UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of Registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||||||||
(Address of principal executive offices)
(415 ) 657-5500
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
N/A
(Former name or former address, if changed since last report)Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On May 10, 2022, Cutera, Inc. (“Cutera” or the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2022. Cutera hereby incorporates by reference herein the information set forth in its press release dated May 10, 2022, a copy of which is attached hereto as Exhibit 99.1. Except as otherwise provided in the press release, the press release speaks only as of the date of such press release and it shall not create any implication that the affairs of Cutera have continued unchanged since such date.
The Company will host a conference call for interested parties commencing Tuesday, May 10, 2022 at 1:30 p.m. PDT (4:30 p.m. EDT), during which the Company will discuss the financial results. To participate in the conference call, dial 1-800-381-7839 (domestic) or +1-416-981-0157 (international) and refer to the Conference Code: 22017471. The conference call will be also available to interested parties through a live audio webcast and accessible through the Investor Relations section of the Cutera corporate website at www.cutera.com.
The information provided pursuant to this Item 2.02 is to be considered “furnished” pursuant to Item 2.02 of Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended, nor shall it be deemed incorporated by reference into any of Cutera’s reports or filings with the Securities and Exchange Commission, whether made before or after the date hereof, except as expressly set forth by specific reference in such report or filing.
Except for the historical information contained in this report, the statements made by Cutera are forward-looking statements that involve risks and uncertainties. All such statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Cutera’s future financial performance could differ significantly from the expectations of management and from results expressed or implied in the press release. Please refer to the last paragraph of the text portion of the press release for further discussion about forward-looking statements. For further information on risk factors, please refer to “Risk Factors” contained in Cutera’s most recently filed Form 10-K and its subsequent filings with the Securities and Exchange Commission, as well as in the press release attached as Exhibit 99.1 hereto. Cutera disclaims any obligation or duty to update or modify these forward-looking statements.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits.
Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CUTERA, INC. | |||||
| Date: May 10, 2022 | /s/ ROHAN SETH | ||||
| Rohan Seth | |||||
| Chief Financial Officer | |||||
Exhibit 99.1
Cutera Announces Record First Quarter 2022 Revenue Results
Delivers 17% revenue growth as reported and 21% on a constant currency basis
AviClearTM investments were accelerated in 1Q22 ahead of FDA device clearance
New ERP system launched
Company reiterates full-year guidance at current exchange rates
BRISBANE, California, May 10, 2022 ─ 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 first quarter ended March 31, 2022.
First Quarter 2022 Financial and Operational Highlights
•Revenue was $58.0 million, an increase of 17% from the prior-year period as reported and 21% on a constant currency basis, driven by robust performance across the business, with particular strength in North America;
◦Capital Equipment revenue of $36.5 million increased 29% over the prior-year period as reported and 32% on a constant currency basis;
◦Recurring revenue, defined as the combination of Skincare, Consumable Products, and Service, was $21.5 million, an increase of 1% as reported over the prior-year period and 7% on a constant currency basis;
•Skincare revenue of $11.6 million decreased 5% over the prior-year period as reported and increased 4% on a constant currency basis;
•Consumable Product revenue of $3.9 million increased 33% over the prior-year period as reported and 36% on a constant currency basis; and
•Service revenue of $5.9 million decreased 3% over the prior-year period as reported and was flat on a constant currency basis.
•Gross Margin was 54.8% compared to 55.8% in the prior-year period. Cost of Goods Sold during the period included $0.9 million in incremental spend related to Acne. Excluding these expenses, Gross Margin in the first quarter was 56.4%;
•Operating Expenses were $44.9 million in the quarter, compared to $26.5 million in the prior-year period. Operating Expenses during the period included $7.3 million in spend associated with preparing for the launch of Acne in addition to $4.0 million of ERP implementation expense, culminating in our ERP go-live during the quarter;
•GAAP Net loss was $15.1 million, or ($0.84) per fully diluted share, compared to a net loss of $0.4M, or ($0.02) per fully diluted share in the prior-year period. Non-GAAP net loss was $5.8 million, as compared to a $3.0 million net profit in the prior-year period; and
•Adjusted EBITDA was a loss of $3.8 million in the period, as compared to income of $4.6 million in the prior-year period. Excluding Acne program spend of $8.1 million in the quarter, adjusted EBITDA was income of $4.3 million.
“I am pleased with the strong North American capital equipment sales we delivered in the first quarter, as the momentum we built in the second half of 2021 carried into the new year. Our investments in capital equipment sales force expansion, along with increased practice support from our Key Account Manager strategy, continue to enhance our position in the marketplace and drive year-over-year growth in equipment and consumable products,” commented Dave Mowry, Chief Executive Officer of Cutera, Inc. “With the addition of the recent FDA 510(k) approved AviClearTM device for the treatment of mild, moderate, and severe acne, Cutera’s portfolio has been fortified with a bold first-mover product. AviClear addresses a massive unmet clinical need for patients seeking a non-drug solution for their acne and offers our physician customers an exciting new revenue stream. Our limited commercial release of AviClear is ongoing, and the insights we glean from this phase will inform and enhance our full launch later in 2022.”
2022 Outlook
Management is reiterating 2022 revenue guidance to be in the range of $255 million to $260 million at current foreign exchange rates. This guidance represents an underlying constant currency revenue growth rate of approximately 13%-15%, up
from our prior guidance of 10%-12%, negated by approximately $7 million in incremental currency headwinds. Our full-year guidance does not include any contribution from AviClear.
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 1-800-381-7839 (domestic) or +1-416-981-0157 (international) and refer to the Conference Code: 22017471.
The call will be webcast live and be available for replay one hour after the end of the call from the Investor Relations section of Cutera’s website at http://www.cutera.com/.
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, 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 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, 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. The Company has not provided a reconciliation of non-GAAP guidance measures to the corresponding GAAP measures on a forward-looking basis due to the potential significant variability, limited visibility, unpredictability, or unique non-recurring nature of the items. 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, customer relationship management and enterprise resource planning 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 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, 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 first quarter ended March 31, 2022, as discussed in this release, is preliminary and unaudited, and subject to adjustment.
Cutera, Inc.
Anne Werdan
Director, Corporate Communications
415-657-5500
IR@cutera.com
CUTERA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| March 31, 2022 | December 31, 2021 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 57,732 | $ | 164,164 | |||||||
| Marketable investments | 74,047 | — | |||||||||
| Accounts receivable, net | 33,169 | 31,449 | |||||||||
| Inventories | 51,680 | 39,503 | |||||||||
| Other current assets and prepaid expenses | 20,156 | 14,545 | |||||||||
| Total current assets | 236,784 | 249,661 | |||||||||
| Property and equipment, net | 3,009 | 3,019 | |||||||||
| Deferred tax asset | 737 | 778 | |||||||||
| Operating lease right-of-use assets | 14,330 | 14,627 | |||||||||
| Goodwill | 1,339 | 1,339 | |||||||||
| Other long-term assets | 9,792 | 10,169 | |||||||||
| Restricted cash | 700 | 700 | |||||||||
| Total assets | $ | 266,691 | $ | 280,293 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 13,646 | $ | 7,891 | |||||||
| Accrued liabilities | 48,044 | 54,100 | |||||||||
| Operating leases liabilities | 2,628 | 2,419 | |||||||||
| Deferred revenue | 9,719 | 9,490 | |||||||||
| Total current liabilities | 74,037 | 73,900 | |||||||||
| Deferred revenue, net of current portion | 1,345 | 1,335 | |||||||||
| Operating lease liabilities, net of current portion | 13,007 | 13,483 | |||||||||
| Convertible notes, net of unamortized debt issuance costs | 134,462 | 134,243 | |||||||||
| Other long-term liabilities | 680 | 763 | |||||||||
| Total liabilities | 223,531 | 223,724 | |||||||||
| Stockholders’ equity: | |||||||||||
| Common stock | 18 | 18 | |||||||||
| Additional paid-in capital | 116,468 | 114,724 | |||||||||
| Accumulated other comprehensive loss | (11) | — | |||||||||
| Accumulated deficit | (73,315) | (58,173) | |||||||||
| Total stockholders' equity | 43,160 | 56,569 | |||||||||
| Total liabilities and stockholders' equity | $ | 266,691 | $ | 280,293 | |||||||
CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Three Months Ended | |||||||||||
| March 31, 2022 | March 31, 2021 | ||||||||||
| Products | $ | 52,066 | $ | 43,551 | |||||||
| Service | 5,948 | 6,117 | |||||||||
| Total net revenue | 58,014 | 49,668 | |||||||||
| Products | 22,912 | 18,331 | |||||||||
| Service | 3,314 | 3,627 | |||||||||
| Total cost of revenue | 26,226 | 21,958 | |||||||||
| Gross profit | 31,788 | 27,710 | |||||||||
| Gross margin % | 54.8 | % | 55.8 | % | |||||||
| Operating expenses: | |||||||||||
| Sales and marketing | 24,944 | 15,068 | |||||||||
| Research and development | 6,499 | 4,112 | |||||||||
| General and administrative | 13,502 | 7,365 | |||||||||
| Total operating expenses | 44,945 | 26,545 | |||||||||
| (Loss) income from operations | (13,157) | 1,165 | |||||||||
| Interest and other income expense, net | |||||||||||
| Amortization of debt issuance costs | (219) | (52) | |||||||||
| Interest on convertible notes | (778) | (191) | |||||||||
| Other expense, net | (755) | (1,023) | |||||||||
| Loss before income taxes | (14,909) | (101) | |||||||||
| Income tax expense | 233 | 258 | |||||||||
| Net loss | $ | (15,142) | $ | (359) | |||||||
| Net income (loss) per share: | |||||||||||
| Basic | $ | (0.84) | $ | (0.02) | |||||||
| Diluted | $ | (0.84) | $ | (0.02) | |||||||
| Weighted-average number of shares used in per share calculations: | |||||||||||
| Basic | 18,080 | 17,768 | |||||||||
| Diluted | 18,080 | 17,768 | |||||||||
CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
| Three Months Ended | |||||||||||||||||
| March 31, 2022 | March 31, 2021 | ||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net loss | $ | (15,142) | $ | (359) | |||||||||||||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||||||||||||
| Stock-based compensation | 4,043 | 1,846 | |||||||||||||||
| Depreciation and amortization | 427 | 361 | |||||||||||||||
| Amortization of contract acquisition costs | 652 | 545 | |||||||||||||||
| Amortization of debt issuance costs | 219 | 52 | |||||||||||||||
| Impairment of capitalized cloud computing costs | — | 182 | |||||||||||||||
| Change in deferred tax asset | 41 | 45 | |||||||||||||||
| Provision for excess and obsolete inventories | 358 | 193 | |||||||||||||||
| Provision for credit losses | 192 | 218 | |||||||||||||||
| Loss (gain) on sale of property and equipment | 14 | (59) | |||||||||||||||
| Change in right-of-use asset | 638 | 604 | |||||||||||||||
| Changes in assets and liabilities: | |||||||||||||||||
| Accounts receivable | (1,912) | (2,407) | |||||||||||||||
| Inventories | (12,535) | (6,214) | |||||||||||||||
| Other current assets and prepaid expenses | (5,611) | (1,560) | |||||||||||||||
| Other long-term assets | (385) | (500) | |||||||||||||||
| Accounts payable | 5,755 | (1,653) | |||||||||||||||
| Accrued liabilities | (5,989) | 10,022 | |||||||||||||||
| Operating lease liabilities | (608) | (563) | |||||||||||||||
| Deferred revenue | 239 | 500 | |||||||||||||||
| Net cash (used in) provided by operating activities | (29,604) | 1,253 | |||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Acquisition of property, equipment and software | (321) | (101) | |||||||||||||||
| Disposal of property and equipment | — | 52 | |||||||||||||||
| Purchase of marketable investments | (74,058) | — | |||||||||||||||
| Net cash used in investing activities | (74,379) | (74,379) | (49) | ||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Proceeds from exercise of stock options and employee stock purchase plan | 151 | 396 | |||||||||||||||
| 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 | (2,450) | (999) | |||||||||||||||
| Payments on finance lease obligations | (150) | (115) | |||||||||||||||
| Net cash (used in) provided by financing activities | (2,449) | 116,681 | |||||||||||||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (106,432) | 117,885 | |||||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 164,864 | 47,047 | |||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 58,432 | $ | 164,932 | |||||||||||||
CUTERA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except percentage data)
(unaudited)
| Three Months Ended | % Change | ||||||||||||||||
| March 31, 2022 | March 31, 2021 | 2022 Vs 2021 | |||||||||||||||
| Revenue By Geography: | |||||||||||||||||
| North America | $ | 28,853 | $ | 22,402 | +28.8 | % | |||||||||||
| Japan | 17,503 | 16,555 | +5.7 | % | |||||||||||||
| Rest of World | 11,658 | 10,711 | +8.8 | % | |||||||||||||
| Total Net Revenue | $ | 58,014 | $ | 49,668 | +16.8 | % | |||||||||||
| Rest of World (including Japan) as a percentage of total revenue | 50.3 | % | 54.9 | % | |||||||||||||
| Revenue By Product Category: | |||||||||||||||||
| Systems | |||||||||||||||||
–North America | $ | 22,707 | $ | 16,785 | +35.3 | % | |||||||||||
–Rest of World (including Japan) | 13,807 | 11,535 | +19.7 | % | |||||||||||||
| Total Systems | 36,514 | 28,320 | +28.9 | % | |||||||||||||
| Consumables | 3,903 | 2,925 | +33.4 | % | |||||||||||||
| Skincare | 11,649 | 12,306 | (5.3) | % | |||||||||||||
| Total Products | 52,066 | 43,551 | +19.5 | % | |||||||||||||
| Service | 5,948 | 6,117 | (2.7) | % | |||||||||||||
| Total Net Revenue | $ | 58,014 | $ | 49,668 | +16.8 | % | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2022 | March 31, 2021 | ||||||||||
| Pre-tax Stock-Based Compensation Expense: | |||||||||||
| Cost of revenue | $ | 459 | $ | 144 | |||||||
| Sales and marketing | 576 | 721 | |||||||||
| Research and development | 980 | 301 | |||||||||
| General and administrative | 2,028 | 680 | |||||||||
| $ | 4,043 | $ | 1,846 | ||||||||
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 March 31, 2022 | |||||||||||||||||||||||||||||||||||
| GAAP | Depreciation and Amortization | Stock-Based Compensation | ERP Implementation | Legal - Lutronic | Non-GAAP | ||||||||||||||||||||||||||||||
| Net revenue | $ | 58,014 | — | — | — | — | $ | 58,014 | |||||||||||||||||||||||||||
| Cost of revenue | 26,226 | (76) | (459) | — | — | 25,691 | |||||||||||||||||||||||||||||
| Gross profit | 31,788 | 76 | 459 | — | — | 32,323 | |||||||||||||||||||||||||||||
| Gross margin % | 54.8 | % | 55.7 | % | |||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Sales and marketing | 24,944 | (820) | (576) | — | — | 23,548 | |||||||||||||||||||||||||||||
| Research and development | 6,499 | (45) | (980) | — | — | 5,474 | |||||||||||||||||||||||||||||
| General and administrative | 13,502 | (138) | (2,028) | (3,976) | (254) | 7,106 | |||||||||||||||||||||||||||||
| Total operating expenses | 44,945 | 44945 | (1,003) | (3,584) | (3,976) | (254) | 36,128 | ||||||||||||||||||||||||||||
| (Loss) income from operations | (13,157) | 1,079 | 4,043 | 3,976 | 254 | (3,805) | |||||||||||||||||||||||||||||
| Interest and other expense, net | |||||||||||||||||||||||||||||||||||
| Amortization of debt issuance costs | (219) | — | — | — | — | (219) | |||||||||||||||||||||||||||||
| Interest on convertible notes | (778) | — | — | — | — | (778) | |||||||||||||||||||||||||||||
| Other expense | (755) | — | — | — | — | (755) | |||||||||||||||||||||||||||||
| Total interest and other expense, net | (1,752) | — | — | — | — | (1,752) | |||||||||||||||||||||||||||||
| (Loss) income before income taxes | (14,909) | 1,079 | 4,043 | 3,976 | 254 | (5,557) | |||||||||||||||||||||||||||||
| Provision for income taxes | 233 | — | — | — | — | 233 | |||||||||||||||||||||||||||||
| Net (loss) income | $ | (15,142) | $ | 1,079 | $ | 4,043 | $ | 3,976 | $ | 254 | $ | (5,790) | |||||||||||||||||||||||
| Net (loss) income per share: | |||||||||||||||||||||||||||||||||||
| Basic | $ | (0.84) | $ | (0.32) | |||||||||||||||||||||||||||||||
| Weighted-average number of shares used in per share calculations: | |||||||||||||||||||||||||||||||||||
| Basic | 18,080 | 18,080 | |||||||||||||||||||||||||||||||||
| Operating expenses as a % of net revenue | GAAP | Non-GAAP | |||||||||||||||||||||||||||||||||
| Sales and marketing | 43.0 | % | 40.6 | % | |||||||||||||||||||||||||||||||
| Research and development | 11.2 | % | 9.4 | % | |||||||||||||||||||||||||||||||
| General and administrative | 23.3 | % | 12.2 | % | |||||||||||||||||||||||||||||||
| 77.5 | % | 62.2 | % | ||||||||||||||||||||||||||||||||
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)
| Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
| GAAP | Depreciation and Amortization | Stock-Based Compensation | CRM and ERP Implementation | Legal - Lutronic | Non-GAAP | ||||||||||||||||||||||||||||||
| Net revenue | $ | 49,668 | — | — | — | — | $ | 49,668 | |||||||||||||||||||||||||||
| Cost of revenue | 21,958 | (162) | (144) | — | — | 21,652 | |||||||||||||||||||||||||||||
| Gross profit | 27,710 | 162 | 144 | — | — | 28,016 | |||||||||||||||||||||||||||||
| Gross margin % | 55.8 | % | 56.4 | % | |||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Sales and marketing | 15,068 | (678) | (721) | (182) | — | 13,487 | |||||||||||||||||||||||||||||
| Research and development | 4,112 | (39) | (301) | — | — | 3,772 | |||||||||||||||||||||||||||||
| General and administrative | 7,365 | (27) | (680) | (70) | (401) | 6,187 | |||||||||||||||||||||||||||||
| Total operating expenses | 26,545 | (744) | (1,702) | (252) | (401) | 23,446 | |||||||||||||||||||||||||||||
| (Loss) income from operations | 1,165 | 906 | 1,846 | 252 | 401 | 4,570 | |||||||||||||||||||||||||||||
| Interest and other expense, net | |||||||||||||||||||||||||||||||||||
| Amortization of debt issuance costs | (52) | — | — | — | — | (52) | |||||||||||||||||||||||||||||
| Interest on Convertible notes | (191) | — | — | — | — | (191) | |||||||||||||||||||||||||||||
| Other expense | (1,023) | — | — | — | — | (1,023) | |||||||||||||||||||||||||||||
| Total interest and other expense, net | (1,266) | — | — | — | (1,266) | ||||||||||||||||||||||||||||||
| (Loss) income before income taxes | (101) | 906 | 1,846 | 252 | 401 | 3,304 | |||||||||||||||||||||||||||||
| Provision for income taxes | 258 | — | — | — | — | 258 | |||||||||||||||||||||||||||||
| Net (loss) income | $ | (359) | $ | 906 | $ | 1,846 | $ | 252 | $ | 401 | $ | 3,046 | |||||||||||||||||||||||
| Net (loss) income per share: | |||||||||||||||||||||||||||||||||||
| Basic | $ | (0.02) | $ | 0.17 | |||||||||||||||||||||||||||||||
| Weighted-average number of shares used in per share calculations: | |||||||||||||||||||||||||||||||||||
| Basic | 17,768 | 17,768 | |||||||||||||||||||||||||||||||||
| Operating expenses as a % of net revenue | GAAP | Non-GAAP | |||||||||||||||||||||||||||||||||
| Sales and marketing | 30.3 | % | 27.2 | % | |||||||||||||||||||||||||||||||
| Research and development | 8.3 | % | 7.6 | % | |||||||||||||||||||||||||||||||
| General and administrative | 14.8 | % | 12.5 | % | |||||||||||||||||||||||||||||||
| 53.4 | % | 47.3 | % | ||||||||||||||||||||||||||||||||
CUTERA, INC.
RECONCILIATION OF LOSS TO ADJUSTED EBITDA
(in thousands)
(unaudited)
| Three Months Ended | |||||
| March 31, 2022 | |||||
| Net Income | $ | (15,142) | |||
| Adjustments: | |||||
| Stock-based compensation | 4,043 | ||||
| ERP implementation cost | 3,976 | ||||
| Interest and other expense, net | 1,752 | ||||
| Depreciation and amortization | 1,079 | ||||
| Legal - Lutronic | 254 | ||||
| Income tax expense | 233 | ||||
| Provision for income taxes | 11,337 | ||||
| Adjusted EBITDA | $ | (3,805) | |||