0001828962-23-000050 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2023	May 02, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-40257
Entity Registrant Name	Cricut, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-0282025
Entity Address, Address Line One	10855 South River Front Parkway
Entity Address, City or Town	South Jordan
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84095
City Area Code	385
Local Phone Number	351-0633
Title of 12(b) Security	Class A Common Stock, par value $0.001 per share
Trading Symbol	CRCT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Smaller Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001828962
Current Fiscal Year End Date	--12-31
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		51,398,775
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		167,825,154

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 232,321	$ 224,943
Marketable securities	75,011	74,256
Accounts receivable, net	90,391	136,539
Inventories	293,696	351,682
Prepaid expenses and other current assets	15,629	23,842
Total current assets	707,048	811,262
Property and equipment, net	61,165	63,407
Operating lease right-of-use asset	15,843	17,078
Intangible assets, net	570	760
Deferred tax assets	27,066	23,819
Other assets	34,747	33,301
Total assets	846,439	949,627
Current liabilities:
Accounts payable	38,454	63,195
Accrued expenses and other current liabilities	47,014	69,775
Deferred revenue, current portion	38,556	34,869
Operating lease liabilities, current portion	5,474	5,436
Dividends payable, current portion	984	80,781
Total current liabilities	130,482	254,056
Operating lease liabilities, net of current portion	12,554	13,935
Deferred revenue, net of current portion	3,220	3,789
Other non-current liabilities	6,020	5,112
Total liabilities	152,276	276,892
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, par value $0.001 per share, 100,000,000 shares authorized, no shares issued and outstanding as of March 31, 2023 and December 31, 2022.	0	0
Common stock, par value $0.001 per share, 1,250,000,000 shares authorized as of March 31, 2023, 219,249,653 shares issued and outstanding as of March 31, 2023; 1,250,000,000 shares authorized as of December 31, 2022, 219,656,587 shares issued and outstanding as of December 31, 2022.	219	220
Additional paid-in capital	685,114	672,990
Retained earnings	9,099	0
Accumulated other comprehensive loss	(269)	(475)
Total stockholders’ equity	694,163	672,735
Total liabilities and stockholders’ equity	$ 846,439	$ 949,627

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,250,000,000	1,250,000,000
Common stock, shares issued (in shares)	219,249,653	219,656,587
Common stock, shares outstanding (in shares)	219,249,653	219,656,587

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue:
Revenue	$ 181,227	$ 244,783
Cost of revenue:
Cost of revenue	104,561	145,763
Gross profit	76,666	99,020
Operating expenses:
Research and development	17,801	20,530
Sales and marketing	29,616	32,789
General and administrative	18,720	14,294
Total operating expenses	66,137	67,613
Income from operations	10,529	31,407
Total other income (expense), net	2,315	(39)
Income before provision for income taxes	12,844	31,368
Provision for income taxes	3,745	7,864
Net income	9,099	23,504
Other comprehensive income (loss):
Change in net unrealized gains on marketable securities, net of tax	188	0
Change in foreign currency translation adjustment, net of tax	18	(12)
Comprehensive income	$ 9,305	$ 23,492
Earnings per share, basic (in dollars per share)	$ 0.04	$ 0.11
Earnings per share, diluted (in dollars per share)	$ 0.04	$ 0.11
Weighted-average common shares outstanding, basic (in shares)	215,587,699	212,403,383
Weighted-average common shares outstanding, diluted (in shares)	218,749,255	220,967,935
Connected machines
Revenue:
Revenue	$ 34,131	$ 62,391
Cost of revenue:
Cost of revenue	33,066	60,713
Subscriptions
Revenue:
Revenue	75,083	64,778
Cost of revenue:
Cost of revenue	7,631	6,252
Accessories and materials
Revenue:
Revenue	72,013	117,614
Cost of revenue:
Cost of revenue	$ 63,864	$ 78,798

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Common stock, balance at beginning of period (in shares) at Dec. 31, 2021		221,913,559
Balance at beginning of period at Dec. 31, 2021	$ 673,976	$ 222	$ 717,369	$ (43,560)	$ (55)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	23,504			23,504
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax (in shares)		10,387
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	(1,328)		(1,328)
Forfeiture of unvested common stock and dividend equivalents (in shares)		(114,332)
Forfeiture of unvested common stock and dividend equivalents	0
Stock-based compensation	10,500		10,500
Compensatory units repurchased	(14)		(14)
Other comprehensive income (loss)	(12)				(12)
Common stock, balance at end of period (in shares) at Mar. 31, 2022		221,809,614
Balance at end of period at Mar. 31, 2022	706,626	$ 222	726,527	(20,056)	(67)
Common stock, balance at beginning of period (in shares) at Dec. 31, 2022		219,656,587
Balance at beginning of period at Dec. 31, 2022	672,735	$ 220	672,990	0	(475)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,099			9,099
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax (in shares)		43,671
Issuance of common stock upon vesting or exercise of stock-based awards, net of withholding tax	(169)		(169)
Forfeiture of unvested common stock and dividend equivalents (in shares)		(103,906)
Forfeiture of unvested common stock and dividend equivalents	275		275
Repurchase of common stock (in shares)		(346,699)
Repurchase of common stock	(3,244)	$ (1)	(3,243)
Dividend equivalents issued	4,366
Stock-based compensation	10,895		10,895
Other comprehensive income (loss)	206				206
Common stock, balance at end of period (in shares) at Mar. 31, 2023		219,249,653
Balance at end of period at Mar. 31, 2023	$ 694,163	$ 219	$ 685,114	$ 9,099	$ (269)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 9,099	$ 23,504
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation and amortization (including amortization of debt issuance costs)	6,888	6,030
Impairments	441	0
Stock-based compensation	10,421	8,958
Deferred income tax	(3,311)	0
Non-cash lease expense	1,238	1,222
Unrealized foreign currency loss	636	0
Provision for inventory obsolescence	8,477	1,063
Other	473	0
Changes in operating assets and liabilities:
Accounts receivable	44,416	76,729
Inventories	48,506	(29,127)
Prepaid expenses and other current assets	8,351	4,771
Other assets	(466)	(134)
Accounts payable	(24,192)	(49,688)
Accrued expenses and other current liabilities and other non-current liabilities	(17,573)	(26,845)
Operating lease liabilities	(1,353)	(1,185)
Deferred revenue	3,118	281
Net cash and cash equivalents provided by operating activities	95,169	15,579
Cash flows from investing activities:
Acquisitions of property and equipment, including capitalized software development costs	(7,741)	(9,807)
Net cash and cash equivalents used in investing activities	(7,741)	(9,807)
Cash flows from financing activities:
Repurchases of common stock	(3,244)	0
Repurchase of compensatory units	0	(14)
Proceeds from exercise of stock options	55	31
Employee tax withholding payments on stock-based awards	(1,358)	(1,659)
Cash dividend	(75,531)	0
Net cash and cash equivalents used in financing activities	(80,078)	(1,642)
Effect of exchange rate on changes on cash and cash equivalents	28	(28)
Net increase in cash and cash equivalents	7,378	4,102
Cash and cash equivalents at beginning of period	224,943	241,597
Cash and cash equivalents at end of period	232,321	245,699
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	0	0
Cash paid during the period for income taxes	115	532
Supplemental disclosures of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	0	3,579
Property and equipment included in accounts payable and accrued expenses and other current liabilities	2,027	5,056
Tax withholdings on stock-based awards included in accrued expenses and other current liabilities	190	559
Stock-based compensation capitalized for software development costs	$ 430	$ 541

Description of Business and Basis of Presentation	3 Months Ended
Description of Business and Basis of Presentation	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Nature of Business Cricut, Inc. (“Cricut” or the “Company”) is a designer and marketer of a creativity platform that enables users to turn ideas into professional-looking handmade goods. Using the Company’s 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. The Company’s connected machines and related accessories and materials and subscription services are primarily marketed under the Cricut brand in the United States, as well as Europe and other countries of the world. Headquartered in South Jordan, Utah, the Company is an innovator in its industry, focused on bringing innovative technology (automation and consumerization of industrial tools) to the craft, DIY and home décor categories. The Company’s condensed consolidated financial statements include the operations of its wholly owned subsidiaries, which are located throughout Europe and in the Asia-Pacific region. The Company designs, markets and distributes the Cricut family of products, including connected machines, design apps and accessories and materials. In addition, Cricut sells a broad line of images, fonts and projects for purchase à la carte. The Company organizes its business into the following three reportable segments: Connected Machines, Subscriptions, and Accessories and Materials. See Note 16, Segment Information, for further discussion of the Company’s segment reporting structure. Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the annual report on Form 10-K for the fiscal year ended December 31, 2022 (The “Annual Report”). However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading. The condensed consolidated financial statements include the accounts of Cricut, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, cash flows and the changes in equity for the interim periods. The results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending December 31, 2023, or any other period. There were no material changes to the Company's significant accounting policies during the three months ended March 31, 2023.

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. For revenue recognition, examples of estimates and judgments include: determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price (“SSP”) of performance obligations, estimating variable consideration such as sales incentives and product returns. Other estimates include the warranty reserve, allowance for doubtful accounts, inventory reserve, intangible assets and other long-lived assets valuation, legal contingencies, stock-based compensation, income taxes, deferred tax assets valuation and developed software, among others. These estimates and assumptions are based on the Company’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including any effects of the ongoing pandemic and the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from these estimates. Fair Value Measurement The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Money market funds and certain marketable securities are highly liquid investments and are actively traded. The pricing information for these assets is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. Other marketable securities such as U.S. Treasury securities are valued using observable inputs from similar assets, or from observable data in markets that are not active; these assets are classified as Level 2 of the fair value hierarchy. There were no transfers between Levels 1, 2 or 3 for any of the periods presented. There were no liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022. Earnings Per Share Earnings per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of profits are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net income per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Stock-based awards subject to conditions other than service conditions are considered contingently issuable shares and are included in basic EPS based on the number of awards that would be issuable if the reporting date were the end of the contingency period.

Revenue and Deferred Revenue

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue and Deferred Revenue

Deferred revenue relates to performance obligations for which payments have been received from the customer prior to revenue recognition. Deferred revenue primarily consists of deferred subscription-based services. Deferred revenue also includes amounts allocated from the sale of a connected machine to the unspecified upgrades and enhancements and the Company’s cloud-based services. The Company has no material contract assets as of March 31, 2023 and December 31, 2022.

The following table summarizes the changes in the deferred revenue balance for the three months ended March 31, 2023 and 2022:


	Three Months Ended March 31,
	2023		2022
(in thousands)
Deferred revenue, beginning of period	$	38,658	$	35,405
Recognition of revenue included in beginning of period deferred revenue	(21,076)		(18,039)
Revenue deferred, net of revenue recognized on contracts in the respective period	24,194		18,321
Deferred revenue, end of period	$	41,776	$	35,687

As of March 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was equal to the deferred revenue balance.

The Company expects the following recognition of deferred revenue as of March 31, 2023:


	Year Ended December 31,
	2023 (remainder of year)		2024		2025		2026		Total
(in thousands)
Revenue expected to be recognized	$	35,886	$	4,742	$	1,120	$	28	$	41,776

The Company’s revenue from contracts with customers disaggregated by major product lines, excluding sales-based taxes, are included in Note 16 under the heading “Segment Information.”

Revenue recognized during the three months ended March 31, 2023 related to performance obligations satisfied or partially satisfied was $1.0 million.

The following table presents the total revenue by geography based on the ship-to address for the periods indicated:


	Three Months Ended March 31,
	2023		2022
(in thousands)
North America*	$	147,755	$	208,305
International	33,472		36,478
Total revenue	$	181,227	$	244,783
*North America revenue consists of revenues from the United States and Canada.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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+ Details

Cash, Cash Equivalents, and Financial Instruments

3 Months Ended

Mar. 31, 2023

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents, and Financial Instruments

The following table shows the Company’s cash, cash equivalents, and marketable securities by significant investment category as of March 31, 2023 and December 31, 2022:


	As of March 31, 2023
	Adjusted Cost		Allowance for Credit Losses		Total Unrealized Gains		Total Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	191,390	$	—	$	—	$	—	$	191,390	$	191,390	$	—
Level 1:
Money market funds	40,931		—		—		—		40,931		40,931		—
Subtotal	40,931		—		—		—		40,931		40,931		—
Level 2:
U.S. treasury securities	75,162		—		—		(151)		75,011		—		75,011
Subtotal	75,162		—		—		(151)		75,011		—		75,011
Total	$	307,483	$	—	$	—	$	(151)	$	307,332	$	232,321	$	75,011


	As of December 31, 2022
	Adjusted Cost		Allowance for Credit Losses		Total Unrealized Gains		Total Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	155,459	$	—	$	—	$	—	$	155,459	$	155,459	$	—
Level 1:
Money market funds	69,484		—		—		—		69,484		69,484		—
Subtotal	69,484		—		—		—		69,484		69,484		—
Level 2:
U.S. treasury securities	74,659		—		—		(403)		74,256		—		74,256
Subtotal	74,659		—		—		(403)		74,256		—		74,256
Total	$	299,602	$	—	$	—	$	(403)	$	299,199	$	224,943	$	74,256

Marketable securities held as of March 31, 2023 generally mature over the next five to eighteen months.

Inventories

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories are comprised of the following:


	As of March 31, 2023		As of December 31, 2022
(in thousands)
Raw materials	$	42,121	$	40,911
Finished goods	282,419		340,557
Total inventories	$	324,540	$	381,468
Inventories current	$	293,696	$	351,682
Inventories non-current (included in other assets)	$	30,844	$	29,786

The Company has included $1.2 million and $4.5 million in finished goods for connected machines that are currently undergoing rework prior to being in a sellable condition as of March 31, 2023 and December 31, 2022, respectively.

Accrued Expenses and Other Current Liabilities

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:


	As of March 31, 2023		As of December 31, 2022
(in thousands)
Sales incentives	$	22,862	$	35,552
Other accrued liabilities and other current liabilities	24,152		34,223
Total accrued expenses	$	47,014	$	69,775

Revolving Credit Facility	3 Months Ended
Revolving Credit Facility	Mar. 31, 2023
Debt Disclosure [Abstract]
Revolving Credit Facility	Revolving Credit Facility On August 4, 2022, the Company entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A, Citigroup N.A., PNC Bank, N.A., KeyBank, N.A., and other parties. The Credit Agreement replaces the Company’s prior asset-based Credit Agreement with JPMorgan Chase Bank, N.A., Citigroup N.A., and Origin Bank. The Credit Agreement provides for a five-year revolving credit facility (the “Credit Facility”) of up to $300.0 million, maturing on August 4, 2027. In addition, during the term of the Credit Agreement, the Company may increase the aggregate amount of the Credit Facility by up to an additional $150.0 million, (for maximum aggregate lender commitments of up to $450.0 million), subject to customary conditions under the Credit Agreement, including obtaining a consent from participating lenders (or another lender, if applicable) to such increase. The Credit Facility may be used to issue letters of credit and for other business purposes, including working capital needs. The current unused fee rate is 0.175% on per annum basis. As of March 31, 2023, and December 31, 2022 total unamortized debt issuance costs were $1.4 million and $1.5 million, respectively. The Credit Agreement is collateralized by substantially all of the Company’s assets and contains affirmative and negative covenants, representations and warranties, events of default and other terms customary for loans of this nature. In particular, the Credit Agreement will not permit the leverage ratio to be greater than 3.0 to 1.0, measured on the last day of any fiscal quarter. In addition, the Credit Agreement will not permit the interest coverage ratio to be less than 3.0 to 1.0, for any period of four consecutive quarters, measured on the last day of any fiscal quarter. Management has determined that the Company was in compliance with all financial and non-financial debt covenants as of March 31, 2023. As of March 31, 2023 and December 31, 2022, no amounts were outstanding under the Credit Agreement and available borrowings were $300.0 million. Generally, borrowings under the Credit Agreement bear interest at a rate based on an alternative base rate (“ABR”), plus, in each case, an applicable margin. The applicable margin will range from (a) borrowings bearing interest at the ABR 2.00%, and (b) borrowings bearing interest at the Adjusted Term Secured Overnight Financing Rate, the Adjusted Australian Dollar Rate, the Adjusted Canadian Dollar Offered Rate or the Adjusted New Zealand Dollar Rate, as applicable for the interest period in effect for such borrowing plus the applicable rate.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company computes interim period income taxes by applying an estimated annual effective tax rate to our year-to-date income from operations before income taxes, except for significant unusual or infrequently occurring items. The estimated effective tax rate is adjusted each quarter. The estimated annual effective tax rate was 29.2% and 25.1% for the three months ended March 31, 2023, and 2022, respectively. The Company’s provision for income taxes was $3.7 million and $7.9 million, respectively, for the three months ended March 31, 2023 and 2022. The provision for income taxes varied from the tax computed at the U.S. federal statutory income tax rate for the periods presented primarily due to discrete tax items including a stock-based compensation difference due to the decrease in stock price upon vesting versus the stock price at the grant date. The Company reviews its deferred tax assets for realization based upon historical taxable income, prudent and feasible tax planning strategies, the expected timing of the reversals of existing temporary differences and expected future taxable income. The Company has concluded that it is more likely than not that the net deferred tax assets will be realized. Accordingly, the Company has not recorded a valuation allowance against net deferred tax assets for any of the periods presented.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Capital Structure	3 Months Ended
Capital Structure	Mar. 31, 2023
Equity [Abstract]
Capital Structure	Capital Structure As of March 31, 2023, the Company had authorized 100,000,000 shares of preferred stock, par value $0.001 per share, and 1,250,000,000 shares of common stock, par value $0.001 per share, which was divided between two series: Class A common stock and Class B common stock. As of March 31, 2023, the Company had 1,000,000,000 shares of Class A common stock and 250,000,000 shares of Class B common stock authorized and 51,096,063 shares of Class A common stock and 168,153,590 shares of Class B common stock issued and outstanding. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to five votes per share and is convertible at any time into one share of Class A common stock. During the three months ended March 31, 2023 and 2022, 7,772,294 and 2,336,595 shares of Class B common stock were converted to Class A common stock, respectively. Stock Repurchase Program On July 19, 2022, the Company’s Board of Directors approved a common stock repurchase program under which the Company may repurchase shares of its outstanding Class A common stock up to an aggregate transactional value of $50 million, depending on the Company’s continuing analysis of market, financial, and other factors. The share repurchase program may be suspended or discontinued at any time and does not have a predetermined expiration date. During the three months ended March 31, 2023, the Company repurchased and retired 346,699 shares of our Class A common stock for $3.2 million under this authorization. Dividends On December 21, 2022, the Company declared a special dividend of $0.35 per share on its Class A and Class B common stock, payable on February 15, 2023 to shareholders of record as of February 1, 2023. As part of the dividend, and pursuant to the underlying award agreements, holders of restricted stock units (“RSUs”) and performance-based restricted stock units (“PRSUs”) received a dividend equivalent of $0.35 per unit in the form of additional RSUs or PRSUs subject to the same vesting conditions as the original awards. The aggregate dividend of $81.4 million was to be satisfied in cash of $76.9 million payable to holders of Class A and Class B common stock with the remaining $4.5 million satisfied on the payment date in the form of dividend equivalents to RSU or PRSU holders prior to any subsequent forfeitures. Of the cash amount, $1.2 million remains payable to holders of unvested shares of Class A common stock upon vesting of the underlying shares with $0.2 million of the cash dividend payable classified as non-current and presented in other non-current liabilities on the consolidated balance sheets.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-based Compensation Cost

The following table shows the stock-based compensation cost by award type for the periods indicated:


	Three Months Ended March 31,
	2023		2022
(in thousands)
Equity classified awards
Restricted stock units	$	8,379	$	6,826
Stock options	626		1,012
Class B common stock	1,889		2,662
Liability classified awards	12		(230)
Total stock-based compensation	$	10,906	$	10,270

The following table sets forth the total stock-based compensation cost included in the Company’s condensed consolidated statements of operations and comprehensive income or capitalized to assets for the periods indicated:


	Three Months Ended March 31,
	2023		2022
(in thousands)
Cost of revenue
Connected machines	$	183	$	3
Subscriptions	115		52
Accessories and materials	275		—
Total cost of revenue	573		55
Research and development	3,906		4,011
Sales and marketing	3,205		2,868
General and administrative	2,737		2,024
Total stock-based compensation expense	$	10,421	$	8,958
Capitalized for software development costs	430		541
Capitalized to inventories	55		771
Total stock-based compensation	$	10,906	$	10,270

As of March 31, 2023, there was $131.2 million of unrecognized stock-based compensation cost related to service-based awards which is expected to be recognized over a weighted-average period of 2.8 years. The total unrecognized compensation expense related to unvested performance-based restricted stock units (“PRSUs”) was $150.7 million as of March 31, 2023.

2021 Equity Incentive Plan

In March 2021, the Company’s 2021 Equity Incentive Plan became effective. The 2021 Equity Incentive Plan provides for the grant of incentive stock options to employees and for the grant of nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to our employees, directors and consultants and our parent and subsidiary corporations’ employees and consultants. As of March 31, 2023, 42,615,720 shares of Class A common stock were reserved for issuance under this plan including shares reserved for previously granted awards discussed below as well as shares reserved for issuance of future awards under the plan.

A summary of the Company’s service-based restricted stock unit (“RSU”) activity under the 2021 Equity Incentive Plan is as follows:


	Number of RSUs	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2022	6,364,022	$	18.16
Granted	3,331,500	$	10.24
Dividend equivalent grants	223,415	—
Vested	(105,713)	$	19.69
Forfeited / cancelled	(125,056)	$	16.89
Outstanding at March 31, 2023	9,688,168	$	15.43

In 2022, the Company granted PRSUs under the 2021 Equity Incentive Plan to certain employees that represent shares potentially issuable in the future. The PRSUs vest in two equal tranches subject to the Company achieving cumulative adjusted earnings per share over eight quarters of $4.93 share and $6.16 per share, respectively, at any point during the 5-year performance period, subject to employees remaining with the Company through the vesting date. Adjusted earnings per share means GAAP net income adjusted to exclude income tax

expenses, as well as stock-based compensation expense and payroll tax expense specifically related to the PRSU awards.

A summary of the Company’s PRSU activity under the 2021 Equity Incentive Plan is as follows:


	Number of PRSUs (a)	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2022	6,295,000	$	23.32
Dividend equivalent grants	224,351	$	—

Forfeited / cancelled	(55,359)	$	23.37
Outstanding at March 31, 2023	6,463,992	$	23.32

a.Represents the maximum number of PRSUs assuming all performance targets are achieved.

The expense recognized each period for these PRSUs is primarily dependent upon the Company’s estimate of the probability of achieving the performance targets. At March 31, 2023, the Company determined it was not probable any performance conditions would be achieved so no stock-based compensation was recorded for these PRSUs during the three months ended March 31, 2023.

Options under the 2021 Equity Incentive Plan have a contractual term of 10 years. The exercise price of an incentive stock option and non-qualified stock option shall not be less than 100% of the fair market value of the shares on the date of grant.

A summary of the Company’s stock option activity under the 2021 Equity Incentive Plan is as follows:


	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2022	3,142,911	$	20.00	4.6	$	—


Forfeited / cancelled	(33,499)	$	20.00
Outstanding at March 31, 2023	3,109,412	$	20.00	4.4	$	—
Vested and exercisable at March 31, 2023	2,274,558	$	20.00	4.1	$	—

During the three months ended March 31, 2023 and 2022, no options were granted.

Certain employees received restricted stock unit equivalents (“RSU equivalents”) which upon vesting are settled for a cash payment equal to the difference between the Company’s stock price on the vesting date less the base price specified at the time of the grant. As of March 31, 2023, the total recognized liability for these awards was immaterial.

Unvested Class B Common Stock

The Company’s unvested Class B common stock resulted from the Corporate Reorganization and is not part of the 2021 Equity Incentive Plan. Activity related to Class B common stock subject to future vesting for the three months ended March 31, 2023 is as follows:


	Number of Unvested Shares	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2022	4,655,214	$	20.00

Vested	(1,803,656)	$	20.00
Forfeited / cancelled	(103,906)	$	20.00
Outstanding at March 31, 2023	2,747,652	$	20.00

Options to Purchase Class B Common Stock

The Company’s options to purchase Class B common stock resulted from the Corporate Reorganization and are not part of the 2021 Equity Incentive Plan. A summary of the Company stock option activity for the options to purchase shares of Class B common stock is as follows:


	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2022	358,000	$	9.04	2.8	$	82

Exercised	(6,000)	9.04
Forfeited / cancelled	(8,000)	$	9.04
Outstanding at March 31, 2023	344,000	$	9.04	2.3	$	399
Vested and exercisable at March 31, 2023	344,000	$	9.04	2.3	$	399

During the three months ended March 31, 2023 and 2022, the total intrinsic value of options exercised was immaterial.

2021 Employee Stock Purchase Plan

In March 2021, the Company’s 2021 Employee Stock Purchase Plan (“2021 ESPP”) became effective. Subject to any limitations contained therein, the 2021 ESPP allows eligible employees to contribute, through payroll deductions, up to 15% of their eligible compensation to purchase the Company’s Class A common stock at a discounted price per share. As of March 31, 2023, 8,422,446 shares of our Class A common stock were available for sale under the 2021 ESPP.

No offerings have been authorized to date by the administrator under the 2021 ESPP. If the administrator authorizes an offering period under the 2021 ESPP, the administrator will establish the duration of offering periods and purchase periods, including the starting and ending dates of offering periods and purchase periods, provided that no offering period may have a duration exceeding 27 months.

Commitment and Contingencies	3 Months Ended
Commitment and Contingencies	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation The Company is subject to certain outside claims and litigation arising in the ordinary course of business. Management is not aware of any contingencies which it believes will have a material effect on its financial position, results of operations or liquidity.

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

The Company leases office space with lease terms ranging from one to six years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease.

The Company has determined its leases should be classified as operating leases. Variable lease costs are comprised primarily of the Company's proportionate share of operating expenses, property taxes, and insurance and are classified as lease cost due to the Company's election to not separate lease and non-lease components. The Company incurred operating lease costs of $1.4 million for the three months ended March 31, 2023 and 2022. The Company also incurred variable lease costs of $0.1 million and $0.2 million for the three months ended March 31, 2023 and 2022, respectively.

Cash paid for amounts included in the measurement of operating lease liabilities was $1.5 million and $1.4 million for the three months ended March 31, 2023 and 2022, respectively. These amounts were included in net cash provided by operating activities in the Company's consolidated statements of cash flows.

As of March 31, 2023, the maturities of the Company's operating lease liabilities were as follows:


Year Ending December 31,	Operating Leases
	(in thousands)
2023 (remainder of the year)	$	4,470
2024	5,495
2025	4,252
2026	3,798
2027	967

Total lease payments	$	18,982
Less: imputed interest	$	(954)
Present value of operating lease liabilities	$	18,028
Operating lease liabilities, current	$	5,474
Operating lease liabilities, non-current	$	12,554

As of March 31, 2023, the weighted average remaining operating lease term and the weighted average discount rate used to determine the operating lease liability were as follows:


	As of March 31, 2023		As of March 31, 2022
Weighted-average remaining lease term of operating leases	3.5 years		4.5 years
Weighted-average discount rate of operating leases	2.5	%	2.6	%

Restructuring	3 Months Ended
Restructuring	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring During the three months ended March 31, 2023, the Company undertook a restructuring plan to improve efficiency and streamline operations. The Company recognized $1.2 million of severance costs which was primarily settled within the three months ended March 31, 2023. Of this amount, $0.7 million, $0.3 million, $0.2 million, were recorded within research and development, selling and marketing, and general and administrative expense, respectively.

Employee Benefit Plan	3 Months Ended
Employee Benefit Plan	Mar. 31, 2023
Retirement Benefits [Abstract]
Employee Benefit Plan	Employee Benefit PlanThe Company sponsors a 401(k) plan for the benefit of its employees who have attained at least 18 years of age. The Company matches 50% of the first 12% of an employee’s salary contributed to the plan on the first day of the month following their hire date. The Company contributed $0.7 million and $0.8 million for the three months ended March 31, 2023 and 2022, respectively.

Net Income Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Net Income Per Share

The computation of net income per share is as follows:


	Three Months Ended March 31,
	2023		2022
(in thousands, except share and per share amounts)
Basic earnings per share:
Net income	$	9,099	$	23,504
Shares used in computation:
Weighted-average common shares outstanding, basic	215,587,699		212,403,383
Earnings per share, basic	$	0.04	$	0.11

Diluted earnings per share:
Net income	$	9,099	$	23,504
Shares used in computation:
Weighted-average common shares outstanding, basic	215,587,699		212,403,383
Weighted-average effect of potentially dilutive securities:
Unvested common stock subject to forfeiture	2,813,251		8,170,977
Employee stock options	18,851		145,517
Restricted stock units	329,454		248,058
Diluted weighted-average common shares outstanding	218,749,255		220,967,935
Diluted net income per share	$	0.04	$	0.11

The following potentially dilutive shares were excluded from the computation of diluted earnings per share for the periods presented because including them would have had an anti-dilutive effect:


	Three Months Ended March 31,
	2023	2022

Employee stock options	3,109,412	3,256,069
Restricted stock units	8,940,648	3,987,963
Unvested common stock subject to forfeiture	657,228	128,447

As of March 31, 2023, 6,463,992 PRSUs were not assessed for inclusion in diluted earnings per share, and any potential antidilutive shares were excluded from the table above because they are subject to performance conditions that were not achieved as of such date.

Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information The Company’s operating segments are generally organized by the type of product or service offered. Similar operating segments have been aggregated into three reportable segments: Connected Machines, Subscriptions and Accessories and Materials. Segment information is presented in the same manner that the Company’s Chief Operating Decision Maker (“CODM”) reviews the results of operations in assessing performance and allocating resources. The CODM reviews revenue and gross profit for each of the reportable segments. Gross profit is defined as revenue less cost of revenue incurred by the segment. The Company does not allocate assets at the reportable segment level as these are managed on an entity wide group basis. As of March 31, 2023, long-lived assets located outside the United States, primarily located in Malaysia and China, were $18.0 million.

The Connected Machines segment derives revenue from the sale of its connected machine hardware and related essential software. The Subscriptions segment derives revenue primarily from monthly and annual subscription fees and a portion of the revenue allocated to unspecified future upgrades and enhancements related to the essential software and access to the Company’s cloud-based services. The Accessories and Materials segment primarily consists of craft, DIY, home décor products and heat presses including the Cricut EasyPress, Cricut Mug Press, and Cricut Autopress. There are no internal revenue transactions between the Company’s segments.

Key financial performance measures of the segments including revenue, cost of revenue and gross profit are as follows:


	Three Months Ended March 31,
	2023		2022
(in thousands)
Connected Machines:
Revenue	$	34,131	$	62,391
Cost of revenue	$	33,066	$	60,713
Gross profit	$	1,065	$	1,678

Subscriptions:
Revenue	$	75,083	$	64,778
Cost of revenue	$	7,631	$	6,252
Gross profit	$	67,452	$	58,526

Accessories and Materials:
Revenue	$	72,013	$	117,614
Cost of revenue	$	63,864	$	78,798
Gross profit	$	8,149	$	38,816

Consolidated:
Revenue	$	181,227	$	244,783
Cost of revenue	$	104,561	$	145,763
Gross profit	$	76,666	$	99,020

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the annual report on Form 10-K for the fiscal year ended December 31, 2022 (The “Annual Report”). However, the Company believes that the disclosures provided herein are adequate to prevent the information presented from being misleading.
Consolidation	The condensed consolidated financial statements include the accounts of Cricut, Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. In the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, cash flows and the changes in equity for the interim periods. The results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter, the fiscal year ending December 31, 2023, or any other period. There were no material changes to the Company's significant accounting policies during the three months ended March 31, 2023.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. For revenue recognition, examples of estimates and judgments include: determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price (“SSP”) of performance obligations, estimating variable consideration such as sales incentives and product returns. Other estimates include the warranty reserve, allowance for doubtful accounts, inventory reserve, intangible assets and other long-lived assets valuation, legal contingencies, stock-based compensation, income taxes, deferred tax assets valuation and developed software, among others. These estimates and assumptions are based on the Company’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including any effects of the ongoing pandemic and the economic environment, which management believes to be reasonable under the circumstances. Management adjusts such estimates and assumptions when facts and circumstances dictate. Actual results could differ from these estimates.
Fair Value Measurement	Fair Value Measurement The Company measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Money market funds and certain marketable securities are highly liquid investments and are actively traded. The pricing information for these assets is readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy. Other marketable securities such as U.S. Treasury securities are valued using observable inputs from similar assets, or from observable data in markets that are not active; these assets are classified as Level 2 of the fair value hierarchy. There were no transfers between Levels 1, 2 or 3 for any of the periods presented. There were no liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022.
Earnings Per Share	Earnings Per Share Earnings per share is computed using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights and sharing of losses, of the Class A common stock and Class B common stock are identical, other than voting rights. As the liquidation and dividend rights and sharing of profits are identical, the undistributed earnings are allocated on a proportionate basis and the resulting net income per share will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Stock-based awards subject to conditions other than service conditions are considered contingently issuable shares and are included in basic EPS based on the number of awards that would be issuable if the reporting date were the end of the contingency period.

Revenue and Deferred Revenue (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Changes in the Deferred Revenue Balance

The following table summarizes the changes in the deferred revenue balance for the three months ended March 31, 2023 and 2022:


	Three Months Ended March 31,
	2023		2022
(in thousands)
Deferred revenue, beginning of period	$	38,658	$	35,405
Recognition of revenue included in beginning of period deferred revenue	(21,076)		(18,039)
Revenue deferred, net of revenue recognized on contracts in the respective period	24,194		18,321
Deferred revenue, end of period	$	41,776	$	35,687

Schedule of Recognition of Deferred Revenue

The Company expects the following recognition of deferred revenue as of March 31, 2023:


	Year Ended December 31,
	2023 (remainder of year)		2024		2025		2026		Total
(in thousands)
Revenue expected to be recognized	$	35,886	$	4,742	$	1,120	$	28	$	41,776

Schedule of Total Revenue by Geography

The following table presents the total revenue by geography based on the ship-to address for the periods indicated:


	Three Months Ended March 31,
	2023		2022
(in thousands)
North America*	$	147,755	$	208,305
International	33,472		36,478
Total revenue	$	181,227	$	244,783
*North America revenue consists of revenues from the United States and Canada.

Cash, Cash Equivalents, and Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Cash and Cash Equivalents [Abstract]

Schedule of Cash, Cash Equivalents and Investments

The following table shows the Company’s cash, cash equivalents, and marketable securities by significant investment category as of March 31, 2023 and December 31, 2022:


	As of March 31, 2023
	Adjusted Cost		Allowance for Credit Losses		Total Unrealized Gains		Total Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	191,390	$	—	$	—	$	—	$	191,390	$	191,390	$	—
Level 1:
Money market funds	40,931		—		—		—		40,931		40,931		—
Subtotal	40,931		—		—		—		40,931		40,931		—
Level 2:
U.S. treasury securities	75,162		—		—		(151)		75,011		—		75,011
Subtotal	75,162		—		—		(151)		75,011		—		75,011
Total	$	307,483	$	—	$	—	$	(151)	$	307,332	$	232,321	$	75,011


	As of December 31, 2022
	Adjusted Cost		Allowance for Credit Losses		Total Unrealized Gains		Total Unrealized Losses		Fair Value		Cash and Cash Equivalents		Marketable Securities
(in thousands)
Cash	$	155,459	$	—	$	—	$	—	$	155,459	$	155,459	$	—
Level 1:
Money market funds	69,484		—		—		—		69,484		69,484		—
Subtotal	69,484		—		—		—		69,484		69,484		—
Level 2:
U.S. treasury securities	74,659		—		—		(403)		74,256		—		74,256
Subtotal	74,659		—		—		(403)		74,256		—		74,256
Total	$	299,602	$	—	$	—	$	(403)	$	299,199	$	224,943	$	74,256

Inventories (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Schedule of Components of Inventories

Inventories are comprised of the following:


	As of March 31, 2023		As of December 31, 2022
(in thousands)
Raw materials	$	42,121	$	40,911
Finished goods	282,419		340,557
Total inventories	$	324,540	$	381,468
Inventories current	$	293,696	$	351,682
Inventories non-current (included in other assets)	$	30,844	$	29,786

Accrued Expenses and Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Payables and Accruals [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:


	As of March 31, 2023		As of December 31, 2022
(in thousands)
Sales incentives	$	22,862	$	35,552
Other accrued liabilities and other current liabilities	24,152		34,223
Total accrued expenses	$	47,014	$	69,775

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Costs

The following table shows the stock-based compensation cost by award type for the periods indicated:


	Three Months Ended March 31,
	2023		2022
(in thousands)
Equity classified awards
Restricted stock units	$	8,379	$	6,826
Stock options	626		1,012
Class B common stock	1,889		2,662
Liability classified awards	12		(230)
Total stock-based compensation	$	10,906	$	10,270


	Three Months Ended March 31,
	2023		2022
(in thousands)
Cost of revenue
Connected machines	$	183	$	3
Subscriptions	115		52
Accessories and materials	275		—
Total cost of revenue	573		55
Research and development	3,906		4,011
Sales and marketing	3,205		2,868
General and administrative	2,737		2,024
Total stock-based compensation expense	$	10,421	$	8,958
Capitalized for software development costs	430		541
Capitalized to inventories	55		771
Total stock-based compensation	$	10,906	$	10,270

Schedule of Restricted Stock Unit Activity

A summary of the Company’s service-based restricted stock unit (“RSU”) activity under the 2021 Equity Incentive Plan is as follows:


	Number of RSUs	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2022	6,364,022	$	18.16
Granted	3,331,500	$	10.24
Dividend equivalent grants	223,415	—
Vested	(105,713)	$	19.69
Forfeited / cancelled	(125,056)	$	16.89
Outstanding at March 31, 2023	9,688,168	$	15.43

A summary of the Company’s PRSU activity under the 2021 Equity Incentive Plan is as follows:


	Number of PRSUs (a)	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2022	6,295,000	$	23.32
Dividend equivalent grants	224,351	$	—

Forfeited / cancelled	(55,359)	$	23.37
Outstanding at March 31, 2023	6,463,992	$	23.32

a.Represents the maximum number of PRSUs assuming all performance targets are achieved.

Schedule of Stock Option Activity

A summary of the Company’s stock option activity under the 2021 Equity Incentive Plan is as follows:


	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2022	3,142,911	$	20.00	4.6	$	—


Forfeited / cancelled	(33,499)	$	20.00
Outstanding at March 31, 2023	3,109,412	$	20.00	4.4	$	—
Vested and exercisable at March 31, 2023	2,274,558	$	20.00	4.1	$	—


	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2022	358,000	$	9.04	2.8	$	82

Exercised	(6,000)	9.04
Forfeited / cancelled	(8,000)	$	9.04
Outstanding at March 31, 2023	344,000	$	9.04	2.3	$	399
Vested and exercisable at March 31, 2023	344,000	$	9.04	2.3	$	399

Schedule of Nonvested Share Activity


	Number of Unvested Shares	Weighted- Average Grant Date Fair Value (per share)
Outstanding at December 31, 2022	4,655,214	$	20.00

Vested	(1,803,656)	$	20.00
Forfeited / cancelled	(103,906)	$	20.00
Outstanding at March 31, 2023	2,747,652	$	20.00

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Schedule of Lease Liability Maturity

As of March 31, 2023, the maturities of the Company's operating lease liabilities were as follows:


Year Ending December 31,	Operating Leases
	(in thousands)
2023 (remainder of the year)	$	4,470
2024	5,495
2025	4,252
2026	3,798
2027	967

Total lease payments	$	18,982
Less: imputed interest	$	(954)
Present value of operating lease liabilities	$	18,028
Operating lease liabilities, current	$	5,474
Operating lease liabilities, non-current	$	12,554

Schedule of Weighted Average Lease Term and Discount Rate

As of March 31, 2023, the weighted average remaining operating lease term and the weighted average discount rate used to determine the operating lease liability were as follows:


	As of March 31, 2023		As of March 31, 2022
Weighted-average remaining lease term of operating leases	3.5 years		4.5 years
Weighted-average discount rate of operating leases	2.5	%	2.6	%

Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The computation of net income per share is as follows:


	Three Months Ended March 31,
	2023		2022
(in thousands, except share and per share amounts)
Basic earnings per share:
Net income	$	9,099	$	23,504
Shares used in computation:
Weighted-average common shares outstanding, basic	215,587,699		212,403,383
Earnings per share, basic	$	0.04	$	0.11

Diluted earnings per share:
Net income	$	9,099	$	23,504
Shares used in computation:
Weighted-average common shares outstanding, basic	215,587,699		212,403,383
Weighted-average effect of potentially dilutive securities:
Unvested common stock subject to forfeiture	2,813,251		8,170,977
Employee stock options	18,851		145,517
Restricted stock units	329,454		248,058
Diluted weighted-average common shares outstanding	218,749,255		220,967,935
Diluted net income per share	$	0.04	$	0.11

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following potentially dilutive shares were excluded from the computation of diluted earnings per share for the periods presented because including them would have had an anti-dilutive effect:


	Three Months Ended March 31,
	2023	2022

Employee stock options	3,109,412	3,256,069
Restricted stock units	8,940,648	3,987,963
Unvested common stock subject to forfeiture	657,228	128,447

Segment Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Key Financial Performance Measures of the Segments

Key financial performance measures of the segments including revenue, cost of revenue and gross profit are as follows:


	Three Months Ended March 31,
	2023		2022
(in thousands)
Connected Machines:
Revenue	$	34,131	$	62,391
Cost of revenue	$	33,066	$	60,713
Gross profit	$	1,065	$	1,678

Subscriptions:
Revenue	$	75,083	$	64,778
Cost of revenue	$	7,631	$	6,252
Gross profit	$	67,452	$	58,526

Accessories and Materials:
Revenue	$	72,013	$	117,614
Cost of revenue	$	63,864	$	78,798
Gross profit	$	8,149	$	38,816

Consolidated:
Revenue	$	181,227	$	244,783
Cost of revenue	$	104,561	$	145,763
Gross profit	$	76,666	$	99,020

Description of Business and Basis of Presentation (Details)	3 Months Ended
	Mar. 31, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	3

Revenue and Deferred Revenue - Schedule of Changes in the Deferred Revenue Balance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Movement in Deferred Revenue [Roll Forward]
Deferred revenue, beginning of period	$ 38,658	$ 35,405
Recognition of revenue included in beginning of period deferred revenue	(21,076)	(18,039)
Revenue deferred, net of revenue recognized on contracts in the respective period	24,194	18,321
Deferred revenue, end of period	$ 41,776	$ 35,687

Revenue and Deferred Revenue - Schedule of Recognition of Deferred Revenue (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 41,776
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 35,886
Revenue, expected timing of satisfaction, period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 4,742
Revenue, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 1,120
Revenue, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized	$ 28
Revenue, expected timing of satisfaction, period	1 year

Revenue and Deferred Revenue - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Revenue recognized related to performance obligations satisfied or partially satisfied in prior periods	$ 1.0

Revenue and Deferred Revenue - Schedule of Total Revenue by Geography (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 181,227	$ 244,783
North America
Disaggregation of Revenue [Line Items]
Revenue	147,755	208,305
International
Disaggregation of Revenue [Line Items]
Revenue	$ 33,472	$ 36,478

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Cash, Cash Equivalents, and Financial Instruments - Schedule of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Cash and Cash Equivalents [Line Items]
Cash, Adjusted Cost	$ 232,321	$ 224,943
Debt Securities, Available-for-Sale [Abstract]
Allowance for Credit Losses	0	0
Total Unrealized Gains	0	0
Total Unrealized Losses	(151)	(403)
Assets, Adjusted Cost	307,483	299,602
Assets, Fair Value	$ 307,332	299,199
Minimum
Debt Securities, Available-for-Sale [Abstract]
Marketable securities, maturity	5 months
Maximum
Debt Securities, Available-for-Sale [Abstract]
Marketable securities, maturity	18 months
Cash
Cash and Cash Equivalents [Line Items]
Cash, Adjusted Cost	$ 191,390	155,459
Cash, Fair Value	191,390	155,459
Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	40,931	69,484
Allowance for Credit Losses	0	0
Total Unrealized Gains	0	0
Total Unrealized Losses	0	0
Fair Value	40,931	69,484
Fair Value, Inputs, Level 1 \| Money Market Funds
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	40,931	69,484
Allowance for Credit Losses	0	0
Total Unrealized Gains	0	0
Total Unrealized Losses	0	0
Fair Value	40,931	69,484
Fair Value, Inputs, Level 2
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	75,162	74,659
Allowance for Credit Losses	0	0
Total Unrealized Gains	0	0
Total Unrealized Losses	(151)	(403)
Fair Value	75,011	74,256
Fair Value, Inputs, Level 2 \| U.S. treasury securities
Debt Securities, Available-for-Sale [Abstract]
Adjusted Cost	75,162	74,659
Allowance for Credit Losses	0	0
Total Unrealized Gains	0	0
Total Unrealized Losses	(151)	(403)
Fair Value	75,011	74,256
Cash
Cash and Cash Equivalents [Line Items]
Cash, Fair Value	191,390	155,459
Debt Securities, Available-for-Sale [Abstract]
Assets, Fair Value	232,321	224,943
Cash \| Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Abstract]
Fair Value	40,931	69,484
Cash \| Fair Value, Inputs, Level 1 \| Money Market Funds
Debt Securities, Available-for-Sale [Abstract]
Fair Value	40,931	69,484
Cash \| Fair Value, Inputs, Level 2
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Cash \| Fair Value, Inputs, Level 2 \| U.S. treasury securities
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Marketable Securities
Debt Securities, Available-for-Sale [Abstract]
Assets, Fair Value	75,011	74,256
Marketable Securities \| Fair Value, Inputs, Level 1
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Marketable Securities \| Fair Value, Inputs, Level 1 \| Money Market Funds
Debt Securities, Available-for-Sale [Abstract]
Fair Value	0	0
Marketable Securities \| Fair Value, Inputs, Level 2
Debt Securities, Available-for-Sale [Abstract]
Fair Value	75,011	74,256
Marketable Securities \| Fair Value, Inputs, Level 2 \| U.S. treasury securities
Debt Securities, Available-for-Sale [Abstract]
Fair Value	$ 75,011	$ 74,256

Inventories - Components of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 42,121	$ 40,911
Finished goods	282,419	340,557
Total inventories	324,540	381,468
Inventories current	293,696	351,682
Inventories non-current (included in other assets)	30,844	29,786
Inventory undergoing rework	$ 1,200	$ 4,500

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Sales incentives	$ 22,862	$ 35,552
Other accrued liabilities and other current liabilities	24,152	34,223
Total accrued expenses	$ 47,014	$ 69,775

Revolving Credit Facility (Details) - Revolving Credit Facility - Credit Agreement		3 Months Ended
	Aug. 04, 2022 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Line of Credit Facility [Line Items]
Revolving credit facility expiration period	5 years
Maximum borrowing capacity	$ 300,000,000
Additional borrowing capacity, increase limit	150,000,000
Additional borrowing capacity, higher borrowing capacity option	$ 450,000,000
Line of credit facility, unused fee (percentage)	0.175%
Unamortized debt issuance costs		$ 1,400,000	$ 1,500,000
Leverage ratio		3.0
Amounts outstanding		$ 0	$ 0
Remaining borrowing capacity		$ 300,000,000
Alternative Base Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate (percentage)		2.00%

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate (percentage)	29.20%	25.10%
Provision for income taxes	$ 3,745	$ 7,864

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Capital Structure (Details) $ / shares in Units, $ in Millions		3 Months Ended
	Dec. 21, 2022 USD ($) $ / shares	Mar. 31, 2023 USD ($) vote $ / shares shares	Mar. 31, 2022 shares	Dec. 31, 2022 $ / shares shares	Jul. 19, 2022 USD ($)
Equity, Class of Treasury Stock [Line Items]
Preferred stock, shares authorized (in shares)		100,000,000		100,000,000
Preferred stock, par value (in dollars per share) \| $ / shares		$ 0.001		$ 0.001
Common stock, shares authorized (in shares)		1,250,000,000		1,250,000,000
Common stock, shares issued (in shares)		219,249,653		219,656,587
Common stock, shares outstanding (in shares)		219,249,653		219,656,587
Dividends payable (in dollars per share) \| $ / shares	$ 0.35
Dividends declared but unpaid \| $	$ 81.4
Dividends payable, current portion \| $	76.9
Dividends, paid-in-kind \| $	4.5
Dividends, cash \| $	0.2
Common Class A
Equity, Class of Treasury Stock [Line Items]
Common stock, shares authorized (in shares)		1,000,000,000
Common stock, shares issued (in shares)		51,096,063
Common stock, shares outstanding (in shares)		51,096,063
Number of votes per share \| vote		1
Number of shares issuable upon conversion (in shares)		1
Stock repurchase program, authorized amount \| $					$ 50.0
Stock repurchased and retired (in shares)		346,699
Stock repurchased and retired, value \| $		$ 3.2
Dividends payable, current portion \| $	$ 1.2
Common Class A \| Existing Stockholders
Equity, Class of Treasury Stock [Line Items]
Sale of stock, shares issued in transaction		7,772,294	2,336,595
Class B common stock
Equity, Class of Treasury Stock [Line Items]
Common stock, shares authorized (in shares)		250,000,000
Common stock, shares issued (in shares)		168,153,590
Common stock, shares outstanding (in shares)		168,153,590
Number of votes per share \| vote		5

Stock-Based Compensation - Cost By Award Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 10,906	$ 10,270
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	8,379	6,826
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	626	1,012
Class B common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	1,889	2,662
Liability classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 12	$ (230)

Stock-Based Compensation - Cost Related to Company's Stock-Based Compensation Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 10,421	$ 8,958
Total stock-based compensation	10,906	10,270
Software Development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense, amount capitalized	430	541
Inventories
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense, amount capitalized	55	771
Total cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	573	55
Connected machines
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	183	3
Subscriptions
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	115	52
Accessories and materials
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	275	0
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,906	4,011
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,205	2,868
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 2,737	$ 2,024

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) tranche $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| tranche	2
Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Eight quarter cumulative adjusted earnings per share (in dollars per share) \| $ / shares	$ 4.93
Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Eight quarter cumulative adjusted earnings per share (in dollars per share) \| $ / shares	$ 6.16
2021 Equity Incentive Plan \| Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance (in shares) \| shares	42,615,720
Equity classified awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation cost \| $	$ 131.2
Unrecognized stock-based compensation cost, period for recognition	2 years 9 months 18 days
Performance Restricted Stock Units (PRSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation cost \| $	$ 150.7
Performance Restricted Stock Units (PRSUs) \| 2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period	5 years
Stock options \| 2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Minimum exercise price, percentage of fair market value of shares on date of grant	100.00%
Employee stock \| 2021 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum eligible employee compensation contribution percentage	15.00%
Offering period	27 months
Employee stock \| 2021 Employee Stock Purchase Plan \| Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock available for sale (in shares) \| shares	8,422,446

Stock-Based Compensation - Restricted Stock Units Activity Under Company's Stock Plans (Details)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Weighted- Average Grant Date Fair Value (per share)
Dividend equivalent grants (in dollars per share) \| $ / shares	$ 0
Restricted stock units \| 2021 Equity Incentive Plan
Number of Unvested Shares
Beginning balance (in shares) \| shares	6,364,022
Granted (in shares) \| shares	3,331,500
Dividend equivalent grants (in shares) \| shares	223,415
Vested (in shares) \| shares	(105,713)
Forfeited / cancelled (in shares) \| shares	(125,056)
Ending balance (in shares) \| shares	9,688,168
Weighted- Average Grant Date Fair Value (per share)
Beginning balance (in dollars per share) \| $ / shares	$ 18.16
Granted (in dollars per share) \| $ / shares	10.24
Vested (in dollars per share) \| $ / shares	19.69
Forfeited / cancelled (in dollars per share) \| $ / shares	16.89
Ending balance (in dollars per share) \| $ / shares	$ 15.43

Stock-Based Compensation - PRSU Activity (Details)	3 Months Ended
Stock-Based Compensation - PRSU Activity (Details)	Mar. 31, 2023 $ / shares shares
Weighted- Average Grant Date Fair Value (per share)
Dividend equivalent grants (in dollars per share)	$ 0
Performance Restricted Stock Units (PRSUs) \| 2021 Equity Incentive Plan
Number of Unvested Shares
Beginning balance (in shares) \| shares	6,295,000
Dividend equivalent grants (in shares) \| shares	224,351
Forfeited / cancelled (in shares) \| shares	(55,359)
Ending balance (in shares) \| shares	6,463,992
Weighted- Average Grant Date Fair Value (per share)
Beginning balance (in dollars per share)	$ 23.32
Dividend equivalent grants (in dollars per share)	0
Forfeited / cancelled (in dollars per share)	23.37
Ending balance (in dollars per share)	$ 23.32

Stock-Based Compensation - Stock Option Activity (Details) - 2021 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Number of Options
Beginning balance (in shares)	3,142,911
Forfeited / cancelled (in shares)	(33,499)
Ending balance (in shares)	3,109,412	3,142,911
Vested and exercisable (in shares)	2,274,558
Weighted- Average Exercise Price
Beginning weighted average exercise price (in dollars per share)	$ 20.00
Forfeited / Cancelled (in dollars per share)	20.00
Ending weighted average exercise price (in dollars per share)	20.00	$ 20.00
Vested and exercisable (in dollars per share)	$ 20.00
Weighted- Average Remaining Term (Years)
Weighted average remaining terms (years)	4 years 4 months 24 days	4 years 7 months 6 days
Weighted average remaining terms, vested and exercisable (years)	4 years 1 month 6 days
Aggregate Intrinsic Value
Beginning aggregate intrinsic value	$ 0
Ending aggregate intrinsic value	0	$ 0
Vested and exercisable aggregate intrinsic value	$ 0

Stock-Based Compensation - Unvested Class B Common Stock Activity (Details) - Class B common stock	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Unvested Shares
Beginning balance (in shares) \| shares	4,655,214
Vested (in shares) \| shares	(1,803,656)
Forfeited / cancelled (in shares) \| shares	(103,906)
Ending balance (in shares) \| shares	2,747,652
Weighted- Average Grant Date Fair Value (per share)
Beginning balance (in dollars per share) \| $ / shares	$ 20.00
Vested (in dollars per share) \| $ / shares	20.00
Forfeited / cancelled (in dollars per share) \| $ / shares	20.00
Ending balance (in dollars per share) \| $ / shares	$ 20.00

Stock-Based Compensation - Options to Purchase Class B Common Stock (Details) - Class B common stock - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Number of Options
Beginning balance (in shares)	358,000
Exercised (in shares)	(6,000)
Forfeited / cancelled (in shares)	(8,000)
Ending balance (in shares)	344,000	358,000
Vested (in shares)	344,000
Weighted- Average Exercise Price
Beginning weighted average exercise price (in dollars per share)	$ 9.04
Exercised (in dollars per share)	9.04
Forfeited / Cancelled (in dollars per share)	9.04
Ending weighted average exercise price (in dollars per share)	9.04	$ 9.04
Vested (in dollars per share)	$ 9.04
Weighted- Average Remaining Term (Years)
Weighted average remaining terms (years)	2 years 3 months 18 days	2 years 9 months 18 days
Weighted average remaining terms, vested and exercisable (years)	2 years 3 months 18 days
Aggregate Intrinsic Value
Beginning aggregate intrinsic value	$ 82
Ending aggregate intrinsic value	399	$ 82
Vested aggregate intrinsic value	$ 399

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 1.4	$ 1.4
Variable lease cost	0.1	0.2
Cash paid for amounts included in the measurement of operating lease liabilities, included in net cash used in operating activities	$ 1.5	$ 1.4
Minimum
Lessee, Lease, Description [Line Items]
Lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease term	6 years

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2023 (remainder of the year)	$ 4,470
2024	5,495
2025	4,252
2026	3,798
2027	967
Total lease payments	18,982
Less: imputed interest	(954)
Present value of operating lease liabilities	18,028
Operating lease liabilities, current	5,474	$ 5,436
Operating lease liabilities, non-current	$ 12,554	$ 13,935

Leases - Additional Lease Information (Details)	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Weighted-average remaining lease term of operating leases	3 years 6 months	4 years 6 months
Weighted-average discount rate of operating leases	2.50%	2.60%

Restructuring (Details) $ in Millions	3 Months Ended
Restructuring (Details) $ in Millions	Mar. 31, 2023 USD ($)
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 1.2
Research and development
Restructuring Cost and Reserve [Line Items]
Severance costs	0.7
Sales and marketing
Restructuring Cost and Reserve [Line Items]
Severance costs	0.3
General and administrative
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 0.2

Employee Benefit Plan (Details) - USD ($) $ in Millions	3 Months Ended
Employee Benefit Plan (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Retirement Benefits [Abstract]
Employer matching contribution (percentage)	50.00%
Employer matching contribution as a percent of employees' gross pay (percentage)	12.00%
Employer contribution amount	$ 0.7	$ 0.8

Net Income Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Basic earnings per share:
Net income	$ 9,099	$ 23,504
Shares used in computation:
Weighted-average common shares outstanding, basic (in shares)	215,587,699	212,403,383
Earnings per share, basic (in dollars per share)	$ 0.04	$ 0.11
Diluted earnings per share:
Net income	$ 9,099	$ 23,504
Shares used in computation:
Weighted-average common shares outstanding, basic (in shares)	215,587,699	212,403,383
Weighted-average effect of potentially dilutive securities:
Unvested common stock subject to forfeiture (in shares)	2,813,251	8,170,977
Diluted weighted-average common shares outstanding (in shares)	218,749,255	220,967,935
Diluted net income per share (in dollars per share)	$ 0.04	$ 0.11
Stock options
Weighted-average effect of potentially dilutive securities:
Employee stock options / Restricted stock units (in shares)	18,851	145,517
Restricted stock units
Weighted-average effect of potentially dilutive securities:
Employee stock options / Restricted stock units (in shares)	329,454	248,058

Net Income Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Performance Restricted Stock Units (PRSUs) \| 2021 Equity Incentive Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of awards issued	6,463,992		6,295,000
Employee stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	3,109,412	3,256,069
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	8,940,648	3,987,963
Unvested common stock subject to forfeiture
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	657,228	128,447

Segment Information - Narrative (Details) $ in Millions	3 Months Ended
Segment Information - Narrative (Details) $ in Millions	Mar. 31, 2023 USD ($) segment
Segment Reporting, Asset Reconciling Item [Line Items]
Number of reportable segments \| segment	3
Non-US
Segment Reporting, Asset Reconciling Item [Line Items]
Long-lived assets \| $	$ 18.0

Segment Information - Schedule of Key Financial Performance Measures of the Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue	$ 181,227	$ 244,783
Cost of revenue	104,561	145,763
Gross profit	76,666	99,020
Connected machines
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue	34,131	62,391
Cost of revenue	33,066	60,713
Gross profit	1,065	1,678
Subscriptions
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue	75,083	64,778
Cost of revenue	7,631	6,252
Gross profit	67,452	58,526
Accessories and materials
Segment Reporting, Asset Reconciling Item [Line Items]
Revenue	72,013	117,614
Cost of revenue	63,864	78,798
Gross profit	$ 8,149	$ 38,816

- Definition

The aggregate cost of goods produced and sold and services rendered during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.2)
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
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