Crafting device maker Cricut (CRCT) blasted higher Friday after beating Wall Street’s targets for the first quarter amid surging home crafting activity. Cricut stock jumped on huge volume.
The South Jordan, Utah-based company said late Thursday that it earned 24 cents a share on sales of $323.8 million in the March quarter. Analysts expected Cricut earnings of 21 cents a share on sales of $294.1 million. On a year-over-year basis, Cricut earnings soared 300% while sales rose 125%.
It was the company’s first earnings report since going public in March.
Cricut makes devices for cutting and printing craft items like greeting cards, 3D art and labels. Cricut has desktop gadgets that can automatically cut paper, fabrics, leather and balsa wood for various crafts. It offers a creative platform used by 4.9 million people worldwide.
Cricut Stock Bugs Out In Late Trades
On the stock market today, Cricut stock catapulted 22.7% higher to close at 24.54. During the regular session Thursday, Cricut stock climbed 2.7% to 20.
“Cricut saw continued strong demand as we added over 600,000 users in the last three months,” Chief Executive Ashish Arora said in a news release.
He added, “The creative passion from our community of users serves as a strong foundation for engagement on our platform, creating a viral word-of-mouth marketing engine that drives efficient customer acquisition.”
Connected machines accounted for 43.6% of revenue in the first quarter. Accessories and materials made up 42.1% of revenue. And subscriptions contributed the remaining 14.2% of sales.
Subscribers More Than Double
Cricut ended the first quarter with 1.6 million subscribers, more than double its total from a year earlier.
The company did not provide June-quarter guidance in its earnings news release.
Cricut stock went public on March 25 with shares priced at $20. It hit a record high 27.35 on April 30 before succumbing to the tech stock sell-off.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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