Delivers 17% revenue growth as reported and 21% on a constant currency basis
AviClear™ investments were accelerated in 1Q22 ahead of FDA device clearance
New ERP system launched
Company reiterates full-year guidance at current exchange rates
Cutera, Inc. (Nasdaq: CUTR) (“Cutera” or the “Company”), a leading provider of aesthetic and dermatology solutions, 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 $0.4 million, 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 significant 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 issued guidance of 10%-12%, negating approximately $7 million of incremental currency headwinds. Our full-year revenue 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/.
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