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Cutera (CUTR)
OTHER OTC:CUTR
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Cutera
(OTC:CUTR)
36Underperform
Positive Factors
International Market Expansion
CUTR's better-than-expected revenue was driven primarily by international AviClear sales, showing early success in its European market launch.
Product Utilization
CUTR has experienced initial success with the international launch of AviClear, particularly in Australia and the UK, with early signs of high utilization rates.
Negative Factors
Debt and Cash Reserves
The magnitude of the company's debt burden and declining cash reserves remains a concern.
Financial Outlook
CUTR lowered 2024 revenue guidance to $140M-$145M, from $160M-$170M, down 31.7%-34.1% year-over-year, and below prior expectations.
Financial Performance
North American system sales declined 45.5% year-over-year, reflecting persistent macroeconomic headwinds.
Cutera (CUTR) vs. S&P 500 (SPY)
Market Cap
$262.42K
Dividend YieldN/A
Average Volume (3M)13.27M
Price to Earnings (P/E)―
Beta (1Y)2.81
Revenue Growth-32.57%
EPS Growth-15.03%
CountryUS
Employees430
SectorHealthcare
Sector Strength46
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-6.57
Shares Outstanding20,185,926
10 Day Avg. Volume30,862,098
30 Day Avg. Volume13,269,918
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.49K
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit9.44
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.00Price Target Upside19900.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Cutera Business Overview & Revenue Model
Company DescriptionCutera, Inc. provides laser and energy-based aesthetic systems for practitioners, which engages in the design, development, manufacture, marketing and servicing of laser and other energy based aesthetics systems for practitioners. Its products include Enlighten, TruSculpt, Excel HR, Excel V, and Xeo. The company was founded by David A. Gollnick in August 1998 and is headquartered in Brisbane, CA.
How the Company Makes MoneyCutera makes money primarily through the sale of its advanced aesthetic and dermatological devices to medical professionals and aesthetic businesses. The company's key revenue streams include direct sales of laser and energy-based devices, as well as recurring revenues from the sale of consumable products and accessories used with their devices. Additionally, Cutera generates income through service and maintenance contracts, training programs, and through strategic partnerships and distribution agreements that help expand its market reach and product accessibility. These factors contribute significantly to Cutera's earnings, positioning it as a prominent player in the medical aesthetics industry.
Cutera Financial Statement Overview
Summary
Cutera is facing significant financial challenges, including declining revenue, increasing operational losses, negative equity, and high leverage. The company's financial position is precarious, with major risks that need addressing for future stability and growth.Income Statement
Cutera's income statement shows a concerning trend with declining revenue and increasing losses. The TTM revenue of $155 million represents a significant decrease from previous years, and the company reported a substantial net loss of $132 million, which translates to a negative net profit margin. This indicates challenges in maintaining profitability and managing expenses efficiently.35
Negative
Balance Sheet
The balance sheet reveals high financial risk with negative stockholders' equity of $253 million and total debt of $432 million. The debt-to-equity ratio is not calculable due to negative equity, highlighting severe leverage issues. The company's total liabilities exceed its total assets, raising concerns about solvency and financial stability.20
Very Negative
Cash Flow
Cash flow from operations is negative, with a TTM figure of -$117 million, reflecting ongoing cash burn. Free cash flow is also negative, indicating challenges in generating sufficient cash to cover expenditures without relying on external funding. The operating cash flow to net income ratio is not favorable, suggesting inefficiencies in converting income to cash.25
Negative
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 212.37M | 252.40M | 231.27M | 147.68M | 181.71M | Gross Profit |
| 41.49M | 139.83M | 133.10M | 75.77M | 98.16M | EBIT |
| -156.23M | -38.19M | -1.29M | -22.83M | -12.06M | EBITDA |
| -140.94M | -65.22M | 58.00K | -16.90M | -10.52M | Net Income Common Stockholders |
| -162.83M | -82.34M | 2.06M | -23.88M | -12.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 143.61M | 317.31M | 164.16M | 47.05M | 33.92M | Total Assets |
| 346.29M | 520.99M | 280.29M | 132.73M | 113.74M | Total Debt |
| 431.91M | 430.62M | 150.15M | 25.39M | 7.91M | Net Debt |
| 288.30M | 284.70M | -14.02M | -21.65M | -18.40M | Total Liabilities |
| 518.12M | 536.17M | 223.72M | 75.85M | 67.80M | Stockholders Equity |
| -171.83M | -15.18M | 56.57M | 56.88M | 45.94M |
| Cash Flow | Free Cash Flow | |||
| -170.88M | -89.69M | 220.00K | -18.23M | -3.21M | Operating Cash Flow |
| -137.87M | -67.00M | 1.24M | -16.96M | -2.22M | Investing Cash Flow |
| 137.43M | -194.18M | -944.00K | 6.39M | 1.07M | Financing Cash Flow |
| -2.57M | 242.94M | 117.53M | 31.30M | 1.41M |
Cutera Technical Analysis
Negative
0.01
Price Trends
0.29
Negative
0.35
Negative
0.69
Negative
Market Momentum
-0.09
Negative
20.13
Positive
19.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUTR, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.29, and below the 200-day MA of 0.69, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 20.13 is Positive, neither overbought nor oversold. The STOCH value of 19.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CUTR.
Cutera Risk Analysis
Cutera disclosed 81 risk factors in its most recent earnings report. Cutera reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cutera Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Performance Comparison
CUTR
Cutera
0.01
-2.22
-99.55%
ICUI
ICU Medical
138.30
29.93
27.62%
VIVE
Viveve Medical
―
―
―
INMD
InMode
14.45
-4.04
-21.85%
Cutera Earnings Call Summary
Earnings Call Date:Feb 19, 2025
(Q3-2024)
| % Change Since: -97.87%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in international expansion and operational improvements, particularly in service response times and gross margin. However, these positives were offset by notable challenges such as a decline in revenue, substantial inventory write-downs, and ongoing macroeconomic pressures. While there are promising signs of growth, especially in international markets, the company faces a challenging environment in North America.Q3-2024 Updates
Positive Updates
AviClear International Expansion
Successfully sold over 100 AviClear systems outside of North America, expanding into approximately 25 countries with strong utilization trends.
Operational Improvements
Reduced service backlog globally and improved service response times in North America to industry-leading levels, achieving 90% to 100% response within 72 hours.
Gross Margin Improvement
Normalized gross margin improved to 42% in Q3 compared to 35% in Q2, reflecting operational efficiencies.
Cost Reduction Efforts
Achieved two consecutive quarters of operating expenses below $30 million, excluding non-GAAP adjustments and bad debt expenses.
Negative Updates
Revenue Decline
Total revenue for Q3 2024 was $32.5 million, down from $46.5 million in Q3 2023, reflecting macroeconomic pressures and sales rep turnover.
Inventory Challenges
Recorded a $10.1 million charge for excess and obsolete inventory, impacting gross profit and margin.
Continued Macroeconomic Pressures
No improvement in credit availability or consumer demand, affecting capital equipment purchases and creating uncertainty.
Company Guidance
During the Cutera, Inc. Q3 2024 earnings call, the company provided guidance indicating they are maintaining their full-year revenue outlook of $140 million to $145 million, despite challenging business conditions. Gross margin showed improvement, normalized at 42% in Q3, up from 35% in Q2. The company is focused on reducing cash burn by over 50% in 2025, driven by improvements in working capital and cost savings initiatives. Internationally, AviClear's launch has been successful, with over 100 systems sold in approximately 25 countries, and direct markets seeing an average of over nine treatments per device per month. The company is also working to improve their financial health through operational efficiencies and a strategic focus on high-priority accounts, aiming to enhance utilization rates and drive growth.Cutera Corporate Events
Executive/Board Changes
Cutera Approves Executive Performance and Incentive Bonuses
Neutral
Dec 2, 2024
Cutera, Inc. has approved special cash performance and incentive bonuses for its executive officers, including the CEO, CFO, COO, and Chief Legal Officer, set to be paid by December 15, 2025. The bonuses are contingent on continued employment, with full repayment required if the executive leaves before March 31, 2025, and partial repayment if leaving between April 1 and June 29, 2025, except under specific conditions like a change in control or termination without cause.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.