CUTR - Earnings call transcript Q4 2019

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Operator

Thank you for joining Cutera’s Fourth Quarter and Full Year 2019 Earnings Conference Call. After the prepared remarks, there will be a question-and-answer session. The discussion today includes forward-looking statements. These forward-looking statements reflect management’s current forecast or expectations of certain aspects of the company’s future business, including, but not limited to, any financial guidance provided for modeling purposes.

Forward-looking statements are based on current information that is, by its nature, dynamic and subject to change.

others, regulatory financial approvals among introduce plans include, products, new and statements statements guidance, regarding to Forward-looking productivity improvements.

Exchange may the the section Factors XX-K in including those that our to filed. entitled are subject today. Risk words identify factors Securities in and we statements filed commission, statements, Form as For uncertainties, risks encourage All refer and forward-looking to Form press described Safe in subsequently our statement risk and our to Harbor updated with release earlier forward-looking you XX-Qs in the

Cutera or on any undertakes publicly also the or occurrence the circumstances no speak events. cautions date you statements, as events update to forward-looking not to to reflect statements place undue only unanticipated Cutera obligation of forward-looking to reliance they reflect made. are information, which new

Future from results current expectations. may materially management’s differ

non-GAAP into results can financial we measures, underlying transparency greater more addition, an In period a operations, of results these facilitate financial discuss believe from basis. period. measures when to particularly adjusted Cutera’s results will comparing ongoing and We analysis including on complete

reconciliations operating the by should with, from be not along to to, in our non-GAAP to prescribed earnings financial release. considered refer Please but alternatives as measures performance measures measures These the non-GAAP GAAP GAAP.

would Dave I to Mowry. that, like over CEO, call With turn to our the

Dave Mowry

are the today and fourth Thank Officer. XXXX you, call operator. Cutera’s I Richey, earnings me would interim each Fuad of full Ahmad, year quarter on Financial call. like to Cutera’s President; welcome you Chief to conference and With Jason

our next to a several are growing unmatched year year, I’m results cost management all and momentum quarters. consistent closed around and steady initiatives, the an ago, performance, strong in in eight structures positioned on is plan Cutera made employees strong into extremely we steady date. for carrying well our our great improvement with out and fourth product our the XXXX and development months and to measures, alignment XXXX, key effectively quarter Cutera of joining programs, pleased beyond. to over pipeline our we new Since With stakeholders value for we and products, the a deliver By and create forward progress have fiscal posted have key we

specific our global our profit success. credit performance, and fourth this quarter across pleased I’m Regarding organization talent the revenue for our with particular, XXXX depth results, in of gross amazing and

Our revenue well growth across from the was with areas. three business, balanced contributions key

of of franchise, top sculpting and fuel strong of underlying recurring body the about commercial our we as revenue growth, execution the expansion me continued our have revenue against the truSculpt steady true diverse drivers each, These and increase to Our our plan. profitability through at team continue and sources international growth streams. hand opportunities line excited

evidence-based supported Cutera next-generation the market, technologies aesthetics the and the fully global global delivering strength to innovation by team committed efforts. of our Additionally, remains into commercial

In demonstrated we quarter, key against progress four initiatives. the fourth business

delivered body in we growth initiative. First, results sculpting strong our

release and second truSculpt full the truSculpt on the truSculpt of offering growing was product muscle within best has that market fourth and the represent muscle robust. for fat ID upgraded expanding Demand remained our body In ID in rapidly address believe its quarter body sculpting exceptionally to only segment, we six portfolio, for upgraded portfolio and the market. the sculpting strong, truSculpt Cutera quarters, for customer significantly sculpting launching fat-reduction quarter Over last sculpting the reduction into the segment. commercial combination, our reception for

less made we international in results growth. strategic had The than underpowered in key our Cutera’s international investments previously desired has second commercial we been where Historically, initiative, delivered geographies team. generated business strong the and

structure and than rate. business we double the delivered at more growth investments in key market have recent geographies, talent following However, in international

the across building installed base on attention rapid active revenue have improvements a few our In nearly from business. doubled of Third, cross-functional our total percentage years, collective coming the and revenue of just systems. recurring we short delivering is

procedure-based recurring categories and prior growth fourth As sales. revenue per products reminder, Together, product contracts, year. of is a in consumable provided comprised skin of our XX% global these quarter single-use, the service over care

finally, using material distribution spent various three benefited price expansion in third, our quarter activities position In margin the four second, commercial on with of continued expense were of within and And savings discipline; first, gross continued these Cutera in fourth margin over efforts. into reflected centers; progress going Together, strong way gross efforts positive business lift initiative, these basis and prior a non-GAAP provided of product, by contributions early our year and margins the Fourth our from basis initiatives regional momentum within freight key combination, manufacturing mix XXXX. a improvements points reduction from gross on cost period. improvements nearly all items; XXX across puts

Earlier to the XXXX. Now a quarter I’d quarter, of President discussing sales the sales North Sales, like subsequent American to company. Vice to fourth spend a American and the our of number departed of employees, organization, just changes our this close small North moment

assessment, prevent forecasting to North a American rep made as well revenue XXXX to the outlook. appropriate took on of these our impact time further plan we our anticipates level we process to assess revenue steps routine typical and attrition. our departures as turnover, While sales revisions Based upon implementing attrition their or our

but measured from adopted business firm, have threat. posture further we regarding Additionally, defense our legal the a of

for collective full in fourth In the quarter the team’s performance summary, pleased XXXX. the I’m year with and

international good revenue confidence have organization U.S. We growth underlying forward. going by about We development prospects our commercial drivers strong our supported strong and portfolio, the of of and our pipeline in are a plans rich programs. seeing product commercial across feel new

a XXXX over review call Jason Richey, our quarter full the of Jason? for turn President now to will performance. I year fourth and operational

Jason Richey

comments fourth even a XXXX. period company I’d in very greater for team outstanding off to accomplished thank Dave. Dave’s an up of team to a time tremendous in set the for amount you, Thank has Together, success cap global future. and a short our the like initial delivering echo quarter Cutera strong this and

of fourth franchise, over body our sculpting our to XD we as ID billion to grew respect flex, prior XX% With scoping true revenue, revenue the body total penetration Cutera’s fat market. continue scoping franchise, Total the and contribution; recurring of truSculpt over $X.X streams. quarter in increased as which our three markets of muscle growing scoping our the grew driven XXXX. systems, expansion fourth revenue by international body growth sculpt key XX% and share year, of gain system, truSculpt includes our reduction quarter areas well

Flex quarter flex of been from North sales. Momentum launch in into with carried feedback quarter positive. has system Customer American increased truSculpt the forward very third the the fourth

muscle delivers. had to multiple we’ve their fact, success to next offering adding stimulation In provide accounts nice competitive with truSculpt level practice that direct flex a

muscle to body patients therapy, one-hour addition ID and body an fat our systems, reduction in sculpting provide offering competitive to treatment. in these be In with customers a truSculpt flex and penetration, certain capabilities. single their sculpting unmatched Together, used suite combination account of sculpting continue by clinicians systems

We’re year revenue, XX% which extremely international systems our prior with pleased grew period. over the

commercial infrastructure geographies. and benefit During sales from the quarter, we previous investments talent within key in saw both

already to to second of our our half Over many have of investments. a begun from regions we realize on and applied we the return international top-performing direct learnings of XXXX, these markets, EU course the

which we to international new in forward, team recently flex, commercial continue improve and products, our Going layer as global remain launched earlier this we opportunities international truSculpt into bullish such month. regions as we on our several

major XXXX streams. contributor growth quarter expansion third continued to fourth our The in of the was recurring revenue

our consumable it profitability end approximately further improved company We from is as recurring active base generating an estimate up of installed focus area roughly XXXX. mentioned, which accelerates of a revenue is line the top for previously that at As lever was provides XXXX, growth XX% XX% in exiting and revenue, of the key our our strategy.

an previous the We were serviced systems installed XX as are place extended months. sold the years, well been the as within systems systems as warranty having defining in that in previous five active with base

We XXXX, Procedure-related digits our consumables. to remain fourth of quarter, revenue system. of revenue patient through growth, the as RF by of in microneedling XX% particular, on flows bullish with the longer-term our triple well recurring increasing of the family during as sold truSculpt nearly providing products in over driven form systems secret consumable grew quarter over access

like to expansion. is review focus our gross I’d margin on area final The

pleased are over gross in performance continued improvements our margin the prior We with the period. year

our XX% focus During our were gross the fourth environment. through on continuous basis fourth initiatives favorable cost and non-GAAP distribution coming our improvement versus commercial and within mix on quarter margins our XX% for a discipline, reflect product of quarter XXXX, These improvements results manufacturing pricing XXXX.

cost efforts remain of We and date, are efforts. benefit the pleased to unlock reduction vigilant full to our our with we

closely working and Dave’s on Fuad, strength the Before team. I regarding this great ability I I’m turn commercial organization. and follow-up in our call wanted confidence the have North to of over remarks sales leaders American earlier to with the

significant energy-based have leveraged experience of a issues strong our and and have in choppy we our Together, team we We sales execute that strategy. possesses depth to aesthetic before, learnings the successfully through already these Waters have navigated work market. management

now performance, on to And to additional I’d to the over call like company’s Fuad. details provide the turn

Fuad Ahmad

Thank you, Jason.

non-GAAP in our reconciliation our readers GAAP in our Before with otherwise will as in the is review noted. I of and results, to metrics contained included that begin, encourage focus unless release. non-GAAP primarily earnings our We note to prepared A on please GAAP remarks earnings non-GAAP listeners conjunction release. results

for results XXXX and I quarter will full go year December fourth XXXX. fiscal XX, now over ending

fiscal XXXX, fiscal X% internationally We microneedling U.S. in direct. Zealand recurring revenue XXXX. total we and For over XX% for Internationally, recorded from we and particularly growth expected fiscal from strong platforms. growth and products XXXX. recorded and in New million, body streams, to in the of both total $XXX.X and Australia declines Japan, a growth fiscal of XX% Growth compared legacy offset sculpting XXXX European experienced systems revenue revenue

U.S., Secret of revenue products For recorded total same in $XX.X of for revenue growth the being quarter from the RF. fiscal international quarter. drivers We growth $XX.X Total XXXX. the XXXX, XX% grew fiscal period truSculpt grew million XX% with fourth XX% main and for family in revenue million of the

growth full Zealand. generated experienced talent very and the strong worldwide particularly result the case from as growth in have investments Middle an direct This structure and our XX% was fiscal as XXXX. fiscal of the portfolio revenue As hold. in well East product business for Overall, and and truSculpt versus remains the year strong European for to and expanding we Australia the markets that take our previous was XXXX New Japan in in growth year, started

year versus fiscal to XX% full million. skincare fiscal in global over XX% the XXXX, $XX.X consumables, XXXX revenue, defined total XX% For in revenue Recurring fiscal revenue, XXXX of XXXX. grew as recurring service represent fiscal revenue and

consistent fiscal of systems with installed the accelerated, with use Consumable procedure-based in XXXX associated expansion of our and revenue products. single growth and base

Revenue a million. more to $X.X consumables to to systems XXXX fiscal and time expand in active are to XXX% our become grew expected base from meaningful of consumable a of our increasing will revenue consumable have as result, an stream. contributor installed revenue over a As continue number revenue

For XXXX, the XX% and platform. is customers XX% fiscal of total reflective over fiscal in same XXXX, of growth utilization demonstrates fourth Consumable revenue and have recurring revenue accounted in for fiscal million. fourth our revenue system approximately $XX to quarter quarter our period grew of of the XXXX commitment

As a fourth revenue grew same XXXX year. $X.X the XX% result, fiscal million of the to quarter consumer period compared last in to over

beginning to and and then expenses, expenses. gross to with margin Moving gross profit operating

versus in as XXXX, fiscal to year, over $XX.X in fiscal non-GAAP profit gross This component for XXXX improvement. revenue consumable XXX $XXX.X up pricing, is to improved million favorable compared period XX.X% margin and that Non-GAAP with garners For mix XXXX. as recorded million superior execution overhead primarily margin absorption. the was same last rapidly well our an end-user fiscal higher gross XX.X% attributed point we associated improvement gross expanding basis product

to quarter fourth the last non-GAAP improvement gross for This year. compared was significant the profit fiscal $XX.X is of worth same For period our million million XXXX, noting. $XX

reflected for As gross XXXX, improvement substantial was the case period. over non-GAAP fiscal margin prior the

pricing to to our fiscal on gross last quarter improvement compared XX.X% results. recorded improvements believe a the expansion non-GAAP continued consumable We has gross To the margin fourth significant was focus of XXXX. same XX.X% meaningful renewed XXXX Our throughout margin fiscal period discipline, our for and of revenue delivered that end, streams really cost year. commitment in we

Moving expenses. to operating

increase For $XX.X year-over-year attributed compared marketing related expenses. XXXX, and for $XX.X XXXX. recorded and million non-GAAP million The of to fiscal sales expenses fiscal primarily personnel to is we

marketing fiscal expense, to of As a result of XX.X% slightly and our sales fiscal percentage investment, total grew a XXXX. from in XXXX XX.X% as revenue, in

percentage in For $XX.X the fiscal the XXXX. were is fiscal of compared same growth our marketing from prior sales to million million fourth the quarter XXXX, year period $XX.X for for The expenses non-GAAP and reason in and before. revenue XXXX. of the of as as quarter quarter revenue, the essentially fiscal of in XX.X% a compared the fiscal fourth marketing to of XXXX were mentioned fourth XX.X% expenses, same Sales

our XXXX, expenses flat total remained fiscal year-over-year. For essentially R&D non-GAAP

case As project-related some is with the is to expenses, flow expenses. lumpiness the there of

in R&D million non-GAAP in fiscal million expenses $XX.X fiscal XXXX to totaled Our XXXX. compared $XX.X

As in a R&D fiscal X.X% in non-GAAP X.X% fiscal total expenses to result, of compared XXXX our were XXXX. revenue

However, period projects. fiscal development quarter the fourth to a in result fourth XXXX million of same our fiscal $X was compared in the as in the $X.X quarter XXXX. revenue, in fiscal were non-GAAP increase million fiscal expenses period R&D for X.X% percentage staffing XXXX. expense, the total R&D increased active This of to the same Consequently, non-GAAP for of for increased XXXX from of X.X%

like and coverage would as we product increased of indications drive as to ahead, approval research new commitment our in reiterate expanded to well our clinical technology. investing and engineering to enhancement, regulatory Looking

XXXX, Finally, were expenses for of key fiscal our the fiscal period including same compensation didn’t of higher expenses contain management Growth incentive G&A period XXXX. on prior as well million to non-GAAP roles, G&A bonus addition $XX.X the the XXXX in Dave, CEO. from the expense as XXXX, leadership fiscal of result $XX.X compared fiscal as our was in million

incurred higher additional and also accounting we card Additionally, and higher processing revenue legal credit fees and fees.

increase period expenses of quarter are million fiscal reason compared $X.X The expenses same in our fourth million the were for for the XXXX. the as earlier. XXXX, same For the mentioned to $X.X G&A non-GAAP fiscal in

revenue adjusted XXXX, our also in called improving million margins, gross fiscal $X.X organization higher income, on to improvement For $X The by XXXX. was operating is essentially million EBITDA, non-GAAP result and investments G&A. compared offset in fiscal the highlighted sales of

tax in in incurred expect fiscal period. We to the no lead liabilities and beyond. operating these significant significant leverage investments We to XXXX material

December sheet, to cash the and compared of Turning cash equivalents liquidity. XX, had We to balance at XXXX. $XX.X million fiscal and of at flow million $XX.X approximately XXXX, end

working at period million However, of slightly at XXXX end December our the to last $XX.X same capital XX, year. decreased $XX.X million only the from

of of necessary ended cash The of and costs, us from months levels primarily is resulting provided net cash service inventory execution use fiscal was due of XXXX $X.X distribution regional XX these a $XXX,XXX believe higher used same a customers compared last close cash keeping inventory year. strategy, net service. fulfillment operations initial in The center as flow to in higher employing inventory. over net million in better period We of finished cash the to to are level order investments customer goods results freight and and increase

XXXX. now guidance I fiscal for will full year provide

range For to the are fiscal fiscal over X% revenue we to representing million, of XXXX, $XXX $XXX XXXX. in targeting increase XX% million total

As the developing considered XXXX coming mentioned as have earlier, factors in as out of we recent this well growth range. trajectories

adjusted the see range XXXX benefits EBITDA we $X the level, initial and million We leverage. to as year margin non-GAAP operating be year to of expect to full over million improve $X XXXX of gross full in

With call Dave comments. for that, the some back I closing now turn over to will

Dave Mowry

Thank Fuad. you,

this gross profitability. improvements our are era in significant deliver going new in going has revenue We commercial to with our finally, leveraging execution margin improve are And across plan XXXX results plans place portfolio, of team strides our sculpting moving is streams. in into encouraged really in investments delivering performance revenue several the and process The made performance, and growth recurring steadily international system areas. into to our key excited body across we the intended increased and upon operating of operation and a momentum with Steady forward.

we disruptions, leveraging our and to focused of stakeholders. While we’re the through shaping business, energy-based goals vital our remain will long-term vision objectives the on toward to temporary focus future company delivering value and our initiatives aesthetics the our our few of energies working advance of any and key

for at questions? Operator, the lines open would this you please time,

Operator

you. Thank

a comes Q&A conducting the Stifel. Jon proceed line of now first with [Operator question. will Our your Instructions] Please with We be Block session. from question

Jon Block

of Great. the markets, in XX% sort The international flex any premium at other how a Maybe to look speak. handful that international to big In said U.S. Thanks of may versus small think U.S. you I in XXXX. grew words, color guidance guys. year-over-year, first Good revenue international? Jason, X% is as we me. rolling for afternoon. on a out

So does international XXXX, outpaced saw to last the similar U.S. growth what in we year?

Dave Mowry

the think question. that’s I Yes, thanks for way, by the Jon, –

think not with portfolio, are just year Obviously, in we that’s that Jason We through to strong, other and time the talked of interest the this. earlier took markets. as exceptionally the now think but That to and will offer major flex this make roll And the assessment. in lot the the contouring we product. able European continue be to offering, a I and into positive. the business the launched contributions. a obviously, of seeing to month, fair growth body quite expect markets about the ID, through full of course we’re It indicated, out drivers international

see In think made. we’ve particular. in certainly, group, execution And investments addition, strong this I from of a little some is bit the international our we around,

if Jason, any know I want that? add don’t to to color you

Jason Richey

think I it right you’re way. thinking Yes. No, about the

to U.S. base, Japan made of at of some to see even line, nice that because additional care on and this are double a seeing of us time. we’re mentioned to component, is to which international our we’re the last nice layer digits starting we growth that we’re in some I definitely in where exiting number of one investment. in see investments outpace other seeing at which starting in the earlier we well service And at growing XXXX, our point in as is Just we’re and nice going consumable too, products. year the installed which return globally, really really business, earlier also terms is continue areas skin couple as A that that give as distributed our growth,

Jon Block

Very helpful. you. Thank great. Okay,

And it X.X-ish margins question and seemed around the to so sort share leverage gross think EBITDA of question, and imply the gross much XXX the were second just XXXX. is in alluded OpEx that is, guess to bps, the adjusted XXXX, margins, I between in I margin X.X% expansion? you for like because up on margin so

from then, And away stepping moment. a that Dave, just from

in to that stock, reinvesting got talk sheet just pretty into if the the redeploy going theoretically? to cash you’re some balance In words, you is OpEx view could you you’ve since If the how other the up business? strong infrastructure [indiscernible] [indiscernible]

Dave Mowry

So great Jon, as always. questions,

first, So those let me sequence. take in

continue we So sales think Fundamentally, probably when margin. the contribution coming the changed through as and particular, right? We of I good but in versus top side, about not margin the a stronger and has take that’s margin, to gross organization, in year-over-year. a just see growth lot. we margin, bit some I to see think you’ll leverage We’ve fundamentally marketing such, variable that first of a on operating not to very operating see little associated natural the comp endeavored care our line, sales see

So sales year. expect leverage this on lot we of the a a global don’t function get of to out basis

see of of of see the coming back half some the investments. and the amount, very bit I a in the we leverage marketing think bit of year leverage from small we perhaps However, on a do little – a G&A from little side,

these that talked these last of two below grow. line think, infrastructure quarters. making investments we’ve out reap as future that are margin. And the this that, – for long-term we And investments are we’re we of leverage of So the the things is about most but to will continue coming benefit gross

our do unrivaled is and that future focus I other growth, we fundamentally, that all the market intend we R&D us competitors. new we technologies I in have to line key that, top approval that think think your this do? of and accelerate engine you’ll go if We innovation I comes question, the think this an shape is in we think And think, what introducing of see And space. in the and that making outpace Board’s To as overperform, aesthetics. from support I R&D through investments forward. I and

Jon Block

helpful. quicker coronavirus. one. Got it. one, Very a just And last of I ask kind

and maybe a guys. you overall about maybe you could supply just feel there? Just if from Thanks but chain guys you’re comfortable exposure, just perspective, update how talk us

Dave Mowry

great currently. not because Yes, frankly. we’re we And script, question. Jon, in currently think doesn’t we at relatively us the to That that we putting very thing I this mean basis. routine – about only a thought opted on yes, material not it’s not And looking as see a it to

where what and result this some have in strength markets. see of of we in we So the the is impact market, those

only Asian chain that components supply have looked amount their have subcomponent, a the a been our looked we’ve have suppliers, at in we a actually And we basis, companies unlike not that From U.S., at of we’ve our sourced result, there. suppliers. and a strong strong some as have exposure limited

comfortably some some subcomponents have feel through very of suppliers are We now, that the… U.S. managing the And we’re right the even in serve we of the we Asian

we me, as hear out line you second. forward – for go still cut So a my can

Sorry.

Jon Block

Yes.

Dave Mowry

we only go supply its but think, haven’t chain, it’s we improve, and performance, I in not our forward, depth control – to that is continues As had.

very that good feel about perspective. from I So it

Jon Block

Okay. Dave. time. your Thanks for Thanks,

Operator

Group. with the from your comes question next Our proceed Instructions] Maxim line question. Vendetti of Please Anthony [Operator with

Anthony Vendetti

Thanks.

you a are recurring think, the contracts, question, missed revenues include global the as I on I which maintenance just financial third your piece. said call, three things, service First, Dave, consumables. contracts,

Dave Mowry

the distribute It’s that line care. skin care skin Japan. of It’s out we

Anthony Vendetti

Right. Right.

Just as percentage skin just right? a couple it’s percent, percent, what a care out revenues, of curious, the total line, of of

Dave Mowry

percent. small relatively a it’s Yes,

of I are recurring component revenues percent, kind even that. think smaller a the of in upper and total XXs that’s

revenues. of think, I So total it’s roughly, X%, X%,

material us have Japanese to it’s it great important to for is really that it’s but perspective, structure as systems investments on in us uptake sales allows us that allowed not what have service. the as key So from significantly make well

leverage stronger able have we’ve if presence, presence market, you and I as to it of spread at and opportunity So that a pretty in to effectively. the been we will, overhead, an think, look that kind

Anthony Vendetti

that the call to recurring makes helpful. are maintenance And that’s that, to around contracts, XX% let’s of Yes, of revenues say, XX%, Okay. then XX%. XX% probably right service global majority XX% it, up let’s your

So right? about the or X% about onetime consumables that X%. is Is

Dave Mowry

we on out Yes. that sheets. And break the

that. see can You

that You’re is XXX% in is, I there. grew the what interesting component year-over-year. ballpark right But think what’s

being see up component, XX% that business. as of we probably in relatively that’s one to the carry into few over component And segments of represents the So us revenue. fastest-growing years those our it it’s the small next a going while revenue being recurring

Anthony Vendetti

truSculpt And the based its can this segment – about system talk Obviously on point you the there? consumable obviously model? piece on just the that comments, the and talk business your truSculpt you ASP flex, an of Can standpoint that’s for then fastest-growing about particularly price portfolio.

Dave Mowry

do, view very, strong of going don’t Jason truSculpt positive have your exceptionally and sentiment. to going checks, that I kind – around our it’s I’m first is get channel I’m segment, So you users. I’m the And The the have receiving do a to you of because overshadow way to have sure I bring see look then customer which it very newest response want Yes, still at it’s lot that it we of right? the current favorable home. you ID, up, from fastest-growing as when all,

faster-growing of an because component flex, novel, segment strong and and that that So the ID a our equally component portfolio. market. new while probably new gives view that’s it its the is the complements to us And is of ID

Jason, you… I mean,

Jason Richey

out a we’re really you ID. by it’s complement muscle way using that would mentioned to we’re don’t have in break Anthony. question, And is clinicians for of with on piece that technology body this think these we call results I’m in technology. And really really the patients. ASPs product. We deliver went happy What I the been tell sculpting really fantastic range in some truSculpt the earlier our the still great delivering six-figure I Yes, their vertical about with that to able I together

it’s complementary And nice so a piece.

we’re piece, of other per a in little think, of procedure-related a complementary revenue, what it’s high still devices, to consumable procedure-related goes of it’s have, that, that, treatment. putting but some something really comes is with on to which consumable consumable it a This double more with a where focused we’ve strategy that still that is really us the low-triple-digit and I the a consumable done we shift growth been perspective. When our is bit it’s that from to

Anthony Vendetti

little Okay. answer. then bit, maybe, Jason, probably just – just can gears shifting And but a you

Or Sales? what of Is to from a how So that right new few Sales Head And with January departed are have the departed as looking Jason, salespeople, right? this for plan? you’re, Division. you is people Head So now, I the you that follow-up a understand, – the since long-term Sales there a of heading a then in that, of many sales at replaced point?

Jason Richey

actually commercial of closely couple a the team. Yes, leading working them. things. very Number one, not with I’m no, I’m

National President role. is the Vice Director, former who very important a was our of stepped Interim an Sales who have Sales, This into We position.

a So sourcing process we have formal this of individual. engaged

looking based We have externally is on for deep interest to this a as internal importance that expressed looking as of we’re position, candidates what couple But have available. of see well the position. internally the

somebody of have really that a for, we terms if industry value we’re strong we’re they’re the sure find to that long-term that are trying what In that looking there’s to strategy. make our that market. evaluate aesthetics people experience experience aligned type want externally able And has to with and of we in if energy-based

a quickly structure got I’m order both and that executing with that internally place full the to you find is, this, an we’re it’s demonstrated now, – to the tell to of And ramp important in I’d externally is that a agility we’ve in process what right really impressed So in the formal role. and search, candidate. team has

anything want you to that? to add Dave,

Dave Mowry

Yes.

frankly, to as is, ability like out kind know award our really very And we’ve tell what’s interesting companies, this, that number naming the coming the with I’ll vacancies of or the through think they with the think program. see last without reach as year that us and been you to like several openings. competitors us out actually It’s backfill. to I competitive of interesting our they about to reached been portfolio, names reps us to what’s had technology winners they the you some of from development have

we’ve reacted. speed company So the with which the at been pleased has

to view frankly, us but opportunity it’s team. this disappointed to I also an in total continue be to not upgrade think, for regards, some I as the hard

And some and created organization. the up has bigger great with folks. into for and greater this are are some an impact of this have in amazing roles with we players that us opportunity step really us have them of And still to

while it’s out and us short-term, to I drivers got for to very through, the help the So hence, revenue guidance in the of streams disruptive going is the we us provided. of long we this kind and growth recurring both think tie the And international in term. favorably play

Anthony Vendetti

a already up right? have step Or people Sales, Yes, that as territories internally? follow-up, in the territories, of of people stepped been just also Have up internally left? of Okay. people but you able just did hire those But the Head not for to the salespeople? lost just terms for – that some for have

Jason Richey

created an organization, yes that positions. and that the short this hands been excited to their yes. have Yes, We’ve look people opportunity really the leadership is to really the with move and deep has into raised answer we’ve wanted within –

are pipeline, structure based the qualified Dave’s And outside chance look of so where also, the the based company off of within from too, and the in promote some to joining many levels. and And we’ve off interested of the organization a to a and that future had unique based we going. on we’re of of off have have really people, point, found to chance had

– both really pleased been on I’ve both with fronts. So

Anthony Vendetti

great. Okay, was helpful. you. Thank That

Jason Richey

Yes.

Operator

There management for I’d to the hand call in are remarks. like to questions further the back no queue. closing

Dave Mowry

Thank you, everybody operator. thank joining about today. to I just the call very this for is heading. where want company I’m excited

I here. alignment, commitment and energy focus have excellence great and full think a we to

end joining for all you you. the thank So us, with and Thank call just that, you and we’ll support long-term our of for your say outcomes.

Operator

for Ladies this you today’s your Thank participation. does gentlemen, and teleconference. conclude

time, You disconnect have at may lines your wonderful this a and day.

Cutera (CUTR) 26 Feb 202019 Q4 Earnings call transcript