Cutera(CUTR) - 2023 Q4 - Annual Results

Financial Performance - Consolidated revenue for the full-year 2023 was $212.4 million, a decrease of 16% compared to the full-year 2022[6] - Fourth quarter 2023 consolidated revenue was $49.5 million, a decrease of 26% compared to the fourth quarter of 2022[18] - Total net revenue for Q4 2023 was $49.54 million, a decrease of 26.4% compared to $67.35 million in Q4 2022[37] - Total net revenue for the twelve months ended December 31, 2023, was $212.37 million, down 15.9% from $252.40 million in 2022[39] - AviClear revenue for the fourth quarter of 2023 was $3.9 million[18] Profitability - Non-GAAP operating income was a loss of $85.7 million for the full-year 2023, compared to a loss of $7.2 million in the full-year 2022[8] - Gross profit for the full-year 2023 was $60.4 million, or 28.4% of revenue, compared to $139.8 million, or 55.4% of revenue, for the full-year 2022[20] - Gross profit for Q4 2023 was $6.24 million, representing a gross margin of 12.6%, compared to a gross profit of $38.75 million and a margin of 57.5% in Q4 2022[37] - The operating income reported was $(44,316,000), with total adjustments resulting in an adjusted operating income of $(26,109,000)[40] Expenses - Operating expenses for the full-year 2023 were $203.4 million, compared to $178.0 million in the prior year period[7] - Operating expenses increased to $50.56 million in Q4 2023 from $44.29 million in Q4 2022, with significant increases in sales and marketing expenses[37] - Gross profit in the fourth quarter of 2023 was negatively affected by approximately $8.4 million, or 16.9% of revenue, of non-cash expense related to excess and obsolete inventory[22] - The company experienced a significant increase in depreciation and amortization expenses, which rose to $3.35 million for the three months ended December 31, 2023, compared to $1.02 million in the same period of 2022[24] Cash Flow and Liquidity - Cash and marketable securities were $143.6 million as of December 31, 2023, down from $317.3 million as of December 31, 2022[5] - Net cash used in operating activities for the twelve months ended December 31, 2023, was $137.64 million, compared to $66.99 million for the same period in 2022, indicating a worsening cash flow situation[24] - Cash flows from investing activities resulted in a net cash outflow of $2.60 million for the three months ended December 31, 2023, compared to a net inflow of $25.21 million in the same period of 2022[24] - Total cash, cash equivalents, and restricted cash at the end of the period was $143.61 million, a decrease from $146.62 million at the end of the previous year[24] - Cash and cash equivalents decreased to $143.61 million as of December 31, 2023, from $145.92 million a year earlier[35] Liabilities and Assets - Total current assets dropped significantly to $268.34 million from $451.24 million year-over-year[35] - Total liabilities decreased slightly to $514.99 million from $536.17 million in the previous year[35] - The company’s accumulated deficit increased to $291.34 million as of December 31, 2023, compared to $140.51 million a year prior[35] Future Outlook - The company expects 2024 annual revenue in the range of $160 million to $170 million[9] - Forward-looking statements indicate that the company anticipates potential risks and uncertainties that may affect future performance, including ongoing litigation and market conditions[33] - Future outlook for 2024 was discussed, suggesting strategic initiatives may be in place to improve financial performance[43] Corporate Actions - The company completed a corporate restructuring program to improve cost structure and organizational alignment[14] - The company has implemented a retention plan with approximately $11 million available to sales personnel and key employees, to be paid in quarterly installments through October 2024[31] Adjustments and Non-GAAP Metrics - Total adjustments to gross profit amounted to $3,653,000, leading to an adjusted gross profit of $9,894,000 and an adjusted gross margin of 20.0%[40] - Legal expenses accounted for $864,000 in adjustments, while severance costs were $337,000, contributing 0.7% to the gross margin[40] - The report highlights the importance of ongoing adjustments to better reflect the company's operational performance beyond GAAP metrics[40]