Cricut, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Cricut Q3 2021 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone keypad. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Stacey Clements with Investor Relations at the Blue Shirt Group. Thank you. Please go ahead.

Thank you, operator, and good afternoon, everyone. Thank you for joining us on Cricket's third quarter 2021 earnings call. Please note that today's call is being webcast on the Investor Relations section of the company's website. A replay of the webcast will also be available following today's call. for your reference, prepared remarks, and the accompanying slides used on today's call will also be posted to the investor relations section of the company's website, investor.cricket.com. Joining me on the call today are Ashish Arora, Chief Executive Officer, and Marty Peterson, Chief Financial Officer. Before we begin, we would like to remind everyone that our prepared remarks contain forward-looking statements, and management may make 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. These statements are based on current expectations of the company's management and involve inherent risks and uncertainties, including those identified in the Risk Factor section of Cricket's most recently filed Form 10-Q. Actual events or results could differ materially. all non-GAAP numbers referenced in today's call are reconciled in the press release or the slide presentation on our investor relations website. This call also contains time-sensitive information that is accurate only as of the date of this broadcast, November 10th, 2021. Cricket assumes no obligation to update any forward-looking projections that may be made in today's release or call. I will now turn the call over to Ashish.

Thank you, Stacey, and welcome, everyone. We are pleased with the results in the third quarter. Total revenue grew 24.4% year-over-year, driven by growth across all three categories, connected machines, subscriptions, and accessories and materials. We delivered an EBITDA margin of just over 16.4%, while at the same time increased investments in connected software, subscriptions, new product developments, and international expansion. We remain focused on our mission to help people lead creative lives. Our user base grew to over 5.7 million users at the end of the third quarter, up 56% year over year. Over 2 million of these users were acquired over the last 12 months. One thing I love is that our COVID cohort of users is engaging very similarly to our pre-COVID cohort of users. This means that we have an opportunity to fuel our viral marketing engine as these 2 million new users make and share projects. Our job is to continue to provide a superior experience and drive engagement from existing and new users. Of the 5.7 million users, 3.2 million used their connected machines within the last 90 days, an increase of 37% from the same quarter last year. One of the many ways we monetize this engagement is through our subscription service, Cricket Access. The number of subscribers and subscription ARPU over time are important indicators of our success. We ended the third quarter with over 1.8 million paid subscribers on an attach rate of 32%, consistent with the accelerated attach rate seen last year due to the pandemic. Since 2018, attach rates have grown nearly 10 percentage points, a testament to the success of our investments and in driving increased user monetization over time. As we expand the use cases of our connected platform, we expand our potential user base or serviceable addressable market. For example, the launch of Cricket Joy last year enabled us to reach a more mainstream user base, like small business owners and teachers. The Cricket Joy gave us an opportunity to expand our retail partnerships with mass merchant retailers like Target, Walmart, and specialty retailers such as the Container Store. We also expanded into new verticals such as office supply and consumer electronics retailers around the world. These users may start off using our platform for one or two use cases, such as label-making or organization, but we have a significant opportunity to expand their level of engagement over time. We continue to aggressively add content to Cricket Access, now with over 200,000 images, up from 175,000 images at the end of Q2. We added new genres, projects for new use cases, relevant content for international markets, and more. We also continue to improve the user experience, adding new features and functionality exclusive to Cricket members, Cricket Access members. For example, in October, we launched a feature called Automatic Background Remover, eliminating the need to manually clean an uploaded image. Our passionate community of users provides a flywheel. The more they create, the more Cricket benefits from the network effects that drive new user acquisition and engagement. These communities around the world are organic by nature and serve as a competitive mode for us. Our users are at the center of everything we do, and we take great pride in fostering these communities. By aligning our values with those of our users, great things can happen. Through our Make It Forward program, we partner with organizations to help inspire and spread joy to others. Most recently, we partnered with the Birthday Party Project, challenging users within our community to make 5,000 projects in five weeks for donation to help underprivileged kids celebrate their birthdays. Projects included cards, water bottles, banners, T-shirts, puzzles, stickers, and coloring pages for kids to receive on their birthdays. I am proud to say that we exceeded expectations with over 11,000 projects made and donated. There is no doubt that our community continues to deliver above and beyond. Our users inspire us every day to do our best for them so that they can do their very best. This summer, we also saw amazing projects for outdoor events such as weddings, vacations, family reunions, baby events, and of course, back to school. As we head into the fourth quarter, our seasonally strongest quarter, we are already seeing inspirational projects focused on holiday decor and gifts from our growing user base. As I mentioned earlier, over 40% of new customers first hear about Cricket through word of mouth, providing a powerful and cost-effective marketing engine for new user acquisition. We now have over 5.3 million social media followers, and 2.8 billion views on hashtag cricket on TikTok, which are almost entirely organic. We will continue to foster these communities, amplify their voices, and share their amazing work. In addition, we've created an expanded suite of tutorial videos, how-to guides, live online classes, and inspirational ideas for projects and use cases to help drive engagement. For example, Our back-to-school classroom organization, HowTo, provides a list of ideas for beginner-level users. We include a list of materials and supplies needed and step-by-step instructions for each project. Earlier this year, we launched our live online classes, and to date, more than 20,000 users have already participated with very high satisfaction rates. More recently, in October, we launched Cricut Learn, a comprehensive resource featuring short expert-led video education as well as live interactive virtual classes. We are very excited about this new tool to help onboard users and drive engagement. Revenue from international markets continues to outpace revenue growth from North America, growing approximately 110% year-over-year in the third quarter. I'm excited to have officially entered the Middle East and Hong Kong markets. We also made significant investments expanding our international retailer footprint. We entered partnerships in newer markets such as Germany, the Nordics, Benelux, Spain, Mexico, South Africa, and Singapore. In more mature markets such as the UK, Australia, and France, we continue to diversify retail relationships, allowing us to reach new audiences and use cases in these markets. In Q2, we rolled out our e-commerce site in the UK. In Q3, we expanded the strategy, bringing a direct-to-consumer branded experience to users in Ireland, France, and Germany. We are really excited about our international opportunity. Our observation is that the motivations and behaviors driving international growth are very similar to those that have driven growth in North America since 2014. The proven cricket playbook invests in delivering great experiences to users that they will show and tell to others can be executed across the globe. With this large opportunity in front of us and our momentum today, we plan to increase investment to accelerate our international expansion. We also continue to invest heavily in our platform, including new features and functionality within our design apps. For example, our new restore brush feature enables users to selectively restore any part of an image that may have been accidentally removed. We have also introduced a featured images ribbon on the home screen of Design Space that highlights our freshest and best content. Coupled with the new ability to bookmark images, we are focused on providing increased visibility and easy access to our ever-growing library of images. We have made major strides in improving our mobile apps with ongoing work to migrate both our iOS and Android apps to all new technology stacks that will provide the foundation for richer design experiences. We are currently in public beta with our new iOS app and will launch broadly in the coming weeks with the new Android version coming soon. We continue to accelerate investments in our software platform, mobile experiences, and data to drive the best user experience possible. Before I conclude my remarks, I want to highlight the incredible work from our operations and product teams who have worked tirelessly to help mitigate supply chain risks. Their work to secure components in advance and rewritten firmware to accommodate real-time component substitutions where necessary. These teams have lived the Cricket values, always finding a way to serve our customers. Overall, I'm very pleased with the quarter and the momentum of the business. We continue to add users onto the platform, We are investing in new products, improving the user experience, and growing the number of engaged users. Cricket is gaining worldwide visibility in new retailers and markets, and I couldn't be more thrilled about the opportunities in front of us. We continue to invest, drive growth, deliver profits, and delight users around the world. I will now turn the call over to Mari for more details on the financials.