Cutera, Inc. Announces Third Quarter 2021 Financial Results; Raises Full-year Revenue Guidance

Rhea-AI Summary

Cutera, Inc. (NASDAQ: CUTR) reported strong financial results for Q3 2021, with revenue of $57.4 million, a 47% increase year-over-year. Key growth drivers included capital equipment revenue of $32.2 million (up 33%) and recurring revenue of $25.2 million (up 68%). Notably, skincare revenue rose 117% to $14.8 million. Gross margin improved to 58.2%. Although the company experienced a net loss of $1.4 million, Adjusted EBITDA more than doubled to $5.1 million. Based on Q3 performance, Cutera raised its full-year revenue guidance to $224-$228 million.

Positive

• Revenue increased 47% year-over-year to $57.4 million.
• Capital equipment revenue rose 33% to $32.2 million.
• Recurring revenue grew 68% to $25.2 million.
• Skincare revenue surged 117% to $14.8 million.
• Gross margin improved to 58.2%, up from 55.6%.
• Adjusted EBITDA doubled to $5.1 million.

Negative

• Net loss of $1.4 million, although less than the prior-year period.

BRISBANE, Calif.--(BUSINESS WIRE)-- 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 third quarter ended September 30, 2021.

Third Quarter 2021 Financial and Operational Highlights

• Revenue was $57.4 million, an increase of 47% from the prior-year period, driven by strong performance across the business, with strength occurring in capital equipment and recurring revenue.
  • Capital Equipment revenue of $32.2 million increased 33% over the prior-year period.
  • Recurring revenue, defined as the combination of Skincare, Consumable Products, and Service, was $25.2 million, an increase of 68% over the prior-year period:
    • Skincare revenue of $14.8 million increased 117% over the prior-year period;
    • Consumable Product revenue of $3.7 million grew 60% over prior-year period, reflecting the continued recovery of energy-based treatment volumes; and
    • Service revenue of $6.7 million increased 14% over the prior-year period.

• Gross Margin was 58.2%, compared to 55.6% in the prior-year period, driven by capital equipment and consumable volumes, reduced fixed overhead expenses and the continual progression of our margin expansion efforts;

• Net loss was $1.4 million, or ($0.08) per fully diluted share, compared to a net loss of $2.3 million, or ($0.13) per fully diluted share, in the prior-year period; and

• Adjusted EBITDA more than doubled to $5.1 million in the period as compared to $2.4 million in the prior-year period.

“I am pleased with the strong results achieved by our team during the third quarter, as we expand our commercial team, drive improved profitability, and maintain our laser-focus on our vital few initiatives,” commented Dave Mowry, Chief Executive Officer of Cutera, Inc. “We are encouraged by the positive momentum in capital equipment demand and the continuing improvement in global treatment volumes, despite the anticipated seasonality. Looking to the balance of 2021 and into early 2022, we are confident in the strength of our business as we continue onboarding new members of our commercial team and executing on our robust pipeline of capital equipment deals as patient volumes trend above pre-COVID levels.”

2021 Outlook
Given the strength of our results in the third quarter of 2021 and management’s confidence in our fourth quarter outlook, management is raising full-year 2021 revenue guidance to be in the range of $224 million to $228 million, up from our prior expectation of $215 million to $221 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 on the call will be Dave Mowry, Chief Executive Officer, and Rohan Seth, Chief Financial Officer.

To participate in the conference call, dial 1-877-705-6003 (domestic) or + 1-201-493-6725 (international) and refer to the Conference Code: 13723851.

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 basic and 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. 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.

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 the Company's 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 second quarter ended June 30, 2021, as discussed in this release, is preliminary and unaudited, and subject to adjustment.

CUTERA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
		September 30,				June 30,				December 31,
		2021				2021				2020
Assets
Current assets:
Cash and cash equivalents		$	162,486			$	169,200			$	47,047
Accounts receivable, net			30,760				25,903				21,962
Inventories			35,493				34,591				28,508
Other current assets and prepaid expenses			13,350				8,856				8,779
Total current assets			242,089				238,550				106,296
Property and equipment, net			2,205				2,148				2,299
Deferred tax asset			589				592				643
Goodwill			1,339				1,339				1,339
Operating lease right-of-use assets			15,269				15,919				17,076
Other long-term assets			6,955				5,615				5,080
Total assets		$	268,446			$	264,163			$	132,733
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable		$	7,259			$	6,210			$	6,684
Accrued liabilities			44,295				41,995				32,295
Operating leases liabilities			2,394				2,422				2,260
PPP loan payable			-				-				3,630
Deferred revenue			9,188				9,695				9,489
Total current liabilities			63,136				60,322				54,358
Deferred revenue, net of current portion			1,492				1,708				1,748
PPP loan payable, net of current portion			-				-				3,555
Operating lease liabilities, net of current portion			14,117				14,705				15,950
Convertible notes, net of unamortized debt issuance costs			134,025				133,800				-
Other long-term liabilities			333				285				242
Total liabilities			213,103				210,820				75,853
Stockholders’ equity:
Common stock			18				18				18
Additional paid-in capital			109,563				106,173				117,097
Accumulated deficit			(54,238	)			(52,848	)			(60,235	)
Total stockholders' equity			55,343				53,343				56,880
Total liabilities and stockholders' equity		$	268,446			$	264,163			$	132,733

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,
		2021				2020				2021				2020
Products		$	50,694			$	33,254			$	146,056			$	81,390
Service			6,690				5,878				19,585				16,350
Total net revenue			57,384				39,132				165,641				97,740
Products			20,259				14,017				59,483				40,326
Service			3,700				3,369				11,234				9,708
Total cost of revenue			23,959				17,386				70,717				50,034
Gross margin			33,425				21,746				94,924				47,706
Gross margin %			58.2	%			55.6	%			57.3	%			48.8	%
Operating expenses:
Sales and marketing			19,190				12,286				52,668				38,109
Research and development			5,802				3,432				14,764				10,294
General and administrative			7,807				7,239				23,633				23,575
Total operating expenses			32,799				22,957				91,065				71,978
Income (loss) from operations			626				(1,211	)			3,859				(24,272	)
Interest and other income (expense), net
Amortization of debt issuance costs			(225	)			-				(492	)			-
Interest on Convertible notes			(768	)			-				(1,737	)			-
Gain on extinguishment of PPP loan			-				-				7,185				-
Other expense, net			(561	)			(382	)			(1,976	)			(586	)
Income (loss) before income taxes			(928	)			(1,593	)			6,839				(24,858	)
Income tax expense			462				664				842				1,207
Net income (loss)		$	(1,390	)		$	(2,257	)		$	5,997			$	(26,065	)
Net Income (loss) per share:
Basic		$	(0.08	)		$	(0.13	)		$	0.34			$	(1.59	)
Diluted		$	(0.08	)		$	(0.13	)		$	0.33			$	(1.59	)
Weighted-average number of shares used in per share calculations:
Basic			17,945				17,603				17,860				16,368
Diluted			17,945				17,603				18,327				16,368

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,
		2021				2020				2021				2020
Cash flows from operating activities:
Net income (loss)		$	(1,390	)		$	(2,257	)		$	5,997			$	(26,065	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Stock-based compensation			3,742				1,982				8,507				8,057
Depreciation and amortization			307				341				1,014				1,056
Amortization of contract acquisition costs			427				625				1,430				2,017
Amortization of debt issuance costs			225				-				492				-
Impairment of capitalized cloud computing costs			-				-				182				805
Change in deferred tax asset			3				(81	)			54				(77	)
Provision for credit losses			(391	)			54				101				1,750
Loss on sale of property and equipment			37				-				(45	)			-
PPP loan forgiveness			-				-				(7,185	)			-
Change in right-of-use asset			1,077				249				1,681				250
Other			-				129				-				327
Changes in assets and liabilities:
Accounts receivable			(4,466	)			(5,064	)			(8,899	)			2,209
Inventories			(968	)			1,907				(6,926	)			4,588
Other current assets and prepaid expenses			(4,494	)			(350	)			(4,571	)			(1,273	)
Other long-term assets			(1,767	)			(1,182	)			(3,487	)			(1,701	)
Accounts payable			1,049				(4,882	)			575				(5,886	)
Accrued liabilities			2,129				5,033				11,782				(5,061	)
Operating lease liabilities			(1,043	)			-				(1,573	)			-
Deferred revenue			(723	)			45				(557	)			(2,398	)
Net cash provided by (used in) operating activities			(6,246	)			(3,451	)			(1,428	)			(21,402	)
Cash flows from investing activities:
Acquisition of property, equipment and software			(12	)			(339	)			(382	)			(774	)
Disposal of property and equipment			-				-				71				-
Proceeds from maturities of marketable investments			-				8,100				-				19,000
Purchase of marketable investments			-				(8,244	)			-				(24,411	)
Net cash used in investing activities			(12	)			(483	)			(311	)			(6,185	)
Cash flows from financing activities:
Proceeds from exercise of stock options and employee stock purchase plan			158				8				2,056				856
Proceeds from PPP loan			-				18								7,167
Proceeds from equity offering			-				(1	)			-				28,798
Offering costs on the equity offering			-				-				-				(2,303	)
Purchase of capped call			-				-				(16,134	)			-
Proceeds from issuance of Convertible notes			-				-				138,250				-
Payment of issuance costs of Convertible notes			-				-				(4,717	)			-
Taxes paid related to net share settlement of equity awards			(511	)			(223	)			(1,963	)			(3,340	)
Payments on finance lease obligations			(103	)			(133	)			(314	)			(513	)
Net cash provided by (used in) financing activities			(456	)			(331	)			117,178				30,665
Net increase / (decrease) in cash and cash equivalents			(6,714	)			(4,265	)			115,439				3,078
Cash and cash equivalents at beginning of period			169,200				33,659				47,047				26,316
Cash and cash equivalents at end of period		$	162,486			$	29,394			$	162,486			$	29,394

CUTERA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except percentage data)
(unaudited)
		Three Months Ended								% Change		Nine Months Ended								% Change
		September 30,				September 30,				2021 Vs		September 30,				September 30,				2021 Vs
		2021				2020				2020		2021				2020				2020
Revenue By Geography:
North America		$	26,710			$	18,488			+44.5%		$	75,794			$	45,483			+66.6%
Japan			19,335				11,497			+68.2%			53,311				27,176			+96.2%
Rest of World			11,339				9,147			+24.0%			36,536				25,081			+45.7%
Total Net Revenue		$	57,384			$	39,132			+46.6%		$	165,641			$	97,740			+69.5%
International as a percentage of total revenue			53.5	%			52.8	%					54.2	%			53.5	%
Revenue By Product Category:
Systems
- North America		$	20,680			$	13,700			+50.9%		$	57,353			$	32,296			+77.6%
- Rest of World (including Japan)			11,511				10,421			+10.5%			38,726				28,325			+36.7%
Total Systems			32,191				24,121			+33.5%			96,079				60,621			+58.5%
Consumables			3,684				2,304			+59.9%			11,040				6,263			+76.3%
Skincare			14,819				6,829			+117.0%			38,937				14,506			+168.4%
Total Products			50,694				33,254			+52.4%			146,056				81,390			+79.5%
Service			6,690				5,878			+13.8%			19,585				16,350			+19.8%
Total Net Revenue		$	57,384			$	39,132			+46.6%		$	165,641			$	97,740			+69.5%
		Three Months Ended										Nine Months Ended
		September 30,				September 30,						September 30,				September 30,
		2021				2020						2021				2020
Pre-tax Stock-Based Compensation Expense:
Cost of revenue		$	330			$	326					$	908			$	1,359
Sales and marketing			711				648						1,954				2,617
Research and development			1,020				254						1,628				1,344
General and administrative			1,681				754						4,017				2,736
		$	3,742			$	1,982					$	8,507			$	8,057

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 September 30, 2021																															Three Months Ended September 30, 2020
		GAAP				Depreciation and Amortization				Stock-Based Compensation				ERP Implementation cost				Severance (RIF)			Legal - Lutronic				Other Adjustments				Non-GAAP				GAAP				Depreciation and Amortization				Stock-Based Compensation				CRM and ERP Implementation/ write-off			Severance (RIF)				Legal -Former CFO Settlement/Lutronic				Other Adjustments				Non-GAAP
Net revenue		$	57,384				-				-				-				-			-				-			$	57,384			$	39,132				-				-				-			-				-				-			$	39,132
Cost of revenue			23,959				(132	)			(330	)			-				-			-				445				23,942				17,387				(140	)			(326	)			-			(186	)			-				-				16,735
Gross margin			33,425				132				330				-				-			-				(445	)			33,442				21,746				140				326				-			186				-				-				22,398
Gross margin %			58.2	%																										58.3	%			55.6	%																										57.2	%
Operating expenses:
Sales and marketing			19,190				(549	)			(711	)			-				-			-				-				17,930				12,286				(756	)			(648	)			-			(25	)			-				-				10,857
Research and development			5,802				(49	)			(1,020	)			-				-			-				-				4,733				3,432				(39	)			(254	)			-			(67	)			-				-				3,072
General and administrative			7,807				(8	)			(1,681	)			(128	)			-			(288	)			-				5,702				7,239				(28	)			(754	)			-			(27	)			(341	)			-				6,089
Total operating expenses			32,799				(606	)			(3,412	)			(128	)			-			(288	)			-				28,365				22,957				(823	)			(1,656	)			-			(119	)			(341	)			-				20,018
Income (loss) from operations			626				738				3,742				128				-			288				(445	)			5,077				(1,211	)			963				1,982				-			305				341				-				2,380
Interest and other income (expense), net
Amortization of debt issuance costs			(225	)			-				-				-				-			-				-				(225	)			-				-				-				-			-				-				-				-
Interest on Convertible notes			(768	)			-				-				-				-			-				-				(768	)			-				-				-				-			-				-				-				-
Gain on extinguishment of PPP loan			-				-				-				-				-			-				-				-				-				-				-				-			-				-				-				-
Other expense			(561	)			-				-				-				-			-				-				(561	)			(382	)			-				-				-			-				-				-				(382	)
Total interest and other income (expense), net			(1,554	)			-				-				-				-			-				-				(1,554	)			(382	)			-				-				-			-				-				-				(382	)
Income (loss) before income taxes			(928	)			738				3,742				128				-			288				(445	)			3,523				(1,593	)			963				1,982				-			305				341				-				1,998
Provision for income taxes			462				-				-				-				-			-				-				462				664				-				-				-			-				-				2				666
Net income (loss)		$	(1,390	)		$	738			$	3,742			$	128			$	-		$	288			$	(445	)		$	3,061			$	(2,257	)		$	963			$	1,982			$	-		$	305			$	341			$	(2	)		$	1,332
Net income (loss) per share:
Basic		$	(0.08	)																									$	0.17			$	(0.13	)																									$	0.08
Weighted-average number of shares used in per share calculations:
Basic			17,945																											17,945				17,603																											17,603
Operating expenses as a % of net revenue		GAAP																											Non-GAAP				GAAP																											Non-GAAP
Sales and marketing			33.4	%																										31.2	%			31.4	%																										27.7	%
Research and development			10.1	%																										8.2	%			8.8	%																										7.9	%
General and administrative			13.6	%																										9.9	%			18.5	%																										15.6	%
			57.2	%																										49.4	%			58.7	%																										51.2	%

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)
		Nine Months Ended September 30, 2021																										Nine Months Ended September 30, 2020
		GAAP				Depreciation and Amortization			Stock-Based Compensation			CRM and ERP Implementation cost			Severance (RIF)			Legal - Lutronic			Other Adjustments			Non-GAAP				GAAP				Depreciation and Amortization			Stock-Based Compensation			CRM and ERP Implementation/ write-off			Severance (RIF)			Legal -Former CFO Settlement/Lutronic			Other Adjustments			Non-GAAP
Net revenue		$	165,641			-			-			-									-			$	165,641			$	97,740			-			-			-			-			-			-			$	97,740
Cost of revenue			70,717			(432	)		(908	)		-			-			-			791				70,168				50,034			(417	)		(1,359	)		-			(318	)		-			-				47,940
Gross margin			94,924			432			908			-			-			-			(791	)			95,473				47,706			417			1,359			-			318			-			-				49,800
Gross margin %			57.3	%																					57.6	%			48.8	%																					51.0	%
Operating expenses:
Sales and marketing			52,668			(1,827	)		(1,954	)		(182	)		(638	)		-			-				48,067				38,109			(2,454	)		(2,617	)		-			(274	)		-			-				32,764
Research and development			14,764			(133	)		(1,628	)		-			-			-			-				13,003				10,294			(115	)		(1,344	)		-			(130	)		-			-				8,705
General and administrative			23,633			(56	)		(4,017	)		(605	)		-			(979	)		-				17,976				23,575			(84	)		(2,736	)		(1,139	)		(101	)		(1,359	)		(324	)			17,832
Total operating expenses			91,065			(2,016	)		(7,599	)		(787	)		(638	)		(979	)		-				79,046				71,978			(2,653	)		(6,698	)		(1,139	)		(505	)		(1,359	)		(324	)			59,300
Income (loss) from operations			3,859			2,448			8,507			787			638			979			(791	)			16,427				(24,272	)		3,070			8,057			1,139			823			1,359			324				(9,500	)
Interest and other income (expense), net
Amortization of debt issuance costs			(492	)		-			-			-			-			-			-				(492	)			-			-			-			-			-			-			-				-
Interest on Convertible notes			(1,737	)		-			-			-			-			-			-				(1,737	)			-			-			-			-			-			-			-				-
Gain on extinguishment of PPP loan			7,185			-			-			-			-			-			(7,185	)			-				-			-			-			-			-			-			-				-
Other expense			(1,976	)		-			-			-			-			-			-				(1,976	)			(586	)		-			-			-			-			-			-				(586	)
Total interest and other income (expense), net			2,980			-			-			-			-			-			(7,185	)			(4,205	)			(586	)		-			-			-			-			-			-				(586	)
Income (loss) before income taxes			6,839			2,448			8,507			787			638			979			(7,976	)			12,222				(24,858	)		3,070			8,057			1,139			823			1,359			324				(10,086	)
Provision for income taxes			842			-			-			-			-			-			-				842				1,207			-			-			-			-			-			9				1,216
Net income (loss)		$	5,997			2,448			8,507			787			638			979			(7,976	)		$	11,380			$	(26,065	)		3,070			8,057			1,139			823			1,359			315			$	(11,302	)
Net income (loss) per share:
Basic		$	0.34																					$	0.64			$	(1.59	)																				$	(0.69	)
Weighted-average number of shares used in per share calculations:
Basic			17,860																						17,860				16,368																						16,368
Operating expenses as a % of net revenue		GAAP																						Non-GAAP				GAAP																						Non-GAAP
Sales and marketing			31.8	%																					29.0	%			39.0	%																					33.5	%
Research and development			8.9	%																					7.9	%			10.5	%																					8.9	%
General and administrative			14.3	%																					10.9	%			24.1	%																					18.2	%
			55.0	%																					47.7	%			73.6	%																					60.7	%

CUTERA, INC.
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(in thousands)
(unaudited)
		Three Months Ended				Nine Months Ended
		September 30, 2021
Net income (loss)		$	(1,390	)		$	5,997
Adjustments:
Stock-based compensation			3,742				8,507
Depreciation and amortization			738				2,448
ERP implementation Cost			128				787
Severance (RIF)			-				638
Legal -Lutronic			288				979
Other adjustments			(445	)			(791	)
Gain on extinguishment of PPP loan			-				(7,185	)
Interest and other expense, net			1,554				4,205
Provision for income taxes			462				842
Total adjustments			6,467				10,430
Adjusted EBITDA		$	5,077			$	16,427

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211103005984/en/

Cutera, Inc.

Anne Werdan

Director, Corporate Communications

415-657-5500

awerdan@cutera.com

Source: Cutera, Inc.

FAQ

What were Cutera's Q3 2021 revenue results?

Cutera reported Q3 2021 revenue of $57.4 million, a 47% increase from the prior year.

How did recurring revenue perform for Cutera in Q3 2021?

Recurring revenue for Cutera in Q3 2021 was $25.2 million, an increase of 68% year-over-year.

What is Cutera's revised revenue guidance for 2021?

Cutera raised its full-year 2021 revenue guidance to a range of $224 million to $228 million.

What was Cutera's net loss for Q3 2021?

Cutera reported a net loss of $1.4 million for Q3 2021.

How did Cutera's Adjusted EBITDA change in Q3 2021?

Cutera's Adjusted EBITDA more than doubled to $5.1 million in Q3 2021.