Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Engagement metrics have been declining. Can you provide more details on why this is happening and how you plan to improve them? A: Ashish Arora, CEO: The pressure on engagement comes from users acquired in 2020 and 2021 who are now less active, and new users tend to cut fewer projects. We are focusing on improving the onboarding experience and implementing user workflows to enhance engagement. Additionally, we are ramping up our marketing platform to send personalized triggers to bring users back to Design Space.
Q: You mentioned an inflection point in the second half of the year. Can you clarify what this means and what gives you confidence in this projection? A: Kimball Shill, CFO: We are not projecting full-year growth but expect an inflection point in the second half due to our efforts in marketing, new product launches, and promotional activities. We are seeing positive trends in machine sales and have over 100 new SKUs launching, which should help drive growth.
Q: International sales were up. Can you explain what's driving this growth and how you see it evolving? A: Kimball Shill, CFO: We have seen growth in international markets like France and MESA, while markets like Australia remain challenged. We are focusing on increasing brand awareness in key international markets to drive further growth.
Q: The decline in Connected Machines seems to be accelerating. How do you plan to generate positive ROI from deeper promotions? A: Kimball Shill, CFO: Our confidence comes from our marketing spend, which includes deeper promotions and awareness marketing. We are seeing positive impacts from these efforts and believe our new machine launches and focus on affordability will help turn the tide.
Q: How are you approaching capital allocation given the current cash position and market conditions? A: Kimball Shill, CFO: We are focused on maintaining sufficient inventory, investing for the medium and long term, and keeping some cash for potential strategic acquisitions. We also return capital to shareholders through buybacks, dividends, and special dividends.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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