Cutera(US:CUTR)2022-05-09 16:00Financial Performance - Total net revenue for Q1 2022 was $58,014,000, an increase of 16.7% compared to $49,668,000 in Q1 2021[18] - Product revenue reached $52,066,000, up from $43,551,000, reflecting a growth of 19.5% year-over-year[18] - Gross profit for the quarter was $31,788,000, resulting in a gross margin of approximately 54.8%[18] - The net loss for Q1 2022 was $15,142,000, compared to a net loss of $359,000 in Q1 2021, indicating a substantial increase in losses[18] - Total consolidated revenue for the three months ended March 31, 2022, was $58.014 million, an increase from $49.668 million in the same period of 2021, representing a growth of 16.8%[144] - Revenue from the United States for the same period was $24.474 million, up from $18.948 million in 2021, indicating a growth of 29.2%[144] - The Company’s revenue from products for the three months ended March 31, 2022, was $36.514 million, compared to $28.320 million in the same period of 2021, reflecting a growth of 28.9%[144] - Total stock-based compensation expense for the three months ended March 31, 2022, was $4.043 million, an increase from $1.846 million in the same period in 2021[94] Expenses and Losses - Operating expenses increased significantly to $44,945,000, compared to $26,545,000 in the same quarter last year, marking a rise of 69.5%[18] - Operating expenses increased significantly to 77% of total net revenue in the three months ended March 31, 2022, compared to 53% in the same period in 2021, with sales and marketing expenses rising to 43% from 30%[180] - R&D expenses increased by $2.4 million to $6.5 million, representing 11.2% of total net revenue for the three months ended March 31, 2022, compared to 8.3% in the same period in 2021[201] - G&A expenses increased by $6.1 million to $13.5 million, representing 23.3% of total net revenue for the three months ended March 31, 2022, compared to 14.8% in the same period in 2021[202] - Interest and other expense, net increased by $0.5 million to $1.8 million for the three months ended March 31, 2022, due to interest expense related to convertible notes[204] Cash Flow and Assets - Cash and cash equivalents decreased to $57,732,000 from $164,164,000 at the end of 2021, a decline of 64.9%[14] - Cash flows from operating activities showed a net cash used of $29,604 for the three months ended March 31, 2022, compared to a net cash provided of $1,253 in the prior year[29] - Cash, cash equivalents, restricted cash, and marketable investments decreased by $32.4 million to $132.5 million as of March 31, 2022, primarily due to cash used in operating activities[208] - Net cash used in operating activities was $29.6 million for the three months ended March 31, 2022, reflecting an increase in inventory and deposits with vendors[211] - Net cash used in investing activities was $74.4 million for the three months ended March 31, 2022, primarily attributable to the purchase of marketable investments[212] Assets and Liabilities - Total current assets decreased to $236,784,000 from $249,661,000, a reduction of 5.2%[14] - Total liabilities remained relatively stable at $223,531,000, slightly down from $223,724,000[14] - Stockholders' equity decreased to $43,160,000 from $56,569,000, a decline of 23.7%[14] - The accrued liabilities decreased from $54,100,000 as of December 31, 2021, to $48,044,000 as of March 31, 2022, a reduction of about 11.2%[61] - The deferred revenue balance as of March 31, 2022, was $11,064,000, with approximately 88% expected to be recognized over the next 12 months[67] Product and Market Developments - The company received FDA clearance for the AviClear acne treatment device in March 2022, which will be rolled out to physicians throughout the year[34] - The company reported a significant increase in sales of skincare products under an exclusive distribution agreement with ZO Skin Health, Inc. in 2021[41] - The company is focused on the successful commercialization of AviClear and enhancing its product offerings through internal development and partnerships[162] - The company plans to continue expanding its product offerings and investing in global sales and marketing infrastructure to drive future revenue growth[162] Risks and Challenges - The company faces risks including rapid technological change, competition, and the ongoing impacts of the COVID-19 pandemic on its operations[37] - The company continues to monitor potential impairment of its long-lived assets and goodwill, with no charges necessary during the three months ended March 31, 2022[40]