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Cutera® Announces Third Quarter 2024 Financial Results

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Cutera (CUTR) reported Q3 2024 financial results with consolidated revenue of $32.5 million, representing a 30% decrease compared to Q3 2023. The company maintained cash and equivalents of $59.0 million. AviClear showed 16% growth year-over-year in international markets, while global core capital grew 7% sequentially. Gross profit was $1.8 million (6% of revenue), down from $6.5 million (14%) in Q3 2023. Operating loss was $36.2 million. Management reaffirmed full-year revenue guidance of $140-145 million and year-end 2024 cash guidance of approximately $40 million.

Cutera (CUTR) ha riportato i risultati finanziari del terzo trimestre 2024 con un fatturato consolidato di 32,5 milioni di dollari, che rappresenta una diminuzione del 30% rispetto al terzo trimestre 2023. L'azienda ha mantenuto liquidità e equivalenti per 59,0 milioni di dollari. AviClear ha mostrato una crescita del 16% su base annua nei mercati internazionali, mentre il capitale globale è aumentato del 7% rispetto al trimestre precedente. L'utile lordo è stato di 1,8 milioni di dollari (6% del fatturato), in calo rispetto ai 6,5 milioni di dollari (14%) nel terzo trimestre 2023. La perdita operativa è stata di 36,2 milioni di dollari. La direzione ha confermato le previsioni di fatturato per l'intero anno tra 140 e 145 milioni di dollari e la previsione di liquidità a fine 2024 di circa 40 milioni di dollari.

Cutera (CUTR) informó los resultados financieros del tercer trimestre de 2024 con ingresos consolidados de 32.5 millones de dólares, lo que representa una disminución del 30% en comparación con el tercer trimestre de 2023. La empresa mantuvo efectivo y equivalentes de 59.0 millones de dólares. AviClear mostró un crecimiento del 16% interanual en los mercados internacionales, mientras que el capital global básico creció un 7% de manera secuencial. La ganancia bruta fue de 1.8 millones de dólares (6% de los ingresos), frente a 6.5 millones de dólares (14%) en el tercer trimestre de 2023. La pérdida operativa fue de 36.2 millones de dólares. La dirección reafirmó la guía de ingresos para todo el año de entre 140 y 145 millones de dólares y la guía de efectivo para finales de 2024 de aproximadamente 40 millones de dólares.

Cutera (CUTR)는 2024년 3분기 재무 결과를 보고하며, 총 수익이 3천 250만 달러로 나타났으며, 이는 2023년 3분기 대비 30% 감소한 수치입니다. 회사는 5천 900만 달러의 현금 및 현금성 자산을 유지하고 있습니다. AviClear는 국제 시장에서 전년 대비 16% 성장했으며, 글로벌 핵심 자본은 전 분기 대비 7% 증가했습니다. 총 이익은 180만 달러(수익의 6%)로, 2023년 3분기의 650만 달러(14%)에서 감소했습니다. 운영 손실은 3천 620만 달러였습니다. 경영진은 연간 수익 전망을 1억 4천만에서 1억 4천 500만 달러로 재확인하였으며, 2024년 연말 현금 전망은 약 4천만 달러로 제시했습니다.

Cutera (CUTR) a publié les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires consolidé de 32,5 millions de dollars, représentant une baisse de 30 % par rapport au troisième trimestre 2023. L'entreprise a maintenu des liquidités et équivalents de 59,0 millions de dollars. AviClear a affiché une croissance de 16 % d'une année sur l'autre sur les marchés internationaux, tandis que le capital de base mondial a augmenté de 7 % d'un trimestre à l'autre. Le bénéfice brut s'élevait à 1,8 million de dollars (6 % du chiffre d'affaires), en baisse par rapport à 6,5 millions de dollars (14 %) au troisième trimestre 2023. La perte d'exploitation était de 36,2 millions de dollars. La direction a réaffirmé les prévisions de chiffre d'affaires pour l'année entière entre 140 et 145 millions de dollars, ainsi que la prévision de liquidités à la fin de 2024 d'environ 40 millions de dollars.

Cutera (CUTR) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem konsolidierten Umsatz von 32,5 Millionen Dollar, was einem Rückgang von 30 % im Vergleich zum dritten Quartal 2023 entspricht. Das Unternehmen hielt Bargeld und Äquivalente in Höhe von 59,0 Millionen Dollar. AviClear zeigte ein Wachstum von 16 % im Jahresvergleich auf internationalen Märkten, während das globale Kernkapital im Quartalsvergleich um 7 % wuchs. Der Bruttogewinn betrug 1,8 Millionen Dollar (6 % des Umsatzes), ein Rückgang gegenüber 6,5 Millionen Dollar (14 %) im dritten Quartal 2023. Der operative Verlust betrug 36,2 Millionen Dollar. Das Management bekräftigte die Umsatzprognose für das gesamte Jahr von 140-145 Millionen Dollar und die Cash-Prognose zum Jahresende 2024 von etwa 40 Millionen Dollar.

Positive
  • AviClear revenue growth of 16% year-over-year in international markets
  • Global core capital growth of 7% quarter-over-quarter
  • Management maintains full-year revenue guidance of $140-145 million
Negative
  • Revenue decreased 30% year-over-year to $32.5 million
  • Gross profit margin declined to 6% from 14% in Q3 2023
  • Operating loss of $36.2 million in Q3 2024
  • $10.1 million non-cash expense for excess inventory
  • Cash position decreased from $84.3M to $59.0M quarter-over-quarter

Insights

The Q3 results reveal significant challenges at Cutera, with $32.5M revenue marking a 30% YoY decline. The company's financial health shows concerning trends with gross margin deteriorating to just 6% from 14% YoY. A substantial $10.1M non-cash inventory charge and $5.4M doubtful accounts receivable expense signal operational difficulties. Cash position declined from $84.3M to $59M QoQ, indicating rapid cash burn. While management maintains full-year guidance of $140-145M revenue, the 17% decline in capital system sales and 19% drop in recurring revenue (ex-skincare) suggest structural business challenges beyond just the loss of skincare revenue.

The medical aesthetics market dynamics appear challenging for Cutera, with core metrics showing weakness. While AviClear showed 16% growth internationally, domestic market penetration seems The 7% sequential growth in global core capital, while positive, isn't sufficient to offset broader revenue declines. The termination of the skincare distribution agreement has created a significant revenue gap that core business growth hasn't filled. The high inventory charges suggest misalignment with market demand, while the substantial doubtful accounts provision indicates potential customer financial stress or collection issues.

BRISBANE, Calif.--(BUSINESS WIRE)-- CUTERA, INC. (Nasdaq: CUTR), a leading provider of aesthetic and dermatology solutions, today reported financial results for the third quarter ended September 30, 2024.

  • Consolidated revenue for the third quarter of 2024 of $32.5 million
  • Cash, cash equivalents, and restricted cash of $59.0 million
  • AviClear growth of 16% vs prior year period driven by international capital system sales
  • Global core capital growth of 7% on a sequential quarterly basis
  • Full-year guidance maintained for both revenue and year-end cash balance

“Our third quarter reflects consistent execution against our strategic priorities, with core capital sales improving on a sequential basis, AviClear continuing to grow year-over-year driven by strong sales and utilization in international markets, and favorable underlying trends in our gross margin and operating expense profile,” commented Taylor Harris, Chief Executive Officer of Cutera, Inc. “We remain focused on expanding access to AviClear, our breakthrough technology for the treatment of acne, through training and education, practice development, and clinical indication expansion.”

Third Quarter 2024 Financial Highlights

Consolidated revenue for the third quarter of 2024 was $32.5 million, a decrease of 30% compared to the third quarter 2023. Revenue in the third quarter of 2023 included skincare revenue of $7.1 million; following the termination of our skincare distribution agreement in February 2024, the third quarter of 2024 did not include skincare revenue. Revenue related to capital systems sales declined 17%, while recurring sources of revenue, excluding skincare, declined 19%.

Gross profit was $1.8 million, or 6% of revenue for the third quarter of 2024, compared to a gross profit of $6.5 million, or 14% of revenue, for the third quarter of 2023. On a non-GAAP basis, gross profit was $3.7 million, or 12% of revenue, for the third quarter of 2024, compared to $9.0 million, or 19%, for the third quarter of 2023. Gross profit in the third quarter, on a GAAP and a non-GAAP basis, was negatively affected by $10.1 million, or 31% of revenue, of non-cash expense related to excess and obsolete inventory.

Operating expenses were $38.0 million for the third quarter of 2024, compared to $47.4 million in the prior year period. On a non-GAAP basis, operating expenses were $34.7 million for the third quarter of 2024, compared to $39.8 million for the prior year period. Operating expenses for the third quarter of 2024, on a GAAP and non-GAAP basis, include a $5.4 million charge related to doubtful accounts receivable. The Company no longer adjusts for costs related to a retention plan implemented in April 2023, in its Reconciliation of Non-GAAP Financial Measures. Accordingly, the Company has not adjusted for $0.4 million of retention plan costs incurred in the third quarter of 2024. Further, the Company has revised the presentation of current and prior year periods to remove adjustments related to retention plan costs of $4.0 million for the nine months ending September 30, 2024, and $1.4 million and $4.3 million, in the three and nine months ended September 30, 2023, respectively.

GAAP operating loss was $36.2 million and $40.9 million for the third quarters of 2024 and 2023, respectively. Non-GAAP operating loss was $31.0 million for the third quarter of 2024, compared to a Non-GAAP operating loss of $30.9 million for the third quarter of 2023.

Cash, cash equivalents, and restricted cash, were $59.0 million as of September 30, 2024, compared to $84.3 million as of June 30, 2024.

2024 Outlook

Management is reaffirming full-year revenue guidance of $140 million to $145 million, as well as guidance for year-end 2024 cash, cash equivalents and restricted cash of approximately $40 million.

Conference Call

The Company’s management will host a conference call to discuss these results and related matters today at 1:30 p.m. PT (4:30 p.m. ET). Participating in the call will be Taylor Harris, Chief Executive Officer, Stuart Drummond, Interim Chief Financial Officer, and Shelby Eckerman, Vice President, Finance.

Participants can register for the conference call at this registration link. Upon registering, a calendar booking will be provided by email including the dial-in details and a unique PIN to access the call. Using this process will by-pass the operator and avoid the call queue. Registration will remain open until the end of the live conference call.

If participants prefer to dial in and speak with an operator, dial Canada/USA Toll Free: 1-844-763-8274 or +1-647-484-8814. It is recommended that you call in 10 minutes prior to the scheduled start time if you are using one of these operator-assisted phone numbers.

The call will also be webcast and can be accessed from the Investor Relations section of Cutera’s website at http://www.cutera.com/. The webcast replay of the call will be available at the same site approximately one hour after the end of the call.

About Cutera, Inc.

Cutera is a leading provider of aesthetic and dermatology solutions for practitioners worldwide. For over 25 years, Cutera has strived to improve lives through medical aesthetic technologies that are driven by science and powered through partnerships. For more information, call 1-888-4-CUTERA or visit Cutera.com.

*Use of Non-GAAP Financial Measures

In this press release, to supplement the Company’s condensed consolidated financial statements presented in accordance with Generally Accepted Accounting Principles (“GAAP”), management has disclosed certain non-GAAP financial measures for gross profit, gross margin rate, and income or loss from operations. Non-GAAP adjustments include depreciation and amortization including contract acquisition costs, stock-based compensation, enterprise resource planning (“ERP”) implementation costs, certain legal and litigation costs, costs associated with restructuring activities and the separation of its officers and other executives, gain on termination of a distribution agreement, and certain other adjustments. From time to time in the future, there may be other items that the Company may exclude if the Company believes that doing so is consistent with the goal of providing useful information to investors and management. The Company has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure.

The Company defines non-GAAP operating income (loss), also commonly known as adjusted EBITDA, as operating income (loss) before depreciation and amortization, stock-based compensation, ERP implementation costs, certain legal and litigation costs, severance, gain on early termination of distribution agreement, and other adjustments.

Company management uses non-GAAP financial measures as aids in monitoring the Company’s ongoing financial performance from quarter to quarter, and year to year, and for benchmarking against other similar companies. Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. These non-GAAP financial measures should be considered along with, but not as alternatives to, the operating performance measure as prescribed by GAAP. Non-GAAP financial measures for the statement of operations and net income per share exclude the following:

Depreciation and amortization, including contract acquisition costs. The Company has excluded depreciation and amortization expense in calculating its non-GAAP operating expenses and net income measures. Depreciation and amortization are non-cash charges to current operations;

Stock-based compensation. The Company has excluded the effect of stock-based compensation expenses in calculating its non-GAAP operating expenses and net income measures. Although stock-based compensation is a key incentive offered to the Company's employees, the Company continues to evaluate its business performance excluding stock-based compensation expenses. The Company records stock-based compensation expenses related to grants of options, employee stock purchase plans, and performance and restricted stock. Depending upon the size, timing, and terms of the grants, this expense may vary significantly but will recur in future periods. The Company believes that excluding stock-based compensation better allows for comparisons to its peer companies;

ERP implementation costs. The Company has excluded ERP system costs related to direct and incremental costs incurred in connection with its multi-phase implementation of a new ERP solution and the related technology infrastructure costs. The Company excludes these costs because it believes that these items do not reflect future operating expenses and will be inconsistent in amounts and frequency, making it difficult to contribute to a meaningful evaluation of the Company’s operating performance;

Certain legal and litigation costs. The Company has excluded costs incurred related to its litigation against Lutronic Aesthetics as well as the settlement of $5.8 million, which is not part of the Company’s ordinary course of business. The Company’s complaint against Lutronic alleged misappropriation of trade secrets, violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), interference with contractual relations and other claims. The Company excludes these costs as well as the settlement because this litigation is a result of a discrete event that was not part of the Company’s business strategy, but has a significant effect on the results of operations. The costs are incidental to and do not reflect the efficiencies and effectiveness of the Company’s core operations;

Severance. The Company has excluded costs associated with restructuring activities and the separation of its officers and other executives in calculating its non-GAAP operating expenses and non-GAAP Operating Income. The Company has excluded restructuring costs because a restructuring represents a discrete event that signifies a change in the Company’s strategy, but these costs are not indicative of the ongoing financial performance of the business. The Company excludes executive separation costs because executive separations are unpredictable and not part of the Company’s business strategy but could have a significant impact on the results of operations;

Gain on early termination of distribution agreement. The Company has excluded a gain recorded in connection with the early termination of a distribution agreement with ZO USA in calculating its non-GAAP operating expenses and non-GAAP operating income (loss). The Company recorded the net gain of $9.7 million in the Company's condensed consolidated statement of operations for the three months ended March 31, 2024. The Company has excluded this gain as it is not indicative of the ongoing financial performance of the business, and not part of the Company’s business strategy.

The Company believes that excluding all of the items above allows users of its financial statements to better review and assess both current and historical results of operations. The Company no longer adjusts for costs related to a retention plan implemented in April 2023, as such costs represent a normal, recurring, operating cost, and accordingly, has not adjusted for $0.4 million of retention plan costs incurred in the third quarter of 2024. Further, the Company has revised the presentation of the prior year periods to remove adjustments for retention plan costs of $1.4 million and $4.3 million, in the three and nine months ended September 30, 2023, respectively.

Safe Harbor Statement

Certain statements in this press release, other than purely historical information, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements include but are not limited to express or implied statements regarding expanding access to AviClear, and full year revenues and cash, cash equivalents and restricted cash, along with other express or implied statements regarding Cutera’s plans, objectives, strategies, financial performance, guidance and outlook, product launches and performance, trends, prospects, or future events. In some cases, you can identify forward-looking statements by the use of words such as, but not limited to, “may,” “could,” “seek,” “guidance,” “predict,” “potential,” “likely,” “believe,” “will,” “should,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “forecast,” “foresee” or variations of these terms and similar expressions or the negative of these terms or similar expressions. Forward-looking statements are based on management's current expectations and beliefs and are subject to risks and uncertainties, which are difficult to predict and may cause Cutera's actual results to differ materially from the express or implied forward-looking statements herein. These forward-looking statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements. There are several risks, uncertainties, and other important factors, many of which are beyond Cutera’s control, that could cause its actual results to differ materially from the forward-looking statements, including risks involved with continued expansion of AviClear, Cutera’s financial position and debt service requirements, and making financial projections, as well as the other risks described in the “Risk Factors” section of Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other documents filed from time to time with the United States Securities and Exchange Commission by Cutera.

All statements made in this release are made only as of the date set forth at the beginning of this release. Accordingly, undue reliance should not be placed on forward-looking statements. Cutera undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date they were made, or to reflect the occurrence of unanticipated events. If Cutera updates one or more forward-looking statements, no inference should be drawn that it will make additional updates concerning those or other forward-looking statements. Cutera's financial performance for the third quarter ended September 30, 2024, as discussed in this release, is preliminary and unaudited, and subject to adjustment.

 
CUTERA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
 
 
September 30, December 31,

2024

2023

Assets
Current assets:
Cash and cash equivalents

$

57,614

 

$

143,612

 

Accounts receivable, net

 

33,150

 

 

43,121

 

Inventories

 

56,908

 

 

62,600

 

Other current assets and prepaid expenses

 

12,842

 

 

19,852

 

Total current assets

 

160,514

 

 

269,185

 

 
Long-term inventories

 

28,664

 

 

16,283

 

Property and equipment, net

 

23,521

 

 

37,275

 

Deferred tax asset

 

590

 

 

579

 

Restricted cash

 

1,363

 

 

-

 

Goodwill

 

1,339

 

 

1,339

 

Operating lease right-of-use assets

 

10,593

 

 

10,055

 

Other long-term assets

 

7,834

 

 

11,575

 

Total assets

$

234,418

 

$

346,291

 

 
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable

$

7,949

 

$

19,829

 

Accrued liabilities

 

35,972

 

 

55,055

 

Operating leases liabilities

 

3,386

 

 

2,441

 

Deferred revenue

 

8,382

 

 

10,422

 

Total current liabilities

 

55,689

 

 

87,747

 

 
Deferred revenue, net of current portion

 

1,689

 

 

1,494

 

Operating lease liabilities, net of current portion

 

8,397

 

 

8,887

 

Convertible notes, net of unamortized debt issuance costs

 

420,422

 

 

418,695

 

Other long-term liabilities

 

1,095

 

 

1,298

 

Total liabilities

 

487,292

 

 

518,121

 

 
Stockholders’ deficit:
Common stock

 

20

 

 

20

 

Additional paid-in capital

 

136,929

 

 

131,496

 

Accumulated deficit

 

(389,823

)

 

(303,346

)

Total stockholders' deficit

 

(252,874

)

 

(171,830

)

Total liabilities and stockholders' deficit

$

234,418

 

$

346,291

 

 
CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
 
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,

2024

2023

2024

2023

 
Products $

27,242

 

$

40,989

 

$

88,714

 

$

146,285

 

Service

5,258

 

5,489

 

16,956

 

16,544

 

Total net revenue

32,500

 

46,478

 

105,670

 

162,829

 

 
Products

27,991

 

36,586

 

75,045

 

98,696

 

Service

2,696

 

3,435

 

8,749

 

9,961

 

Total cost of revenue

30,687

 

40,021

 

83,794

 

108,657

 

Gross profit

1,813

 

6,457

 

21,876

 

54,172

 

Gross margin %

5.6

%

13.9

%

20.7

%

33.3

%

 
Operating expenses:
Sales and marketing

18,928

 

25,808

 

63,269

 

88,591

 

Research and development

4,353

 

4,592

 

13,817

 

16,844

 

General and administrative

14,749

 

17,004

 

31,951

 

47,448

 

Gain on early termination of distribution agreement

-

 

-

 

(9,708

)

-

 

Total operating expenses

38,030

 

47,404

 

99,329

 

152,883

 

Loss from operations

(36,217

)

(40,947

)

(77,453

)

(98,711

)

Amortization of debt issuance costs

(580

)

(561

)

(1,726

)

(1,670

)

Interest expense on convertible notes

(3,071

)

(2,939

)

(8,969

)

(8,836

)

Interest income

768

 

2,288

 

3,248

 

6,946

 

Other expense (income), net

575

 

(1,948

)

(1,128

)

(2,564

)

Loss before income taxes

(38,525

)

(44,107

)

(86,028

)

(104,835

)

Income tax expense

493

 

167

 

449

 

765

 

Net loss $

(39,018

)

$

(44,274

)

$

(86,477

)

$

(105,600

)

 
Net loss per share:
Basic $

(1.94

)

$

(2.22

)

$

(4.31

)

$

(5.32

)

Diluted $

(1.94

)

$

(2.22

)

$

(4.31

)

$

(5.32

)

 
Weighted-average number of shares used in per share calculations:
Basic

20,154

 

19,932

 

20,079

 

19,858

 

Diluted

20,154

 

19,932

 

20,079

 

19,858

 

 
CUTERA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except percentage data)
(unaudited)
 
Three Months Ended % Change Nine Months Ended % Change
September 30, September 30, 2024 Vs September 30, September 30, 2024 Vs

2024

2023

2023

2024

2023

2023

Revenue By Geography:
North America $

14,651

 

$

24,855

 

-41.1

%

$

49,150

 

$

84,494

 

-41.8

%

Japan

3,420

 

11,529

 

-70.3

%

14,847

 

37,247

 

-60.1

%

Rest of World

14,429

 

10,094

 

+42.9

%

41,673

 

41,088

 

+1.4

%

Total Net Revenue $

32,500

 

$

46,478

 

-30.1

%

$

105,670

 

$

162,829

 

-35.1

%

International as a percentage of total revenue

54.9

%

46.5

%

53.5

%

48.1

%

Revenue By Product Category:
Systems
- North America $

9,253

 

$

16,982

 

-45.5

%

$

30,926

 

$

59,750

 

-48.2

%

- Rest of World (including Japan)

13,771

 

10,618

 

+29.7

%

40,258

 

41,654

 

-3.4

%

Total Systems

23,024

 

27,600

 

-16.6

%

71,184

 

101,404

 

-29.8

%

Consumables

4,218

 

6,248

 

-32.5

%

13,330

 

20,186

 

-34.0

%

Skincare

-

 

7,141

 

-100.0

%

4,200

 

24,695

 

-83.0

%

Total Products

27,242

 

40,989

 

-33.5

%

88,714

 

146,285

 

-39.4

%

Service

5,258

 

5,489

 

-4.2

%

16,956

 

16,544

 

+2.5

%

Total Net Revenue $

32,500

 

$

46,478

 

-30.1

%

$

105,670

 

$

162,829

 

-35.1

%

 
CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,

2024

2023

2024

2023

Cash flows from operating activities:
Net loss

$

(39,018

)

$

(44,274

)

$

(86,477

)

$

(105,600

)

Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation

 

1,841

 

 

1,616

 

 

5,543

 

 

6,552

 

Depreciation and amortization

 

1,669

 

 

1,987

 

 

5,464

 

 

5,225

 

Amortization of contract acquisition costs

 

1,113

 

 

3,016

 

 

3,882

 

 

7,085

 

Amortization of debt issuance costs

 

581

 

 

561

 

 

1,727

 

 

1,670

 

Deferred tax assets

 

(82

)

 

19

 

 

(11

)

 

62

 

Provision for credit losses

 

4,931

 

 

3,574

 

 

9,739

 

 

5,488

 

Accretion of discount on investment securities and investment income, net

 

-

 

 

902

 

 

-

 

 

1,048

 

Changes in assets and liabilities:
Accounts receivable

 

(3,402

)

 

276

 

 

232

 

 

(9,755

)

Inventories

 

11,841

 

 

2,317

 

 

3,259

 

 

1,781

 

Other current assets and prepaid expenses

 

118

 

 

5,128

 

 

7,010

 

 

4,352

 

Other long-term assets

 

(142

)

 

(860

)

 

(472

)

 

(5,642

)

Accounts payable

 

(9,668

)

 

(3,069

)

 

(11,880

)

 

(4,735

)

Accrued liabilities

 

5,737

 

 

(7,157

)

 

(18,704

)

 

(10,963

)

Operating leases ,net

 

(27

)

 

(14

)

 

(83

)

 

(44

)

Deferred revenue

 

(234

)

 

(899

)

 

(1,845

)

 

(390

)

Net cash used in operating activities

 

(24,742

)

 

(36,877

)

 

(82,616

)

 

(103,866

)

Cash flows from investing activities:
Acquisition of property and equipment

 

(173

)

 

(5,534

)

 

(1,390

)

 

(30,642

)

Proceeds from disposal of property and equipment

 

-

 

 

-

 

 

63

 

 

-

 

Proceeds from maturities of marketable investments

 

-

 

 

41,044

 

 

193,903

 

Purchases of marketable investments

 

-

 

 

-

 

 

-

 

 

(23,467

)

Net provided by (used in) cash used in investing activities

 

(173

)

 

35,510

 

 

(1,327

)

 

139,794

 

Cash flows from financing activities:
Proceeds from exercise of stock options and employee stock purchase plan

 

-

 

 

465

 

 

-

 

 

1,323

 

Taxes paid related to net share settlement of equity awards

 

(26

)

 

(87

)

 

(110

)

 

(3,273

)

Payments on finance lease obligation

 

(393

)

 

(149

)

 

(582

)

 

(386

)

Net cash provided by (used in) financing activities

 

(419

)

 

229

 

 

(692

)

 

(2,336

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

(25,334

)

 

(1,138

)

 

(84,635

)

 

33,592

 

Cash, cash equivalents, and restricted cash at beginning of period

 

84,311

 

 

181,354

 

 

143,612

 

 

146,624

 

Cash, cash equivalents, and restricted cash at end of period

$

58,977

 

$

180,216

 

$

58,977

 

$

180,216

 

 

CUTERA, INC.

Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure

(in thousands)

 
Three Months Ended September 30, 2024 Gross Profit Gross Margin Operating
Expenses
Operating
Income
Reported

$

1,813

 

5.6

%

$

38,030

$

(36,217

)

Adjustments:
Depreciation and amortization including contract acquisition costs

 

1,643

 

5.1

%

 

1,138

 

2,781

 

Stock-based compensation

 

102

 

0.3

%

 

1,739

 

1,841

 

Legal - Lutronic settlement

 

-

 

0.0

%

 

-

 

-

 

Severance

 

189

 

0.6

%

 

454

 

643

 

Gain on early termination of distribution agreement

 

-

 

0.0

%

 

-

 

-

 

Other adjustments

 

-

 

0.0

%

 

-

 

-

 

 
Total adjustments

 

1,934

 

6.0

%

 

3,331

 

5,265

 

Non-GAAP

$

3,747

 

11.5

%

$

34,699

$

(30,952

)

 
 
Three Months Ended September 30, 2023 Gross Profit Gross Margin Operating
Expenses
Operating
Income
Reported

$

6,457

 

13.9

%

$

47,404

$

(40,947

)

Adjustments:
Depreciation and amortization including contract acquisition costs

 

2,371

 

5.1

%

 

2,361

 

4,732

 

Stock-based compensation

 

(19

)

0.0

%

 

1,636

 

1,617

 

ERP implementation cost

 

-

 

0.0

%

 

1,456

 

1,456

 

Legal - Lutronic expense

 

-

 

0.0

%

 

561

 

561

 

Severance

 

151

 

0.3

%

 

191

 

342

 

Board of Directors legal and advisory fees

 

-

 

0.0

%

 

1,280

 

1,280

 

Other adjustments

 

-

 

0.0

%

 

97

 

97

 

 
Total adjustments

 

2,503

 

5.4

%

 

7,582

 

10,085

 

Non-GAAP

$

8,960

 

19.3

%

$

39,822

$

(30,862

)

Nine Months Ended September 30, 2024 Gross Profit Gross Margin Operating
Expenses
Operating
Income
Reported

$

21,876

20.7

%

$

99,329

 

$

(77,453

)

Adjustments:
Depreciation and amortization including contract acquisition costs

 

5,564

5.3

%

 

3,782

 

 

9,346

 

Stock-based compensation

 

395

0.4

%

 

5,148

 

 

5,543

 

Legal - Lutronic settlement

 

-

0.0

%

 

(5,750

)

 

(5,750

)

Severance

 

285

0.3

%

 

1,257

 

 

1,542

 

Gain on early termination of distribution agreement

 

-

0.0

%

 

(9,708

)

 

(9,708

)

Other adjustments

 

-

0.0

%

 

263

 

 

263

 

 
Total adjustments

 

6,244

5.9

%

 

(5,008

)

 

1,236

 

Non-GAAP

$

28,120

26.6

%

$

104,337

 

$

(76,217

)

 
 
Nine Months Ended September 30, 2023 Gross Profit Gross Margin Operating
Expenses
Operating
Income
Reported

$

54,172

33.3

%

$

152,883

 

$

(98,711

)

Adjustments:
Depreciation and amortization including contract acquisition costs

 

5,968

3.7

%

 

6,342

 

 

12,310

 

Stock-based compensation

 

706

0.4

%

 

5,847

 

 

6,553

 

ERP implementation cost

 

-

0.0

%

 

2,744

 

 

2,744

 

Legal - Lutronic expense

 

-

0.0

%

 

1,607

 

 

1,607

 

Severance

 

270

0.2

%

 

621

 

 

891

 

Board of Directors legal and advisory fees

 

-

0.0

%

 

8,989

 

 

8,989

 

Other adjustments

 

307

0.2

%

 

682

 

 

989

 

 
Total adjustments

 

7,251

4.5

%

 

26,832

 

 

34,083

 

Non-GAAP

$

61,423

37.7

%

$

126,051

 

$

(64,628

)

 

Cutera Investor Relations Contact:

Shelby Eckerman, VP, Finance

IR@Cutera.com

Source: Cutera, Inc.

FAQ

What was Cutera's (CUTR) revenue in Q3 2024?

Cutera reported Q3 2024 revenue of $32.5 million, representing a 30% decrease compared to Q3 2023.

How much did AviClear sales grow for Cutera (CUTR) in Q3 2024?

AviClear showed 16% growth year-over-year, driven by international capital system sales.

What is Cutera's (CUTR) full-year 2024 revenue guidance?

Cutera maintained its full-year 2024 revenue guidance of $140 million to $145 million.

What was Cutera's (CUTR) cash position at the end of Q3 2024?

Cutera reported cash, cash equivalents, and restricted cash of $59.0 million as of September 30, 2024.

Cutera, Inc.

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