with their existing connected machines, we can sell more content and accessories and materials.

By enhancing our subscription offerings, we also believe we can grow our subscription base over time.

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We plan to continue to broaden our demographic appeal by making our products even easier to use and educating users on our products and their capabilities.

We believe that reducing the barriers to entry for active creatives and potential creatives can help us both further penetrate our SAM and continue to expand and penetrate a portion of our TAM.

We believe that reducing the barriers to entry for both active and potential creatives can help us both further penetrate our SAM and continue to expand and penetrate a portion of our TAM.

Launch New Products in New Categories.

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Our deeply engaged base of users gives us unique insights into what new products are going to be most successful.

Our strategy for keeping current users engaged is focused on launching new products and services that attach seamlessly to our existing platform, whether accessories and materials or connected machines.

Our strategy for keeping current users engaged is focused on launching new products and services that attach seamlessly to our existing platform.

We plan on expanding our offerings to serve a larger portion of our SAM, including new connected machine offerings with new uses to capture additional customer segments.

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Our hardware innovation harnesses the power of technologies typically found only in professional robotics, computer numerical control machinery, and other automated commercial devices.

One example of our cutting-edge innovation is our Cricut Joy, a connected machine that is both powerful and portable.

One example of our cutting-edge innovation is Cricut Joy, a connected machine that is both powerful and portable.

Our software integrates our connected machines with the rest of our platform and enables a seamless creative experience for our users.

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Servo motors in our connected machines operate with feedback control to ensure ultra-precise cutting and drawing paths are generated each time a user clicks “Make It.” The uniform heat plate technology in our EasyPress family of products allows our users to more evenly adhere iron-on vinyl and films onto T-shirts, totes or tags.

The ability to control the amount of machine pressure used by Cricut Maker was an industry first in such a compact form factor and allows our users to not only cut thicker materials like matboard, leather and basswood but also to deboss heavy chipboard or even engrave metal.

While assorted machine tools are required to create these decorative effects, our connected machines also have the capability to automatically detect whether the proper tool is installed in order to safeguard proper operation and help our users achieve their desired effect.

The ability to control the amount of machine pressure used by Cricut Maker was an industry first in such a compact form factor, and it allows our users to not only cut thicker materials like matboard, leather and basswood but also to deboss heavy chipboard or engrave metal.

While assorted machine tools are required to create these decorative effects, our connected machines also have the capability to automatically detect whether the proper tool is installed to safeguard proper operation and help our users achieve their desired effect.

• Cloud-Based Architecture Which Allows for Simplicity, Scalability and Security.

Our distributed and scalable technology architecture allows our users to access inspiration and create anytime they want from almost any computing device, maximizing utilization of our platform.

Our users can get inspired on the go using Design Space on their phone, continue designing on their tablet, and then finish creating using their desktop;

or stay on one device during their all-night crafting session.

Design Space maintains an expanding list of materials and a corresponding database.

Our distributed and scalable technology architecture allows our users to access inspiration and create anytime they want from almost any computing device, maximizing use of our platform.

Our users can get inspired on the go using Design Space on their phone, continue designing on their tablet, and then finish creating using their desktop — or stay on one device during their crafting session.

Design Space maintains an expanding database of materials.

As every creative project is unique, this database aids our users in understanding which materials are compatible with or optimized for their connected machine.

Our materials database also houses, maintains and controls the precise pressure, speed and machine tools needed to ensure a unified experience when a connected machine communicates with our cloud-based, highly-scalable, microservice-designed APIs.

Our materials database also houses controls for the precise pressure, speed, and machine tools needed for projects.

This ensures a unified experience when a connected machine communicates with our cloud-based, highly scalable, microservice-designed APIs.

Our software and apps are built and continually maintained using the industry’s latest technology like Swift for iOS, Kotlin for Android, and Electron Framework for Mac and Windows.

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This allows our connected machines to cut and draw on materials through machine mat and carriage plot movements, while our servo motors apply a precise amount of cut force tailored to each material so there is no need for users to manually adjust blade depth, cut force, or speed.

Later on, with the release of Cricut Maker, we further innovated by introducing our Adaptive Tool System, which deepens and enhances our connected machine movements by adding additional control from the drive housing itself.

Later, with the release of Cricut Maker, we further innovated by introducing our Adaptive Tool System, which deepens and enhances our connected machine movements by adding additional control from the drive housing itself.

Through the interlocking of gears with the machine carriage, our Adaptive Tool System (currently available only on Cricut Maker) can additionally lift and turn the blade during operation.

This third juncture point allows Cricut Maker to intelligently control the direction of the blade and cut pressure to match the material, enabling experiences like machine cutting fabric with a rotary blade or using our knife blade to machine cut

thicker materials like matboard and basswood.

In addition to this multi-dimensional movement, our Adaptive Tool System also allows our users to install one machine tool housing that can be easily changed to have varying tips, something we aptly call QuickSwap.

While Cricut Maker was released with only four tools initially, together with our Adaptive Tool System and QuickSwap housings, we have since empowered Cricut Maker users with the use of over 10 tools.

Our connected machines are durable, built to last and designed with this level of extensibility to quickly enable new uses as they are designed and brought to market.

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While our connected machines work with a wide variety of accessories and materials regardless of brand, using Cricut-branded products brings added benefits.

For example, with the introduction of our Smart Materials line (including Smart Vinyl, Smart Iron-On and Smart Label), our users can load these materials into their connected machines without the need for a separate cutting mat.

For example, with the introduction of our Smart Materials line (including Smart Vinyl, Smart Iron-On, Smart Paper, and Smart Label), our users can load these materials into their connected machines without the need for a separate cutting mat, allowing users to create more efficiently and design larger projects.

Our sourcing, quality assurance and materials teams go to great lengths to ensure all Cricut-branded accessories and materials (including Smart Materials, as well as cardstock, vinyl, transfer tape, leather, hand tools and others) are calibrated and purpose-built to work hand-in-hand with Cricut connected machines, as well as interplay well with other Cricut products.

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Whether through the creation, acquisition or licensing of varied creative assets, our content teams then use a proprietary process to convert these images and projects into content specifically optimized to integrate with our connected machines and Cricut-branded accessories and materials seamlessly.

The output of this content lifecycle results in authentic, on-trend and high-quality images and projects we offer our users for à la carte purchase or as a part of our Cricut Access and Cricut Access Premium subscriptions.

The output of this content lifecycle results in authentic, on-trend and high-quality images and projects we offer our users for à la carte purchase or as a part of our Cricut Access subscriptions.

As we diversify our content categories and further expand internationally, we will continue to develop localized and meaningful content shaped to meet the language, needs and preferences of our growing global user base.

As our user base expands, demand for content is higher than ever.

To scale our Design Space library and better support Cricut Access, we recently launched our Contributing Artist Program (CAP), which gives artists the opportunity to upload their artwork, and once approved by Cricut, it is ready to use in Design Space.

To scale our Design Space library and better support Cricut Access, we launched our Contributing Artist Program (CAP), which gives artists the opportunity to upload their artwork, and once approved by Cricut, it is ready to use in Design Space.

Artists get compensated when members use their artwork.

We also updated and expanded the library with editable images and Monogram Maker, which empower users to personalize their projects more easily.

• Unified Integration Between Hardware, Software and Content.

Our design, engineering, product, and content teams work hand-in-hand to bring our products to life, from conception and validation to implementation.

We work hard to build strong synergies across teams in order to successfully launch products that address new creative categories.

One such example was evident in the successful launch of Cricut Joy together with its companion Cricut Joy Insert Cards.

We work hard to build strong synergies across teams to successfully launch products that address new creative categories.

One such example was evident in the successful launch of Cricut Insert Cards.

Collaborating with our hardware engineering and machine teams, our materials team launched a colorful array of newly designed pre-scored and pre-cut cardstock greeting cards, complete with decorative inserts and envelopes.

Utilizing a patent-pending card mat to hold these cards in place during operation, Cricut Joy can cut and draw professional-looking handmade cards for any occasion while easily pulling from hundreds of ready-to-make greeting card projects in Design Space.

Utilizing a patent-pending card mat to hold these cards in place during operation, Cricut machines can cut and draw professional-looking handmade cards for any occasion while easily pulling from hundreds of ready-to-make greeting card projects in Design Space.

This type of unified integration by and between our hardware, software, content and accessories and materials provides an outcome to our users with a value much greater than the sum of its individual parts.

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We start with a foundation of trust and encourage constructive conflict.

The team lives by mantras such as “spend every dollar like it’s your own”, “no brilliant jerks”, “put the stinky fish on the table”, and “don’t assume the happy path”, among several others.

We have built a team of talented professionals who are anxious to work in an environment where how we work matters as much as the work itself.

The team lives by mantras such as “spend every dollar like it’s your own,” “choose trust, respect, and candor,” “put the stinky fish on the table,” and “act like an owner,” among several others.

We have built a team of talented professionals who are eager to work in an environment where how we work matters as much as the work itself.

Our Employees.

Our culture is important to us and is what we strive to maintain as we have navigated the COVID-19 pandemic while doubling in size and expanding our employee footprint.

Our culture is important to us and is what we strive to maintain in good times and bad.

As of December 31, 2022, we had over 775 employees of which 158 lived outside of the United States.

Before the pandemic, we had employees in 11 states and six countries.

Before the pandemic, we had employees in 11 states and 8 countries.

As of December 31, 2022, we had employees in 36 states and 22 countries.

We believe the diversity of background and thought that this growth has infused into our company is a great strength and will continue to be as we continue to grow and expand around the world.

We believe the diversity of background and thought that this growth has infused into our

company is a great strength and will continue to be as we continue to grow and expand around the world.

We consider our relations with employees to be good.

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Furthermore, our employee assistance program offers confidential guidance and resources to employees and their household family members, including unlimited counseling sessions, access for financial and legal advice, and services to assist with childcare, elder care, pet care, and vacation planning.

Additionally, Cricut provides opportunities for employees to privately support it’s members and select community organizations that are aligned to our mission to help people lead creative lives.

Additionally, Cricut provides opportunities for employees to privately support its members and select community organizations that are aligned to our mission to help people lead creative lives.

While support is primarily provided in the form of product donations, it also includes employees’ time in providing crafted projects.

Employee Safety.

We prioritize the health and wellness of our employees and our members.

During the pandemic, we have taken caution by moving our primarily in-office workforce to work from home and abide by local safety guidelines.

We created policies and practices to ensure the safety of employees within the office, including increasing cleaning procedures, implementing mask mandates, social distancing, and additional safety measures as appropriate.

We compete in a number of market segments with our business, separately and together.

The health and wellness of our employees and members remains a priority.

We continue to monitor and abide by local safety guidelines applicable to each Cricut facility.

The majority of Cricut employees operate on a hybrid model, working in-office 2+ days per week and working virtually the remainder of the week.

Policies and practices are in place to ensure adherence to occupational and COVID-19 safety within each office.

We compete in several market segments with our business.

We experience competition in connected machines;

for example, Brother, Graphtec and Silhouette America sell cutting machines.

for example, Brother, Graphtec, Loklik, Silhouette America, and Siser sell cutting machines.

We expect significant competition to continue, both from current competitors as well as new entrants into the market, some of which may become significant competitors in the future.

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These brick-and-mortar and online retail partners often have their own brands of products that we compete against, particularly in accessories and materials.

We also compete with well-established content providers, from free resources that enable users to access content that is compatible with our platform, to more specific content marketplaces, where customers can purchase digital files to upload to our platform.

We also compete with well-established content providers, from free resources that enable users to access content that is compatible with our platform, to more specific content marketplaces, like Creative Fabrica and Etsy, where customers can purchase digital files to upload to our platform.

We believe that our brand, technology, software, and content set us apart.

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• Engagement.

We compete for consumers to purchase our products, and we seek to retain them through our connected machines, subscriptions and accessories and materials, as well as our engaged community.

We compete for consumer attention to earn and retain brand loyalty by delivering on the value and promise offered through our products.

We compete for talent in every vertical across our company including technology, design, marketing, finance, legal and retail.

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We believe we compete favorably across these factors, and we have developed a business model that is difficult to replicate.

For additional information, see the section titled “Risk Factors—Risks Related to Our Industry and Business—We operate in a highly competitive market and we may be unable to compete successfully against existing and future competitors.”

For additional information, see the section titled “Risk Factors—Risks Related to Our Industry and Business.”

Intellectual Property

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Although we rely in part upon these legal and contractual protections, we believe that factors such as the skills and ingenuity of our employees and the functionality and frequent enhancements to our platform are larger contributors to our success in the market.

As of December 31, 2021, we had 43 issued patents in the United States, which expire at various times between March 11, 2022 and July 20, 2036, as well as 65 issued patents in non-U.S.

jurisdictions, which expire at various times between July 14, 2026 and August 1, 2043.

As of December 31, 2021, we also hold 42 pending patents in the United States and 59 pending patents in non-U.S.

As of December 31, 2022, we had 45 issued patents in the United States, which expire at various times between October 6, 2023 and February 17, 2041, as well as 89 issued patents in non-U.S.

jurisdictions, which expire at various times between July 14, 2026 and August 2, 2046, we also hold 44 pending patents in the United States and 96 pending patents in non-U.S.

jurisdictions.

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We primarily use one contract manufacturer, Xiamen Intretech, Inc., or Intretech, with operations in Malaysia and China, to produce our connected machines, which are built based on our quality and performance standards and specifications.

We are increasing use of another contract manufacturer, also with operations in Malaysia.

Our agreement with Intretech is on a purchase order basis, and Intretech is not otherwise obligated to supply our connected machines in any specific quantity or at any specific price.

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Certain highly specialized components and raw materials, such as electronic components, microchips and certain alloys that are critical to the performance of our connected machines, are sourced from very limited component suppliers.

These components have unique performance profiles, and, as a result, it is not commercially practical to support multiple sources for these components for our products.

To streamline e-commerce logistics, inventory management, warehousing and fulfillment, we engage a small number of third-party logistics partners, including last mile warehousing and delivery partners, located in the United States, China and Europe to receive and distribute our products.

These components have unique performance

profiles, and, as a result, it is not commercially practical to support multiple sources for these components for our products.

To streamline e-commerce logistics, inventory management, warehousing and fulfillment, we engage a small number of third-party logistics partners, including last mile warehousing and delivery partners, located in the United States, China, Europe, and Australia to receive and distribute our products.

Our third-party logistics partners complete a substantial percentage of our deliveries to brick-and-mortar and online retail partners, distributors, and online sales channels.

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however, we do not currently have alternative suppliers for certain key components.

As a result of the COVID-19 pandemic, we continue to experience certain delays in component and raw material sourcing and procurement, manufacturing and shipping.

For additional information, see the section titled “Risk Factors—Risks Related to Manufacturing, Supply Chain and Fulfillment.”

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brick-and-mortar and online retail partners.

In both 2019 and 2020, 48%, and in 2021, 50% of our revenue was generated through online channels, respectively.

In 2021, 50%, and in 2022, 59% of our revenue was generated through online channels, respectively.

Our sales and channels team located in the United States support both the onboarding of new brick-and-mortar and online retail partners as well as account management of existing brick-and-mortar and online retail partners.

We also have an international sales and marketing force in the United Kingdom, Australia, across Western Europe, South Africa, Singapore, Mexico and Brazil, to drive sales and whose reach spans into many jurisdictions across the globe.

We also have an international sales and marketing force in the United Kingdom, Australia, across Western Europe, South Africa, Middle East, Singapore, Mexico, and Brazil, to drive sales and whose reach spans into many jurisdictions across the globe.

Many of our products are sold through traditional brick-and-mortar retail partners, varying in size, including on their websites, as follows:

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We sell to a network of smaller, independent retailers in targeted locations or in specialty markets.

Each of Amazon, Jo-Ann and Michaels represented 10% or more of our consolidated revenue in the year ended December 31, 2019.

Each of Jo-Ann, Michaels, and Walmart represented 10% or more of our consolidated revenue in the year ended December 31, 2020, and Amazon, Michaels, and Walmart represented 10% or more of our consolidated revenue in the year ended December 31, 2021.

We also currently offer our products through our website at cricut.com, which can be purchased directly by users in the United States and Canada.

As of December 31, 2022 we did not have any customers that represented 10% or more of our consolidated revenue.

We also currently offer our products through our website at cricut.com, which can be purchased directly by users in the United States, Canada, the United Kingdom, Ireland, France, and Germany.

Users can also purchase subscriptions to Cricut Access and Cricut Access Premium through our website or through Cricut’s design apps on Android and iOS devices.

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We believe our omni-channel strategy enables us to target a diverse consumer base.

We focus our marketing efforts on building brand and product awareness and community engagement to attract new users and retain existing users.

We believe our platform and loyal community of millions of users are our best and most effective marketing tools, helping to generate robust word-of-mouth referrals, which have been significant drivers of our growth.

With 86% of our users, as of December 2021, creating products for their friends and family, word-of-mouth marketing continues to be paramount to our operational success.

Cricut marketing efforts keenly focus on building product awareness, driving conversion, and engaging the community to attract new users and retain existing users.

Our loyal community of millions of users — empowered

with a platform designed for sharing — are our best and most effective marketing tools, helping to generate robust word-of-mouth referrals, which have been significant drivers of our growth.

With 86% of our users, as of December 31, 2022, creating projects for their friends and family, word-of-mouth marketing continues to be paramount to our operational success.

Crafting inspires feelings of accomplishment in our users, which promotes repeat use of our products and reengagement in our platform and community.

Users in our community are deeply engaged and are passionate about sharing inspiration, Cricut tips, tricks and personal stories online on social media, which promotes discovery and adoption.

Users in our community are deeply engaged and are passionate about sharing inspiration, Cricut tips and tricks, and personal stories online through third-party platforms like blogs and YouTube as well as social media, which promotes discovery and adoption.

Users across the globe often also connect offline, self-organizing and hosting in-person meet-up events to create together, which reinforces the community network effect.

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Additionally, our users’ ongoing engagement on our data-driven platform enables us to learn more about their preferences and behaviors, which we harness to continually improve our platform and to predict what new products will be successful, driving a cycle of further community engagement.

We intend to continue to invest significant resources to build our brand and community engagement, including from time to time employing traditional online advertising as well as third-party social media.

We also spend significant time and resources training our Cricut Member Care team to resolve any technical and operational issues relating to our products and services so that our users’ experience with our platform is not negatively impacted.

We intend to continue to invest resources to build our brand and community, including employing digital advertising and content marketing.

Our marketing efforts prioritize the customer journey to ensure that when consumers interact with the Cricut brand, we’re creating positive experiences that people will remember.

Our digital advertising creates brand awareness with the right audiences, and our content through third-parties, retail and influencer partnerships, social media, and the cricut.com website supports better education of our product and offering for audiences to understand how we fit into their lives.

Throughout the entire buying experience — the first moment that someone sees a Cricut logo or hears the Cricut name to the moment they decide to click the buy button — consumers become increasingly more familiar with what we do.

Significant time and resources also go towards training our Cricut community management and Member Care teams to address issues relating to our products and services to reduce negative impacts on our users’ experience.

Research and Development

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These laws and regulations include laws governing, among other areas, privacy, data protection, information security, content regulation, intellectual property, competition, consumer protection, e-commerce, product liability, marketing, advertising, trade (e.g., sanctions, export controls and tariffs), and taxation.

These laws and regulations are often complex, sometimes contradict other laws, and are frequently still evolving.

These laws and regulations are often complex, sometimes contradict other laws, and are frequently evolving.

Laws and regulations may be interpreted, applied, created, amended, and enforced in different ways in various locations around the world, posing a significant challenge to our increasingly global business.

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It is therefore likely that we will need to comply with these local regulations in addition to the GDPR.

Local supervisory authorities are able to impose fines for non-compliance and have the power to carry out audits, require companies to cease or change processing, request information and obtain access to premises.

Local supervisory authorities can impose fines for non-compliance and have the power to carry out audits,

require companies to cease or change processing, request information and obtain access to premises.

The GDPR created more stringent operational requirements for processors and controllers of personal data, including, for example, requiring enhanced disclosures to data subjects about how personal data is processed (including information about the profiling of individuals and automated individual decision-making), limiting retention periods of personal data, requiring mandatory data breach notification and requiring additional policies and procedures to comply with the accountability principle under the GDPR.

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Similarly, other jurisdictions are instituting privacy and data protection and information security laws, rules, and regulations, which could increase our risk and compliance costs.

The California Consumer Privacy Act of 2018, or CCPA, also affords consumers expanded privacy protections.

Additionally, the California Attorney General issued CCPA regulations that may add additional requirements on businesses.

The potential effects of this legislation and the related CCPA regulations are far-reaching and may require us to modify our data processing practices and policies and to incur substantial costs and expenses in an effort to comply.

For example, the CCPA gives California residents (including employees, though only in limited circumstances until January 1, 2023) expanded rights to transparency access and require deletion of their personal information, opt out of certain personal information sharing and receive detailed information about how their personal information is collected and used.

The California Consumer Privacy Act of 2018, or CCPA, and its implementing regulations also affords consumers expanded privacy protections and may add additional requirements on businesses.

The potential effects of the CCPA and its regulations are far-reaching and may require us to modify our data processing practices and policies and to incur substantial costs and expenses in an effort to comply.

For example, the CCPA gives California residents expanded rights to access and deletion of their personal information, to opt out of certain personal information sharing and to receive detailed information about how their personal information is collected and used.

The CCPA also provides for civil penalties for violations, as well as a private right of action for certain data breaches that may increase data breach litigation.

Additionally, in November 2020, California passed the California Privacy Rights Act, or CPRA, which amends and significantly modifies the CCPA, potentially resulting in further uncertainty and requiring us to incur additional costs and expenses in efforts to comply.

Additionally, in November 2020, California passed the California Privacy Rights Act, or CPRA, which amended and significantly modified the CCPA, potentially resulting in further uncertainty and requiring us to incur additional costs and expenses in efforts to comply.

Similar legislative developments in other states and at the federal level in the United States have been enacted or proposed, which could create the potential for a patchwork of overlapping but different laws.

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See the section titled “Risk Factors” for additional information about the laws and regulations we are subject to and the risks to our business associated with such laws and regulations.

Available Information

Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed pursuant to Sections 13(a) and 15(d) of the Exchange Act, are filed with the U.S.

Securities and Exchange Commission (the “SEC”).

Such reports and other information filed by the Company with the SEC are available free of charge at investor.cricut.com/financial-information/sec-filings when such reports are available on the SEC’s website.

Our Company periodically provides certain information for investors on its corporate website, www.cricut.com, and its investor relations website, investor.cricut.com.

The information contained on the websites referenced in this Form 10-K is not incorporated by reference into this filing.

Further, our references to website URLs are intended to be inactive textual references only.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business