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Segment Information
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company applies ASC Topic 280, Segment Reporting, in determining reportable segments for its financial statement disclosure. 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 September 30, 2021, long-lived assets located outside the United States, primarily located in Malaysia and China, were $18.7 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 minimal amount of revenue allocated to the 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 Mug Press and Cricut EasyPress. 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 September 30,Nine Months Ended September 30,
2021202020212020
(in thousands)
Connected Machines:
Revenue$102,454 $75,523 $390,100 $245,799 
Cost of revenue$87,649 $58,525 $323,558 $205,645 
Gross profit$14,805 $16,998 $66,542 $40,154 
Subscriptions:
Revenue$53,303 $31,206 $150,115 $74,414 
Cost of revenue$5,934 $2,998 $15,517 $8,961 
Gross profit$47,369 $28,208 $134,598 $65,453 
Accessories and Materials:
Revenue$104,329 $102,276 $378,186 $267,851 
Cost of revenue$64,440 $57,932 $226,698 $165,833 
Gross profit$39,889 $44,344 $151,488 $102,018 
Consolidated:
Revenue$260,086 $209,005 $918,401 $588,064 
Cost of revenue$158,023 $119,455 $565,773 $380,439 
Gross profit$102,063 $89,550 $352,628 $207,625