CUTR - Earnings call transcript Q2 2022

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Operator

Thank you for joining Cutera’s Second Quarter 2022 Earnings Conference Call. [Operator Instructions] The discussion today includes forward-looking statements. These forward-looking statements reflect management’s current forecasts 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.

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

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

In into These comparing measures underlying an to more reconciliation of measures facilitate Please addition, Mowry. the from alternatives to Dave including when a GAAP. non-GAAP measures, We Cutera’s measures operations, the considered discuss analysis particularly to operating as over period should from measures results refer financial With GAAP earnings and greater performance in can to ongoing adjusted complete we results call would transparency our prescribed to on believe non-GAAP period. to with, will not non-GAAP results turn like I basis. be these CEO, by financial along but that, release. the our financial

Dave Mowry

important Earnings this Ariel. Financial Officer. I’d for Chief I’m and Call, glad is XXXX With to you join Rohan that today’s Quarter us call you, Thank able our Second like to of me welcome Cutera’s Seth, you’re to on each update.

cash us the products add Cutera and mention market. This to period, our first-mover retire exceptionally successfully allowing that a prior convertible provides to us of recap of strong to convertible the to raised places Before debt existing quarter, cash we in the flexibility like into I with bring debt innovative and position to other financing, I’d activity dive our in an $XXX position. XX% million during

XXXX. second the to quarter now Turning

the the the an XXXX me, call, our will plans the performance, remainder our AviClear of overview remainder plans hand during provide will including AviClear our to discussing over to of of fiscal the call some call over a after of second provide of with year, a and on an date with back the update financial which second of device minutes experience updated I to so limited to along Rohan customer During highlights, that will will we I release. take along commercial expand for After our and may the the operational few the quarter access some conference our initial guidance, then half financial our he detailed details the specific I XXXX. quarter spend remarks, turn in results questions. operator review will our on with our these to your

As and and by and observations our impact have to of updates, customers in geopolitical factors the market, macroeconomic current high-level I done sharing aesthetics we expect patient previous I how will patterns. energy-based begin

demand continues no continue Cutera macroeconomic younger with mentioned continue around in signs X to pleased maintain results. that as hear to updates, intact of approximately throughout in enforced more month, We in and traffic their capital business disposable Patient further that uncertainty continued with routine you from to base reflected second anticipate level within the forward-looking environment, the fundamentals providing this resilience stable spending our individuals expanded patient And This career-oriented period expected their I seasonality. group the procedures practitioners deals service and is in market forecast. will capital this remains procedures. patient to This overall demand in access income schedules. into third shift with third quarter demand a equipment see months traffic weakening environment prioritizes remain procedures. some ‘XX demographic early selling flowed thrive quarter their with patient robust to quarter volumes. of previous beyond as each seeking by aesthetic XXXX. prevailing am robust the elective some greater say customers of our we remain as and aesthetic During will plans greater Underlying treatment patient

China on to unlike Cutera, limited the and global COVID. exposure and on restrictions to associated has now the on environment Moving update other movement Cutera. companies, an macroeconomic many its in lockdowns with impact

have within over the lows However, movement the fallen skincare months, U.S. exposure in results material Japanese multi-decade in our we X yen Japan has the as dollar. last significant period. a rate to do the exchange seen With against

Japanese that a but has of care half bottom this provide the dollars, we market currency This and our is into in resulted U.S. and will a top arrangement only when continue a a skin squeeze exchange feel reminder, the in in purchased that sold line had painful arranged second Japanese we line, As performances. the yen. both line distributed significant impact, our on Global expect rates we year. foreign in

as the me exchange revenue businesses, impact in reported period, XXXX. a conditions in of XX% Japan. XXXX. the the of driven challenges the performance prior peak line in saw growth fourth second With by the seasonal share the have aforementioned XX% growth Discounting was line year’s constant we revenue would high eclipsed a period, previous in our revenue economic In and top economic in commercial This million on quarter of and top continued a momentum highlights let foreign our we considerable rates $XX.X of offsetting and all-time capital pressures basis. a period quarter a delivered $XX.X currency these approximately over backdrop, representing the Cutera’s of million, as market total during

in company record in the During of second XXXX, posted the a revenue, $XX.X segment. million quarter we result for this capital equipment

was Our capital our led of performance family truBody by products. equipment revenue

this to equipment record revenues we In well products for period. capital strong as addition sales, matched nearly consumable within

force posting efforts product capital prior family across revenue growth half our constant to XX% to a previous basis offering execution. expansion a back was increase marketing come year’s second during the performance, million expand further intend North the a XXXX sales $XX.X around International with These compared in we half and year improved XX% revenue, of representing as from sales capital in the team the period. million, in as reported truBody over key a focus body $XX.X through period, on of well momentum in process combination regions. strong capital growth were of and sales our on XXXX. well quarter. currency growth representing aggregate equipment as our leadership sales the as forward, the from sales results contouring during continued American the Specific to productivity to continued International Looking XX% performance promotional our investments as demonstrate

currency As million sales revenue capital constant or quarter our XX% prior second of from over expected, year sharply the rebounded decline European posting period. $X.X XXXX, the in reported quarter growth first

of capital Similar year an XQ events growth equipment quarter. year-to-date New conducted third currency XX% by our the forward as pull quarter We with deals revenue the a and Australia Following in and $X.X over results, the XXXX favorable basis. benefited be timing XXXX. provided CUCF professional trends second growth during second believe during in our a constant impacted that purchasing now capital to handful trends would our have typically will from we the flowed period. prior normally the XX% These currency quarter. And European healthy posting Zealand XX% event year-over-year well, capital also revenue growth the constant growth quarter XX% markets the equipment of representing education revenue, growth on that million into represents capital distribution

As such, sequentially. back a we step in anticipate slight capital

rate the for a the decline a products $X.X that the the contributor basis. the during back largest our decline in a second to X/X previous Without reflect decrease in issues, year X/X on reported $X.X revenue buying these patterns. delivered the was run results. the XX% recurring decline quarter constant a of basis. revenue year’s recurring and half period, currency XX% quarter period the category of remaining skin constant X% represented [indiscernible] to the of to our revenue reported on a a care care and basis currency. of million on Service headwinds constant of was million Our $XX.X only comparison in from X% of our of revenues XX% revenue similar Representing as over period, of currency for defined a XXXX reflects combination reported skin we Skin believe exchange decline as economic and of and a rate an a service on period. quarter from relief will responsible the decrease as the consumable of In foreign in prior regional prior impact near-term Care, XX% million decline, while

bolstered our in the revenues $X.X of service year’s higher XX% return we prior orders growth part recover quarter. and second and million per expect million time previously, over discussed quarter to constant in products. second driven growing release. as patient the reported and of commercial base. continued by AviClear for truBody from Shifting traffic basis, strong installed half, treatments anticipate by now represent to approximately As $X the half the Consumer XX% in We book inventory expect a the on currency demand of approximately of work limited quarter expansion our and to the to material the family volumes

market we crafted for thoughtful initial a our into during call, As AviClear. discussed entry the previous very earnings

reminder, nature disciplines, dermatologists. on a a business focused the our its and include intentionally a of targeted how a perspective assumptions this positioning, customer introduction release a launch dozen technology, by end the informed the and medical model of to This few new bringing fully of product a was gaining multiple to As a very device of national bridging full disruptive at multiple launch we and the aimed best sites. limited using vastly represents test to on into XXXX. discipline introduction AviClear to different Due disruptive customer expand a

the the and As onboarding expected, but small into from amount product during gained very quarter, performance, generated of revenue processes. significant insights acceptance patient a we treatments practice product the

and energized clearance with boost field their we’ve clinical AviClear We those selling exceed the with Many us. outcomes in that to patients their confidence the seem in trials. have to increase physicians acne. into have are serve with comfort some by our our suffering data pleased from own who practice These to see progress their witnessed placements physician cases, with And early in procedure results the shared begun results made results partners their adopted to physician patients. we the already and

were of the During data smartphone with different physician We app. partners quarter over XXX Cutera the respondents individual from patients. delighted treatments especially the received second XXXX, treated after via XX the AviClear patient we our survey AviClear captured

patients no rating the today, score X. over pain ratings procedure. as convenience prompts to tolerability, overall and reported this their and have we As provide AviClear of provided. learn as treatments respondents such The average procedure of we under survey have X.X below an to proposition areas value treatment our with patient date, in with To as of well belt, out continue patients general each rated every now levels, satisfaction, treatment XXX and from procedure the ease of X

our the directly impacts patient of account One that critical practice roughly coupled queues normal with patterns, months conversion. was speed of of learnings X

our once into device the additional satisfaction. patient procedure and over build very provide that, call own the to like performance. these on their and However, is to some up AviClear ramps physicians Rohan you adopted patient utilization incorporated color to and turn confidence recognize quickly I’d With in financial conversions as practices,

Rohan Seth

Thank you, Dave.

representing our I review in in The and We GAAP that complete note encourage some I listeners of the be $XX.X the readers with reconciliation results remarks, non-GAAP in results. this release. in Total quarter approximately and XXXX, to for period earnings million to GAAP revenue discussing non-GAAP non-GAAP prepared of compared increase $XX.X second included will our million same I XX% review XX% contained release. is As conjunction was metrics constant as currency. to to earnings in the my for want an

Based face continue face in on XX% current will ongoing remainder from the continue Japan to we yen meaningful foreign exchange of headwinds, approximately we rates, the accounting currency that the we particularly for impact. expect with headwinds of the currency XXXX. Japanese throughout During to foreign quarter,

up million XX% million, was increased constant second reported the a million, Second availability. products, of were currency equipment constant XX% quarter down services in quarter XX% North consumable prior as revenue quarter X% growth up in from to Recurring constant $XX.X over American revenue revenue, in year. International for second revenue capital of reported in XX% to of in be XX% by as revenue second $X.X fiscal with XX% XX% product and period year. offset of currency as XXXX. as revenue currency. points $XX.X Services XXXX skin skincare currency. and the XX% the down capital defined the These care driven XX% same the down constant our margin and gross of and a of service million, continued global consumables, Non-GAAP in down basis currency. last quarter, quarter our was million year compared include X% impacted was reported a reported reported gross down XX.X%, as $X.X of declines down The and over $XX.X as by the parts in in well representing profit decline lines $XX.X XXX the for and decrease by prior second was as equipment approximately to million, decrease partially constant

points foreign points an approximately the an quarter second approximately headwinds. XXX of increase would exchange additional as have in basis in XXX point margin to quarter gross XXX impacts compared the acne been last same Excluding basis basis XX.X%, year. program non-GAAP The and

million with non-GAAP million are While year. last fixed the cost macroeconomic inflationary second well as was million leverage $XX.X the Total million we AviClear. offset for driven by device. we for able XXXX year, by quarter chain expenses period for operating continued period within at studies. compared the the sales level experience our and period supply number them of the $X.X AviClear quarter driven increased launch quarter to same improvement to of ongoing the were in as additional did expenses Non-GAAP million acne our this $X.X travel as pressures increased expansion million the year, clinical million R&D $XX.X the as to second marketing $X.X of last $XX.X well were for second base. initiatives FX quarter, in related and in on $XX.X cost $X.X expense commissions, million expense with during XXXX in was our for gross sales to and as of margin higher associated same to expenses compared force, Non-GAAP the as headwinds for same Included well last compared investments XXXX

$X.X second of XXXX year, expense to and the $X Finally, for period quarter in count. non-GAAP G&A by the was head driven last million in inflation million same expansion compared our

the to a non-GAAP a our XXXX, income, $X.X operating we $X.X as was in million adjusted of of prior of quarter EBITDA second which to refer profit year the For loss period. compared million

As year-over-year of our significant AviClear was investment anticipated, in most the basis. driver EBITDA decline a on

quarter exchange Excluding for impacts year second program and million, the over been XXXX acne of $X.X have million EBITDA million. would foreign $X.X headwinds the adjusted $X.X prior of of

and in million on in I -- marketing, our within non-GAAP of on program, earlier, As acne sales and our spent of OpEx embedded is is $X.X acne remainder spend which is mentioned the XX% the majority our R&D.

our were tax changes there to significant or material position. Finally, no

Turning now to our balance sheet.

announced was quarter. for primarily $X net done XXXX this million, convertible debt of $XXX.X convertible XX% at $XXX.X in the of which and first of million, to of driven to marketable in after cash, million of in dilution issuance we offering debt accounting quarter million million incremental sequential mentioned the Dave addition, the the cash quarter, that of our cash calls increase during of extinguishment a million $XXX.X securities $XX.X costs. million million raised the ended with approximately May compared we As notes $XXX The our $XXX.X With end by offering. at raised earlier, and the limit $XX.X capped from were will

not business and the initial burn place We continue as the balance the positioned for to AviClear. of a inventories sheet launch launch place, growth do supporting in be strong successful approximately are remainder consumption a With of build AviClear. linear $XX our cash we expect We we continue to to year. cash be expect to while ensuring to million well of

our an outlook Before with I year I Dave, update revenue. Starting turn full would back XXXX. on the you call with provide to over like for of the to

million of constant impact implying our $XXX reiterating revenue its million, $XXX annually, unprecedented guidance XX%. exchange device entirely include guidance to growth We are does AviClear currency with continue from of of of This headwinds absorbing we $XX XXXX commercial not foreign to million limited XX% release. the as the

pressures around and adjusted a to on continued FX of the now full Moving from $X adjusted million further EBITDA. worsen $XX have the expect to bringing to FX year full impact year we impact on million. approximately EBITDA,

of I to to the to accounting in the expect these in pressures, most now Therefore, guidance As these million. a are range $XX respond to continuing are million headwinds. to few business minutes offset we acne adjusted related we would discussing model a spend the full we reaffirming greater of business, be detail. $X to year our EBITDA like and and

be innovative reach his innovative clinicians launching under will selling alike. this The ratably licensing As an Dave will recognized mentioned instead with the remarks, revenue the device to are of earned. be and model be treatment business revenue we recognized we over equally we and licensing term collect fees in capital, period as X-plus as its lease of years. product the maximize Instead a over of will patients the

sheet we will Cutera’s As the PP&E lives. remain line, will depreciate units units over balance the useful their on these on

fees be and recurring the considered revenue. licensing Finally, will treatment

and revenue quarter, the During second was recognized $X.X category our was million. the acne-related within approximately consumables

that, Dave. As now line the will separate for the to grows, back I intend pass business call a acne. we to With over create

Dave Mowry

Health previously entire this across regulatory with North launch novel risk the our recent end We approval will Rohan. that North AviClear’s clearance eliminates to model drive transformation secures Cutera device of the the XXXX. at in to unprecedented AviClear footprint. American in prepare our you, believe its and growth the XXX(k) FDA business the continues for of additional full the and accelerating Thank ability launch product by secured business. Canada Cutera, any of combination America

over placements planned continue our for As expect each with accelerate significantly placements the rollout, we XXX third quarter we XXXX. of to quarter

to upon XXXX. those expect throughout in further increase footprint scale quarter the device and We placements our fourth

work intend closely their we conversion Additionally, processes. our patient accelerate to to customers with

We are to performance the Ariel? back of to the balance the a open the delighted strong core call opportunity. the backed AviClear the be I’d the by and a to by to building to questions. XXXX, of in midpoint sheet by strength of over energized call at your strong our momentum like business such fortified that, conference operator With turn position

Operator

first comes from Jon question Our Instructions] Block [Operator from Stifel.

Jon Block

just Dave, base maybe business. I’ll start the on

You pipeline mentioned X months. of a

think I from that’s largely unchanged in XQ. talk track your

talked the any about seeing to bit been sequentially you trying pipeline? us about sales more I’m witnessing what questions You step you, to for robust, because down from follow-up. a push a is I’ll lot little just or from incoming talk to weakening you capital there pipeline, capital, environment. Are the any it ask the then of push And XQ trepidation normal. obviously, hearing environment. from of the which the reps? Does remain just not Maybe you’re just you’re to investors overall a just docs? there’s a But due

Dave Mowry

And of point. and And some to to understand at occasionally kind remotely physician certainly hearing maybe asked on bookings on thing going on that what’s we cause of I we’re cancellations see would are be their cancellations we the us nervousness things -- that in to routinely regularly not come indicative And patients -- is them anything we even customers No, this the backdrop the have. forefront. other concerning the to the sometimes question because be the would how economic them. going? about they’ll And for practice, backdrop with what’s our check totally that

traffic, the volumes very that certainly think about makes us and treatment. very, seeking patient feel underlying of good business patients about the I

believe we continues grow. it fact, In to

don’t a concern I environment remind we’re I always provider for only financing the But folks out we credit What we we would are watching, often. Jon, the like? customers. are provide think what concerns. we’re leasing generally these like speaking, little But always that generally, bit why some being want little have physicians. and paranoid, does And more like? hold look to that they a just check we said, the look looking so -- we’re higher-end look and What I bit of there is a and capital higher-end that’s more of do does to

Jon Block

the All question, second well. AviClear. I’m I’ll to good. paranoid over shift as And maybe

next practices about And longer-term specific some for more for just across just steps, We’ve acne? seemingly Or of to AviClear the So maybe it that believe acne maybe is Is sites side scarring are data. post-market the for you running the end versus the tack on at take come that you it enrolling Is at running data? talking are the I things? studies. to it, high on, separate can those are other? end? to the What a doing step that Dave, if utilization one are that from lower back, the call they differently what are the versus seeing of scale

Dave Mowry

Yes.

Sorry, I just notes, questions, didn’t so was forget I your Jon. taking

them order. take in let’s So

ongoing around talk studies. first Let’s the

prepared comes that I having the think and We and better getting in there our than remarks in just them in And the from are did physicians it of our even seeing The treatments. are the we continue that really our it did experts mentioned beyond about we hands monotherapy during out think that results quite just trials. bullish. suggest to we feedback get, that

great So results. seeing they’re

this and conference process med derms the great confidence was call as So this kind X you fact, In there’s with daughter, bullishness, will, I in his the on in was earlier treating of practices. right? with aesthetic person one of both is physicians. a well them great if of And week as which own

happen. really has that us and think I happen it’s quite to going going made how frankly, in bullish So to what’s

about through many you this something In timing of that months. X you’ve certainly booked got think, is low, this some I and process. as learned the concern, out based is the talk the people think high cases, I are we’ve

back they send X So think when home before come or X.X back scheduled in their somebody to that it, about before in. patient comes come AviClear then and the visit months it’s months present to and they

that of So we’ve seen of in big ramp. that delay there’s a pickup, kind that that kind

and ongoing working already room effort rate assumptions it and different to sitting lead in of they how are waiting and understand we think So the are believers affect the our I in med the to some that we’re some different can and full to ones physicians and becomes gap adopters that some that of a there’s other In adopters. got ones the practitioners to at mid-level traffic firsthand. conversion cases, practices adopters, we’ve and are of able isotretinone And always curve was with the with probably other really that some belief time. highest greatest maybe and that success And late from that the that start where we the fundamentally adopters have treatment patient product. the have And to greatest these AviClear. the having see early quickly, very, harvest converting derms are bell very they’re larger which early patients

Operator

Our comes Cooley next question Stephens. from Chris of

Chris Cooley

on seeing that you on seem just give could Jon’s back with greater you’re questioning follow coming of be of Could to contouring? focus the and line additional procedures If of you the types current these I type regards color environment to what up Are some seeing in facial to maybe there Are some demand? us procedures. there. maybe just body economic kind

cosmetic COVID then those is a cosmetic that med Just be being location just that. derm may around out a opposed And pandemic application little diversified type at throughout have med And a to up maybe some to parse done into practice more high-end further clarity a spa, demand? economical as types I to procedures want that more that follow-up. are what’s of trying bit the a or driving predominantly get if step in

Dave Mowry

Look, strong strong the Okay. entire is been, is exceptionally that think remarks portfolio, our in Thanks, across the goes to the the And prepared frankly. stress tried it’s of as this one I and view. quite Chris. I pipeline ever as business points is in

seen the truBody and certainly, and on side will. and you body truSculpt treatment and question volumes, portfolio, uptake our consumable I if your in in the continued about we business, So think uptake those the the we’ve about track as wonder of particular, portfolio, the great

Secret and presence feel to look strong they trying as and best to looking in see also Zoom and to next, look invest their the best best continue use when their they’re they if cubical to their they We work, want in even go as RF from the Zoom themselves. people into still one

say of truBody the I the laser interest great in a had Zoom, to that, the and work that lot would across Secret So -- an and in uptake. microneedling, seen probably with vascular addition XLV had But we’ve board.

not and indication is effectively into med think AviClear, is the acne, we device in a obviously, you the Now like I rosacea, you only to but as about in of AviClear to to with pathology. treat would access rollout derms, which as I treat get allows think out to large another point thing one XLV you the the combination having AviClear

that market, to bit XLV effect specifically we around into there’s with AviClear little derms. a So potentially the bring believe a more med halo of the

Chris Cooley

lot potential the this. the XXX-plus that further think, were in third new just of the curious, I there earlier go-to-market said commentary well we all buzz as of demand. when been in say, in I on back of quarter aspect in adoption clinics, you I’m with big what imply fourth acceleration backlog the in quarter And out, this quickly the you’re a would color. know as fine-tuning of a of are out-of-pocket should I plan, initial third AviClear. appreciate still, was on you’ve ASLMS patient I kind locations kind I that the seeing the think pretty year. similarly, terms then a of rolling around this just at seeing And maybe the

an just So from to into the you as half perspective. can next address think you come about start to first inventory year that trying of how

Dave Mowry

Yes, great questions. series of

seen bit first with asking I to used patients derms, the their comment amount. So some believe that frankly. pushback higher beforehand are learnings derm finish little have to didn’t the is the of amount certainly across pay. concerned people comfortable physician, more we’ve into than bit about. get too chance early pay around would we’ve with intervene your that that pay talked a point get they price had be med every me our think ultimately indicated I on they been and And to who the probably the was patients the it pocket we’ve willingness more with those of We much, that to at market with are, the are that line. accounts start than able that their could the And patients And point saying med patients let process little some research them willing do think patients out really staff converting that. we not a that had one or the it to and up that get and to of and that price we’ve to

So long does we believe accelerate It in create we the thus to it process. really can these don’t And term. we’ve far of practices learnings on through adoption. that to assembling be We something too. change. train little through bit think point the a they and does in that and adopt some people limited it’s intend can quarter hesitation third early our learned and net fourth in to imply help the those commercial of release But

rollout fundamentally the in half view aggressive So this. we’ll have a that And back that that, be gone with of lot of help accelerate financing patient that being the XXXX. in will said, also the more we into

demand, to adopt to So and the trying the access and hindrances demand. kind know of have so it’s and on make because I pent-up away treatment. true. we obstacles to think backlog has everyone the frankly, all all this totally the Kind is of overwhelming, take of there results been the clinical moving resistance to We sure want that pent-up that we’re to

quarters. X leads quarter lot help for to there’s placements going inbound and insights out more lot the have we term. slow us of playing We that rollout long some would suggest to a effective it we’re in we’ve what But understanding the not this make. a this date teasing more And taking a and could are more or in understood be

the company this the We’re long-term transformation playing device. with of

bit We’ve So to view the quite taking time a my correct the learning is is bit. approach do right it learned more a already and here. little

I forward in apply all some applied learnings really position year. we those lease see than this the later full strong with end And think in fourth the a commercial You’ll of and quarter. should of no be going a to third of those

Operator

[Operator Instructions] Our Chen Cantor. Louise question next comes from of

Louise Chen

quarter. Congratulations the on

for to do what we wanted you you, early? patients? metrics still to repeat question get that lot think Or about I had you the is how at exact last as for too And XXXX? customers? is And for I cost to magnitude out-of-pocket ask look a of this is have any question So sales the

Dave Mowry

my knowing always, hand pencil appreciate you Thanks, Okay. And to in I question. a multipart Louise. give you’re quickly had very as I that going

collecting and along you. any of thank data do that Cutera’s and track. metrics is every a We in amount we’re way. in exceeds far monitored. launch of you So lot tell have launch that the site I energy other that focus, can we Each this the history

Our individually. kind of devices are tracked

we in mind, a they’re it’s where can or procedure. firsthand X to each the happening and -- when happening Keeping being third but there’s process, if starting the patient we see only treatment patient how not and So their in treatments whether second you will. a treatments point know are to their patient every

we that a when first treatment it’s and treatment. repeat track when detail. And can we know it’s So

do In costs. set terms and we we of the won’t cost, That’s do. we something don’t something can’t

on customer that adjust have the with need very of in procedure set at release. to procedure. to associated as initial upwards and this monitor if And improve. continue we our kind be, revenue $X,XXX minimum this expectations point of for value at continues our we’ve And we’ll our base their been However, clear that a conducting with

at not financing, further. So that will this think with payment. reduce that lot seen from of point, side we have of we patient the a whole even anxiety And

and greater us. XXXX, that placements not have barrier aggressively. a itself device not But that we’ve with we terms slow capabilities the be for very to the and of access manufacturing been be this We’ve and have ramp this to in and very, made steady magnitude, the external year in to this year. I In arrangements ramp think and capacities we should and -- slow steady to intend should

And can to itself of pay terms ramps, in expand obviously obviously, In in the greater footprint. will the costs. continue and hire for we sales as that this capacity organization, and variable a get

in So aggressively of to on. to I kind those ramp an we’re [indiscernible] in going able optimal think what’s to fashion And But year accelerate we what that to pretty this years. to have we all be years. that’s in do the ability out right in is most important be focused get of it this

Operator

like question-and-answer closing the any back for would to the conference management concludes This session. to over remarks. I turn

Dave Mowry

this. much, Thank consumable right a the the and with business. With in great that headwinds thus couldn’t with now want holds what just be This been be of expectations the we conversation issue now us stronger that is future believe of right leave excited I to core AviClear given both transient that, than are We on you it we has where this any is far business have And side the capital never through Ariel. for FX very what we’ll the results great, company. and move we have. quickly. for more to

we So for following. an be healthy, and third time, and in update the results thanks with forward until you to such quarter giving those look

Operator

This call. concludes conference today’s

and You a may your pleasant you disconnect Thank for participating, lines. have day.

Cutera (CUTR) 7 Aug 222022 Q2 Earnings call transcript