cutr-20221103
0001162461FALSE00011624612022-08-042022-08-04

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
November 3, 2022
Date of Report (date of earliest event reported)
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Cutera, Inc.
(Exact name of Registrant as specified in its charter)
Delaware 000-50644 77-0492262
(State or other jurisdiction of
incorporation)
 (Commission File Number) (I.R.S. Employer
Identification Number)
3240 Bayshore Blvd.
Brisbane, California 94005
(Address of principal executive offices)
(415) 657-5500
(Registrants telephone number, including area code)
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):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock ($0.001 par value)CUTRThe NASDAQ Stock Market, LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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 November 3, 2022, Cutera, Inc. (“Cutera” or the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2022. Cutera hereby incorporates by reference herein the information set forth in its press release dated November 3, 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, November 3, 2022 at 1:15 p.m. PDT (4:15 p.m. EDT), during which the Company will discuss the financial results. To participate in the conference call, dial 1-800-319-4610 (domestic) or +1-631-891-4304 (international). 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: November 3, 2022
 /s/ ROHAN SETH
 Rohan Seth
 Chief Financial Officer


Document

Exhibit 99.1
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Cutera Announces Third Quarter 2022 Financial Results

Continued momentum in Capital equipment sales, posting 27% growth as reported and 32% in constant currency;

Strong Consumable product growth reflecting robust underlying treatment volumes;

Moving to full North American AviClear launch following successful limited commercial release;

Reiterating full-year revenue guidance despite foreign exchange headwinds, implying year-over-year constant currency growth of approximately 20%

BRISBANE, California, November 3, 2022 ─ Cutera, Inc. (Nasdaq: CUTR) (“Cutera” or the “Company”), a leading provider of aesthetic and dermatology solutions, today reported financial results for the third quarter ended September 30, 2022.
 
Third Quarter 2022 Financial and Operational Highlights

Consolidated revenue of $62.8 million driven by capital equipment and consumable product demand.

During Q3 2022, over 100 new active placements of AviClear devices, up from the over 50 in Q2 and slightly ahead of the previous 100 device Q3 commitment.

Strong Consumable Product Revenue, up 66% as reported and 74% on a constant currency basis, reflecting robust underlying treatment volumes and the inclusion of AviClear patient procedure revenue.

GAAP Gross margin of 54.5% in the quarter, compared to 58.2% in the prior-year period.

Excluding the 170 basis point impact from AviClear investments and foreign exchange headwinds of approximately 250 basis points, gross margin would have been 58.7%.

GAAP Operating expenses were $43.7 million in the quarter, compared to $32.8 million in the prior-year period. Operating expenses during the period included $8.1 million in AviClear spending in addition to $1.4 million in ERP implementation expenses.

GAAP Net loss was $12.1million, compared to a Net loss of $1.4 million in the prior-year period.

Adjusted EBITDA was a loss of $2.0 million, compared to a gain of $5.1 million in the prior-year period.

Excluding AviClear impacts of $7.9 million in the quarter and foreign exchange headwinds of $3.1 million over the prior year period comparable adjusted EBITDA would have been $9.1 million.



Key Revenue Metrics
Three Months Ended September 30, 2022% Change 2022 Vs 2021Constant Currency
Capital Equipment$41.0 27 %32 %
Skincare$9.4 -36 %-21 %
Consumables$6.1 66 %74 %
Service$6.3 -6 %-1 %
Recurring$21.8 -13 %-2 %
Total Revenue$62.8 9 %17 %

Key Profit Metrics
Three Months Ended September 30, 2022Constant Currency
GAAP Margin %54.5%57.0%
Non-GAAP Margin %55.4%57.8%
Adjusted EBITDA($2.0)$1.2
% Margin-3.1 %1.9%






Key Revenue Metrics
Nine Months Ended September 30, 2022% Change 2022 Vs 2021Constant Currency
Capital Equipment$121.2 26 %30 %
Skincare$30.7 -21 %-8 %
Consumables$15.3 39 %44 %
Service$17.9 -9 %-5 %
Recurring$63.9 -8 %1 %
Total Revenue$185.0 12 %18 %




Key Profit Metrics
Nine Months Ended September 30, 2022Constant Currency
GAAP Margin %54.6%56.5%
Non-GAAP Margin %55.6%57.4%
Adjusted EBITDA$(7.4)$(0.3)
% Margin-4.0 %-0.2 %

“I am pleased by the momentum we continue to see in our core business, as prior investments in sales force expansion deliver strong results in both our capital and consumables product segments across North America and other direct-sales markets. We remain watchful to the global macroeconomic conditions and are prepared to respond quickly if warranted. Based upon our current view, the strength of our third quarter performance, and our capital equipment pipeline, we remain encouraged by the resilience of our core markets,” commented Dave Mowry, Chief Executive Officer of Cutera, Inc.

“During the quarter, in addition to setting an all-time high for 3Q capital sales in North America, our sales team executed the second phase of our Limited Commercial Release, placing over 100 additional active AviClear devices into the field. These efforts enabled us to validate several new processes and as a result in November we will move to a full launch of this revolutionary product and procedure in North America, slightly ahead of our previous plans.

2022 Outlook
Based upon our results year-to-date, despite unprecedented foreign exchange volatility Cutera expects to finish 2022 at the upper end of revenue guidance of $255 million to $260 million, fully absorbing the impact of approximately $17 million of currency headwinds. This implies constant currency growth of roughly 18% to 20% over the prior year.

Management now anticipates the placement of an additional 200 AviClear devices during the fourth quarter of 2022, bringing the total number of active AviClear platforms entering FY 2023 to approximately 350.
 
Conference Call
The Company’s management will host a conference call to discuss these results and related matters today at 1:15 p.m. PT (4:15 p.m. ET). Participating in the call will be Dave Mowry, Chief Executive Officer, and Rohan Seth, Chief Financial Officer.

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 the statement of operations and net income (loss) per share. Non-GAAP adjustments include stock-based compensation, depreciation, amortization, executive and other non-recurring severance costs, customer relationship management (CRM) and enterprise resource planning (ERP) system costs, non-recurring legal and litigation costs, and the loss on extinguishment of convertible notes. 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, non-recurring legal and litigation costs, and losses on the extinguishment of convertible notes.

Company management uses these measurements as aids in monitoring the Companys ongoing financial performance from quarter to quarter, and year to year, regularly 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 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;

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 severance 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;

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

Loss on extinguishment of convertible notes. We have excluded the loss on extinguishment of convertible notes. We excluded this loss because we believe it is non-recurring.

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, 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 concerning those or other forward-looking statements. Cutera's financial performance for the third quarter ended September 30, 2022, as discussed in this release, is preliminary and unaudited, and subject to adjustment.

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





CUTERA, INC. 
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands) 
(unaudited) 
September 30,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents$45,880 $164,164 
Marketable investments204,946 — 
Accounts receivable, net35,876 31,449 
Inventories, net55,938 39,503 
Other current assets and prepaid expenses23,672 14,545 
Total current assets366,312 249,661 
Property and equipment, net34,479 3,019 
Deferred tax assets626 778 
Goodwill1,339 1,339 
Operating lease right-of-use assets13,033 14,627 
Other long-term assets11,668 10,169 
Restricted cash700 700 
Total assets$428,157 $280,293 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$34,176 $7,891 
Accrued liabilities50,791 54,100 
Operating leases liabilities2,712 2,419 
Deferred revenue10,579 9,490 
Total current liabilities98,258 73,900 
Deferred revenue, net of current portion1,822 1,335 
Operating lease liabilities, net of current portion11,642 13,483 
Convertible notes, net of unamortized debt issuance costs 300,256 134,243 
Other long-term liabilities685 763 
Total liabilities412,663 223,724 
Stockholders’ equity:
Common stock20 18 
Additional paid-in capital148,535 114,724 
Accumulated other comprehensive loss(336)— 
Accumulated deficit(132,725)(58,173)
Total stockholders' equity15,494 56,569 
Total liabilities and stockholders' equity$428,157 $280,293 




CUTERA, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited) 
 
 Three Months EndedNine Months Ended
September 30,
2022
September 30,
2021
September 30,
2022
September 30,
2021
Products$56,540 $50,694 $167,195 $146,056 
Service6,268 6,690 17,851 19,585 
Total net revenue62,808 57,384 185,046 165,641 
Products25,255 20,259 74,066 59,483 
Service3,305 3,700 9,900 11,234 
Total cost of revenue28,560 23,959 83,966 70,717 
Gross profit34,248 33,425 101,080 94,924 
Gross margin %54.5 %58.2 %54.6 %57.3 %
Operating expenses:
Sales and marketing26,488 19,190 78,433 52,668 
Research and development6,389 5,802 19,747 14,764 
General and administrative10,804 7,807 35,554 23,633 
Total operating expenses43,681 32,799 133,734 91,065 
(Loss) income from operations(9,433)626 (32,654)3,859 
Interest and other (expense) income, net
Amortization of debt issuance costs(400)(225)(917)(492)
Interest on convertible notes(1,739)(768)(3,666)(1,737)
Loss on extinguishment of convertible notes— — (34,423)— 
Gain on extinguishment of PPP loan— — — 7,185 
Other expense, net265 (561)(2,018)(1,976)
(Loss) income before income taxes(11,307)(928)(73,678)6,839 
Income tax expense827 462 874 842 
Net (loss) income$(12,134)$(1,390)$(74,552)$5,997 
Net (loss) income per share:
Basic$(0.62)$(0.08)$(3.95)$0.34 
Diluted$(0.62)$(0.08)$(3.95)$0.33 
Weighted-average number of shares used in per share calculations:
Basic19,593 17,945 18,897 17,860 
Diluted19,593 17,945 18,897 18,327 





 CUTERA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(in thousands) 
(unaudited) 
Three Months EndedNine Months Ended
September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Cash flows from operating activities:
Net (loss) income$(12,134)$(1,390)$(74,552)$5,997 
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Stock-based compensation4,245 3,742 13,021 8,507 
Depreciation and amortization674 307 1,603 1,014 
Amortization of contract acquisition costs596 427 1,815 1,430 
Amortization of debt issuance costs400 225 917 492 
Unrealized gain on foreign exchange forward(292)— (292)— 
Impairment of capitalized cloud computing costs— — — 182 
Change in deferred tax assets72 152 54 
Provision for excess and obsolete inventories (448)636 110 1,335 
Provision for credit losses268 (391)677 101 
Loss (gain) on sale of property and equipment23 37 86 (45)
PPP loan forgiveness— — — (7,185)
Change in right-of-use asset668 1,077 1,976 1,681 
Loss on extinguishment of convertible notes
— — 34,423 — 
Changes in assets and liabilities:
Accounts receivable, net(3,996)(4,466)(5,104)(8,899)
Inventories, net(10,666)(1,604)(28,725)(8,261)
Other current assets and prepaid expenses(5,801)(4,494)(8,835)(4,571)
Other long-term assets(2,573)(1,767)(3,644)(3,487)
Accounts payable5,671 1,049 20,442 575 
Accrued liabilities3,194 2,129 (3,684)11,782 
Operating lease liabilities(658)(1,043)(1,930)(1,573)
Deferred revenue874 (723)1,576 (557)
Net cash used in operating activities(19,883)(6,246)(49,968)(1,428)
Cash flows from investing activities:
Acquisition of property, equipment and software(5,869)(12)(14,107)(382)
Disposal of property and equipment— — — 71 
Purchase of marketable and long-term investments47,000 — 47,000 — 
Purchase of marketable investments(48,973)— (252,282)— 
Net cash used in investing activities(7,842)(12)(219,389)(311)
Cash flows from financing activities:
Proceeds from exercise of stock options and employee stock purchase plan248 158 1,687 2,056 
Taxes paid related to net share settlement of equity awards(586)(511)(4,820)(1,963)
Purchase of capped call— — (31,671)(16,134)
Payment of issuance costs of capped call(353)— (353)— 
Proceeds from issuance of convertible notes— — 240,000 138,250 
Payment of issuance costs of convertible notes(646)— (7,602)(4,717)
Extinguishment of convertible notes— — (45,777)— 
Payments on finance lease obligations(108)(103)(391)(314)
Net cash (used in) provided by financing activities(1,445)(456)151,073 117,178 
Net (decrease) increase in cash, cash equivalents and restricted cash(29,170)(6,714)(118,284)115,439 
Cash, cash equivalents, and restricted cash at beginning of period75,750 169,200 164,864 47,047 
Cash, cash equivalents, and restricted cash at end of period$46,580 $162,486 $46,580 $162,486 



 CUTERA, INC. 
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in thousands, except percentage data)
(unaudited) 
 Three Months Ended% ChangeNine Months Ended% Change
September 30, 2022September 30, 20212022 Vs
2021
September 30, 2022September 30, 20212022 Vs
2021
Revenue By Geography:   
North America$33,258 $26,710 +24.5 %$94,350 $75,794 +24.5 %
Japan15,263 19,335 -21.1 %47,940 53,311 -10.1 %
Rest of World14,287 11,339 +26.0 %42,756 36,536 +17.0 %
Total Net Revenue$62,808 $57,384 +9.5 %$185,046 $165,641 +11.7 %
International as a percentage of total revenue47.0 %53.5 %49.0 %54.2 %
Revenue By Product Category:
Systems
North America
$25,359 $20,680 +22.6 %$73,298 $57,353 +27.8 %
Rest of World (including Japan)
15,626 11,511 +35.7 %47,854 38,726 +23.6 %
Total Systems40,985 32,191 +27.3 %121,152 96,079 +26.1 %
Consumables6,119 3,684 +66.1 %15,320 11,040 +38.8 %
Skincare9,436 14,819 -36.3 %30,723 38,937 -21.1 %
Total Products56,540 50,694 +11.5 %167,195 146,056 +14.5 %
Service6,268 6,690 -6.3 %17,851 19,585 -8.9 %
Total Net Revenue$62,808 $57,384 +9.5 %$185,046 $165,641 +11.7 %
 

 
 Three Months EndedNine Months Ended
September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Pre-tax Stock-Based Compensation Expense:  
Cost of revenue$471 $330 $1,430 $908 
Sales and marketing1,641 711 3,855 1,954 
Research and development466 1,020 2,513 1,628 
General and administrative1,667 1,681 5,223 4,017 
 $4,245 $3,742 $13,021 $8,507 

 



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, 2022
 GAAPDepreciation
and
Amortization
Stock-Based
Compensation
ERP ImplementationLegal - LutronicSeveranceOther AdjustmentsNon-GAAP
Net revenue$62,808 — — — — — — $62,808 
Cost of revenue28,560 (359)(471)— — (26)290 27,994 
Gross profit34,248 359 471 — — 26 (290)34,814 
Gross margin %54.5 %55.4 %
Operating expenses:
Sales and marketing26,488 (715)(1,641)— — (262)— 23,870 
Research and development6,389 (67)(466)— — (88)— 5,768 
General and administrative10,804 (54)(1,667)(1,351)(566)(39)— 7,127 
Total operating expenses43,681 (836)(3,774)(1,351)(566)(389)— 36,765 
(Loss) income from operations(9,433)1,195 4,245 1,351 566 415 (290)(1,951)
Interest and other income (expense), net
  Amortization of debt issuance costs(400)— — — — — — (400)
  Interest on convertible notes(1,739)— — — — — — (1,739)
  Other income265 — — — — — — 265 
   Total interest and other expense, net(1,874)— — — — — — (1,874)
(Loss) income before income taxes(11,307)1,195 4,245 1,351 566 415 (290)(3,825)
Income taxes expense827 — — — — — — 827 
Net (loss) income$(12,134)$1,195 $4,245 $1,351 $566 $415 $(290)$(4,652)
Net loss per share:      
Basic$(0.62)    $(0.24)
Weighted-average number of shares used in per share calculations:    
Basic19,593     19,593 
Operating expenses as a % of net revenueGAAP    Non-GAAP
Sales and marketing42.2 %    38.0 %
Research and development10.2 %    9.2 %
General and administrative17.2 %    11.3 %
 69.6 %    58.5 %



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
 GAAPDepreciation
and
Amortization
Stock-Based
Compensation
CRM and ERP ImplementationLegal - LutronicOther AdjustmentsNon-GAAP
Net revenue$57,384 — — — — — $57,384 
Cost of revenue23,959 (132)(330)— — 445 23,942 
Gross profit33,425 132 330 — — (445)33,442 
Gross margin %58.2 % 58.3 %
Operating expenses:  
Sales and marketing19,190 (549)(711)— — — 17,930 
Research and development5,802 (49)(1,020)— — — 4,733 
General and administrative7,807 (8)(1,681)(128)(288)— 5,702 
Total operating expenses32,799 (606)(3,412)(128)(288)— 28,365 
(Loss) income from operations626 738 3,742 128 288 (445)5,077 
Interest and other expense, net
Amortization of debt issuance costs(225)— — — — — (225)
Interest on convertible notes(768)— — — — — (768)
Other expense(561)— — — — — (561)
Total interest and other expense, net(1,554)— — — — (1,554)
(Loss) income before income taxes(928)738 3,742 128 288 (445)3,523 
Income tax expense462 — — — — — 462 
Net (loss) income$(1,390)$738 $3,742 $128 $288 $(445)$3,061 
Net (loss) income per share:    
Basic$(0.08)   $0.17 
Weighted-average number of shares used in per share calculations:   
Basic17,945    17,945 
Operating expenses as a % of net revenueGAAP   Non-GAAP
Sales and marketing33.4 %   31.2 %
Research and development10.1 %   8.2 %
General and administrative13.6 %   9.9 %
 57.1 %   49.3 %



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, 2022
GAAPDepreciation
and
Amortization
Stock-Based
Compensation
ERP ImplementationLegal - LutronicSeveranceOther AdjustmentsLoss on Extinguishment of Convertible NotesNon-GAAP
Net revenue$185,046 — — — — — — — $185,046 
Cost of revenue83,966 (596)(1,430)— — (26)290 — 82,204 
Gross profit101,0805961,43026(290)102,842
Gross margin %54.6 %55.6 %
Operating expenses:
Sales and marketing78,433(2,328)(3,855)— — (262)— — 71,988 
Research and development19,747(180)(2,513)— — (88)— — 16,966 
General and administrative35,554(238)(5,223)(7,712)(1,062)(39)— — 21,280 
Total operating expenses133,734(2,746)(11,591)(7,712)(1,062)(389)110,234
(Loss) income from operations(32,654)3,34213,0217,7121,062415(290)(7,392)
Interest and other (expense) income, net
Amortization of debt issuance costs(917)— — — — — — — (917)
Interest on convertible notes(3,666)— — — — — — — (3,666)
Loss on extinguishment of convertible notes(34,423)— — — — — — — 34,423 — 
Other expense(2,018)— — — — — — — (2,018)
Total interest and other expense, net(41,024)— — — — — — 34,423 (6,601)
(Loss) income before income taxes(73,678)3,342 13,021 7,712 1,062 415 (290)34,423 (13,993)
Income tax expense874— — — — — — — 874 
Net (loss) income$(74,552)$3,342$13,021$7,712$1,062$415$(290)$34,423$(14,867)
Net loss per share:
Basic$(3.95)$(0.79)
Weighted-average number of shares used in per share calculations:
Basic18,897 18,897 
Operating expenses as a % of net revenueGAAPNon-GAAP
Sales and marketing42.4 %38.9 %
Research and development10.7 %9.2 %
General and administrative19.2 %11.5 %
72.3 %59.6 %


















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
GAAPDepreciation
and
Amortization
Stock-Based
Compensation
CRM and ERP
Implementation
Severance (RIF)Legal - LutronicOther AdjustmentsNon-GAAP
Net revenue$165,641 — — — — — — $165,641 
Cost of revenue70,717 (432)(908)— — — 791 70,168 
Gross profit94,924 432 908 — — — (791)95,473 
Gross margin %57.3 %57.6 %
Operating expenses:
Sales and marketing52,668 (1,827)(1,954)(182)(638)— — 48,067 
Research and development14,764 (133)(1,628)— — — — 13,003 
General and administrative23,633 (56)(4,017)(605)— (979)— 17,976 
Total operating expenses91,065 (2,016)(7,599)(787)(638)(979)— 79,046 
(Loss) income from operations3,859 2,448 8,507 787 638 979 (791)16,427 
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 loan7,185 — — — — — (7,185)— 
Other expense(1,976)— — — — — — (1,976)
Total interest and other income (expense), net2,980 — — — — — (7,185)(4,205)
Income (loss) before income taxes6,839 2,448 8,507 787 638 979 (7,976)12,222 
Income tax expense842 — — — — — — 842 
Net income (loss)$5,997 $2,448 $8,507 $787 $638 $979 $(7,976)$11,380 
Net income per share:
Basic$0.34 $0.64 
Weighted-average number of shares used in per share calculations:
17,860 17,860 
Operating expenses as a % of net revenueGAAPNon-GAAP
Sales and marketing31.8 %29.0 %
Research and development8.9 %7.9 %
General and administrative14.3 %10.9 %
55.0 %47.8 %








CUTERA, INC. 
RECONCILIATION OF LOSS TO ADJUSTED EBITDA
(in thousands)
(unaudited) 
 Three Months EndedNine Months Ended
 September 30, 2022
  
Net loss$(12,134)$(74,552)
Adjustments:
Depreciation and amortization1,195 3,342 
Stock-based compensation4,245 13,021 
ERP implementation cost1,351 7,712 
Legal - Lutronic566 1,062 
Severance415 415 
Other adjustments(290)(290)
Interest and other expense, net1,874 41,024 
Income tax expense827 874 
       Total adjustments10,183 67,160 
 
Adjusted EBITDA$(1,951)$(7,392)