CUTR - Earnings call transcript Q1 2020

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Operator

Thank you for joining Cutera's First Quarter 2020 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 expectation 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 nature dynamic and subject to change.

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

XX-Q Exchange may the cautions the section occurrence events Factors publicly Form XX-K update in statements including those you that the to to circumstances, entitled are or subject unanticipated today. Risk place words Cutera the identify subsequently of factors only Securities date made. in expectations. reflect results and Future we statements filed events. information to speakers obligation Commission any materially statements, as For uncertainties, forward-looking or risks encourage to on All refer and forward-looking to forward-looking may not Form undertakes filed. Cutera no differ are press described safe they in our statements also statement undue to from risk current and our to harbor the updated which as with release earlier forward-looking new reliance you management's in the reflect

to on we results financial greater and complete to in results particularly operations, and will non-GAAP be results basis. should considered non-GAAP refer when financial ongoing period adjusted performance can of measures earnings Cutera's discuss for more analysis believe including to to comparing GAAP facilitate prescribed underlying non-GAAP period. not transparency measures financial addition, measures measures We In along these an alternatives the to release. as from reconciliation operating Please by measures but These in GAAP. our with,

Mowry. Please over call turn David I go CEO, would that, With to our the like ahead. to

David Mowry

appreciate those us on Thank update. for joining you, you today operator the call, this to we and

pressure that an know COVID-XX on the placed tremendous As is unprecedented industry. our you crisis pandemic is

moment my this commitment selfless team my to to challenging the So, begin, for a and gratitude amazingly resilient to personal and throughout deepest dedication Cutera for I would appreciation their extend customers our share before to take we like global time.

Ahmad, on Chief Officer joined Officer. President Jason Chief I'm our Interim call the by Richey, and Fuad Financial Operating Today as, well as

mitigate call on of quarter-to-date will of we the highlights, financial overview brief impacts XXXX. the and today's business. through of response our quarter of to have the have will pandemic and discuss highlight share fiscal adjustments first begin business of some will I and taken by steps quarter's the a operational the and first made impacts results these COVID-XX our Jason we how COVID-XX to results providing then operational rest on in carry year our

high detail strengthen financial Following sheet. review Fuad we will balance have indicators key a level performance of and to provide Jason, the steps our taken

conclude and will session. a We answer question then with

XXXX, periods continued within reflected exiting of first business Our months quarter. first late strong fiscal and XXXX deliver overall product our two significant fueling strength across quarter the to the our and Cutera of year balance COVID-XX great the prospects. providing by the demonstrated business sales impact Through of our strong Offset for XXXX. performance of an and all bullishness categories balance international versus from prior business, growth

by this dramatically outbreak was dramatically balance and rapidly the and a were as shelter place impacted the However, disrupted orders. in practices static subsequent COVID-XX

particularly business with the China COVID-XX experienced in of associated slow Asia-Pacific the Korea. We initial a impact initially decline region, and

global comprise immaterial smaller a However, regions revenue this us these relatively of initial impact mix. was as overall portion for our

East, European impose the gatherings. the and and began countries Italy, travel Middle restrictions government tighter then other at As spread virus to on

to of impact many customer took in complete As of local forced virus end and state a when period March, accelerated quarter. in we continent. our by causing capital hold in a to planned deals the and two shut within of that effects practices shelter suspended issued the down equipment the had a orders several America, to These the final COVID-XX of were result, cases near weeks completely in place government. procedures across number suspend we workshops response in many shut ship escalated down canceled North as of The

effect were travel place restrictions as quarters back-end throughout their sales sales of impacted shelter well the are to loaded Capital while May. deals certain within month few three reopen, US into larger remained have throughout significantly most unfolded. states extended The shutdowns revenues of capital quarter. orders of Cutera's approximately recently these Our practices shutdown and March, in the represent and orders a allowed total in the equipment April and heavily geographies

to limited in capacity the a starting international countries begin that remain allowing of procedures. move and stage are and additional reopenings we geographies see Some open measured toward

ramping As traffic initially, steadily the the to and as through patients patient more offices undergoing expect comfortable restrictions of half reopen, office and are light back become lifted procedures. be year we

our industry practitioners Having throughout close cycle. our and customers procedures during there the specifically believe patient sales surgeons. to seen previous for consumable disruptions that to first. and As with traffic is pattern the plastic economic begins revenues associated stayed we related slowdown, customers, service we have aesthetic aesthetic expect recover, pandemic core to our with A in very demand dedicated dermatologists, we pent-up that core established aesthetic rebound

these their These period, their of know perform conducted aesthetic to shutdown patients. intentionally a and help cash were the by their also their pay this consoles We customers office that to between during reopening using procedures. great time accelerate practices performing reducing have core office telemedicine tool recovery with consults many embraced

June planning a loss and location to and many metropolitan extended run in anticipation that booked are areas reopen for May clients. customers and procedures satisfy larger We told to fully once or of are their hours, are managers factors several Office customers demand on their other these core depending reopenings. in expected scheduling reopening pent-up of of are avoid

core wholly few reopen, months customers remember course patients offices treatment restrictions this a home that could of related the COVID-XX to of see unable pandemic. and in on over a that important the orders get is volume timeline from at were and is lifting the the to stay surge during It fluid shutdown. dependent Once other to procedure

consumable to delayed from customers consumable and lower through will Cutera's mid-March We April to flow into expect the hand as the from existing revenues, procedure on May. treatment deplete stock volumes volume through slightly ultimately attempt

In request addition quickly service activities offices will reopen, maintenance revenue, that will believe activities consumable we as return the to running schedule repair customers equipment as preventative typical to their and need occasional optimally. that keep core

patient levels. to core that non-core slower a XXXX, traffic, is customers believe we a similar recovery as such these the trends to Overall, Med than quicker Spas. from in as recovery experienced see customers non-core the will customers pre-crisis pathway back This

deal their challenges the extended likely from demand near the financial for our a of practices new equipment customers with as closures, tight all will on capital. term the keep grip As diminish over

rate. will the at and hard there happening reduced April, partner a equipment as greatly price longer resources coming While expected to we position to did effectively very are few deals be in competitive, terms. working in these with better be customers sensitive deals over Regardless, are highly to our

significant You capital. disruption need to this recover shortly. before from will more of return about bit COVID-XX will are a confidence their as will helping traffic hear achieve and shared any well committing their spending we Jason this some them the to Most of balance outlay making our as from rebuild consistent The in time equipment future time both goal. as sheet patient customers purchases

steps business. recovery and the slowdown, mitigate geography, return revenue. product market the the to modeled We viewpoint on a taking remaining by several Giving revised three into phases conservative of in These grouped have duration plan taken our category impact uncertainty over of we the on categories. by fit and our operational the the and COVID-XX financial activities have of

cost runway. size business and cutting preservation to efforts First, our cash and our extend operational right

and Xrd, strengthening sheet downturn into the our phase. not Second, supply have only through to ensure the required but balance we capital recovery chain and to survive And reliability the accelerate optimization.

the cost the our the cash included from Consolidating cutting we're up accretive several near positions and our no tiered of new and back and majority Turning operations including measures to the vast Implementing first longer eliminating suspending projects furloughing our within organization, preservation across programs salary redundant workforce. structure. these corporate efforts, which Directors Board hourly of and office reductions term. to and

the avoid travel, shutdowns. events. to shows With of negotiated of with deferred several activities respect allowed cancellation trade as promotional live we period to support cash facility of this to amendments shelter-in-place and service of as Additionally, suspension workshops expenses, well during us orders employee current have the have interim and significant contracts reduction preservation, non-critical

teams working supply components to manufacturing customer accelerate US efficiency critical delays our Some efforts shipment we COVID-XX based suppliers the reducing production the January advancing have centers maximize of the reports to working inventories, with with goods capital, locations distribution our volumes uninterrupted monetization of local avoid ensure of and delivery taken chain engaging of of to operation, to regional the finished and contract freight cost, periods. stock of include continuity in lower steps ensure potential quarantine any since to sales forward supply with initial or carriers, and our

Exiting to with debt. had roughly strengthening sheet. the Moving in on XXXX, no balance million we now cash focus $XX our

As bases first quarter this with is the typically fixed activities seasonally the case expenses. each drive year, revenues same on lower cash consumption

challenged the outcome further our liquidity equipment first resulted cash XXXX did close $XX.X related net to not inventories deals the of million anticipation factors. that of quarter by First The in built quarter. operations was in of COVID at close due

the rest topline and year the have as the constructed to as that of inventories scenario of is the out we financial various and recovery. payments of impact, the of to challenges saving monetization downside important As their a expansion cost push We COVID-XX capacity for XXXX it fiscal COVID-XX, liquidity financial scenarios considering from to well we weather customers assess the believe the and protracted us. efforts as various receivables likely the

already on programs recent to and Primarily, in considering we protect the and the advance body bolstered such market, the of pursuit market prior developing sculpting leadership our also conscious acne. to breakthrough to our innovative our assets launch as critical R&D decisions In ability of transformational retain to underway made initiatives by requirements, focused products liquidity to flex approach the truSculpt COVID-XX.

were insures cost the impacted consider these unfortunately and our plan folks, and during need teammates, access requisite this the team to close difficult thoughtful management of Cutera health recovered with time. many long-term ability runway, the ensure the has were I'm support to confident several resources people, services critical cash they measured While I and very necessary amazing a that the business. cutting choices of customers provides our retains decisions deliver needed challenging executed and to the which

move I'm that take prices exit will Cutera confident through to hungry leaner, share. and meaner and COVID-XX the

I now Jason. will over turn And the to call

Jason Richey

David. Thanks,

align to environment unfamiliar and with conditions. to new clearly we team priorities In transitioned quickly the pivoted agility and QX, these of so, focused our the As the team adapt storm in was the the stay Cutera of doing execute. into prime around impressed end rapidly at COVID-XX I define weather to to to

we priorities, to established we our As committed following. the

of and First, our partners health safety our customers. the our and employees,

base connecting of with our Second, customers. active daily installed

reaching Advisory period on their our on and Third, to and out and our up Fourth, core quickly clinician messaging. possible. committing Board we to necessary Fifth, and flexible assist input and the were hyper-focused gain ensure accelerate resources activities to aligned programs customers. remaining us as and with through finally recovery staying as getting them running Medical our and to the

our knew working was our and established ensured teams we and we Once focus, structured. organized commercial priorities daily that environment

has assist listening schedules customers and that preparation service they practices, customers, working team schedule their our wasted their work and a their manage resources for during Each to employees member to make and and our marketing, sales, Our concerns time reopening is our with leveraging sure fill on our been tight connecting to as to practices. daily hyper-focused of no is shelter-in-place. their the hand-in-hand retain have commercial teams

Advisory After challenging Board, to customers consulting this as our several our educational launched they important with Medical assist navigate tools we time.

long created include your to quickly leaders up running a by of array get possible. conduct how thought unleash portfolio as of global series led device from wide First, everything that virtual topics webinars a to as and to how to we covering consultations,

renegotiate our trained help to this commercial physicians that clinician. we line was how the developed media to include your once patients space reopen to you a equipment, capital business to to information how by covering effectively topics Survival deliver your clinic through social The to how loan, doors. market guide Cutera COVID-XX your team using office in Second, and how created on up manage for and apply practice lease Guide to your for small

as clinicians Finally, ramp are to will their we their our We've with on our procedures up. clinicians office working get more extended quickly help we where closely feet consumables discounts back can. on help that

of couple in to contracts service loss to our offices. extended time unable patients while also treat have We clinicians were their

some to adjusted accept time the we will we to fact accustomed back were it take As environment activity, to. get the we daily our

We for adjustments revisited necessary of work our balance made will and have the how commercial to strategy we XXXX.

and we doors. organization can As big to we actively virtual will patients meetings, in and which our role consults, in our certainly educational new are a ways demonstrations play evaluating pivot their with normal, partner programs through as physicians an additional bring

preparing are evaluating we for Specifically, following the scenarios.

smaller our events allow workshops evolving to more participation. demonstration and localized First, virtual that

Second, with laser volume working focus lower-cost, revitalization genesis to and like skin practices sculpting by microneedling. high with on and drive body procedure a impact driving procedures

to evaluating by lowered this, for conduct their the needed ID we COVID addition, alternative select initial we sculpting to portfolio sheets to balance of promote flex. increased and commitment, traffic practices capital are leveraging increasing along equipment driving are the By XX utilization feel patient packages the opportunities In choices. their will doing our the body losing enabling third, capital present way. truSculpt customers we which without compromising rebuild transactions models, And time and

embraced. or is that in is team of in assured, in soon America both and place as While via as a by demand, us. patient region we internationally, take into yet in and we customers of as visibility have that place to the shelter need we idea rest time activities daily place amended eager have drive restrictions exact in executing to behind not are back North the get understood [indiscernible] is to front have consistently order but recovery limited an But

Finally, opportunities chronic And and and to the to opportunities two on portfolio solutions complementing to verticals a best-in-class energy-based our initiatives. refreshing a on recurring focus long-term the I'd focus COVID-XX by a commitment portfolio practice on acne. our permit of capabilities our remains differentiation R&D introduce continuing expansion key including like some our Despite disruptive Ocean focus. aesthetics legacy bringing the treating pandemic, through touch One, and evaluate with for space, within devices two, that to technology. Blue care introduce

lean, through product core XXXX clinical challenges by to conclude despite the of our the research development implemented exiting our normal. we acne saying we hungry to I'm to back that the time continue advance confident we team and from for with front hopeful that will in well aesthetics incredibly pandemic our and execute. our we're position The has is challenging to and physicians. proud emerge mean reacted have to us new As launch space, changes believe have global will and all they this of I'll solution COVID-XX this get team I'm created how processes, customers. ready I this and eager in

financial call quarter And now, the to turn Fuad would highlights. like to I review first to

Fuad Ahmad

Thank you, Jason.

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

for our of quarter now the go XXXX. I first over fiscal results will

of work well benefits continue achieving Despite team of by and XXXX the second their commercial tremendous quarter Dave the year great and pandemic. halted of fiscal above first Xth or we of full growth world for the of with virtue 'XX our these rate discussed, first fiscal North a difficult as by tenacity fiscal were momentum Jason the quarter activities during entered severely one, market into quarter. and to the orders the productive 'XX challenges, similar of As both quarter. America XXXX. hard part reap in rest quarter in was We COVID-XX we displayed Shelter-in-place but our revenue all impacted and sales most the

to the Now numbers.

to in to the period our is to commercial to growth same grew was XXXX, fiscal $XX result million. much ongoing of build the revenue same for March. decline activities compared XX% decline meaningful quarter particularly International US international a was last revenue revenues period conduct for international of XX% revenue year, to million Total 'XX efforts first while compared deep million attributed team. This inability &XX.X our are to for our of XX% $XX the sales entirely decline.

growth We revenue in related to consumable while which consumable XXXX. due It grew also strong skincare over in grew over $X.X COVID-XX grew closures last offices physicians' shutdowns. in million, business well Global year. Japan, first of year XX% because year was saw XX% same over of nearly revenue below expectations our period to quarter the

million contracts. as result an last extended XX% year of under having Service $X.X to increasing over service of revenue number a systems grew

'XX skin total XX% consumables, $XX.X and quarter in fiscal driving profitability We our XX% fiscal grew as For order Recurring categories the remain long of revenue service of increase recurring our continues year 'XX, to represented over the the committed XXXX. quarter revenue period and of first of first million. mix over improve in same recurring to first the care to revenue XX% the versus balance. revenue revenue streams quarter in global including the term, last durability total to visibility,

flat quarter same is substantially sales compared overhead period lower year-over-year. QX. million, due marketing lower to R&D the Moving a quarter for The non-GAAP period of Total margin Non-GAAP recorded last all half the of profit expenses result the year. reduction for XXXX XXXX. in activities XX.X% essentially the of result million $XX.X we $XX in only first compensation was first XX.X% to in second compared a last same for of and to the This of $XX.X versus year. absorption in $XX.X same million quarter the expenses the of of decline expenses; suspension 'XX, and to gross significantly gross period fiscal marketing variable margin revenue. for as gross were for were Non-GAAP lower million non-GAAP

for G&A leadership million Finally, was compensation significantly higher non-GAAP of 'XX expense were associated additions on last million wake in $X.X as key period of G&A as the Growth XXXX. fiscal in current same year. expenses quarter first debt situation, the higher in compared bad the with expenses; the result a the of from well prior to to $X.X period fiscal reserve

For income for period first was our of to $X.X no loss experienced We significant same the operating of year. EBITDA our quarter tax 'XX, to a loss $X.X positions. million adjusted million last fiscal compared the also changes called the non-GAAP or material of

the with balance with method. position, and at our to discuss million approximately same were uncertainties cost a equivalents and some quarter ended COVID-XX its last the We forced to cash business, difficult compared on our ongoing time and cost to $XX to million materially liquidity now continuing In make response decisions in will reduction order cash I $XX.X sheet year. our our conservation structure. we focus reduce impact of and surrounding on

the most into option our followed and some employees to these improve, By We Xrd bring production reducing business addition marketing staff also eliminated we our them marketing to of position. and sales in party conditions department retain marketing with positions certain and along sales promotional following spend. back the in

feel were While of value, R&D have key we company's not such staff long-term to only projects. a preserving and crisis, right structure we but the created drivers deep, reductions core also this survive as

cost that of beginning reductions include note, QX first fiscal the quarter didn't will our which these of in materialize Please 'XX. results impact

on and spend. We the deferring quarter We limiting future with inventory. with pending exposures are partners conserve payments, cash ended material of $XX cash purchases our vendor by million to working

in purchases our we liquidity withstand us provide to material next our without cost of and inventory runway believe needing reduction to the available plans burn efforts additional to spend this need any to and quarters. have two We our crisis much We have three order current capital. through

it felt business be we potential to withstand prudent company improve. help a prolong and the once to liquidity a as well begins to shut bolster positioned down our to However,

we April, proceeds. offering closed in In $XX million equity on raising approximately net

an several positions efforts our Additionally, keep following puts of amount preserving specific we in efforts is who protection combined with payroll million relative otherwise. financing sensible reduction and program received the proforma $XX.X that on would of the us also million PPP our employees competitors. to cash payroll the our purpose Out or been released, enviable $X.X key loan in and cost position impacted market, with and position of

Turning magnitude of of we lack will be not impacts surrounding duration issued the now withdrawn to time. and guidance due the to have issuing previously revised and at visibility to guidance our guidance, this COVID-XX,

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

David Mowry

Thanks, Fuad.

the call on first would in but open I questions our color to will provide like moment, outlook. additional We some to a financial

in the action decisive net fully and reducing expectations strong be term. offset revenue the reduced took not in effect we will short the expenses, While of

Additionally, impact see both on as preservation inventories such to Therefore QX. QX consume have expect the gross monetizing cash will reversal some during our and starting and of cash a margin activities QX performance. direct we in a

the Our cost stabilizes cash remainder to fiscal activities as generation of XXXX will and from normalize. system continue throughout revenue cutting contributions improve

will in also off be burning sitting our good finished We inventories, warehouse.

many Additionally, steps cutting higher of from of profitability we the taken that scalable a as step cost more much structure. believe to pursuit our provide leaner, in a forward will we date work

would like Q&A. the I the for turn to call With operator that, back to

Operator

Instructions] comes from [Operator line the of Block from question Jon first Stifel. Certainly. Our

Your question, please.

Unidentified Analyst

This in COVID-XX if have on of where the could quarter Thanks. just for strong Thank the the question. I'm in do absence about you Hi. Due [ph] thinking business, been a international growth? segment of terms we're you really year-over-year in and international to this wondering for think the John. Trevor

David Mowry

and will who developed amazing but hold. environment to to techniques as in new pay were same performance a being Yes, in and that taking well are ago by results international we're quite part work, a half year, and thanks we in in blister remain and The that back management, great as teams dividends, propped European see new the do first our the a Trevor. made strength escalate starting a Australia Zealand, We bit the only the continuing was question. and new new to processes continue and up quarter very not Japan we new of New structures, It's investments had the year performance. of are

in perform the that go international. company international to component long with strong and as extended US still from growth continue to that we as the that have how think period. I an international under-penetrated We're significantly market a we way over significant think will compared a we in to see our So, I

Unidentified Analyst

APAC in leading just these markets, Maybe in business indicators of in just move we specifically. Any as what terms follow-up forward? what could color to Great. seeing on on the the US we you're see

David Mowry

Jason, highlight maybe view Japan China. Korea you just on and can your and

Jason Richey

a Yes, it's great question.

at Korea for of it's still peak is haven, [indiscernible] lot and a skin there energy Japan, a a Looking and lightening China, will. enthusiasm Genesis around PICO you if

However, I growth specifically to we're a see some we're that. going and lot in enthusiasm the seeing momentum sculpting as business think body of around

these Our flex device goal part hopefully latter lot key our a markets this and of I think enthusiasm of there's that. is launch and around year to

inventory key at and be of got going And think in get place. flex to the as that's next, XX our to I got over because I months. think place is for in XX possible, So one soon goal we've drive it least the Asia we've products to Pac the to the team to really as call

David Mowry

after up, back able we But traffic in their don't that to believe actually issue. perspective, know if the you awareness the out me, a it's Korea cases a I in think to practice. a think from patient what Being and is that issue, an we're comes flow patient on governor think to an an being are in anticipating I distancing clean an we've are or other patient able think for I certainly witnessed their realizing is waiting be just protect is that telling have provide capacity immediate on this Yes, it -- in participation may and and lot social geographies. add with We a kind things exposure. as lower traffic, a wipe started similar that kind of less the within ramp reside rooms there that patient factor we thing customers of This from rate rooms, a to behavior would came I and China. as we to through of online economic order within down back of impact

we become to in a they'll will be that hope light regular, little the within helps understood more more routines habitual, you, Trevor. the believe ramp we be why That's then practices more until bit it comments, these said, able and initially aggressively. and I more

Unidentified Analyst

great Great, response. you. Thank a yes, that's

Operator

you. Thank

O'Brien from Piper from Our Sandler. next question Matthew of comes the line

question, Your please.

Matthew O'Brien

Dave for new everyone. think questions. range you the they globally. in system Either $XX specifically, just outright some the my we to push Afternoon, on Jason, orders of do mentioned or about the million Thanks side $X probably those taking sight How order are kind things, have a customers do need may any may you as financing in of you when then far or and canceled of flexibility and to from perspective line as what to back re-acquire deferrals pricing, they those come do those in are sales?

David Mowry

give high we'll specifics. let and a you Jason some at that of level, kind hit me let Matt Yes,

to First thank but that than in be there here is probably they some cash know this. can't they also they part of perspective, know we're exposed deferral, that want that we either. and picture more several need, of The for being I their are a cancellation. capital to -- We all, big deals you the dialing of that is know a distributor know markets from need in they

by So this working this as had they they for deferral more believe cancellation. those quarter of vast is previously to going little probably said, I and individual that two majority decision of we or that not is be an a deals to. committed the up with the necessarily individually bit distributors and a pick like a them We're

So, we think international will rebound as well.

patient and traffic. confidence, seeing the Similar to the of US, economic a it's confidence matter

really you great about takes think, the it more that, can question second got think part and to has what through get is Jason walk I you I laid program how there. Jason. out your really And though maybe do and a

Jason Richey

think a high really consumer step think we're in these get To technology in place looking in getting online. our get I a order is for to portfolio Dave's country internationally, I some couple confidence lot and better place. which just can doing point, and lot by sure make we of capital them is so this lot the and at we're mean different we're a enthusiasm that matter by we of within key of I scenarios that now. using Yes, of back through what up a in The of this a evaluating of a just step, markets customers deferral. some back We've is the this quite of looked

potentially to their get As patients to to through coming going they they're confident pull see start more the doors, on that. trigger

our in around clinicians, our our summer mean of these or with the just, get this of just can order to sorted. it's early we distributors in maybe had hey, things discussions with I push sort until really some we fall before and feel of international So up Australia in all place, conference them a eager get and of okay, to shelter when in had going into there matter of comfortable that. very just the to saying clinicians but the pieces we a XXX to right am I more portfolio, it's do

and country help to drive in into technology volume. to find specifics terms with they working can ease to their bolster ways ways trying clinicians capital practice we're of and which in by the country them So in find utilize

Matthew O'Brien

I frame Okay. up far that for can That's help actually really for you I America. metric thought as hit you bit as except mean little then modeling North or maybe every helpful. the process, beat And just a was QX,

How of how on could April it what apologies like bars how here And QX revenue around, that. question of I you what maybe question have be North are you to of do maybe in momentum think then same my save? lot in there So is kind able a the be look we the more bad what outside side and the error just America. as much could business to one you'd good some QX, happened versus see in things, OpEx after of about

David Mowry

Okay, this to the I well on a call, the putting to so it's think time. deep really take That's one question at one the a for on thanks table. an folks out appropriate answer and

be environment, for fact were revenues of kind thing if fall our think is had and have that very it let be they to there there cautious in to relatively we low of too be your April letting the a capital to advantage think be fall quarter be pay would near I that prey is understood. You unfortunately to be more we know, from is to on my perspective, the not Even had environment. to customers. right? shutdown and a I prey take still to an because this be be far business to So careful opportunistic drop know deals a deals to transitory, We to yet for kind that few want were capital had, there the of price we as between result that type capital of mentality in think people the But capital that impact some that to to prices, still want outcome. not and of we was in be behaviors long-term

So guess I'd that's the first make. I point

which patients we didn't know close is, those shutdowns, -- things, that thing the allow prohibited from treated, second you uptake. near getting will, The prohibited also two consumables near if

physicians' set And on in us things it then service. allow the provide secondarily, those didn't the So to shelf offices.

in office all to a with very and finite is maintenance resource. going preventive sitting be have of the So equipment needing to the amount a that schedule up caught of lot is

kind two up our running make is into challenge are them sure allowing [indiscernible] our So, quick possible practice. we fold bring as triaging helping it's that to them their and here, of and the patients customers getting as

importantly, harm term And you moving sure kind anything we're long not then our most next we're doing company several our secondarily, making of probably perspective by and from to these causes is weeks. know that that through how

be problematic and then and really On kind Northern extended we bit a the place first with rate. in the of of at this kind or came and then going approach et to slow think the cetera, a three-stage extended you has came the They shelter-in-place look shelter travel I down out of would California, they then even is again. got get in shelter-in-place a in little it say became should not OpEx that side,

look the we're know just as careful. I we very the date at that we that, time don't and to to So know it's want know be coming cautious or back, very we

of or So not as ahead you careful want that went to to too yourself. get through be far we timeline, over-cut

expenses majority we that executed a to good here thought belt a we've for view but at through recovery happen in the the quarter need exercises those people that So for in tightening point we long early our our term of where vast on the gone save the with to a we've still incurred would we're May.

those sheet on of and Now bit decisions may aggressive aren't to and this that's We and more on late of little the to in part put been those were place. speed able come benefit of a really be be in But pushed in probably shown really balance our to delayed. P&L and off recovery a particular. the period the make quarter the QX going that

Matthew O'Brien

talk everybody in again, from or here. measured about real of what's how the out? half the appealing me as here launch as the XXXX And look may term what thoughts that certainly near for you indications like is as that, question is and launch about in the any it to thanks look it. year Jason worried I you of know be anyway. very third technology that commentary just second understand on will the going Can I Got you far the know on launch and will do or acne compelling a then but

David Mowry

of thinking those right, everything were XXXX a timelines We're think may our as earlier if But Jason to a Jason, it launch. imagine, that we that. much about you're kind that hit would XXXX. of you Let and hopeful be accelerate power in of top said all, doing I comments me points a would certainly, over additional have come the then you first of couple be

enroll that little us but all the kind extra However to at that day unfortunately, to optimal right? we've patients, this to practices ability that a So product, suspended shelter-in-place and sure but per in really protocol we're outcomes. delays get the time has make have you tell the point bit, necessary of of not honing that day delayed our can taken I

not be lining robust make in very durable may for this this in rolled So, and -- way out, this that the sure outcomes. do company out may into as that has silver roll a a it's we to being being us

be an launch good of folks get it acne this As market, an will good the feel very to type But to with a of this data. the aesthetic kind us into particular about approval aesthetic a the most treatment that and with we bring allows different not market clinical we just it that a is dermatologists than and believe in to depth quite clinical the be terms evident med launch but data, the having here. critical launch to products of clinical not the the could appeal successful but the just because really in

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what if tell is the in focused to his really of with that success the is low both one you right? patients form to It dermatology customer a are will, customer, going some or is on our we that patients. degrees is product. acne and friction is the high allowing for roughly that of product dermatologists Acne patient into treat significant acne core make a sure at dentist you the that I three acne for acne that and provide to there will of practice doctor, we portion our treat want put a the point, and is view this a here practice not

Matthew O'Brien

Very helpful. for all Thanks questions. taking my

Operator

Thank you. [Operator Instructions]

David Mowry

no close. guess have Well, couple of I just more can closure. a if just there comments in do are questions, I operator we

stay the and want you every on thing. First do of one of all, to right and each I to wish safe the call

support they curve flattening current for our behaviors everyone the that is want recognize do are we with amended we think long here transitory, just term the and way really We so. are to also will and been behaviors I level is of only I informed the situation the we're right? their appreciate obviously say to quickly, of customers that to ensure committed premise the to be positioned and that provide but recover Cutera unmatched to well and our the the allowed decisions around to us what's not that world. our long an long-term term has

I'm special our team a and rebuilding our to who a are resilient of very, together. alongside to are group customers committed businesses equally very we of thankful working professionals

future you to thank in and today for So tuning updates. look forward

Operator

the for gentlemen participation This and ladies does you, your today's in Thank conference. conclude program.

You may now day. disconnect. Good

Cutera (CUTR) 10 May 202020 Q1 Earnings call transcript