Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to_____. Commission File Number: 000-50644 Cutera, Inc. (Exact name of registrant as specified in its charter) | --- | --- | --- | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to_____. Commission File Number: 000-50644 Cutera, Inc. (Exact name of registrant as specified in its charter) | --- | --- | --- | |--- ...

Cutera, Inc. (NASDAQ:CUTR) Q2 2021 Earnings Conference Call August 4, 2021 4:30 PM ET Company Participants Dave Mowry - CEO Rohan Seth - CFO Conference Call Participants Louise Chen - Cantor Fitzgerald Jon Block - Stifel Chris Cooley - Stephens Anthony Vendetti - Maxim Group Operator Thank you for joining Cutera’s Second Quarter 2021 Earnings Conference Call. [Operator Instructions] The discussion today includes forward-looking statements. These forward-looking statements reflect management’s current foreca ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to_____. Commission File Number: 000-50644 Cutera, Inc. (Exact name of registrant as specified in its charter) | --- | --- | --- | |-- ...

Cutera, Inc. (NASDAQ:CUTR) Q1 2021 Results Conference Call May 5, 2021 4:30 PM ET Company Participants Dave Mowry - CEO Rohan Seth - CFO Conference Call Participants Korinne Wolfmeyer - Piper Sandler Chris Cooley - Stephens Jon Block - Stifel Anthony Vendetti - Maxim Group Operator Thank you for joining Cutera’s First Quarter 2021 Earnings Conference Call. [Operator Instructions] The discussion today includes forward-looking statements. These forward-looking statements reflect management’s current forecast ...

Financial Obligations and Debt - The Company has a senior credit facility of up to $30.0 million, which includes various restrictive covenants that may impact its operations [186]. - The Company had $7.2 million of indebtedness for borrowed money outstanding as of December 31, 2020, all of which would be effectively senior to the notes [373]. - The notes will rank senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the notes and equal in right of payment to all unsecured indebtedness that is not subordinated [369]. - In the event of bankruptcy, the Company's assets securing secured indebtedness will be available to pay obligations on the notes only after all such secured indebtedness has been repaid in full [370]. - The Company's ability to service its debt, including the notes, depends on the results of operations of its subsidiaries and their ability to provide cash to the Company [372]. - The Company may incur substantial additional debt in the future, which could diminish its ability to make payments on the notes when due [379]. - Holders of the notes have the right to require the Company to repurchase all or a portion of their notes upon a fundamental change at a repurchase price equal to 100% of the principal amount [381]. - The conditional conversion feature of the notes, if triggered, may adversely affect the Company's liquidity and financial condition [384]. - The Company expects that the trading price of the notes will be significantly affected by the market price of its common stock, which has experienced significant fluctuations [378]. - Regulatory actions may impact the trading price and liquidity of the notes, particularly concerning short selling activities [376]. Market and Competitive Environment - The Company's annual and quarterly operating results may fluctuate significantly due to factors such as market acceptance of products and debt repayment obligations [188]. - The Company must continue to innovate and develop new products to maintain its competitive position in the aesthetic equipment market [201]. - The Company faces competition for skilled sales professionals, which can affect its ability to retain talent and maintain sales performance [197]. - The Company must effectively compete in a dynamic market characterized by rapid technological development and substantial competition from established players [265]. - The aesthetic product market's growth relies on consumer demand for elective procedures, which may be influenced by economic conditions and alternative treatment costs [268]. Sales and Distribution - The Company relies heavily on its sales professionals to market its products, and their productivity is crucial for future revenue and profitability [195]. - The Company relies on a direct sales force in major markets and third-party distributors in other regions, which poses risks if distributor relationships are lost or not renewed [238][241]. - The Company experienced significant turnover in its sales professionals, which negatively impacted sales performance in the first half of 2020 [197]. - The Company experienced significant turnover in its North America sales team during Q1 2020, which added pressure on the global sales team but did not adversely affect international sales [239]. - International revenue represented 48% of the Company's total revenue in 2020, up from 42% in 2019, highlighting the importance of international expansion in the Company's growth strategy [238]. Regulatory Compliance and Risks - The Company must navigate regulatory requirements and market conditions to successfully launch new products and expand its market presence [205]. - The impact of Brexit on the Company's operations and regulatory compliance remains uncertain, potentially affecting its business [213]. - Compliance with international laws, including the U.S. Foreign Corrupt Practices Act and various anti-bribery laws, is critical; failure to comply could result in civil and criminal sanctions [247]. - The Company is monitoring Brexit's impact on operations, with new UK regulations requiring medical devices to be registered with the Medicines and Healthcare Products Regulatory Agency by July 1, 2023 [248]. - The Company is subject to complex and increasingly stringent regulations, which could lead to operational restrictions, higher costs, or lower sales [278]. - Non-compliance with FDA regulations could result in enforcement actions, including fines, product recalls, or shutdown of manufacturing operations [280]. - The FDA's Quality System Regulation (QSR) requires compliance in design, testing, and manufacturing, with potential sanctions for non-compliance [291]. - Legislative changes could significantly alter the regulatory landscape, impacting the approval and marketing of medical devices [282]. - The Company may face delays in obtaining international regulatory approvals, which could hinder its ability to market products globally [299]. - The Company is required to report adverse medical events to the FDA, with potential sanctions for failure to comply [305]. Product Development and Clinical Trials - The Company introduced several new products between 2017 and 2020, including Juliet and Secret RF, to enhance its product offerings [203]. - The Company’s clinical trials are lengthy and expensive, with uncertain outcomes, potentially delaying the commercialization of new products [312]. - The Company may face significant costs and delays in clinical trials due to challenges in patient enrollment and compliance with regulatory requirements [320]. - The Company may need to conduct additional clinical trials if initial results are negative or inconclusive, impacting product development timelines [314]. - The Company’s clinical trial results may not support product claims, leading to potential abandonment of product candidates [322]. Supply Chain and Manufacturing - The Company’s manufacturing operations depend on third-party suppliers, making it vulnerable to supply shortages and price fluctuations [333]. - The Company relies on a limited number of suppliers for components and materials, which poses risks such as supply interruptions and delays in product shipments [334]. - The Company has a sole supplier, ZO, for all skincare products, increasing vulnerability to supply chain disruptions [334]. - Manufacturing operations are based in Brisbane, California, with some products only produced at this single site, risking operational halts due to disasters [341]. Legal and Litigation Risks - The Company is involved in litigation that could adversely affect its business and financial results [325]. - The Company faces potential litigation regarding intellectual property, which could result in significant financial liabilities and operational disruptions [347]. - Customers are experiencing difficulties in obtaining liability insurance, which may adversely affect the Company's product sales and financial condition [350]. Tax and Financial Reporting - The Company is subject to income tax audits, which could lead to additional costs and impact its financial position [351]. - Changes in U.S. tax laws and importation taxes could significantly affect the Company's effective tax rate and overall financial performance [355]. - The Company is in the process of implementing a new accounting and ERP system, which carries risks of significant additional costs and potential delays in reporting accurate financial information [230]. Quality Control and Product Liability - Any defects in product design or manufacturing could lead to increased expenses, loss of customer orders, and damage to the Company's reputation [302]. - A government-mandated or voluntary recall could negatively impact the Company's reputation and financial results [310]. - The FDA's authority to require recalls is based on the potential for serious injury or death, which could significantly affect the Company's operations [307]. - The Company’s products may be subject to recalls, which could harm its reputation and financial results [311]. - The Company does not require training for users of its products, increasing the risk of misuse and potential product liability litigation [330].

Cutera, Inc. (NASDAQ:CUTR) Q4 2020 Earnings Conference Call February 17, 2021 4:30 PM ET Company Participants Dave Mowry - Chief Executive Officer Rohan Seth - Chief Financial Officer Jason Richey - President and Chief Operating Officer Conference Call Participants John Glass - Stifel Matthew O'Brien - Piper Sandler Chris Cooley - Stephens Anthony Vendetti - Maxim Group Jim Sidoti - Sidoti & Company Operator Thank you for joining Cutera's Fourth 2020 Earnings Conference Call. After the prepared remarks, the ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to_____. Commission File Number: 000-50644 Cutera, Inc. (Exact name of registrant as specified in its charter) | --- | --- | --- | ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2020 was $39.1 million, a decline of approximately 15% compared to $46.1 million in Q3 2019, attributed to reduced treatment volumes and lower capital equipment purchases due to COVID disruptions [27] - North American capital equipment revenue was $13.7 million, down from $24.1 million year-over-year, while international capital equipment revenue was $10.4 million, a 4% decline from $10.8 million in Q3 2019 [28] - Recurring revenue, defined as consumables, global service, and skincare revenue, increased by 35% to $15 million compared to $11.2 million in the same period last year [30] - GAAP gross profit for Q3 2020 was $21.7 million, with a gross margin of 56%, compared to 57% in the same period last year [31][32] - Total operating expenses decreased by 20% to $23 million from $28.6 million in Q3 2019, reflecting lower variable compensation and cost reduction measures [33] Business Line Data and Key Metrics Changes - Global service revenues increased by 27% sequentially from Q2 2020, returning to pre-COVID levels, driven by strong field service call volumes and increased revenue from extended warranties [18] - Consumer revenue grew by 62% sequentially over Q2 2020, nearly closing the gap to pre-COVID energy-based treatment volumes [19] - Skincare line in Japan achieved triple-digit growth for the second consecutive quarter, driven by customer base expansion and loyalty [16] Market Data and Key Metrics Changes - Energy-based treatment volumes improved to between 90% and 95% of pre-COVID levels by the end of Q3 2020, with steady progress observed in North America, Japan, and several European geographies [12][13] - The appetite for capital spending improved across many distributor markets as practices reopened and ramped up patient treatment volumes [14] Company Strategy and Development Direction - The company is focused on driving transformation through the introduction of disruptive technology, operational efficiencies, and sustained profitability [58] - New product launches include the truBody program and the Fraxis PRO platform, aimed at enhancing the company's aesthetic device portfolio [44][46] - The company plans to expand sales coverage and make thoughtful investments in key geographies despite ongoing uncertainty in capital equipment demand [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery trends, noting that many aesthetic practices are booked several months out, indicating strong patient demand [13] - The company anticipates continued pressure in the capital equipment demand environment but expects sequential improvement in Q4 2020 [22] - Management remains committed to maintaining operating expense discipline and improving cash generation [24] Other Important Information - The company ended Q3 2020 with approximately $42.4 million in cash and equivalents, up from $29.4 million a year ago [38] - Inventory decreased to $29.3 million, down $7.6 million from Q1 2020, with ongoing efforts to monetize inventory [40] Q&A Session Summary Question: Can you provide insight on the decision to add reps back and the number of reps involved? - Management indicated that they are cautiously bringing back reps based on productivity improvements and market recovery, without disclosing exact numbers [65] Question: What are customers doing to maintain operations during potential second COVID wave? - Management noted that practices are adapting by providing tools and training to help them stay open and continue operations [67] Question: Can you discuss the differences in customer wants between the U.S. and international markets? - Management highlighted that while there are no dramatic shifts, clinicians are focused on cost, treatment time, access, and return on investment [71] Question: What is the outlook for the skincare line and its margin profile? - Management confirmed that the skincare line has established a new foundational sales level and expects to moderate growth year-over-year, not on an absolute basis [75] Question: Any updates on the Fraxis PRO rollout? - The Fraxis PRO was launched late in the quarter, and initial traction has been positive, complementing existing products in the portfolio [80] Question: What is the status of the acne product development? - Management is currently working with regulatory agencies for approval and will provide updates as they progress [82]

Financial Data and Key Metrics Changes - Total revenue for Q2 2020 was $26.4 million, a decline of approximately 45% compared to $47.8 million in Q2 2019, primarily due to COVID-19 related shutdowns [35] - U.S. revenue fell 61% to $10.9 million, while international revenue was $15.5 million, reflecting a 21% decline [35] - Gross profit decreased by 52% to $12.6 million, with gross margin dropping to 47.9% from 55.2% year-over-year [38] Business Line Data and Key Metrics Changes - Skincare revenue grew by 169% year-over-year to $4.8 million, driven by increased customer satisfaction and limited access to dermatologists in Japan [36][14] - Service revenue was better than anticipated, with practices requesting service in advance of reopening, leading to increased service calls [15] - Consumable revenue nearly doubled from May to June as practices began to ramp up patient traffic [30] Market Data and Key Metrics Changes - In North America, practices focused on driving procedure-related volume, particularly in skin revitalization and body sculpting [26] - European market sales were flat year-over-year despite government restrictions, aided by organizational restructuring and the launch of truSculpt flex [27] - In Japan, 60% to 70% of offices remained open at 50% to 60% capacity, with growth in both skin revitalization and body sculpting [29] Company Strategy and Development Direction - The company launched a membership program to assist customers with low upfront costs for energy-based aesthetic equipment, aimed at helping practices recover from COVID-19 impacts [17] - Focus on maintaining operational discipline and reducing expenses, with a significant reduction in headcount and non-essential programs [21] - Anticipation of continued aggressive marketing and treatment efforts from dedicated aesthetic practices, particularly med spas and plastic surgeons [19] Management's Comments on Operating Environment and Future Outlook - Management expressed guarded optimism for Q3 2020, expecting sequential improvement in revenue as patient traffic continues to ramp up [20] - The company is mindful of the ongoing impact of COVID-19 on revenue performance but is encouraged by early revenue trends in the current quarter [20] - Management emphasized the importance of customer engagement and adapting to the evolving market environment [8] Other Important Information - The company ended Q2 2020 with approximately $46.6 million in cash and equivalents, up from $31.7 million a year ago, bolstered by an equity offering and a PPP loan [44][45] - A new $30 million credit facility was established, replacing an existing facility with more favorable terms [46] - The company is focused on managing working capital and inventory effectively during the ongoing pandemic [47] Q&A Session Summary Question: How much of the recurring revenue growth is due to practices drawing down on inventory? - Management noted that consumable volumes lagged behind procedures initially but saw a significant increase as practices ramped up patient traffic [54] Question: Any updates on the acne program timeline? - Management indicated that clinical studies were extended due to COVID-19, and they are working with regulatory agencies to accelerate timelines [55] Question: How to sum up the impact on Q3 with various factors at play? - Management expressed encouragement from good patient traffic and noted that consumable inventories have been somewhat depleted, which should provide a tailwind for recurring revenue [60] Question: What is the growth trajectory of the business post-COVID? - Management believes that the organization is now leaner and focused on growth, with expectations to return to pre-COVID growth levels [66] Question: How does the membership program affect revenue recognition? - Management clarified that the membership program is seen as a courtesy to customers and is not expected to delay revenue recognition significantly [80]