Cutera Announces Second Quarter 2023 Financial Results along with 2023 Outlook

Cutera, Inc., a leading provider of aesthetic and dermatology solutions, reported financial results for the second quarter ended June 30, 2023.

BRISBANE, Calif.--(BUSINESS WIRE)-- Cutera, Inc. (Nasdaq: CUTR) (“Cutera” or the “Company”), a leading provider of aesthetic and dermatology solutions, today reported financial results for the second quarter ended June 30, 2023.

Second Quarter 2023 Financial and Operational Highlights

  • Consolidated revenue of $61.2 million, a decrease of 5% as reported and a decrease of 2% in constant currency from the prior-year period, primarily driven by a decline in capital equipment revenue, partially offset by AviClear revenue.
  • AviClear Q2 2023 new bookings of just under 200 units, vs. over 350 in Q1 2023, in line with our strategy to drive a more measured pace of new bookings.
  • GAAP Gross margin of 45.8% in the quarter, compared to 54.6% in the prior-year period.
  • Non-GAAP Gross margin of 50.3% in the quarter, compared to 55.6% in the prior-year period.
  • GAAP Operating expenses were $57.6 million in the quarter, compared to $45.1 million in the prior-year period. Operating expenses during the period included $10.6 million in AviClear spending, up $3.6 million from the prior-year period.
  • GAAP Net loss was $31.6 million, compared to a GAAP Net loss of $47.3 million in the prior-year period.
  • Adjusted EBITDA was a loss of $11.6 million, compared to a loss of $1.6 million in the prior-year period.
    • Core adjusted EBITDA was a loss of $4.3 million.
    • AviClear adjusted EBITDA was a loss of $7.3 million.
 

Three Months

Ended June 30,

2023

% Change vs Three Months

Ended June 30, 2022

   

Three Months

Ended June 30,

2023

Key Revenue Metrics

Reported

Constant

Currency

 

Key Profit Metrics

Capital Equipment

$37.9

-13%

-11%

 

GAAP Margin %

45.8%

Skincare

$9.4

-2%

5%

 

Non-GAAP Margin %

50.3%

Consumables

$4.3

-18%

-16%

 

Adjusted EBITDA - Core

($4.3)

Service

$5.7

0%

2%

 

Adjusted EBITDA - AviClear

($7.3)

AviClear

$4.0

nm

nm

 

Adjusted EBITDA - Total

($11.6)

Recurring

$23.3

13%

18%

 

Adjusted EBITDA Margin %

-19.0%

Total Revenue

$61.2

-5%

-2%

     
             
 

Six Months

Ended June 30,

2023

% Change vs Six Months
Ended June 30, 2022

   

Six Months

Ended June 30,

2023

Key Revenue Metrics

Reported

Constant

Currency

 

Key Profit Metrics

Capital Equipment

$71.2

-11%

-9%

 

GAAP Margin %

45.6%

Skincare

$17.6

-18%

-8%

 

Non-GAAP Margin %

49.7%

Consumables

$8.0

-12%

-9%

 

Adjusted EBITDA - Core

($12.9)

Service

$11.1

-5%

-2%

 

Adjusted EBITDA - AviClear

($13.3)

AviClear

$8.4

nm

nm

 

Adjusted EBITDA - Total

($26.1)

Recurring

$45.0

7%

13%

 

Adjusted EBITDA Margin %

-22.5%

Total Revenue

$116.2

-5%

-1%

     

“Second quarter results reflect that our business faces more operational and market challenges than were apparent when I stepped in as interim CEO. While we succeeded in refocusing our selling organization on Core Capital, business performance in this area has been negatively impacted by continued parts-driven service delays, and a tightening credit environment which have made deal closing more difficult, and placed pressure on our ASP’s. Addressing these challenges is a top priority for the company and we are working diligently to get Core Capital back on track,” commented Sheila Hopkins, former interim Chief Executive Officer of Cutera Inc.

Hopkins continued, “On AviClear we have more work to do to increase utilization and the percent of installed offices that are contributing. We are working expeditiously on the playbook for that. This will be a process; however, I am encouraged by progress made in the quarter on AviClear. We moved forward with a more measured pace of device bookings, and drove treatment volume that was in-line with our expectations. Finally, AviClear became the first acne therapy to obtain FDA clearance as a long-term treatment for mild to severe acne vulgaris.”

“I continue to believe in the potential of Cutera, fueled by excellent technologies, and a dedicated and talented team. The challenges before us can and will be addressed, particularly with Taylor at the helm given his deep industry experience. This will place the Company firmly on the path to unlock inherent upside value not only on AviClear, but also Core Capital. Cutera’s future remains bright,” concluded Hopkins.

“I am very excited about the platform, the team, and the opportunity ahead at Cutera. While we face a set of near-term challenges, which our team will address, we have significant potential to drive growth and profitability over time, not only with our AviClear, our revolutionary solution for acne, but across our entire portfolio,” commented Taylor Harris, Chief Executive Officer of Cutera, Inc.

2023 Outlook

The company expects full-year 2023 revenue in the range of $220 million to $230 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; Sheila Hopkins, former Interim Chief Executive Officer; Stuart Drummond, Interim Chief Financial Officer; and Greg Barker, Vice President of FP&A and Investor Relations.

To participate in the conference call, dial 1-800-319-4610 (domestic) or +1-631-891-4304 (international).

The call will also be a 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 aesthetic and dermatology solutions for practitioners worldwide. Since 1998, Cutera has been developing innovative, easy-to-use products that harness the power of science and nature to enable medical practitioners to offer safe and effective treatments to their patients. For more information, call +1-415-657-5500 or 1-888-4CUTERA or visit www.cutera.com.

*Use of Non-GAAP Financial Measures

In this press release, to supplement the Companys condensed consolidated financial statements presented in accordance with Generally Accepted Accounting Principles, or GAAP, management has disclosed certain non-GAAP financial measures for gross margin, gross margin rate, and operating income. 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, executive and other non-recurring severance costs, costs related to a retention plan, and legal and advisory fees related to litigation and shareholder activism. 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 adjusted EBITDA as operating income before depreciation and amortization, stock-based compensation, ERP implementation costs, costs related to certain litigation, executive and non-recurring severance costs, retention plan costs, and legal and advisory fees related to litigation and shareholder activism.

Company management uses non-GAAP measures as aids in monitoring the Companys 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, which is not part of the Company’s ordinary course of business. The Company’s complaint against Lutronic alleges 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 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. Its costs are incidental to and do not reflect the efficiencies and effectiveness of the Company’s core operations.

Executive and other non-recurring severance costs. 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 its 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 operation.

Retention plan costs. The Company has excluded the expense related to a retention plan implemented in April 2023. Approximately $11 million was made available to sales personnel and key employees and will be paid in quarterly installments through October 2024. The Company has excluded expense related to this retention plan as such costs are not considered part of ongoing operations.

Board of Director legal and advisory fees. The Company has excluded costs associated with the litigation and shareholder activism related to its 2023 annual meeting of shareholders. The Company has excluded these costs as the costs do not relate to ongoing operations.

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, Cuteras plans, objectives, strategies, financial performance and outlook, product launches and performance, trends, prospects, or future events and involve known and unknown risks that are difficult to predict. As a result, the Companys 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 several risks, uncertainties, and other important factors, many of which are beyond the Companys 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, 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 concerning those or other forward-looking statements. Cutera's financial performance for the second quarter ended June 30, 2023, as discussed in this release, is preliminary and unaudited, and subject to adjustment.

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

2023

     

2022

 
Assets      
Current assets:      
  Cash and cash equivalents

$

180,654

   

$

145,924

 
  Marketable investments  

41,949

     

171,390

 
  Accounts receivable, net  

53,079

     

45,562

 
  Inventories, net  

68,668

     

63,628

 
  Other current assets and prepaid expenses  

24,900

     

24,036

 
  Restricted cash  

700

     

700

 
    Total current assets  

369,950

     

451,240

 
           
Property and equipment, net  

65,511

     

40,368

 
Deferred tax asset  

547

     

590

 
Goodwill  

1,339

     

1,339

 
Operating lease right-of-use assets  

11,370

     

12,831

 
Other long-term assets  

15,113

     

14,620

 
    Total assets

$

463,830

   

$

520,988

 
           
Liabilities and Stockholders' Deficit      
Current liabilities:      
  Accounts payable

$

34,240

   

$

33,736

 
  Accrued liabilities  

53,764

     

57,452

 
  Operating leases liabilities  

2,602

     

2,810

 
  Deferred revenue  

12,457

     

11,841

 
    Total current liabilities  

103,063

     

105,839

 
           
Deferred revenue, net of current portion  

1,690

     

1,657

 
Operating lease liabilities, net of current portion  

10,069

     

11,352

 
Convertible notes, net of unamortized debt issuance costs  

417,568

     

416,459

 
Other long-term liabilities  

575

     

862

 
    Total liabilities  

532,965

     

536,169

 
           
Stockholders’ deficit:      
  Common stock  

20

     

20

 
  Additional paid-in capital  

128,014

     

125,406

 
  Accumulated other comprehensive income (loss)  

4

     

(94

)

  Accumulated deficit  

(197,173

)

   

(140,513

)

    Total stockholders' deficit  

(69,135

)

   

(15,181

)

    Total liabilities and stockholders' deficit

$

463,830

   

$

520,988

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

2023

 

2022

 

2023

 

2022

                     
Products $

55,568

    $

58,589

   

$

105,156

    $

110,655

 
Service  

5,650

     

5,635

     

11,055

     

11,583

 
Total net revenue  

61,218

     

64,224

     

116,211

     

122,238

 
                     
Products  

29,473

     

25,899

     

56,704

     

48,811

 
Service  

3,691

     

3,281

     

6,526

     

6,595

 
Total cost of revenue  

33,164

     

29,180

     

63,230

     

55,406

 
Gross profit  

28,054

     

35,044

     

52,981

     

66,832

 
Gross margin %  

45.8

%

   

54.6

%

   

45.6

%

   

54.7

%

                     
Operating expenses:                    
Sales and marketing  

33,271

     

27,001

     

62,783

     

51,945

 
Research and development  

5,784

     

6,859

     

12,252

     

13,358

 
General and administrative  

18,528

     

11,248

     

31,044

     

24,750

 
Total operating expenses  

57,583

     

45,108

     

106,079

     

90,053

 
Loss from operations  

(29,529

)

   

(10,064

)

   

(53,098

)

   

(23,221

)

Amortization of debt issuance costs  

(557

)

   

(298

)

   

(1,109

)

   

(517

)

Interest on convertible notes  

(2,958

)

   

(1,149

)

   

(5,897

)

   

(1,927

)

Loss on extinguishment of convertible notes  

-

     

(34,423

)

   

-

     

(34,423

)

Interest income  

2,179

     

382

     

4,658

     

395

 
Other expense, net  

(453

)

   

(1,910

)

   

(616

)

   

(2,678

)

Loss before income taxes  

(31,318

)

   

(47,462

)

   

(56,062

)

   

(62,371

)

Income tax expense (benefit)  

326

     

(186

)

   

598

     

47

 
Net loss $

(31,644

)

  $

(47,276

)

   

(56,660

)

  $

(62,418

)

                     
Net loss per share:                    
Basic $

(1.59

)

  $

(2.53

)

   

(2.86

)

  $

(3.39

)

Diluted $

(1.59

)

  $

(2.53

)

   

(2.86

)

  $

(3.39

)

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

19,858

     

18,700

     

19,819

     

18,392

 
Diluted  

19,858

     

18,700

     

19,819

     

18,392

 
                     
CUTERA, INC.  
CONSOLIDATED FINANCIAL HIGHLIGHTS  
(in thousands, except percentage data)  
(unaudited)  
                       
        Three Months Ended   % Change   Six Months Ended   % Change  
        June 30,   June 30,   2023 Vs   June 30,   June 30,   2023 Vs  
       

2023

 

2022

 

2022

 

2023

 

2022

 

2022

 
Revenue By Geography:                                  
    North America   $

31,830

    $

32,239

   

-1.3

%

  $

59,499

    $

61,092

   

-2.6

%

 
    Japan    

12,810

     

15,174

   

-15.6

%

   

25,718

     

32,677

   

-21.3

%

 
    Rest of World    

16,578

     

16,811

   

-1.4

%

   

30,994

     

28,469

    +8.9%  
    Total Net Revenue   $

61,218

    $

64,224

   

-4.7

%

  $

116,211

    $

122,238

   

-4.9

%

 
    International as a percentage of total revenue    

48.0

%

   

49.8

%

       

48.8

%

   

50.0

%

     
                                       
Revenue By Product Category:                                  
  Systems                                  
    - North America   $

22,243

    $

25,232

   

-11.8

%

  $

40,203

    $

47,939

   

-16.1

%

 
    - Rest of World (including Japan)    

15,652

     

18,421

   

-15.0

%

   

31,010

     

32,228

   

-3.8

%

 
    Total Systems    

37,895

     

43,653

   

-13.2

%

   

71,213

     

80,167

   

-11.2

%

 
  AviClear    

3,996

     

136

   

nm

     

8,391

     

136

   

nm

   
  Consumables    

4,255

     

5,162

   

-17.6

%

   

7,998

     

9,065

   

-11.8

%

 
  Skincare    

9,422

     

9,638

   

-2.2

%

   

17,554

     

21,287

   

-17.5

%

 
    Total Products    

55,568

     

58,589

   

-5.2

%

   

105,156

     

110,655

   

-5.0

%

 
  Service    

5,650

     

5,635

    +0.3%    

11,055

     

11,583

   

-4.6

%

 
    Total Net Revenue   $

61,218

    $

64,224

   

-4.7

%

  $

116,211

    $

122,238

   

-4.9

%

 
                                       
                                       
        Three Months Ended   Six Months Ended  
        June 30,   June 30,   June 30,   June 30,  
       

2023

 

2022

 

2023

 

2022

 
Pre-tax Stock-Based Compensation Expense:                          
    Cost of revenue   $

361

    $

500

    $

725

    $

959

   
    Sales and marketing    

1,283

     

1,638

     

2,431

     

2,214

   
    Research and development    

415

     

1,067

     

1,108

     

2,047

   
    General and administrative    

(509

)

   

1,528

     

672

     

3,556

   
        $

1,550

    $

4,733

    $

4,936

    $

8,776

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

2023

     

2022

     

2023

     

2022

 
Cash flows from operating activities:              
Net loss

$

(31,644

)

 

$

(47,276

)

 

$

(56,660

)

 

$

(62,418

)

Adjustments to reconcile net loss to net cash provided used in operating activities:  

-

             
  Stock-based compensation  

1,550

     

4,733

     

4,936

     

8,776

 
  Depreciation and amortization  

1,829

     

502

     

3,238

     

929

 
  Amortization of contract acquisition costs  

1,891

     

567

     

4,069

     

1,219

 
  Amortization of debt issuance costs  

557

     

298

     

1,109

     

517

 
  Deferred tax assets  

30

     

39

     

43

     

80

 
  Provision for credit losses  

2,026

     

217

     

2,514

     

409

 
  Loss on sale of property and equipment  

-

     

49

     

-

     

63

 
  Loss on extinguishment of convertible notes  

-

     

34,423

     

-

     

34,423

 
  Unrealized gain on foreign exchange forward  

623

     

-

     

-

     

-

 
  Non-cash interest income  

(1,115

)

   

-

     

(1,995

)

   

-

 
Changes in assets and liabilities:  

-

             
  Accounts receivable  

(2,967

)

   

804

     

(10,031

)

   

(1,108

)

  Inventories, net  

3,151

     

(5,324

)

   

(5,040

)

   

(17,501

)

  Other current assets and prepaid expenses  

1,175

     

2,577

     

(878

)

   

(3,034

)

  Other long-term assets  

(2,771

)

   

(686

)

   

(4,782

)

   

(1,071

)

  Accounts payable  

(336

)

   

9,016

     

(1,666

)

   

14,771

 
  Accrued liabilities  

(5,512

)

   

(889

)

   

(3,806

)

   

(6,878

)

  Operating leases ,net  

(14

)

   

6

     

(30

)

   

36

 
  Deferred revenue  

261

     

463

     

649

     

702

 
    Net cash used in operating activities  

(31,266

)

   

(481

)

   

(68,330

)

   

(30,085

)

                   
Cash flows from investing activities:              
Acquisition of property and equipment  

(14,755

)

   

(7,917

)

   

(25,908

)

   

(8,238

)

Purchase of marketable investments  

-

     

(129,251

)

   

(23,467

)

   

(203,309

)

Proceeds from maturities of marketable investments  

60,000

     

-

     

155,000

     

-

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

45,245

     

(137,168

)

   

105,625

     

(211,547

)

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

749

     

1,288

     

858

     

1,440

 
Purchase of capped call  

-

     

(31,671

)

   

-

     

(31,671

)

Proceeds from issuance of convertible notes  

-

     

240,000

     

-

     

240,000

 
Payment of issuance costs of convertible notes  

-

     

(6,956

)

   

-

     

(6,956

)

Extinguishment of convertible notes  

-

     

(45,777

)

   

-

     

(45,777

)

Taxes paid related to net share settlement of equity awards  

(789

)

   

(1,784

)

   

(3,186

)

   

(4,234

)

Payments on finance lease obligation  

(113

)

   

(133

)

   

(237

)

   

(284

)

    Net cash provided by (used in) financing activities  

(153

)

   

154,967

     

(2,565

)

   

152,518

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

13,826

     

17,318

     

34,730

     

(89,114

)

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

167,528

     

58,432

     

146,624

     

164,864

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

$

181,354

   

$

75,750

   

$

181,354

   

$

75,750

 
                   

CUTERA, INC.

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

(in thousands)

(unaudited)

             
Three Months Ended June 30, 2023  

Gross Profit

 

Gross Margin

 

Operating

Income

Reported  

$

28,054

   

45.8

%

 

$

(29,529

)

Adjustments:            
  Depreciation and amortization including contract acquisition costs    

1,998

   

3.3

%

   

3,991

 
  Stock-based compensation    

361

   

0.6

%

   

1,550

 
  ERP implementation costs    

-

   

-

     

770

 
  Legal    

-

   

-

     

394

 
  Severance    

-

   

-

     

234

 
  Retention plan costs    

65

   

0.1

%

   

2,972

 
  Board of Director legal and advisory fees    

-

   

-

     

7,709

 
  Other adjustments    

307

   

0.5

%

   

307

 
    Total adjustments    

2,731

   

4.5

%

   

17,927

 
Adjusted  

$

30,785

   

50.3

%

 

$

(11,602

)

             
Three Months Ended June 30, 2022  

Gross Profit

 

Gross Margin

 

Operating

Income

Reported  

$

35,044

   

54.6

%

 

$

(10,064

)

Adjustments:            
  Depreciation and amortization including contract acquisition costs    

161

   

0.3

%

   

1,068

 
  Stock-based compensation    

500

   

0.8

%

   

4,733

 
  ERP implementation costs    

-

   

-

     

2,385

 
  Legal    

-

   

-

     

242

 
  Severance    

-

   

-

     

-

 
  Other adjustments    

-

   

-

     

-

 
    Total adjustments    

661

   

1.0

%

   

8,428

 
Adjusted  

$

35,705

   

55.6

%

 

$

(1,636

)

             
Six Months Ended June 30, 2023  

Gross Profit

 

Gross Margin

 

Operating

Income

Reported  

$

52,981

   

45.6

%

 

$

(53,098

)

Adjustments:            
  Depreciation and amortization including contract acquisition costs    

3,597

   

3.1

%

   

7,578

 
  Stock-based compensation    

725

   

0.6

%

   

4,936

 
  ERP implementation costs    

-

   

-

     

1,288

 
  Legal    

-

   

-

     

1,046

 
  Severance    

119

   

0.1

%

   

549

 
  Retention plan costs    

65

   

0.1

%

   

2,972

 
  Board of Director legal and advisory fees    

-

   

-

     

7,709

 
  Other adjustments    

307

   

0.3

%

   

892

 
  Total adjustments    

4,813

   

4.1

%

   

26,970

 
Adjusted  

$

57,794

   

49.7

%

 

$

(26,128

)

             
Six Months Ended June 30, 2022  

Gross Profit

 

Gross Margin

 

Operating

Income

Reported  

$

66,832

   

54.7

%

 

$

(23,221

)

Adjustments:            
  Depreciation and amortization including contract acquisition costs    

237

   

0.2

%

   

2,147

 
  Stock-based compensation    

959

   

0.8

%

   

8,776

 
  ERP implementation costs    

-

   

-

     

6,361

 
  Legal    

-

   

-

     

496

 
  Severance    

-

   

-

     

-

 
  Other adjustments    

-

   

-

     

-

 
  Total adjustments    

1,196

   

1.0

%

   

17,780

 
Adjusted  

$

68,028

   

55.7

%

 

$

(5,441

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20230808834483/en/

Contacts

Cutera, Inc.
Greg Barker
VP, Corporate FP&A and Investor Relations
415-657-5500
IR@cutera.com

Source: Cutera, Inc.

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