Business Wire | May 5, 2021 04:01PM EDT

Cutera, Inc. Announces First Quarter 2021 Financial Results

May 05, 2021

BRISBANE, Calif.--(BUSINESS WIRE)--May 05, 2021--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, 2021.

First Quarter 2021 Financial and Operational Highlights

* Revenue was $49.7 million, an increase of 54.1% from the prior-year period, driven by strong performance across the business, with particular strength in capital equipment and skincare sales. Capital Equipment revenue of $28.3 million increased 35.1% over the prior-year period. Recurring revenue, defined by the combination of Skincare, Consumable Products, and Service, was $21.3 million, an increase of 89.2% over the prior-year period: Skincare revenue of $12.3 million increased 324.4% over the prior-year period; Consumable Product revenue of $2.9 million grew 15.5% over prior-year period, reflecting the continued recovery of energy-based treatment volumes; and Service revenue of $6.1 million increased 4.6% over the prior-year period. * Gross Margin was 55.8%, compared to 44.5% in the prior-year period, due to ongoing improvements in manufacturing efficiencies, offset by mix shift associated with growth of skincare during the quarter; * Operating Expenses were $26.5 million in the quarter, flat to prior-year period; * Adjusted EBITDA was $4.6 million in the period as compared to $(8.3) million, a $12.9 million improvement over prior-year period; and * Net loss was ($0.4) million, or ($0.02) per fully diluted share, compared to a net loss of ($12.4) million, or ($0.86) per fully diluted share, in the prior-year period; * Announced pricing of offering of $138.3 million of convertible senior notes.

"I am pleased with our first-quarter results, which reflect the continued progress we have made since the onset of the COVID-19 pandemic," commented Dave Mowry, Chief Executive Officer of Cutera, Inc. "In the first-quarter, we achieved broad strength across our business, driven by consistent execution from our commercial teams, strength in the skincare business, and a slow but steady improvement in our end markets. Building upon the tremendous work from our team, in 2021 we plan to continue to improve gross margins by reducing manufacturing costs; increase sales and sales productivity with our focus on people and process; and deliver innovative products through our increased R&D investments. As we execute these vital few initiatives, our objective is to deliver strong performance despite the remaining pandemic uncertainties that will likely be headwinds for many of us in this market."

2021 Outlook

Company management remains cautious with the lingering uncertainty related to COVID-19. Global Energy-based Aesthetics end markets continued to improve over the course of the first quarter, but the pace and extent of customer recovery varied by geography. With several geographies still under activity restrictions, management is not issuing full-year guidance at this time.

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 1-877-705-6003 (domestic) or + 1-201-493-6725 (international) and refer to the Conference Code: 13719080.

The call will also be 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 laser and other energy-based aesthetic systems for practitioners worldwide. Since 1998, Cutera has developed innovative, easy-to-use products that enable physicians and other qualified practitioners to offer safe and effective aesthetic treatments to their patients. For more information, call 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 diluted 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 diluted 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, CFO and other senior leadership searches, 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, 2021, as discussed in this release, is preliminary and unaudited, and subject to adjustment.

CUTERA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS(in thousands) (unaudited) March 31 December 31,Reporting Unit 2021 2020Balance SheetAssets Current assets: Cash and cash $ 164,932 $ 47,047equivalentsAccounts 24,151 21,962receivable, netInventories 34,578 28,508

Other current 10,339 assets and 8,779prepaid expensesTotal current 234,000 106,296assets Property and equipment, net 2,373 2,299

Deferred tax asset 598 643

Goodwill 1,339 1,339

Operating lease 16,570 17,076right-of-use assetsOther long-term assets 4,853 5,080

Total assets $ 259,733 $ 132,733

Liabilities andStockholders' EquityCurrent liabilities: Accounts payable $ 5,031 $ 6,684

Accrued 41,329 31,079liabilitiesOperating leases liabilities 2,351 2,260

PPP Loan Payable 6,352 3,630

Extended warranty 1,039 1,216liabilities 10,019 Deferred revenue 9,489

Total current 66,121 54,358liabilities Deferred revenue, net of 1,718 1,748current portionPPP Loan payable, net of 851 3,555current portionOperating leaseliabilities, net 15,394 15,950of currentportionConvertiblenote, net of 133,585 - unamortized debt issuance costsof $4,665Other long-term liabilities 434 242

Total 218,103 75,853liabilities Stockholders' equity: Common stock 18 18

Additional 102,206 117,097paid-in capitalAccumulated (60,235)deficit (60,594)

Total 41,630 56,880stockholders' equityTotalliabilities and $ 259,733 $ 132,733stockholders'equity - -

CUTERA, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share data)(unaudited)Three Months EndedMarch 31,March 31,2021

2020

Products$43,551

$26,391

Service6,117

5,848

Total net revenue49,668

32,239

Products18,331

14,103

Service3,627

3,800

Total cost of revenue21,958

17,903

Gross profit27,710

14,336

Gross margin %56%

44%

Operating expenses:Sales and marketing15,068

14,789

Research and development4,112

3,870

General and administrative7,365

7,806

Total operating expenses26,545

26,465

Income (loss) from operations1,165

(12,129)

Interest and other expense, netAmortization of debt issuance costs(52)

-

Interest on convertible notes(191)

-

Other expense, net(1,023)

(207)

Total Interest and other expense, net(1,266)

(207)

Loss before income taxes(101)

(12,336)

Income tax expense258

78

Net loss$(359)

$(12,414)

Net loss per share:Basic$(0.02)

$ (0.86)

Diluted$(0.02)

$ (0.86)

Weighted-average number of shares used in per share calculations:Basic17,768

14,433

Diluted17,768

14,433

CUTERA, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share data)(unaudited) Three Months Ended March 31, March 31, 2021 2020

26,391Products $ 43,551 $

5,848Service 6,117

32,239Total net revenue 49,668

14,103Products 18,331

3,800Service 3,627

17,903Total cost of revenue 21,958

14,336Gross profit 27,710

Gross margin % 56% 44%

Operating expenses: 14,789Sales and marketing 15,068

3,870Research and development 4,112

7,806General and administrative 7,365

26,465Total operating expenses 26,545

(12,129)Income (loss) from operations 1,165

Interest and other expense, net -Amortization of debt issuance costs (52)

-Interest on convertible notes (191)

(207)Other expense, net (1,023)

(207)Total Interest and other expense, net (1,266)

(12,336)Loss before income taxes (101)

78Income tax expense 258

(12,414)Net loss $ (359) $

Net loss per share: (0.86)Basic $ (0.02) $

(0.86)Diluted $ (0.02) $

Weighted-average number of shares used in per share calculations: 14,433Basic 17,768

14,433Diluted 17,768

CUTERA, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)(unaudited)Three Months EndedMarch 31,March 31,2021

2020

Cash flows from operating activities:Net loss$(359)

$(12,414)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:Stock-based compensation1,846

1,980

Depreciation of tangible assets361

360

Amortization of contract acquisition costs545

717

Amortization of debt issuance costs52

-

Impairment of capitalized cloud computing costs182

-

Change in deferred tax asset45

15

Provision for credit losses218

590

Gain on sale of property and equipment(59)

-

Change in right-of-use asset604

645

Other-

35

Changes in assets and liabilities:Accounts receivable(2,407)

5,306

Inventories(6,021)

(3,020)

Other current assets and prepaid expenses(1,560)

807

Other long-term assets(500)

(207)

Accounts payable(1,653)

1,919

Accrued liabilities10,199

(6,567)

Extended warranty liabilities(177)

(234)

Operating lease liabilities(563)

(645)

Deferred revenue500

(1,253)

Net cash provided by (used in) operating activities1,253

(11,966)

Cash flows from investing activities:Acquisition of property, equipment and software(101)

(230)

Proceeds from disposal of property and equipment52

-

Proceeds from sales of marketable investments-

6,800

Purchase of marketable investments-

(3,930)

Net cash provided by (used in) investing activities(49)

2,640

Cash flows from financing activities:Proceeds from exercise of stock options and employee stock purchase plan396

201

Purchase of capped call(16,134)

-

Proceeds from issuance of convertible notes138,250

-

Payment of issuance costs of convertible notes(4,717)

-

Taxes paid related to net share settlement of equity awards(999)

(2,234)

Payments on finance lease obligations(115)

(183)

Net cash provided by (used in) financing activities116,681

(2,216)

Net increase (decrease) in cash and cash equivalents117,885

(11,542)

Cash and cash equivalents at beginning of period47,047

26,316

Cash and cash equivalents at end of period$164,932

$ 14,774

CUTERA, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) (unaudited) Three Months Ended March 31, March 31, 2021 2020

Cash flows from operating activities: (12,414)Net loss $ (359) $

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:Stock-based 1,980compensation 1,846

Depreciation of 360tangible assets 361

Amortization of 717contract acquisition 545 costsAmortization of debt - issuance costs 52

Impairment of capitalized cloud 182 -computing costsChange in deferred tax 15asset 45

Provision for credit 590losses 218

Gain on sale of - property and equipment (59)

Change in right-of-use 645asset 604

Other - 35

Changes in assets and liabilities: 5,306Accounts receivable (2,407)

(3,020)Inventories (6,021)

Other current assets 807and prepaid expenses (1,560)

(207)Other long-term assets (500)

1,919Accounts payable (1,653)

Accrued liabilities 10,199 (6,567)

Extended warranty (234)liabilities (177)

Operating lease (645)liabilities (563)

(1,253)Deferred revenue 500

Net cash provided by (11,966)(used in) operating 1,253 activities Cash flows from investing activities:Acquisition of (230)property, equipment (101) and softwareProceeds from disposal of property and 52 -equipmentProceeds from sales of - 6,800marketable investmentsPurchase of marketable - (3,930)investmentsNet cash provided by 2,640(used in) investing (49) activities Cash flows from financing activities:Proceeds from exercise of stock options and 396 201employee stock purchaseplanPurchase of capped (16,134) call -

Proceeds from issuance 138,250 - of convertible notesPayment of issuance - costs of convertible (4,717) notesTaxes paid related to (2,234)net share settlement (999) of equity awardsPayments on finance (183)lease obligations (115)

Net cash provided by 116,681 (2,216)(used in) financing activities Net increase 117,885 (11,542)(decrease) in cash and cash equivalentsCash and cash 47,047 26,316equivalents at beginning of periodCash and cash 164,932 14,774equivalents at end of $ $ periodCUTERA, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS(in thousands, except percentage data)(unaudited)Three Months Ended% ChangeMarch 31,March 31,2021 Vs2021

2020

2020

Revenue By Geography:North America$22,396

$15,373

+46%Japan16,555

7,162

+131%Rest of World10,717

9,704

+10%Total Net Revenue$49,668

$32,239

+54%Rest of World (including Japan) as a percentage of total revenue55%

52%

Revenue By Product Category:Systems- North America$16,785

$10,382

+62%- Rest of World (including Japan)11,536

10,576

+9%Total Systems28,321

20,958

+35%Consumables2,925

2,533

+15%Skincare12,306

2,900

+324%Total Products43,552

26,391

+65%Service6,116

5,848

+5%Total Net Revenue$49,668

$32,239

+54%Three Months EndedMarch 31,March 31,2021

2020

Pre-tax Stock-Based Compensation Expense:Cost of revenue$144

$290

Sales and marketing721

719

Research and development301

321

General and administrative680

650

$1,846

$1,980

CUTERA, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS(in thousands, except percentage data)(unaudited) Three Months Ended % Change March 31, March 31, 2021 Vs 2021 2020 2020

Revenue By Geography: North America $ 22,396 $ 15,373 +46%

Japan 16,555 7,162 +131%

Rest of World 10,717 9,704 +10%

Total Net Revenue $ 49,668 $ 32,239 +54%

Rest of World(including 55% 52%Japan) as a percentage oftotal revenue Revenue ByProduct Category:Systems - North America $ 16,785 $ 10,382 +62%

- Rest of World 11,536 10,576 +9%(includingJapan) Total Systems 28,321 20,958 +35%

Consumables 2,925 2,533 +15%

Skincare 12,306 2,900 +324%

Total Products 43,552 26,391 +65%

Service 6,116 5,848 +5%

Total Net Revenue $ 49,668 $ 32,239 +54%

Three Months Ended March 31, March 31, 2021 2020

Pre-taxStock-Based CompensationExpense:Cost of revenue $ 144 $ 290

Sales and marketing 721 719

Research and development 301 321

General and administrative 680 650

$ 1,846 $ 1,980

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, 2021Three Months Ended March 31, 2020GAAPDepreciationandAmortizationStock-BasedCompensationCRM and ERPImplementation/write-offLegal - LutronicTaxes andOtherAdjustmentsNon-GAAPGAAPDepreciationandAmortizationStock-BasedCompensationCRM and ERPImplementation/write-offTaxes andOtherAdjustmentsNon-GAAPNet revenue$

49,668

-

-

-

-

-

$

49,668

$

32,239

-

-

-

-

$

32,239

Cost of revenue21,958

(162

)

(144

)

-

-

-

21,652

17,903

(140

)

(290

)

-

-

17,473

Gross profit27,710

162

144

-

-

-

28,016

14,336

140

290

-

-

14,766

Gross margin %56%

56%

44%

46%

Operating expenses:Sales and marketing15,068

(678

)

(721

)

(182

)

-

-

13,487

14,789

(871

)

(718

)

(165

)

-

13,035

Research and development4,112

(39

)

(301

)

-

-

-

3,772

3,870

(38

)

(321

)

-

-

3,511

General and administrative7,365

(27

)

(680

)

(70

)

(401

)

-

6,187

7,806

(28

)

(651

)

(244

)

(324

)

6,559

Total operating expenses26,545

(744

)

(1,702

)

(252

)

(401

)

-

23,446

26,465

(937

)

(1,690

)

(409

)

(324

)

23,105

Income (loss) from operations1,165

906

1,846

252

401

-

4,570

(12,129

)

1,077

1,980

409

324

(8,339

)

Interest and other expense, netAmortization of debt issuance costs(52

)

-

-

-

-

-

(52

)

-

-

-

-

-

-

Interest on convertible notes(191

)

-

-

-

-

-

(191

)

-

-

-

-

-

-

Other expense, net(1,023

)

-

-

-

-

-

(1,023

)

(207

)

-

-

-

-

(207

)

Total interest and other expense, net(1,266

)

-

-

-

-

-

(1,266

)

(207

)

-

-

-

-

(207

)

Income (loss) before income taxes(101

)

906

1,846

252

401

-

3,304

(12,336

)

1,077

1,980

409

324

(8,546

)

Provision for income taxes258

-

-

-

-

-

258

78

-

-

-

5

83

Net income (loss)$

(359

)

$

906

$

1,846

$

252

$

401

$

-

$

3,046

$

(12,414

)

1,077

1,980

409

319

$

(8,629

)

Net income (loss) per share:Basic$

(0.02

)

$

0.17

$

(0.86

)

$

(0.60

)

Diluted$

(0.02

)

$

0.15

$

(0.86

)

$

(0.60

)

Weighted-average number of shares used in per share calculations:Basic17,768

17,768

14,433

14,433

Diluted17,768

22,266

14,433

14,433

Operating expenses as a % of net revenueGAAPNon-GAAPGAAPNon-GAAPSales and marketing30.3%

27.2%

45.9%

40.4%

Research and development8.3%

7.6%

12.0%

10.9%

General and administrative14.8%

12.5%

24.2%

20.3%

53.4%

47.2%

82.1%

71.7%

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 Three Months Ended March 31, 2020 Depreciation Stock-Based CRM and ERP Taxes and ^ Depreciation Stock-Based CRM and ERP Taxes and GAAP and Compensation Implementation Legal - Lutronic Other Non-GAAP GAAP and Compensation Implementation/ Other Non-GAAP Amortization /write-off Adjustments Amortization write-off Adjustments $ 49,668 $ 49,668 $ 32,239 $ 32,239 Net revenue - - - - - - - - -

(162 ) (144 ) 17,903 (140 ) (290 ) 17,473 Cost of revenue 21,958 - - - 21,652 - -

162 144 14,336 140 290 14,766 Gross profit 27,710 - - - 28,016 - -

Gross margin % 56% 56% 44% 46%

Operating expenses: (678 ) (721 ) (182 ) 14,789 (871 ) (718 ) (165 ) 13,035 Sales and marketing 15,068 - - 13,487 -

(39 ) (301 ) 3,870 (38 ) (321 ) 3,511 Research and development 4,112 - - - 3,772 - -

General and (27 ) (680 ) (70 ) (401 ) 7,806 (28 ) (651 ) (244 ) (324 ) 6,559 administrative 7,365 - 6,187

(744 ) (1,702 ) (252 ) (401 ) 26,465 (937 ) (1,690 ) (409 ) (324 ) 23,105 Total operating expenses 26,545 - 23,446

Income (loss) from 906 1,846 252 401 (12,129 ) 1,077 1,980 409 324 (8,339 )operations 1,165 - 4,570

Interest and other expense, netAmortization of debt ) ) issuance costs (52 - - - - - (52 - - - - - -

Interest on convertible ) ) notes (191 - - - - - (191 - - - - - -

) ) (207 ) (207 )Other expense, net (1,023 - - - - - (1,023 - - - -

Total interest and other ) ) (207 ) (207 )expense, net (1,266 - - - - - (1,266 - - - -

Income (loss) before ) 906 1,846 252 401 (12,336 ) 1,077 1,980 409 324 (8,546 )income taxes (101 - 3,304

Provision for income taxes 258 - - - - - 258 78 - - - 5 83

Net income (loss) $ (359 ) $ 906 $ 1,846 $ 252 $ 401 $ - $ 3,046 $ (12,414 ) 1,077 1,980 409 319 $ (8,629 )

Net income (loss) per share: $ (0.02 ) $ $ (0.86 ) $ (0.60 )Basic 0.17

$ (0.02 ) $ $ (0.86 ) $ (0.60 )Diluted 0.15

Weighted-average numberof shares used in per share calculations: 14,433 14,433 Basic 17,768 17,768

14,433 14,433 Diluted 17,768 22,266

^ ^ Operating expenses as a % GAAP ^ Non-GAAP GAAP Non-GAAPof net revenue Sales and marketing 30.3% ^ 27.2% 45.9% 40.4% Research and development 8.3% ^ 7.6% 12.0% 10.9% General and 14.8% ^ 12.5% 24.2% 20.3%administrative 53.4% ^ 47.2% 82.1% 71.7% CUTERA, INC.RECONCILIATION OF LOSS TO ADJUSTED EBITDA(in thousands)(unaudited)Three MonthsEndedMarch 31, 2021

Net loss$

(359

)

Adjustments:Stock-based compensation1,846

Depreciation and amortization906

CRM and ERP implementation/ write off252

Legal - Lutronic401

Interest and other expense, net1,266

Provision for income taxes258

Total adjustments$

4,929

Adjusted EBITDA$

4,570

View source version on businesswire.com: https://www.businesswire.com/news/home/20210505005970/en/

CONTACT: Cutera, Inc. Anne Werdan Director, Investor Relations 415-657-5500 awerdan@cutera.com