Cutera, Inc. (CUTR) Bundle
A Brief History of Cutera, Inc.
Company Overview
Cutera, Inc. is a leading provider of aesthetic and dermatology solutions, recognized for its innovative technologies aimed at enhancing patient care and practitioner efficiency. Established in 1998, the company has continuously evolved its product offerings to meet the demands of the medical aesthetics market.
Recent Financial Performance
As of September 30, 2024, Cutera reported consolidated revenue of $32.5 million, a decrease of 30% compared to the same period in 2023. The decline is attributed to the termination of a skincare distribution agreement, which previously contributed $7.1 million in revenue in Q3 2023.
Gross profit for the third quarter of 2024 was $1.8 million, representing a gross margin of 5.6%, down from 13.9% in Q3 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $32.5 million | $46.5 million | -30% |
| Gross Profit | $1.8 million | $6.5 million | -72% |
| Gross Margin | 5.6% | 13.9% | -59.7% |
| Operating Expenses | $38.0 million | $47.4 million | -19.2% |
| Net Loss | $(39.0) million | $(44.3) million | -12.1% |
Operational Adjustments
In the third quarter of 2024, Cutera's operating expenses totaled $38.0 million, down from $47.4 million in the previous year. The reduction was largely driven by decreased sales and marketing expenses and operational efficiencies. Despite the reduction in operating expenses, the company posted an operating loss of $(36.2) million.
Balance Sheet Highlights
As of September 30, 2024, Cutera's total assets stood at $234.4 million, a significant decrease from $346.3 million at the end of 2023. Current liabilities were reported at $55.7 million, while total liabilities amounted to $487.3 million.
| Balance Sheet Item | Amount (Sept 30, 2024) | Amount (Dec 31, 2023) |
|---|---|---|
| Total Assets | $234.4 million | $346.3 million |
| Total Liabilities | $487.3 million | $518.1 million |
| Stockholders' Deficit | $(252.9) million | $(171.8) million |
Future Outlook
Management has reaffirmed its full-year revenue guidance for 2024, projecting revenues between $140 million and $145 million. Additionally, they anticipate a year-end cash balance of approximately $40 million.
A Who Owns Cutera, Inc. (CUTR)
Major Shareholders
As of 2024, the ownership structure of Cutera, Inc. is characterized by a mix of institutional and individual investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Name | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.5% | 2,100,000 |
| The Vanguard Group, Inc. | 9.8% | 1,960,000 |
| Wellington Management Company, LLP | 7.2% | 1,440,000 |
| Dimensional Fund Advisors LP | 5.9% | 1,180,000 |
| State Street Corporation | 5.5% | 1,100,000 |
| Insider Holdings (Executives & Directors) | 4.2% | 840,000 |
| Other Institutional Investors | 15.0% | 3,000,000 |
| Retail Investors | 42.9% | 8,580,000 |
Executive Management Ownership
The executive team also holds a notable percentage of shares, which aligns their interests with those of the shareholders. The following table summarizes the ownership held by key executives:
| Executive Name | Title | Shares Owned |
|---|---|---|
| Taylor Harris | CEO | 300,000 |
| Stuart Drummond | Interim CFO | 150,000 |
| Shelby Eckerman | VP, Finance | 100,000 |
| Board of Directors (Total) | Various | 290,000 |
Stock Performance and Market Trends
As of November 2024, Cutera, Inc. has experienced fluctuations in its stock price, reflecting broader market trends and company performance:
| Date | Stock Price (USD) | Market Cap (USD) |
|---|---|---|
| November 1, 2024 | 29.75 | 600 million |
| October 1, 2024 | 32.50 | 650 million |
| September 1, 2024 | 35.00 | 700 million |
| August 1, 2024 | 30.00 | 620 million |
Financial Overview
Cutera's financial performance for the third quarter of 2024 shows a significant decrease in revenue, attributed to the termination of a skincare distribution agreement:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $32.5 million | $46.5 million | -30% |
| Gross Profit | $1.8 million | $6.5 million | -72% |
| Operating Loss | ($36.2 million) | ($40.9 million) | +7% |
| Net Loss | ($39.0 million) | ($44.3 million) | +12% |
Outlook and Guidance
Management has reaffirmed its guidance for the full year of 2024, projecting total revenue between $140 million to $145 million, with an expected year-end cash balance of approximately $40 million.
Cutera, Inc. (CUTR) Mission Statement
Cutera, Inc. is dedicated to being a leading provider of aesthetic and dermatology solutions, focusing on improving lives through innovative medical aesthetic technologies. The company's mission emphasizes the commitment to delivering advanced products and services that enhance the quality of life for patients globally.
Financial Overview
As of the third quarter of 2024, Cutera reported consolidated revenue of $32.5 million, representing a decrease of 30.1% compared to $46.5 million in the same quarter of the previous year. The decline was attributed to the termination of a skincare distribution agreement earlier in the year, which previously contributed $7.1 million to revenue.
Revenue Breakdown
| Revenue Category | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Net Revenue | $32,500,000 | $46,478,000 | -30.1% |
| Products | $27,242,000 | $40,989,000 | -33.5% |
| Service | $5,258,000 | $5,489,000 | -4.2% |
Gross Profit and Margins
For Q3 2024, Cutera's gross profit was $1.8 million, which constituted 5.6% of total revenue. This is a significant decline from a gross profit of $6.5 million or 13.9% of revenue in Q3 2023. The decline in gross profit was primarily due to $10.1 million in non-cash expenses related to excess and obsolete inventory.
Operating Expenses
| Expense Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales and Marketing | $18,928,000 | $25,808,000 |
| Research and Development | $4,353,000 | $4,592,000 |
| General and Administrative | $14,749,000 | $17,004,000 |
| Total Operating Expenses | $38,030,000 | $47,404,000 |
Net Loss and Earnings Per Share
In Q3 2024, Cutera reported a net loss of $39.0 million, translating to a net loss per share of $1.94. This compares to a loss of $44.3 million and a net loss per share of $2.22 in Q3 2023.
Cash Position
As of September 30, 2024, Cutera had cash, cash equivalents, and restricted cash totaling $59.0 million, a decrease from $84.3 million at the end of the previous quarter.
Outlook for 2024
Management has maintained its full-year revenue guidance for 2024, projecting total revenue in the range of $140 million to $145 million, with an expected year-end cash balance of approximately $40 million.
How Cutera, Inc. (CUTR) Works
Business Overview
Cutera, Inc. is a leading provider of aesthetic and dermatology solutions. The company focuses on developing and marketing innovative products for practitioners worldwide, particularly in the field of medical aesthetics.
Financial Performance
As of the third quarter of 2024, Cutera reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Consolidated Revenue | $32.5 million | $46.5 million | -30.1% |
| Gross Profit | $1.8 million | $6.5 million | -72.3% |
| Operating Expenses | $38.0 million | $47.4 million | -19.4% |
| Net Loss | $(39.0 million) | $(44.3 million) | -12.3% |
| Gross Margin | 5.6% | 13.9% | -8.3% |
Revenue Breakdown
Revenue is categorized into products and services:
| Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Products | $27.2 million | $41.0 million |
| Service | $5.3 million | $5.5 million |
Geographical Revenue Distribution
Revenue by geography indicates a significant drop in North America and Japan but growth in other regions:
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| North America | $14.7 million | $24.9 million | -41.1% |
| Japan | $3.4 million | $11.5 million | -70.3% |
| Rest of World | $14.4 million | $10.1 million | +42.9% |
Operating Expenses Analysis
Operating expenses decreased but remained substantial:
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Sales and Marketing | $18.9 million | $25.8 million |
| Research and Development | $4.4 million | $4.6 million |
| General and Administrative | $14.7 million | $17.0 million |
Cash Flow Position
As of September 30, 2024, Cutera's cash, cash equivalents, and restricted cash were:
| Cash Position | Amount |
|---|---|
| Cash, Cash Equivalents, and Restricted Cash | $59.0 million |
Guidance for 2024
Management has reaffirmed full-year guidance for 2024 as follows:
| Guidance Metrics | Value |
|---|---|
| Revenue Guidance | $140 million to $145 million |
| Year-End Cash Guidance | Approximately $40 million |
Stock Performance
As of the latest available data, Cutera's stock performance displayed volatility typical of the medical technology sector. The company's stock price is influenced by its financial results, market conditions, and product innovations.
How Cutera, Inc. (CUTR) Makes Money
Revenue Streams
Cutera, Inc. primarily generates revenue through the sale of medical aesthetic systems, consumables, and service contracts. As of September 30, 2024, the company reported total net revenue of $32.5 million, which reflects a decline of 30.1% compared to $46.5 million in the same quarter of the previous year.
Revenue Breakdown
| Category | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Products | $27,242 | $40,989 | -33.5% |
| Service | $5,258 | $5,489 | -4.2% |
| Total Net Revenue | $32,500 | $46,478 | -30.1% |
Product Sales
Product sales comprise the majority of Cutera's revenue. In Q3 2024, product sales amounted to $27.2 million, which included:
- Capital systems sales: $23.0 million
- Consumables: $4.2 million
- Skincare products: $0 million (terminated distribution agreement)
Service Revenue
Service revenue, which includes maintenance and support for the aesthetic systems, contributed $5.3 million in Q3 2024, slightly lower than the $5.5 million reported in Q3 2023.
Geographical Revenue Distribution
Revenue from different geographical regions shows a significant shift. For Q3 2024, North America accounted for $14.7 million, while international markets contributed $17.8 million, reflecting a growing international market presence.
| Region | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| North America | $14,651 | $24,855 | -41.1% |
| Japan | $3,420 | $11,529 | -70.3% |
| Rest of World | $14,429 | $10,094 | +42.9% |
| Total Revenue | $32,500 | $46,478 | -30.1% |
Cost and Profitability Analysis
Cutera reported a gross profit of $1.8 million for Q3 2024, which translates to a gross margin of 5.6%. This is a significant decrease from a gross profit of $6.5 million and a margin of 14% in Q3 2023. The decline in gross margin is attributed to $10.1 million in excess and obsolete inventory costs, which represented 31% of total revenue.
Operating Expenses
Operating expenses totaled $38.0 million in Q3 2024, a decrease from $47.4 million in Q3 2023. This includes:
- Sales and marketing: $18.9 million
- Research and development: $4.4 million
- General and administrative: $14.7 million
Net Loss and Financial Position
Cutera reported a net loss of $39.0 million for Q3 2024, compared to a net loss of $44.3 million in Q3 2023. The company had cash, cash equivalents, and restricted cash of $59.0 million as of September 30, 2024.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss (in thousands) | $(39,018) | $(44,274) |
| Cash and Cash Equivalents (in thousands) | $59,000 | $84,300 |
| Gross Margin (%) | 5.6% | 14.0% |
| Operating Expenses (in thousands) | $38,030 | $47,404 |
Future Outlook
For the full year 2024, Cutera has maintained its revenue guidance of $140 million to $145 million, with expectations for cash, cash equivalents, and restricted cash to be approximately $40 million by year-end .
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Updated on 16 Nov 2024
Resources:
- Cutera, Inc. (CUTR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cutera, Inc. (CUTR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cutera, Inc. (CUTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.