Cutera Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
Cutera, Inc. Reports Second Quarter 2024 Financial Results
Cutera, Inc. (NASDAQ:CUTR), a leading provider of aesthetic and dermatology solutions, today announced its financial outcomes for the second quarter ended June 30, 2024.
Key Financial Metrics (in $ Millions)
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate | Q1 2024 | QoQ Change |
|---|---|---|---|---|---|---|
| Total Revenue | $34.4 | $61.4 | -44% | $38.69 | N/A | N/A |
| Gross Profit | $7.6 | $26.1 | -71% | N/A | N/A | N/A |
| Gross Profit (Non-GAAP) | $9.6 | $28.8 | -67% | N/A | N/A | N/A |
| Operating Expenses | $29.4 | $57.2 | -49% | N/A | N/A | N/A |
| Operating Loss | $21.8 | $31.2 | N/A | N/A | N/A | N/A |
| Operating Loss (Non-GAAP) | $21.3 | $13.2 | N/A | N/A | N/A | N/A |
| Cash, Cash Equivalents, etc. | $84.3 | N/A | N/A | N/A | $105.4 | -20% |
| Earnings Per Share (EPS) | N/A | N/A | N/A | -$0.97 | N/A | N/A |
Interpretation: Cutera saw a significant decrease in both revenue and gross profit compared to the previous year, driven largely by the termination of their skincare distribution agreement. The operational losses have decreased slightly; however, non-GAAP operational losses have increased. Cash reserves also seem to be depleting significantly quarter-over-quarter.
Revenue Performance by Major Segments
| Segment | Q2 2024 Revenue (in $ Millions) | Q2 2023 Revenue (in $ Millions) | YoY Change |
|---|---|---|---|
| Consolidated Revenue | $34.4 | $61.4 | -44% |
| Capital Systems Sales | N/A | N/A | -39% |
| Recurring Sources (Excluding skincare) | N/A | N/A | -20% |
| AviClear Growth | N/A | N/A | +41% |
| Service Growth | N/A | N/A | +7% |
Interpretation: The elimination of the skincare segment has had a significant impact on Cutera's overall revenue. While international sales of the AviClear system are showing strong growth, domestic performance, particularly in North America, has failed to meet expectations.
Comments from Company's Officers
Taylor Harris, CEO of Cutera, Inc., expressed his concerns about the challenging market environment impacting North American sales but also highlighted the successful international growth of AviClear. He also announced new strategic initiatives including the appointment of Steve Kreider as Senior Vice President, North America, to bolster local operations.
Dividends and Share Repurchase Programs
No information on announced dividends or share repurchase programs was provided in the earnings release.
Forward Guidance
Management has revised its full-year revenue guidance to a range of $140 million to $145 million, down from the previous guidance of $160 million to $170 million. Cash reserves by the end of 2024 are expected to be approximately $40 million, down from the previous guidance of $55 million to $60 million.
Stock Price Movement
Following the earnings release, the company’s stock saw an increase of approximately 8.74%.
In summary, Cutera's second quarter performance fell short of expectations due to the loss of skincare revenues and a challenging market environment in North America. However, the company is taking proactive measures to improve its financial health and strategic positioning.
