Cutera, Inc. Announces Fourth Quarter and Full-Year 2020 Financial Results

Rhea-AI Summary

Cutera (NASDAQ: CUTR) reported Q4 2020 revenue of $49.9 million, down 4% year-over-year, but up 28% sequentially. Capital Equipment revenue fell 26% to $30.1 million, while Recurring Revenue surged 80% to $19.8 million, bolstered by a 363% increase in Skincare revenue. Gross Margin improved to 56.2%, and the company posted a net income of $2.2 million, a recovery from a loss last year. Full-year revenue stood at $147.7 million, down from $181.7 million in 2019. Cutera will not provide formal guidance for 2021 due to COVID-19 uncertainties.

Positive

• Recurring revenue grew 80% year-over-year, indicating strong recovery.
• Skincare revenue increased by 363% compared to the prior year.
• Gross margin improved to 56.2% in Q4 2020.

Negative

• Q4 2020 revenue decreased 4% compared to Q4 2019.
• Full-year revenue declined to $147.7 million from $181.7 million in 2019.
• Capital Equipment revenue dropped 35% compared to 2019.

Cutera, Inc. (NASDAQ: CUTR) (“Cutera” or the “Company”), a leading provider of laser and other energy-based aesthetic systems for practitioners worldwide, today reported financial results for the fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020 Financial and Operational Highlights

• Revenue was $49.9 million in the fourth quarter, a decrease of 4% from the prior-year period and an increase of 28% sequentially. The year-over-year decline was solely attributed to lower levels of capital equipment purchases due to COVID-related disruptions, while patient traffic and energy-based treatment volumes were estimated to be at pre-COVID-19 levels during the quarter.
  • Capital Equipment revenue of $30.1 million declined 26% over the prior-year period, while increasing 25% sequentially over the third quarter of 2020.
  • Recurring revenue, defined as the combination of Service, Skincare and Consumable Product categories, was $19.8 million during the fourth quarter, growing 80% over the prior-year period and 32% sequentially over the third quarter of 2020.
    • Skincare revenue was $10.6 million during the quarter, compared to $2.3 million in the prior-year period, growth of 363%.
    • Consumable Product revenue was $3.0 million, growing 19% over the prior-year period and 31% sequentially from the third quarter of 2020, reflecting the continued recovery of energy-based treatment volumes.
    • Service revenue of $6.2 million was flat versus the prior-year period, despite decreased access to practices from COVID-related restrictions.
• Gross Margin was 56.2% for fourth quarter 2020 compared to 55.6% in the prior-year period. Impacts from lower capital equipment production volumes and product mix shift were offset by reductions in fixed overhead and manufacturing efficiencies.
• Operating Expense improvements provided a year-over-year reduction of $4.1 million in the quarter, driven by lower selling expenses, partially offset by legal expenses.
• Net income was $2.2 million, or $0.12 per fully diluted share, as compared to a net loss of ($2.1) million, or ($0.15) per fully diluted share, in the prior-year period.

Full-Year 2020 Financial and Operational Highlights

• Revenue was $147.7 million, compared to $181.7 million in 2019.
  • Capital Equipment revenue of $90.8 million decreased 35% over 2019.
  • Recurring Revenue of $56.9 million increased 38% over 2019, driven by Skincare increase of $16.5M over 2019.
• Gross Margin was 51.3% for full-year 2020, as compared to 54.0% in 2019.
• Operating Expenses decreased $11.6 million to $98.6 million, a decline of 11% over 2019.
• Net loss was $23.9 million, or ($1.43) per fully diluted share, as compared to a net loss of $12.3 million, or ($0.88) per fully diluted share, in 2019.

“I am pleased with our overall results for the fourth quarter and by the efforts our team put forth over the entirety of 2020. Our team’s commitment to execution drove steady improvement during the second half of 2020, posting solid results despite the difficult operating environment,” commented Dave Mowry, Chief Executive Officer of Cutera, Inc. “Our focus and resiliency enabled us to make steady progress on our vital commercial and operational initiatives during 2020. As a result of these efforts, we enter 2021 well-positioned to accelerate growth and expand profitability as the impact of COVID-19 continues to wane. I am particularly excited about what lies ahead for Cutera, as we work to bring truly innovative products to market and continue to fortify our business with greater discipline to sustain our financial performance.”

2021 Outlook

Given the continued uncertainty surrounding the magnitude and duration of the COVID-19 pandemic, the wide range of outcomes for its impact on capital sales, and its potential to delay procedure volumes over the course of the year, the Company will not be providing formal guidance at this time.

Conference Call

The Company’s management will host a conference call to the discuss these results and related matters today at 1:30 p.m. PT (4:30 p.m. ET). Participating on the call will be Dave Mowry, Chief Executive Officer, Rohan Seth, Chief Financial Officer, and, Jason Richey, President.

To participate in the conference call, dial 1-877-705-6003 (domestic) or + 1-201-493-6725 (international) and refer to the Conference Code: 13715746.

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.

Brisbane, California-based Cutera is a leading provider of laser and other energy-based aesthetic systems for practitioners worldwide. Since 1998, Cutera has developed innovative, easy-to-use products that enable physicians and other qualified practitioners to offer safe and effective aesthetic treatments to their patients. For more information, call 1-888-4CUTERA or visit www.cutera.com.

*Use of Non-GAAP Financial Measures

In this press release, in order to supplement the Company’s condensed consolidated financial statements presented in accordance with Generally Accepted Accounting Principles, or GAAP, management has disclosed certain non-GAAP financial measures for the statement of operations and net income (loss) per diluted share. Non-GAAP adjustments include stock-based compensation, depreciation, amortization, executive and other non-recurring separation costs, customer relationship management (“CRM”) and enterprise resource planning (“ERP”) system costs, and non-recurring legal and litigation costs, as well as the net tax impact of excluding these items. From time to time in the future, there may be other items that we 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. Forward-looking non-GAAP measures include adjusted EBITDA. The Company defines adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, stock-based compensation, executive and other non-recurring separation costs, CRM and ERP system costs, and non-recurring legal and litigation costs.

Company management uses these measurements as aids in monitoring the Company’s ongoing financial performance from quarter to quarter, and year to year, on a regular basis 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 diluted share exclude the following:

Non-cash expenses for 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 its employees, the Company continues to evaluate its business performance excluding stock-based compensation expenses. The Company records stock-based compensation expense related to grants of options, employee stock purchase plan, and performance and restricted stock. Depending upon the size, timing and the 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;

Depreciation and amortization. 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;

Executive and other non-recurring separation costs. We have excluded costs associated with the resignation of our former Executive Officers in calculating our non-GAAP operating expenses and net income measures. We exclude these and other non-recurring employee separation costs because we believe that these items do not reflect future operating expenses;

Customer Relationship Management. We have excluded CRM system costs related to direct and incremental costs incurred in connection with our multi-phase implementation of a new CRM solution and the related technology infrastructure costs. We exclude these costs because we believe 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 our operating performance;

Enterprise Resource Planning. We have excluded ERP system costs related to direct and incremental costs incurred in connection with our multi-phase implementation of a new ERP solution and the related technology infrastructure costs. We exclude these costs because we believe 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 our operating performance; and

Non-recurring legal and litigation costs. We have excluded costs incurred related to third party litigation and disputes, that are of a non-recurring nature.

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.

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, Cutera’s plans, objectives, strategies, financial performance and outlook, CFO and other senior leadership searches, product launches and performance, trends, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, the Company’s actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “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, preliminary expectations and are subject to risks and uncertainties, which may cause Cutera's actual results to differ materially from the statements contained herein. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements. There are a number of risks, uncertainties and other important factors, many of which are beyond the Company’s control, that could cause its actual results to differ materially from the forward-looking statements contained in this press release, including those 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, the Registration Statement on Form S-8 and other documents filed from time to time with the United States Securities and Exchange Commission by Cutera.

All information in this press release is as of the date of its 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 the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. Cutera's financial performance for the fourth quarter and full year ended December 31, 2020, as discussed in this release, is preliminary and unaudited, and subject to adjustment.

The financial data presented for the year ended December 31, 2020 should be considered preliminary and could be subject to change, as the Company’s independent auditor has not completed their audit.

CUTERA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
		December 31,			December 31,
Reporting Unit Balance Sheet		2020			2019
Assets
Current assets:
Cash and cash equivalents		$	47,047		$	26,316
Marketable investments			-			7,605
Accounts receivable, net			22,645			21,556
Inventories			28,508			33,921
Other current assets and prepaid expenses			8,096			5,648
Total current assets			106,296			95,046
Property and equipment, net			2,299			2,817
Deferred tax asset			643			423
Goodwill			1,339			1,339
Operating lease right-of-use assets			17,076			7,702
Other long-term assets			5,080			6,411
Total assets		$	132,733		$	113,738
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	6,684		$	12,685
Accrued liabilities			31,079			30,307
Operating leases liabilities			2,260			2,800
Extended warranty liabilities			1,216			1,999
Deferred revenue			9,489			10,831
Total current liabilities			50,728			58,622
Deferred revenue, net of current portion			1,748			3,391
Income tax liability			-			93
PPP Loan payable			7,185			-
Operating lease liabilities, net of current portion			15,950			5,112
Other long-term liabilities			242			578
Total liabilities			75,853			67,796
Stockholders’ equity:
Common stock			18			14
Additional paid-in capital			117,097			82,346
Accumulated deficit			(60,235)			(36,358)
Accumulated other comprehensive loss			-			(60)
Total stockholders' equity			56,880			45,942
Total liabilities and stockholders' equity		$	132,733		$	113,738

CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
		Three Months Ended						Twelve Months Ended
		December 31,			December 31,			December 31,			December 31,
		2020			2019			2020			2019
Products		$	43,723		$	45,593			125,113		$	158,638
Service			6,220			6,202			22,570			23,074
Total net revenue			49,943			51,795			147,683			181,712
Products			17,999			18,415			58,325			64,693
Service			3,878			4,590			13,586			18,856
Total cost of revenue			21,877			23,005			71,911			83,549
Gross profit			28,066			28,790			75,772			98,163
Gross margin %			56%			56%			51%			54%
Operating expenses:
Sales and marketing			14,656			20,323			52,766			71,109
Research and development			4,029			4,463			14,322			15,085
General and administrative			7,938			5,933			31,512			24,033
Total operating expenses			26,623			30,719			98,600			110,227
Income (Loss) from operations			1,443			(1,929)			(22,828)			(12,064)
Interest and other income (expense), net			7			(20)			(579)			(199)
Income (Loss) before income taxes			1,450			(1,949)			(23,407)			(12,263)
Income tax expense (benefit)			(738)			139			470			85
Net Income (loss)		$	2,188		$	(2,088)		$	(23,877)		$	(12,348)
Net Income (loss) per share:
Basic		$	0.12		$	(0.15)		$	(1.43)		$	(0.88)
Diluted		$	0.12		$	(0.15)		$	(1.43)		$	(0.88)
Weighted-average number of shares used in per share calculations:
Basic			17,653			14,261			16,691			14,096
Diluted			17,840			14,261			16,691			14,096

CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
		Three Months Ended						Twelve Months Ended
		December 31,			December 31,			December 31,			December 31,
		2020			2019			2020			2019
Cash flows from operating activities:
Net income (loss)		$	2,188		$	(2,088)		$	(23,877)		$	(12,348)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation			2,052			2,828			10,109			9,832
Depreciation of tangible assets			338			364			1,394			1,548
Amortization of contract acquisition costs			579			746			2,593			2,915
Impairment of capitalized cloud computing costs			-			-			805			-
Change in deferred tax asset			(143)			36			(220)			34
Provision for credit losses			394			(57)			2,144			590
Loss on sale of marketable investments, net			-						60			-
Change in right-of-use asset/liability due to modification			705			-			955			-
Other			183			72			453			127
Changes in assets and liabilities:
Accounts receivable			(5,442)			1,723			(3,233)			(2,509)
Inventories			825			121			5,413			(5,907)
Other current assets and prepaid expenses			(1,208)			(339)			(2,481)			(1,762)
Other long-term assets			(1,009)			(747)			(2,067)			(3,355)
Accounts payable			(148)			(1,455)			(6,034)			1,406
Accrued liabilities			5,450			2,257			891			7,157
Extended warranty liabilities			(281)			(233)			(783)			(1,160)
Other long-term liabilities			-			-			-			(140)
Deferred revenue			(587)			749			(2,985)			1,656
Income tax liability			(93)			-			(93)			(301)
Net cash provided by (used in) operating activities			3,803			3,977			(16,956)			(2,217)
Cash flows from investing activities:
Acquisition of property, equipment and software			(505)			(467)			(1,279)			(991)
Disposal of property and equipment			30			-			30			45
Proceeds from sales of marketable investments			5,648			-			5,648			-
Proceeds from maturities of marketable investments			9,050			3,250			28,050			14,700
Purchase of marketable investments			(1,649)			(4,383)			(26,060)			(12,687)
Net cash provided by (used in) investing activities			12,574			(1,600)			6,389			1,067
Cash flows from financing activities:
Proceeds from exercise of stock options and employee stock purchase plan			723			1,294			1,579			2,894
Proceeds from long-term debt			-			-			7,167			-
Gross proceeds from equity offering			-			-			28,798			-
Offering costs on the equity offering			-			-			(2,303)			-
Taxes paid related to net share settlement of equity awards			(88)			(81)			(3,428)			(831)
Payments on finance lease obligations			(2)			(153)			(515)			(649)
Net cash provided by financing activities			633			1,060			31,298			1,414
Net increase in cash and cash equivalents			17,010			3,437			20,731			264
Cash and cash equivalents at beginning of period			29,394			22,879			26,316			26,052
Cash and cash equivalents at end of period		$	46,404		$	26,316		$	47,047		$	26,316

CUTERA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except percentage data)
(unaudited)
		Three Months Ended						% Change		Twelve Months Ended						% Change
		December 31,			December 31,			2020 Vs		December 31,			December 31,			2020 Vs
		2020			2019			2019		2020			2019			2019
Revenue By Geography:
United States		$	21,060		$	31,271		-33%		$	61,202		$	106,243		-42%
International			28,883			20,524		+41%			86,481			75,469		+15%
Total Net Revenue		$	49,943		$	51,795		-4%		$	147,683		$	181,712		-19%
International as a percentage of total revenue			58%			40%					59%			42%
Revenue By Product Category:
Systems
- North America		$	18,426		$	28,526		-35%		$	50,721		$	96,718		-48%
- Rest of World			11,719			12,246		-4%			40,045			43,760		-8%
Total Systems			30,145			40,772		-26%			90,766			140,478		-35%
Consumables			3,023			2,539		+19%			9,286			9,648		-4%
Skincare			10,555			2,282		+363%			25,061			8,512		+194%
Total Products			43,723			45,593		-4%			125,113			158,638		-21%
Service			6,220			6,202		+0%			22,570			23,074		-2%
Total Net Revenue		$	49,943		$	51,795		-4%		$	147,683		$	181,712		-19%
		Three Months Ended								Twelve Months Ended
		December 31,			December 31,					December 31,			December 31,
		2020			2019					2020			2019
Pre-tax Stock-Based Compensation Expense:
Cost of revenue		$	306		$	469				$	1,665		$	1,572
Sales and marketing			767			1,430					3,385			4,510
Research and development			325			460					1,669			1,536
General and administrative			654			469					3,390			2,214
		$	2,052		$	2,828				$	10,109		$	9,832

CUTERA, INC.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
		Three Months Ended December 31, 2020																								Three Months Ended December 31, 2019
		GAAP				Depreciation and Amortization				Stock-Based Compensation				Legal - Former CFO Settlement/Lutronic				Taxes and Other Adjustments				Non-GAAP				GAAP				Depreciation and Amortization				Stock-Based Compensation				CRM and ERP Implementation/ write-off				Taxes and Other Adjustments				Non-GAAP
Net revenue		$	49,943				-				-				-				-			$	49,943			$	51,795				-				-				-				-			$	51,795
Cost of revenue			21,877				(174	)			(306	)			-				275				21,672				23,005				(136	)			(469	)			-				-				22,400
Gross profit			28,066				174				306				-				(275	)			28,271				28,790				136				469				-				-				29,395
Gross margin %			56	%																			57	%			56	%																			57	%
Operating expenses:
Sales and marketing			14,656				(682	)			(767	)			-				-				13,207				20,323				(910	)			(1,430	)			(124	)			-				17,859
Research and development			4,029				(34	)			(325	)			-				-				3,670				4,463				(35	)			(460	)			-				-				3,968
General and administrative			7,938				(27	)			(654	)			(566	)			-				6,691				5,933				(29	)			(469	)			41				-				5,476
Total operating expenses			26,623				(743	)			(1,746	)			(566	)			-				23,568				30,719				(974	)			(2,359	)			(83	)			-				27,303
Income (loss) from operations			1,443				917				2,052				566				(275	)			4,703				(1,929	)			1,110				2,828				83				-				2,092
Interest and other expense, net			7				-				-				-				-				7				(20	)			-				-				-				-				(20	)
Income (loss) before income taxes			1,450				917				2,052				566				(275	)			4,710				(1,949	)			1,110				2,828				83				-				2,072
Provision (benefit) for income taxes			(738	)			-				-				-				-				(738	)			139				-				-				-				(201	)			(62	)
Net income (loss)		$	2,188			$	917			$	2,052			$	566			$	(275	)		$	5,448			$	(2,088	)		$	1,110			$	2,828			$	83			$	201			$	2,134
Net income (loss) per share:
Basic		$	0.12																			$	0.31			$	(0.15	)																		$	0.15
Diluted		$	0.12																			$	0.31			$	(0.15	)																		$	0.14
Weighted-average number of shares used in per share calculations:
Basic			17,653																				17,653				14,261																				14,261
Diluted			17,840																				17,840				14,261																				14,904
Operating expenses as a % of net revenue		GAAP																				Non-GAAP				GAAP																				Non-GAAP
Sales and marketing			29.2	%																			26.4	%			39.2	%																			34.5	%
Research and development			8.1	%																			7.2	%			8.6	%																			7.7	%
General and administrative			15.9	%																			13.4	%			11.5	%																			10.6	%
			53.3	%																			47.2	%			59.3	%																			52.7	%

CUTERA, INC.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
		Twelve Months Ended December 31, 2020																																Twelve Months Ended December 31, 2019
		GAAP				Depreciation and Amortization				Stock-Based Compensation				CRM and ERP Implementation/write-off				Severance (RIF)				Legal -Former CFO Settlement/Lutronic				Taxes and Other Adjustments				Non-GAAP				GAAP				Depreciation and Amortization				Stock-Based Compensation				CRM and ERP Implementation/ write-off				Taxes and Other Adjustments				Non-GAAP
Net revenue		$	147,683				-				-				-												-			$	147,683			$	181,712			$	-			$	-			$	-			$	-			$	181,712
Cost of revenue			71,911				(591	)			(1,665	)			-				(318	)			-				275				69,612				83,549				(522	)			(1,572	)			-				-				81,455
Gross profit			75,772				591				1,665				-				318				-				(275	)			78,071				98,163				522				1,572				-				-				100,257
Gross margin %			51	%																											53	%			54	%																			55	%
Operating expenses:
Sales and marketing			52,766				(3,136	)			(3,384	)			-				(274	)			-				-			$	45,972				71,109				(3,627	)			(4,510	)			(325	)			-				62,647
Research and development			14,322				(149	)			(1,670	)			-				(130	)			-				-				12,373				15,085				(109	)			(1,536	)			-				-				13,440
General and administrative			31,512				(111	)			(3,390	)			(1,139	)			(101	)			(1,925	)			(324	)			24,522				24,033				(205	)			(2,214	)			(1,089	)			(614	)			19,911
Total operating expenses			98,600				(3,396	)			(8,444	)			(1,139	)			(505	)			(1,925	)			(324	)			82,867				110,227				(3,941	)			(8,260	)			(1,414	)			(614	)			95,998
Income (loss) from operations			(22,828	)			3,987				10,109				1,139				823				1,925				49				(4,796	)			(12,064	)			4,463				9,832				1,414				614				4,259
Interest and other expense, net			(579	)			-				-				-				-								-				(579	)			(199	)			-				-				-				-				(199	)
Income (loss) before income taxes			(23,407	)			3,987				10,109				1,139				823				1,925				49				(5,375	)			(12,263	)			4,463				9,832				1,414				614				4,060
Provision (benefit) for income taxes			470				-				-				-				-				-				9				479				85				-				-				-				87				172
Net income (loss)		$	(23,877	)		$	3,987			$	10,109			$	1,139			$	823			$	1,925			$	40			$	(5,854	)		$	(12,348	)		$	4,463			$	9,832			$	1,414			$	527			$	3,888
Net income (loss) per share:
Basic		$	(1.43	)																										$	(0.35	)		$	(0.88	)																		$	0.28
Diluted		$	(1.43	)																										$	(0.35	)		$	(0.88	)																		$	0.27
Weighted-average number of shares used in per share calculations:
Basic			16,691																												16,691				14,096																				14,096
Diluted			16,691																												16,691				14,096																				14,512
Operating expenses as a % of net revenue		GAAP																												Non-GAAP				GAAP																				Non-GAAP
Sales and marketing			35.7	%																											31.1	%			39.1	%																			34.5	%
Research and development			9.6	%																											8.3	%			8.3	%																			7.4	%
General and administrative			21.3	%																											16.6	%			13.2	%																			11.0	%
			66.8	%																											56.1	%			60.7	%																			52.8	%

CUTERA, INC.
RECONCILIATION OF LOSS TO ADJUSTED EBITDA
(in thousands)
(unaudited)
		Three Months Ended				Twelve Months Ended
		December 31, 2020
Net income (loss)		$	2,188			$	(23,877	)
Adjustments:
Stock-based compensation			2,052				10,109
Depreciation and amortization			917				3,987
CRM and ERP implementation costs			-				1,139
Severance (RIF)			-				823
Legal -Former CFO Settlement/Lutronic			566				1,925
Other adjustments			(275	)			49
Interest and other expense, net			(7	)			23,407
Provision (benefit) for income taxes			(738	)			(23,407	)
Total adjustments		$	2,515			$	18,032
Adjusted EBITDA		$	4,703			$	(5,845	)

 

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FAQ

What were Cutera's Q4 2020 financial results?

Cutera reported Q4 2020 revenue of $49.9 million, a 4% year-over-year decrease but a 28% increase sequentially.

How did Cutera's Recurring Revenue perform in 2020?

Cutera's Recurring Revenue for Q4 2020 was $19.8 million, growing 80% from the previous year.

What is the outlook for Cutera in 2021?

Cutera has not provided formal guidance for 2021 due to uncertainty regarding COVID-19 and its impact on operations.

What was Cutera's net income for Q4 2020?

Cutera reported a net income of $2.2 million, compared to a net loss of $2.1 million in the same period last year.

How did Cutera's capital equipment revenue change in 2020?

Capital Equipment revenue for 2020 decreased by 35% compared to 2019, totaling $90.8 million.